HCOTEG132500 - Central accounting points: Traders' systems and records

Traders must keep records as specified in Notice 179. They are to be maintained and produced upon demand to an officer at all reasonable times.

The CAPO needs to be satisfied that the trader applies sound management checks to record keeping systems to ensure their accuracy and that the procedures adopted adequately protect the revenue and enable warrants and returns to be completed properly and on time.

Trader systems in operation at the CAP must ensure that:

• all removal/liability schedules (including ‘NIL’ returns) are received from each delivery site, prior to submitting the HO10;
• returns are thoroughly checked prior to submission to the Department;
• returns are submitted on time and that payment is made by the due date;
• all claims to duty credit or rebate can be substantiated by documentary evidence and a visible audit trail;
• the deferment guarantee is allocated where necessary to authorised warehouses only and any changes are promptly recorded;
• the overall guarantee level is monitored, timely adjustments made where necessary; and
• the deferment guarantee cannot be accidentally exceeded.

Further information on the retention of records may be found in Notice 206.

See Table M HCOTEG213250 which illustrates the flow of accounting documents to the Trader’s Central Accounting Point (CAP) and hence to duty payment and to the CAPO (tax specialist).

For further information on ‘Traders Accounts, Records and Returns’ generally also see HCOTEG140000