The new Fulfilment House Due Diligence Scheme (FHDDS) opened for online applications on 1 April 2018.
The scheme applies to fulfilment businesses that store goods where all of the following applies, the goods are:
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imported from outside the EU
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owned by, or stored on behalf of, someone based outside the EU
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being offered for sale and have not been sold in the UK before
The deadline for applications from existing fulfilment businesses falling within the scope of the scheme was 30 June 2018. If your business meets the criteria of the scheme and you have not already applied you ought to consider applying as soon as possible.
HMRC may charge a penalty of up to £500 for late applications. This could increase by up to £500 each month an application is late, up to a maximum of £3,000.
HMRC have stated that they will check applications to make sure that fulfilment businesses are ‘fit and proper’ to be on the register, before they’re approved.
Businesses who meet the criteria of this scheme but are not approved by HMRC will not be allowed to trade as a fulfilment business and risk a £10,000 penalty and a criminal conviction.
From 1 April 2019, all registered fulfilment businesses will need to comply with record keeping and due diligence obligations.
The Fulfilment House Due Diligence Scheme guidance tells you about the scheme and how it affects retailers.
Hammad can assist with applying for the scheme and challenging either a refusal to register or any penalty that may have been imposed by HMRC.