Using a representative
You can appoint a representative to handle your company’s customs transactions on your behalf. The representative can be .e.g. a forwarding agency or an accounting firm. However, it is your company that is ultimately responsible for that the declarations have been lodged correctly, not the representative.
A representative can lodge the following declarations on your behalf
- import declarations
- export declarations
- declarations related to storage
- transit declarations
- entry and exit declarations
- Intrastat declarations.
The representative must be authorised
You must authorise the representative before they can lodge customs declarations on behalf of the company. Check here how you authorise a representative for customs transactions.
If the representative acts without an authorisation, they fully take the declarant’s responsibility.
Types of representation
The type of representation must be provided in the customs declaration. The types of representation are
- direct representation
- indirect representation
- direct representation under the guarantor’s responsibility.
The fees charged by the representative for services rendered may vary considerably depending on the type of representation.
The type of representation affects e.g. the following:
- the importer’s and the representative’s customs debt liability
- use of guarantee
- the customs procedures you can use – for example, you can’t use an indirect representative in special procedures for import
- responsibilities for archiving.
Direct representation
- A direct representative lodges customs declarations in the name of and on behalf of the importer.
- For the time being, a direct representative cannot provide an individual guarantee on behalf of another company in the Customs Clearance Service.
- The direct representative is responsible for the customs debt only insofar as they were aware or should have been aware of the incorrectness of information provided in the customs declaration. Otherwise, the importer is solely responsible for the customs debt and any post-clearance duties due.
- The term of payment and other benefits of direct representation are determined by the importer’s authorisations. In direct representation, the importer’s guarantee is used if a guarantee is needed. Customs also sends the periodic filing (consolidated invoice), if any, to the importer.
- Direct representation can be used in all procedures.
- No authorisation from Customs is needed.
Indirect representation
- An indirect representative lodges customs declarations on behalf of a client, but in their own name. This means that the representative acts under the same responsibility as the importer.
- For the time being, an indirect representative cannot provide an individual guarantee on behalf of another company in the Customs Clearance Service.
- The importer and the indirect representative are jointly responsible for the customs debt (including post-clearance duties).
- Guarantees required for debt or liability are collected from the indirect representative. The periodic filing is also sent to the representative.
- If the representative wishes to pay the import costs later, they must apply for the comprehensive guarantee authorisation and payment deferment authorisation from Customs. In the application, indicate the appropriate types of representation.
- Customs directs its debt collection measures primarily at the indirect representative. The principal of the indirect representative is only subjected to collection measures if the indirect representative is found to be insolvent.
You can’t use indirect representation
- in special procedures for import
- if national procedure codes are used in other customs procedures.
Guarantee reservation in indirect representation
In release for free circulation, an amount corresponding to the customs debt is reserved as a guarantee from the representative’s comprehensive guarantee. The reserved amount is released when the debt is paid (there may be a delay of 1–2 days from the time of payment).
Guarantee is reserved for customs debt according to guarantee category in an amount of 30% or 100%. The amount of guarantee for VAT is 0%. Read more about the guarantee categories.
| Release for free circulation | Guarantee category | Customs | VAT |
|---|---|---|---|
| AEOC | AB | 30 % | 0 % |
| Other | AA | 100 % | 0 % |
Direct representation on guarantor’s responsibility
- A direct representative on guarantor’s responsibility lodges customs declarations on behalf of the importer.
- A direct representative on guarantor’s responsibility cannot provide an individual guarantee on behalf of another company in the Customs Clearance Service.
- Direct representation on guarantor’s responsibility requires a specific general guarantor’s undertaking, based on which the representative is responsible for paying the customs duties and taxes.
- Guarantees required for debt or liability are collected from the representative. A direct representative on guarantor’s responsibility must have a comprehensive guarantee authorisation. If the representative wishes to pay the import charges later, they must can obtain a payment deferment authorisation. The periodic filing is also sent to the representative.
