GUIDES • POST-CLEARANCE AUDIT

The 3-Year Window You Can't Ignore.

When your goods clear customs, it feels like the transaction is done. Duty paid, goods released, move on. But customs clearance is actually provisional. For the next three years, HMRC can audit your declarations—and you can reclaim overpayments.

What Post-Clearance Actually Means.

Customs clearance isn't final—it's provisional. When HMRC releases your goods, they're not saying "this declaration is correct." They're saying "we'll check this later."

For the next three years, two things can happen:

1. HMRC Can Audit

They review what you declared, request evidence, and issue demands for any underpayments—plus penalties and interest.

2. You Can Reclaim

If you overpaid duty—wrong classification, missed preferential rates, unclaimed reliefs—you can claim it back.

This is what "post-clearance" means. Most UK importers don't realise they're sitting on both risk and opportunity.

The Risk: HMRC Audits Are Accelerating.

The risk is real. HMRC's compliance yield hit £41.8 billion last year—up 23% from the year before. Customs audits are a priority.

HMRC uses risk profiling and data analysis to select audit targets. They're not checking randomly—they're targeting:

£41.8B
Compliance yield
+23%
Year-over-year
3 Years
Audit window
14%
Avg. overpayment
  • Anomalies in data patterns — declarations that don't match historical norms or sector benchmarks
  • High-value entries — where the financial exposure justifies investigation
  • Sector-specific risk areas — industries with known compliance issues (textiles, electronics, automotive)
  • Repeated errors — patterns of misclassification or valuation mistakes

When HMRC audits, they demand evidence. If you can't produce it—or if it shows underpayments—you face backdated duty plus penalties (15-30%) and interest charges.

Don't wait for HMRC to audit you.

The Opportunity: Where You're Leaving Money on the Table.

But here's the flip side: overpayments don't reclaim themselves. And once that 3-year window closes, the money is gone.

Most UK importers are sitting on recoverable duty. The most common sources:

Missed Preferential Rates

FTAs with EUR.1/REX documentation that wasn't claimed at clearance. Retroactive preference can recover thousands per shipment.

Classification Errors

Wrong HS codes resulting in higher duty rates. Even small classification shifts can mean significant savings.

Valuation Errors

Non-dutiable charges (freight, buying commissions) incorrectly included in customs value. These add up across hundreds of entries.

Unclaimed CPCs

Inward Processing, temporary admission, end-use relief not applied when eligible. These procedural reliefs can suspend or reduce duty entirely.

Quota Entitlements

TRQ allocations available but not claimed. If your goods qualify for quota, you may be paying standard rates unnecessarily.

RGR Opportunities

Returned goods (especially eCommerce) eligible for Returned Goods Relief. High-volume returns can generate significant reclaims.

Under-Declarations

The flip side: underpaid duty that HMRC will catch and penalize. Better to identify and pay forward than face an audit demand.

The 3-year lookback window closes permanently.

Money not reclaimed is lost forever. BorderAudit has helped recover £4.7m in duty to date—most of it from overpayments importers didn't know existed.

How BorderAudit Fills the Gap.

Manual spot-checks miss 90% of your declarations. BorderAudit scans 100% of your history with 100+ automated checks—catching errors before HMRC does and surfacing every recovery opportunity.

Audit & Compliance Detection

AI Document Review

Automated invoice, packing list, and origin document validation. No more manual evidence gathering.

Classification Review

Continuous monitoring of HS codes against historical patterns and tariff rule changes.

Procedure Analysis

CPCs, Inward Processing, and temporary admission validation. Ensure your procedures are correctly applied.

100+ Automated Checks

Comprehensive rule engine covering codes, preference, valuation, CPCs, and RGR. Catches errors before HMRC does.

Recovery Opportunities

Bidirectional Analysis

Over- AND under-payment detection. Reclaim what you're owed, pay forward what you owe.

Proof of Origin

AI-led validation of EUR.1, REX, and FTA eligibility for preferential rates.

REX Validation

Automated REX number validation. Real-time verification of Registered Exporter status.

Missed Quota Analysis

Identifies TRQ entitlements not claimed. Stop paying standard rates when quota is available.

eCommerce RGR

Automated Returned Goods Relief review for high-volume returns. Built for eCommerce scale.

Ongoing Control

Supplier Benchmarking

Ranks suppliers by error frequency and compliance quality. Know which suppliers create risk.

3-Year Historical Scan

Maximizes your recovery window. Scan every declaration back to the start of the lookback period.

C285 Ready Packs

Fast reclaim execution. Auto-generated C285 packs with all supporting documentation.

Defensible Audit Trail

HMRC enquiry preparation. Every check, every decision, every piece of evidence—logged and retrievable.

Root Cause Fixes

Stops repeat errors. Identify why mistakes happen and prevent them going forward.

The 3-year clock is running.