Late submission of Customs T forms

Clearing agents were asked by their principals to complete the Customs formalities for a cargo of  fuel oil which included reclaiming duty amounting to £48,341 under the EC tariff  quota system.

Rebates under EC tariff quotas are granted on a "first come first served" basis and any claims which reach Customs after the quota has been exhausted are rejected.  It is therefore essential to submit claims for rebates without delay.

In this instance the agents delayed on month before sending the documents to Customs and when they did they quoted the incorrect Customs' entry number on their covering letter.

Some months after lodging the documents, the agents were informed by Customs that the claim for rebate of duty had been declined as it was received a few days after the EEC quota was exhausted. The agents informed their principals that the claim had been rejected and they in turn put the agents on notice that they would be seeking redress from them for any losses they might incur.

Subsequently the amount of the principals' loss was reduced to £23,480 due to a refund of part of the duty from Customs and a contribution from the suppliers of the oil.