Indirect representation
With indirect representation, a customs broker makes a declaration in his own name, but on behalf of the interested party. This means that the customs agent acts as indirect representative, is the declarant, and is therefore (co-)liable for the customs declaration.
In this form of representation, the customs broker handles the declaration in his own name, but on behalf of the principal. Indirect representation is not allowed for placing goods under the following special arrangements:
- Inward processing
- Outward processing
- The Special Purpose Scheme
- Temporary entry
In the Netherlands, indirect representation between two companies established in the Netherlands is not common. This form of representation is used, for example, when goods have to be imported into the Netherlands, but the person who wants to declare the goods is not established in the Netherlands. In principle, both the customs agent and the principal are responsible for the customs and/or tax consequences of the declaration. If a declaration results in a customs debt, for example when goods are released for free circulation, both the customs forwarder and the principal are liable for the import duties and other taxes
upon importation.
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Roles and obligations in Indirect Representation in customs matters
| Indirect representation | Entry | Output | Condition |
|---|---|---|---|
| Declarant (Declarant) | Mandatory | Mandatory | Must be equal to Representative |
| Representative (Agent) | Mandatory | Mandatory | Must be equal to Declarant |
| Scheme Holder (Importer). | Mandatory | Mandatory | May not be equal to Declarant |
| Exporter | – | – | Must be based in the EU |
| Consignee (Consignee). | Mandatory | Mandatory | Â |
| Payer (Payer) | Optional | – | Â |
| Surety counter (Surety) | Optional | – |
How the various parties in the declaration are shown in your system depends on the solution your software vendor has chosen for this purpose.
What is the difference between direct and indirect representation?
At direct representation the customs broker makes the declaration in the name and on behalf of the interested party. This means that the interested party is the official declarant and therefore fully liable for the declaration and any errors or problems that occur in the process.
At indirect representation the customs broker makes the declaration in his own name, but on behalf of the interested party. In this case, the customs forwarder himself is the official declarant and therefore (co-)liable for the customs declaration. This means that in case of errors or problems the responsibility is shared between the customs forwarder and the interested party.
Frequently asked questions about direct representation
Can any freight forwarder act as a direct representative?
It varies from country to country, but in many cases a freight forwarder must have specific licenses to act as a direct representative.
Why should I consider direct representation?
Direct representation can help make the customs process more efficient and smooth, especially if you import or export a lot. It allows you to benefit from the knowledge of experts while maintaining control.
