Research and analysis

Customs intermediaries wave 4 executive summary

Published 29 June 2023

1. Background and methodology

This summary report presents the key findings from the fourth wave of research with customs intermediaries, conducted on behalf of HM Revenue and Customs (HMRC). HMRC commissioned Ipsos to undertake research to understand the size and characteristics of the customs intermediary sector. Conducted over 5 waves between June 2020 and March 2022, the research explored the sector’s preparations for EU Exit, the end of the transition period, and new customs processes that are in place. The topics have varied each wave, with the overall aim being to measure change in customs intermediaries’ capacity and confidence in response to EU Exit policies, as well as to better understand the population in terms of structure and services provided to traders.

The research focused on customs intermediaries who already made customs declarations on behalf of traders (either in-house, through outsourcing to another customs intermediary, or a mix of both), or who said they intended to do so once full customs declarations were required on all EU trade (again, either in-house, through outsourcing to another customs intermediary, or a mix of both).

The Wave 4 survey took place between 23 September and 9 November 2021 and consisted of 344 telephone interviews with customs intermediaries. In addition, 15 follow-up, qualitative in-depth interviews were conducted via telephone between 25 October and 8 November 2021. Please note, controls changed shortly after fieldwork began on the Wave 4 survey. The findings in this report were correct at the time of asking but may not reflect the current situation.

1.1 Key findings

• The data suggested a levelling off between the volume of current and anticipated future customs declarations. The proportion of customs intermediaries expecting to make additional customs declarations had fallen (Wave 4: 57%; Wave 3: 70%; Wave 2: 85%), and customs intermediaries were divided on whether they would increase their capacity for completing customs declarations (45%) or keep it the same (52%).

• One-quarter of those making customs declarations did so on behalf of goods moving to or from Northern Ireland (27%). This consisted of 25% doing so for goods moving from Great Britain to Northern Ireland and 10% doing so for goods moving from Northern Ireland to Great Britain. Low demand and the perception that specialist expertise and local contacts were necessary made this an unappealing option for intermediaries, relative to other EU or rest of world (RoW) trade.

• Awareness of the new Customs Declaration Service (CDS) was fairly low. Around 2 in 10 did not know when they would start (16%) or complete (23%) their transition, and the qualitative interviews showed that customs intermediaries had not yet looked into CDS or how to prepare in detail. Most intermediaries who were aware of CDS and planned to use it were confident about doing so (64%).

• Customs intermediaries’ confidence in understanding the new requirements of EU trade remained high (78%), but barriers to making additional customs declarations had increased (reporting no barriers – Wave 4: 40%; Wave 3: 53%). Though modest, more intermediaries mentioned barriers with recruiting (11%) and training staff (8%) at entry level than at Wave 3 (both 4%).