As a company active in international trade, you will undoubtedly come into contact with customs formalities. You can choose to file your declarations yourself, or you can use a customs representative. But what exactly does that mean, and what is the difference between direct and indirect representation?

What does the law say?

According to the Union Customs Code (Regulation (EU) No. 952/2013), anyone may be represented when making a customs declaration. This representation can be done in two ways:

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1. Direct representation (code '2').

In direct representation, the customs representative acts in the name and on behalf of the principal (usually the importer or exporter).

• The principal (customer) is legally the declarant and therefore the debtor.
• The customs representative needs a representation mandate and power of attorney to use the client account of the principal.
• Payment of the return is made through:
  • The client's customer account, or
  • The representative's own client account with a deed of deposit-plus.

Note: The surety deed-plus should not be used for AC4 returns or in indirect representation.

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2. Indirect representation (code '3').

In indirect representation, the customs representative acts in his own name but on behalf of the client.

• The representative is legally the declarant and debtor.
• The representative uses his own customer account in FinDA.

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What if you do the declaration yourself? (code 'empty')

When you as a company file a customs declaration yourself, you do so in your own name and for your own account. You use your own customer account. There is then no representation.

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Practical overview: who does what and what account is used?

Below is a schematic overview of the data applicable to each form of representation within IDMS:

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Without representation (code 'empty')

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Direct representation - use of client account (code '2')

Conditions: mandate + power of attorney required to use client account.

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Direct representation - use of own account with escrow deed-plus (code '2')

Conditions: use of surety deed-plus. Client remains legally indebted.

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Indirect representation - use of own account (code '3')

Feature: customs representative is legal debtor.