FHDDS24200 | Policy and background: how the scheme works: obligations of an approved person

(The Fulfilment Businesses Regulations 2018, regulations 8-13)

Once a fulfilment business receives approval it will be registered for the scheme and will have certain obligations that it must meet, it should:

• Issue a Notice of Obligations to all its overseas customers, see FHDDS31620.

• undertake due diligence checks on its overseas customers, see Regulation 10 and Regulation 11

• keep certain records, see Regulation 10

• notify any changes to a fulfilment business’s registered details, see FHDDS35210

• notifying HMRC where an overseas customer does not comply with VAT/customs duty obligations, see Regulation 10 and Regulation 11.

• cease trading with an overseas customer that continues to be non-compliant, see Regulation 8.

There are penalties for failing to comply with these obligations - see FHDDS50000.