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Fulfilment business approval scheme

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HMRC has laid the main regulations for the new fulfilment house due diligence scheme. Registration for the scheme opens in April 2018, with the obligations coming into force in full on 1 April 2019.

The scheme applies to fulfilment houses operating in the UK that handle imported goods on behalf of third parties located outside the EU. The new rules prohibit anyone from carrying on a third-country goods fulfilment businesses unless they have been approved and registered by HMRC.

The Fulfilment Businesses (Approval Scheme) Regulations, SI 2018/299, set out the detailed framework for the scheme, including applications for approval, the due diligence and record-keeping obligations imposed on approved persons, and penalties for non-compliance.

The Finance (No. 2) Act 2017, Part 3 (Appointed Days) Regulations, SI 2018/298, commence the scheme from 1 April 2019, with provisions covering reviews and appeals in connection with applications for registration coming into force on 1 April 2018.

Existing fulfilment businesses must register with HMRC by 30 June; new businesses by 30 September.