SPE15090 - Duty management system and closing stock balance systems: risks

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The key weakness of all duty management systems is that they are not maintained on a real time basis but rely on data transferred from commercial systems (usually overnight) for updating the next working day. With duty management systems the duty point and entry into records Entry In Declarants Records (EIDR) purposes on removal will occur at a point within the commercial system after which the goods have been removed.

There is a risk that validation by the duty management system will identify an irregular removal (for example, no valid import license or preference certificate held) after the goods have been released. The warehouse keeper must therefore have controls in place to prevent ineligible removals. It is also important that the stock module within the duty management system populates its stock account at the same time as the commercial system.

Also see Special Procedures generic guidance on Risks, particularly in regard to the updating of the system in respect of returned goods.

Note: Northern Ireland (NI) customs authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979.

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