For UK businesses trading internationally, customs documentation errors remain a constant threat to efficiency, profit margins and customer satisfaction. Many of these are easily avoidable but continue to cost businesses time, money and credibility.
HMRC have licence to fine shippers up to £2500 per incorrect declaration, and when they find one error, they are likely to go back through old records. So, it really is vital to get right.
In this article we have highlighted 8 of the most common customs documentation mistakes, according to our compliance team. Read on below to understand what they are and how to avoid them.
A surprisingly frequent error is the absence of signatures or formal declaration statements on paperwork. Declarations, origin statements and certificates often need to be physically signed and dated by the responsible person. Export Health Certificates (EHCs) in particular must have each page signed, or the shipment will likely be rejected at the border.
Missing signatures disrupt clearances and invites extra scrutiny, meaning your goods are far more likely to be held or inspected. A final documentation review before dispatch should be standard operating practice and will go far in avoiding this issue.
The commodity code dictates everything in customs. It determines duty rates, licences needed, restrictions, and documentary requirements. Using an incorrect code can mean paying too much or too little duty, which of course leads to fines, retrospective duty demands, and further scrutiny.
Even a minor error, such as confusing knitted and woven textiles, can trigger investigations and significant additional cost. That's because quite similar products can have wildly different duty rates applied. Checking your products carefully against the UK commodity code finder is essential.
Another recurring issue is vague product descriptions on commercial invoices and packing lists. Customs authorities require detailed, precise descriptions that identify the goods properly, not generic terms like "parts", "equipment" or "clothing". Descriptions must include the type of item, material composition and function.
“If the documents are selected for a check by customs, that is one of the first things they will point out. They need to identify the product and if the description is one simple description or is a generic description, not really helping anyone identify the product, then obviously that causes delays.” Jamie Craig, WTA Customs Consultant
The declared value of the goods is another high-risk area. Customs authorities expect a true and accurate customs value. They also expect the correct customs valuation method to be used. In the UK there are 6 customs valuation methods. Product valuation must not only the include a fair price but also other elements like freight and insurance.
Ensure you can demonstrate the valuation method used is the correct one in the event of a challenge.
“A lot of the time people just use valuation method 1, where there is no relationship between the buyer and the seller. But often with large, multinational companies there is a bit of a grey area.
So, you could have the European arm of the businesses sending goods to the British arm. Then you must prove really that there is no relationship between the parties which has influenced the price. So, you have to question if valuation method 1 is really the best one to use.”
Jamie Craig, WTA Customs Consultant
If you are claiming preferential tariff rates under a Free Trade Agreement, missing or incomplete origin documentation can prevent the claim. The most common errors are forgetting to include the REX number or making incomplete origin statements.
Without a compliant statement of origin, goods will be delayed and then possibly have the higher non-preferential WTO tariff applied.
An origin declaration must state that the goods qualify under the relevant rules of origin and must quote the exporter’s REX number where required. It must also be dated correctly.
For full details on the easiest way to prove origin location, see our article below:
Another regular source of customs issues is the poor use of Incoterms.
For example, exporters can sometimes opt for Delivered Duty Paid (DDP) terms, in order to provide the best service to their buyer. However, under that term, the seller must complete import clearance in the buyer's country. This is difficult (or impossible) if the seller has no tax registration, legal entity or appointed agent there. The seller will struggle to find a broker willing to represent them without a legal entity in the country.
Therefore, unless you have fiscal representation in the buyer’s country, an incoterms such as DAP (Delivered at Place) is a far safer choice. Whilst it places all logistical responsibility on the seller, the customs on entry into the destination country is the buyers job.
If you are a buyer, be sure to clarify the seller is able to complete import clearance if they are offering DDP terms.
For shipments involving food, live animals, or plant products, EHCs are mandatory. However, errors on these certificates continue to cause a high volume of rejections. They need to be filled out correctly as these type of goods naturally attract a higher level of scrutiny from officials.
Full coordination with your veterinary officer or plant health inspector before despatch is critical. Seek expert advice to ensure compliance if you have concerns.
“One example we come across quite a lot, is the EHC product commodity description does not match what is on the invoice, or CHED, or both. That’s something customs will challenge, and you have to rectify at the border.”
Jamie Craig, WTA Customs Consultant
Finally, a consistently overlooked problem is poor communication with customs brokers. Businesses often assume that simply forwarding an invoice is enough.
Brokers rely entirely on the information provided. If descriptions are vague, commodity codes are missing, or preferential claims are not clearly instructed, further clarification is required. This wastes time and causes delays.
Legal responsibility for errors remains with the importer or exporter, even when a broker has been hired. Clear, comprehensive instructions must be standard. This includes:
Failing to provide detailed instructions exposes businesses to unnecessary risk and financial liability.
Documentation errors in customs are the most common cause of delays in customs. But they are largely avoidable. Poor documentation slows down the clearance process, increases operational costs and damages client relationships.
“All these kind of things result in delays and increased scrutiny from customs. So, it’s really key that you are proactive, and you have all this information prepared well in advance.” Jamie Craig, WTA Customs Consultant
Businesses must treat customs paperwork with the same rigour as any other commercial documentation. Thorough internal processes and skilled use of customs brokers are essential.
At WTA, we offer highly specialised customs consultancy which can save you thousands of pounds in inefficient processes and errors. Reach out today to find out how our experts can help you.