A number of its members have been unsure about whom is considered to be First Placer when buying goods from outside the EU through an EU-based intermediary.
The TTF said there were ramifications for members who may have previously considered themselves to be traders in these circumstances and could complicate future contracts between customers and intermediaries.
“Our current interpretation is that it is the UK customer rather than the intermediary that is considered the First Placer as effectively they would be the named party on the Customs clearance,” the TTF said.
“This means it is the legal obligation of the EU-based customer to undertake due dilligence rather than the intermediary. The fact that the UK-based buyer is being invoiced by another EU-based company is not the critical factor.”
The Federation said a more detailed briefing was being considered by the National Measurement Office (NMO), but it believed the advice was in line with NMO interpretation.
The Federation added this could cause complications if the UK customer was not happy to rely on the due diligence undertaken on their behalf by the intermediary.
“If the intermediary wanted to keep its supply source confidential, future contracts would have to be restructured so it became First Placer on Customs clearance,” a spokesman said.
This, however, would make them liable to pay the duty and assume legal responsibility of First Placer.
