The main EU customs form used in international trade is the single administrative document (SAD), whose UK equivalent is HMRC Form C88. It provides proof of authorisation to import or export for the country of destination, and enables traders and agents to comply with customs regulations. It also tracks the movement of goods through customs.
Once a consignment has been cleared, the SAD serves as evidence that a customs declaration has been properly made. It also serves as a tax declaration document for paying taxes and duties, and as a transport document, helping to expedite goods shipments.
What information goes on a single administrative document?
A SAD describes the goods being imported or exported, along with their HS commodity code, their quantity and value, their origin and destination, and their customs procedure code, which determines how customs will deal with the consignment’s entry into the country. Codes entered in the SAD’s various document fields need to align and connect with one another, at risk of penalties and delays, so guidelines should be closely followed.
Digital communication and SAD
Traders can electronically share the information contained in a SAD by using freight forwarder or advanced CTRM software that connects to customs digital systems such as HMRC’s Customs Declaration Service (CDS), formerly CHIEF. Manually completed SAD documents are also accepted. Customs allocate a master reference number (MRN) to each single administrative document when they record the status of the accompanying goods. Status indicates whether the consignment been cleared, rejected, or if queries have been raised.
Who needs to complete a SAD?
Traders don’t need to use a SAD for movements of goods within the EU, unless the goods are of non-EU origin. A SAD is required for trade with third countries however. When goods are transported through several countries before reaching their destination, a SAD must be filed in each transit country.
HMRC Form C88 and Form C79
HMRC Form C88 needs to be completed by anyone who imports goods from non-EU countries into Great Britain, or exports them from Great Britain to non-EU countries. The information it provides enables customs officials to assess and collect the correct amount of import duty, VAT, and other taxes. Reclaiming VAT paid on imported goods from outside the EU requires another document, Form 79. This form provides evidence of the VAT paid on imported goods, and cannot be used for customs clearance purposes.
8 copies of SAD
SAD Copy 1 and Copy 2 remain at the office of departure, for control and statistical purposes respectively. Copy 3 is for the consignor or exporter, although it may be retained by the community transit principal. Copy 4 is for the customs authorities in the destination state. It provides evidence that the goods are in free circulation or not, and indicates whether customs duty is payable.
Copy 5 is returned from the office of destination, to the customs authorities in the state of despatch, providing evidence that the goods reached their destination intact. This copy is also used for the return of goods. Copy 6 serves as the customs import declaration on arrival in the state of destination. Copy 7 is the statistical copy of the import declaration for the state of destination. Copy 8 is retained by the importer or the importer’s agent.
