Chapter CFSP21100
| Published date | 26 April 2016 |
| Record Number | CFSP21100 |
| Court | HM Revenue & Customs |
Background
Prior to the visit
Use of MSS
MSS entry information
DUCR checks
Box 40 ‘Summary declaration/previous document’
Computer Audit Service
Post-audit
Non-compliance
Civil Penalties
{#}Background
This chapter sets out the specific audit and assurance aspects of CFSP. It does not tell staff how to conduct an audit, this detail is set out the Audit Standards guidance located in the CITEX CAF.
One of the primary aims of CFSP is to gear resources to risk by moving fiscal controls from transaction checking at the frontier to audit-based controls inland.
The department’s main objective under CFSP is to achieve enhanced compliance by improved targeting and greater use of systems-based audit techniques. For the vast majority of imported goods, control will be exercised post-clearance inland rather than on entry at the frontier.
By moving controls inland, Customs can gain greater assurance of traders’ activities. The assurance officer obtains a fuller picture of traders’ revenue operations through authorisation and approval. By bringing the traders under local control, the department is able to gain a greater understanding of a trader’s business activities and thereby more effectively target those aspects of their trading which pose the greatest risk to the revenue.
The assurance officer will also be able to liaise with other Business areas, both in VAT and Excise, to ensure that the entirety of a trader’s operations are inspected rather than just a fraction of their imports as previously inspected at the ports.
Compliance with CFSP regulations, legislation and operating procedures is mainly assured through systems-based audit controls. Traders wishing to become authorised for CFSP will be subject to a full systems audit pre-authorisation. This is to ensure that their operating/computer systems are compliant with all the criteria and conditions relating to CFSP.
If the trader is operating a computerised duty management system, the assurance officer should enlist the support of Audit Services.
Once the audit is completed the officer should discuss any areas of system weakness/irregularities discovered with the trader. These weaknesses must be fully documented in the audit report and additional control procedures implemented to address the risk/revenue leakage.
A formal letter should be issued to the trader documenting the findings of the audit and recommended remedial action. The letter should specify a date by which any necessary system changes should be...
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