Research into the customs intermediaries sector: Wave 2 summary report

Ipsos was commissioned by HMRC to conduct research to understand the size and characteristics of the customs intermediaries sector, focusing on those who currently make customs declarations on behalf of traders or those who intend to make declarations once full customs declarations are required on all EU trade.

The research aims to accurately estimate the size and capacity of the customs intermediary population and the sub-groups within it. The study builds on previous research designs to create a more robust sample frame and method for conducting surveys with this population. It seeks to better understand the population in terms of structure, characteristics, and the services that customs intermediaries provide for their customers and measure change in customs declaration capacity in response to Transition policies, across multiple survey waves.

The survey responses aim to help HMRC better understand how customs intermediaries have responded to, or plan to respond to, EU Exit and the end of the transition period.

To find out more about the Wave 1 survey, please click here.

Findings

• The sector currently completes an estimated 43-63 million customs declarations each year based on analysis from both the sizing exercise and survey responses.
• It is estimated that the sector as a whole will complete between 140-181 million  additional declarations, with 63% being completed by large and very large firms, who make up just four per cent of the sector, once full customs declarations are required on all EU trade.
• Eight in ten of the intermediaries surveyed (81%) currently completed customs declarations. One in four (26%) completed all of their declarations in-house, three in ten (30%) outsourced all their declarations and one in four (26%) did a mix of both. The remaining intermediaries (19%) did not currently complete customs declarations, but intended to or were considering doing so once customs declarations are required on all EU trade.
• Four in ten (40%) customs intermediaries did not plan to defer submission of any of their customs declarations until July 2021, where this was possible to do so. On average, customs intermediaries expected to defer 14% of their customs declarations.
• Nearly all customs intermediaries (96%) had taken at least one step to prepare for when full customs declarations are required on all EU trade. Of those who expected to make additional declarations, the most common internal steps were exploring training on completing customs declarations (70%) and taking measures to increase efficiency and productivity, such as IT changes or automation of processes (69%).  The most common external steps were checking whether customers are prepared/have information needed for completing declarations (81%) and checking whether suppliers will be ready for a change in demand (78%).
• The most common barrier to preparing for when full customs declarations are required for all EU trade, mentioned by 49% of customs intermediaries, was lacking knowledge or uncertainty about customs declarations requirements. One in four (25%) said they did not face any barriers.
• Download the full report from GOV.UK

Technical details

·       This summary report provides a selection of the key findings from the Wave 2 survey. A more detailed report, combining all survey waves, will be published after results from all waves of this research have been completed and quality assured.

·       The Wave 2 survey took place between 10 November and 16 December 2020 and consisted of 497 telephone interviews with customs intermediaries. 337 of these intermediaries also took part in the Wave 1 survey. In addition, 15 follow-up, qualitative in-depth interviews were conducted via telephone with customs intermediaries who had taken part in the survey.

·       Following the development of the final list of proposed customs intermediaries in the UK (which derived a final estimated population of c. 8,400 firms), Perspective Economics analysed the survey responses by size of firm, and applied these estimates to the wider population. This list was updated using the Wave 2 survey data, and an additional 43 firms were added to the list.

 [KM1]https://www.ipsos.com/en-uk/research-customs-intermediaries-sector-wave-1-summary-report

 [KM2]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/968978/HMRC_Research_Report_610_Customs_Intermediaries_Wave_2.pdf