Questions and Explanations

What is an AAD Form?

This was replaced by the EMCS

What does CFSP stand for?

CFSP stands for Customs Freight Simplified Procedures and is a simplified electronic way to clear imported goods.

• It can be used at the frontier, when goods are entered into or removed from a customs warehouse, a traders' designated premises, or when they are moved to or from a Free Zone.

  • An approved area where imported goods may be stored without payment of VAT or import duty.
     

CFSP allows authorised traders to gain accelerated removal or release of most third country imports (from a country outside the European Union) by making a simplified declaration.

What does FSD stand for?

FSD stands for Final Supplementary Declaration.

• At the end of each reporting period, a FSD must be submitted to confirm the number of SDs finalised and the number actually required.

• The FSD is a control message that is used by Customs to provide systems assurance that the trader has submitted the correct number of SDs for each reporting period

• The trader must declare within their FSD the number of SDIs and SDWs actually finalised and the number of each due.

What is EDI? 

An Electronic Data Interchange (EDI) refers to the structured exchange of documents in a standardised electronic form, between organisations, directly from one computer application to another.

ACQ VAT Status?

In order for Acquisition VAT status to be achieved for a movement of stock the following  criteria will all need to be met:

• The Country Whence Consigned (CWC) needs to be an EU Country, however this does NOT include GB.
   

  • The Customer who owns the stock needs to be a VAT Registered customer. 

  • The Stock needs to not have had the Owner Changed in the UK. 

  • The Customers' VAT registration Number needs to match the Excise Deferment Owner's VAT Registration Number.

DAN (Deferment Account Number) Prefix Calculation

The Deferment Account Number (DAN) prefix on a W5D will be set based on the below criteria:

'D' - The Declarant on the W5D would need to be both the Warehousekeeper and the Proprietor.
'C' - The DAN is that of the Proprietor but the Warehousekeeper has a Standing Authority to use the DAN. The Warehousekeeper has been set on the deferment to have an Unlimited Period..
'B' - The DAN is that of the Proprietor but the Warehousekeeper is enclosing a Specific Authority to use the DAN on this occasion. The Warehousekeeper has been set on the the deferment to not have an Unlimited Period.
'A'  - The DAN is that of the Warehousekeeper who is not the Proprietor of the goods.

How Bond Sets the VAT status for W5/W5Ds

The logic for the VAT Status' are set as below:

• None-Due.

  • The CWC on the stock is GB.

  • The Owner has not changed in the UK.

  • The Customer is the supplier of the Goods.
     

  • Acquisition VAT.

    • The CWC on the stock is an EU country but not GB.

    • The Customer is VAT registered and the VAT registration number on the Customer matches the Excise Deferment Owner VAT number used for the transaction.

    • The Owner has not changed in the UK.
       

  • Deferred VAT.

    • If neither of the above conditions are satisfied then Deferred VAT status will be applied.