In this article, I will explain what a Direct Representation (DV) document is, what other options are available, and why it is necessary for the correct customs clearance declaration.
Anyone can submit a customs declaration, but it is still a specialized task. There are thousands of HS code categories and exceptions in the customs world. That's why there are parties specialized in this field that act as representatives, known as customs brokers. If it turns out later that the customs clearance was done incorrectly, the question arises as to who is responsible. To avoid this, it is important to make good agreements. These agreements are made in three ways.
Many declarations are not made by the actual party concerned (the e-commerce company, the importer of the products) but by a representative. Often, this is a specialized customs broker or a logistics service provider. When working with Boloo Forwarding, you, as an e-commerce entrepreneur, outsource this task.
Representation at customs for a declaration can be done in three ways:
1. Self-declaration on behalf and at the expense of the customs specialist:
This is not really representation because the customs specialist does the clearance in their own name. However, all correspondence, including the primary booking and the payment invitation for a booking, goes to the representative. The representative (customs specialist) makes the declaration on their own behalf and at their own expense.
2. Direct representation:
In this case, the customs broker submits a customs declaration on behalf and at the expense of the party concerned. The party concerned is the declarant and is therefore responsible for the declaration and how it is submitted. That's why it is important for you as an e-commerce entrepreneur to provide the correct HS codes, an accurate purchase invoice, and the correct quantities of products and packages when creating the booking.
3. Indirect representation:
In this case, a customs broker makes a declaration in their own name but at the expense of the party concerned. The customs broker acting as an indirect representative is the declarant and is (partially) liable for the customs declaration. The customs broker does the clearance in their own name but at the expense of the client.
In representation (options 2 and 3), at least two parties are involved:
1.The principal, the party concerned, which is your e-commerce company. The party concerned has control over the goods and takes the initiative to give the goods a customs destination. The party concerned is the importer, exporter, or permit holder. The party concerned gives instructions to the representative.
2.The representative, the customs broker. They carry out the instructions of the party concerned and act as the point of contact for customs.
When there are three parties involved (importer, forwarder, and customs broker), the situation is as follows:
1.The importer is the principal, the party concerned.
2.The forwarder is the client of the customs broker.
In this three-party situation, the client (forwarder) is not the party concerned.
All these parties must be mentioned in the agreement, the DV document. When you do business with Boloo Forwarding, option 3 is currently in place.
Although there are theoretically three ways to represent in a customs clearance, it does not mean that any option can be chosen. Direct representation is only possible for a client with its headquarters within the EU. Indirect representation does not have this requirement, and therefore, a client located outside the EU can also be represented. For indirect representation, you need a written power of attorney. Direct and indirect representation are only possible for companies that have been authorized by customs as customs representatives and have the necessary permits.
In conclusion
A Direct Representation allows the importer (e-commerce company) to be represented by a customs broker when clearing your shipment. It is important to provide accurate information to us when creating the booking, so that this process is always done correctly.We will always verify this information, but we expect you, as the importer, to provide the correct HS code, accurate quantities, and an appropriate invoice to Boloo Forwarding. This way, we can ensure smooth and efficient customs clearance. It is also your responsibility as the importer to ultimately be responsible for the customs clearance. Boloo Forwarding is always available for customs-related questions to assist you in providing the correct information to us.