- As guarantor, the direct representative is not responsible for any post-clearance liabilities if they were unaware or should have been unaware of the incorrectness of information provided in the customs declaration.
- If the representative provides a limited guarantor’s undertaking for direct representation on guarantor’s responsibility, the representative’s responsibility is limited to no more than double the amount of the provided guarantee.
- The representative cannot provide an individual guarantee on behalf of another company in the Customs Clearance Service.
Acting as a direct representative on guarantor’s responsibility is possible in the following procedures:
General guarantor’s undertaking
Choose an unlimited or a limited general guarantor’s undertaking according to the company’s needs. Customs usually requires the representative to present a decision on issuing a general guarantor’s undertaking made at an annual general meeting of shareholders. The company’s board of directors can make the decision instead of the shareholder’s meeting when the company’s line of business, according to the Trade Register extract, involves the issuing of guarantees or all legal business activities.
- General guarantor’s undertaking, unlimited (in Finnish)
- General guarantor’s undertaking, limited (in Finnish)
- Decision on issuing a general guarantor’s undertaking made at an annual general meeting of shareholders (in Finnish)
Guarantee reservation on guarantor’s responsibility
In release for free circulation, an amount corresponding to the customs and VAT debt is reserved as a guarantee from the comprehensive guarantee for import in conjunction with customs clearance. The reserved amount is released when the debt is paid (there may be a delay of 1–2 days from the time of payment). The amount corresponding to the VAT debt is reserved only in respect of those importers who are not registered for VAT.
In special procedures for import, the amount of guarantee required for customs and VAT debt depends on whether the guarantor’s undertaking is unlimited or limited. Guarantee is reserved from the representative’s comprehensive guarantee in real time, and the guarantee remains reserved until the liability has expired (e.g. an acceptable bill of discharge has been provided).
| Customs procedure | Unlimited guarantor’s undertaking | Limited guarantor’s undertaking |
|---|---|---|
| Release for free circulation | customs duty 100%, VAT 100% | customs duty 100%, VAT 100% |
| Special procedures | customs duty 100%, VAT 0% | customs duty 100%, VAT 100% |
Direct representation and indirect representation can be used in export. The exporter and the representative choose the type of representation to be used in the export declaration.
Direct representation
A direct representative lodges export declarations in the name and on behalf of the exporter.
- In the export declaration, code 2 is provided as the type of representation.
Either the exporter or the representative can request amendment of the declaration after release for the export procedure. If the declaration gives cause to any sanctions, e.g. a penalty fee, Customs imposes the sanction directly on the exporter.
Direct representation must be used in export declarations for discharging inward processing or for starting outward processing.
Indirect representation
Indirect representatives lodge customs declarations in their own name and on behalf of the exporter.
- In the export declaration, the indirect representative is provided under “Declarant” and the represented exporter under “Exporter”.
- In the export declaration, code 2 is provided as the type of representation.
Indirect representation can’t be used in export declarations for discharging inward processing or for starting outward processing.
Only the representative that lodged the declaration can request amendment of the declaration after release for the export procedure. If the declaration gives cause to any sanctions, e.g. a penalty fee, Customs imposes the sanction primarily on the representative that lodged the declaration.
In transit, only a direct representative can be used to lodge declarations. Representation is always carried out with the transit principal’s guarantee. Indirect representation is not applicable for the transit procedure.
In the case of a private customs warehouse, only the authorisation holder (declarant) can lodge a customs declaration for customs warehousing. The authorisation holder can use a representative and only direct representation is possible. A direct representative lodges customs declarations on behalf of and in the name of the declarant. The declarant is responsible for the correctness of the details provided.
In the case of a public customs warehouse, the authorisation holder or any other person can lodge a customs declaration for customs warehousing. Direct representation and indirect representation are possible.
The carrier is responsible for lodging entry and exit declarations. The carrier can use a representative to submit the declarations.
Intrastat data providers can completely or partially assign the lodgement of statistical declarations to a representative. Read more about using a representative to lodge Intrastat declarations.