OrderFlow WMS helps simplify compliance of HMRC Due Diligence scheme:OrderFlow WMS helps simplify compliance of HMRC Due Diligence scheme

Jan 21, 2019
We’re pleased to announce that Realtime Despatch customer Professional Fulfilment Services has been granted early approval to operate as a registered 3PL for international customers under the HMRC Fulfilment House Due Diligence Scheme, which comes into effect later this year.

The HMRC Fulfilment House Due Diligence Scheme has been created to help combat VAT evasion by online traders based outside of the EU. Pro FS has been an early supporter and adopter of the principles behind the scheme and took part in stakeholder meetings and the consultation process during its development.

‘We’re delighted to have obtained early approval as a registered 3PL able to work with international clients,” says Pro FS Director Lynda Vautier. “We believe the new regulations and industry requirements will promote a professional standard across the UK fulfilment/warehousing sector and create a more level playing field for online retailers selling from or into the UK.”

3PL requirements

All UK fulfilment companies holding stock or offering fulfilment services to retailers without EU establishments and importing of goods from outside the EU are required to be approved, registered and regulated under the scheme.

We hope all our 3PL customers have already applied for registration, as those that have not could be liable for a penalty fine of anything from £500-£3,000.

However, if you missed the 2018 deadline we advise you to apply straight away. This is because any businesses who have not registered by 1 April 2019 will not be allowed to trade as a fulfilment business, risk a £10,000 penalty and a potentially a criminal conviction.

From 1 April 2019 all registered fulfilment companies will need to keep records of (and verify) all customers’ names and contact details, their VAT registration or exception reference numbers, the type and quantities of goods stored, import entry numbers and the country where the goods are delivered. All records must be kept for six years.

Businesses will also need to store and supply notices to all overseas customers that explain their tax and duty obligations in the UK.

OrderFlow is here to help

Realtime Despatch customers will be happy to hear that the OrderFlow WMS helps simplify this process by allowing you to store and access this information securely on one easy-to-use system.

“OrderFlow has the tools available to allow you to strike that balance between the conflicting demands of this scheme and the EU General Data Protection Regulation (GDPR),” highlights Charlie Armor, Realtime Despatch MD. “It stores the necessary data required for the Due Diligence scheme while anonymising customer data, as required by the GDPR.”

Further information on the HMRC Fulfilment House Due Diligence Scheme and how to apply can be found on this dedicated .Gov.UK webpage.