Guidance

C118-1 — section 1

Updated 22 January 2024

Application for Authorised Economic Operator status

For all forms you will need your Economic Operator Registration and Identification (EORI) number that starts with GB.

To complete this form you will also need the following information.

1.1 Internal structure, business ownership and management, and third party locations

Details of those involved in the application to prepare for Authorised Economic Operator status.

Include internal departments or management and tell us if you have involved customs, consultants or third parties.

If the business is part of a group, provide a brief description of the group and details of any other entities in the group that:

• already have Authorised Economic Operator status
• have already applied for Authorised Economic Operator status and are currently undergoing an audit

Provide details of the companies within the group, including what you share with these companies, for example:

• computer systems
• common standard security measures
• common documental procedures
• premises

If the business has been established for less than 3 years due to an internal reorganisation of a previously existing business, provide details of the reorganisation.

Details about the people involved in the ownership. If there are:

• UK nationals involved in the ownership include:
  • full name
  • National Insurance number
  • percentage of shares held
  • roles held
• non-UK nationals involved in the ownership include:
  • full name
  • residential address
  • date of birth
  • percentage of shares held
  • roles held

If the person responsible for customs matters for your business is a:

• UK national, give their:
  • full name
  • National Insurance number
• non-UK national, give their:
  • full name
  • address
  • date of birth

Details about the number of locations involved in customs activities and for each site give:

• the name of site
• the site address
• the telephone number
• the email address
• a brief description of the business conducted
• approximate number of employees in each department at the locations

If you have more than 5 locations involved in customs activities, only provide details of the 5 principal locations involved in customs activities, and addresses for the remaining locations involved in that activity.

You must provide full details for new locations involved in customs activities during the Authorised Economic Operator (AEO) application process.

Details about the number of sites where third parties execute outsourced activities for the business, including:

• name of location
• third party location address
• telephone number
• email address
• a brief description of the business conducted

Details about businesses you are associated with that you buy from, or sell to such as a:

• parent company
• other business in your group

This is to determine whether you trade (goods, not services) with your associated businesses or not. For example you must provide full details during the authorisation process of all your purchases from your parent company based abroad or if you import on behalf of and distribute to associated businesses in the UK.

Description of the internal organisational structure of your business, including the tasks or responsibilities and the management chain of each department.

You also need to provide:

• the full names of senior management of the business (for example directors, heads of departments, head of accounting) and the head of your customs department
• address
• date of birth
• National Insurance Number
• a brief description of the deputy arrangements – these procedures outline the arrangements for dealing with temporary or short-term absences of these staff

The number of employees in the business.

1.2 Volume of business, annual turnover and accounts, declarations estimates, duty and VAT

You will need the following details for the last 3 sets of completed annual accounts:

• accounting year end
• annual turnover
• net profit or loss
• estimated number of import declarations
• estimated total value of import declarations
• estimated number of export and re-export declarations
• estimated total value of export and re-export declarations
• estimated number of special procedure declarations
• estimated total value of special procedure declarations
• estimated total value of customs duty declarations
• estimated total value of excise duty declarations
• estimated total value of import VAT declarations

If you are a new business and have fewer than 3 full sets of accounts, provide details from those which have been completed. If you have not traded long enough to have produced any finalised full sets of accounts, state ‘none’.

If you use storage facilities owned by someone else, details about who you rent or lease the storage facilities from.

Brief description about any possible structural changes and supply chain changes in the business in the next 2 years.

Any known future changes are the changes which may influence the organisation of the company, the fulfilment of the AEO criteria or the risk assessment of the international supply chain. This may include:

• changes in key personnel
• changes to your accounting system
• opening new sites
• awarding new logistics contracts

1.3 Customs formalities, tariff classifications, value and certification and anti-dumping or countervailing duties

If someone is representing you regarding customs formalities provide details including:

• their name
• address
• EORI number
• whether they represent you directly or indirectly

If you represent other people in customs formalities give details and whether you represent them directly or indirectly.

Details about the tariff classification of goods, including:

• how the tariff classification of goods is decided
• name of person who makes the decision

If you use a third party to classify goods show:

• how you make sure that this work has been done correctly and according to your instruction
• whether you maintain a product file in which each article is linked to a commodity code with the appropriate duty and VAT rates

Details about the quality assurance measures in place, including:

• notes on quality assurance measures taken
• regular monitoring and review of the effectiveness of the quality assurance measures
• recording of any changes and notifying affected staff of those changes
• resources used for tariff classification – show if you receive rulings or decisions from HMRC
• how, by who and how often classifications are reviewed and your systems updated, as well as whether you notify anyone affected by the change, for example, customs agents, purchasing staff
• customs value quality assurance notes, for example plausibility checks, internal working instructions, or regular training

Be prepared that during the audit process you might need to make available:

• details or product files of your products and their relevant commodity codes and duty rates
• the resources and information, for example, up-to-date Tariff, technical information you usually use to classify your goods

Explanation about how the customs value is established and who establishes it. If you use a third party, tell us what quality assurance measures you use to make sure that this work has been done correctly and according to your instruction.

The quality assurance measures should include:

• the evaluation methods used
• how valuation statements are completed and submitted when required
• how the customs and VAT values are determined
• how freight and insurance costs are accounted for royalties and licence fees related to the imported goods payable either directly or indirectly by the buyer as a condition of sale
• arrangements under which part of the proceeds of any subsequent resale, disposal or use is paid directly or indirectly to the seller
• costs incurred by the buyer (but not included in the price) in respect of commissions or brokerage (except buying commissions)
• costs incurred in relation to containers and packaging, goods or services supplied by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods

Description of preferential and non-preferential origins of goods imported into the UK (and Northern Ireland if your authorisation covers Northern Ireland).

Details about internal actions have you implemented to verify that the country of origin of the imported goods is declared correctly.

Internal actions would normally include measures on how you make sure that:

• the exporting country is entitled to give a preference and that the goods attract a preferential rate of duty
• the direct transport or non-manipulation requirements are met
• a valid and original certificate or an invoice declaration is available when preference is claimed
• the certificate or invoice declaration is appropriate for the consignment and that the origin rules are met
• there is no opportunity to duplicate use of the certificate or invoice declaration
• import preference claimed within the period of validity of the certificate or invoice declaration
• original certificates or invoice declarations are retained as part of the audit trail in a safe and secure manner

Details about how you issue proof of preferences and certificates of origin for exportation.

Your approach should consider the way to make sure that:

• goods qualify for an export preference, for example, meet the rules of origin
• all necessary documents, calculations, costing, descriptions of processes to support preferential origin and the issue of a certificate or invoice declaration are retained as part of the audit trail in a safe and secure manner
• appropriate documents, for example, certificate or invoice declaration are signed and issued timely by an authorised member of staff
• invoice declarations are not issued for medium and high value consignments unless you have been approved by Customs to do so
• unused certificates are stored safely and securely
• certificates are presented as required to Customs at export

Information about if you deal in goods subject to anti-dumping duties or countervailing duties.

Details of the manufacturers or countries outside Great Britain (England, Wales or Scotland), (or the EU if your authorisation covers Northern Ireland) whose goods are subject to anti-dumping duties or countervailing duties.