Customs declaration and representation in the EU: Direct vs indirect explained.

Types of customs representation

There are two recognised forms of representation in EU customs: direct representation and indirect representation. Each comes with different legal and financial implications. The choice determines who is liable for customs debts, who appears as the importer/exporter of record, and how risks are distributed between the declarant and the customs broker. Understanding this distinction is essential for any company trading internationally.

Direct customs representation

In direct representation, the customs declaration is submitted in the name of the declarant by the customs broker.

• The declarant remains the official importer/exporter in the eyes of customs.
• The declarant is fully liable for the contents of the declaration.
• The customs broker acts purely as an agent, without assuming liability.

Direct representation is possible for imports, exports, and re-exports.

Indirect customs representation

In indirect representation, the customs broker submits the declaration in their own name but on behalf of the declarant.

• The customs broker becomes the holder of the arrangement.
• The broker shares liability and is responsible for customs debts.
• This adds risk for the representative but can also provide convenience for the declarant.

Indirect representation cannot be used for:

• Inward processing
• Outward processing
• The special destination arrangement
• Temporary importation

Why representation in customs matters

The choice between direct and indirect representation affects:

• Liability: Who is responsible if something goes wrong.
• Risk management: Whether the broker or declarant bears the customs debt.
• Compliance: Some procedures require one form of representation over the other.

Businesses should carefully evaluate which model best fits their situation and ensure all parties understand their responsibilities.

Practical implications for businesses

Choosing the wrong type of representation can have serious consequences:

• Financial risk: If you use indirect representation, your broker may be liable for customs debt, but this can also make brokers more cautious about which clients they accept. If you use direct representation, you remain fully responsible yourself, including the risk of additional duties, VAT, or penalties.
• Operational delays: Incorrectly assigning representation can lead to delayed customs clearance, extra paperwork, or even seized goods at the border.
• Compliance exposure: Misunderstandings about liability may result in errors in the declaration, fines, or reputational damage.

Example: An importer of consumer electronics chooses indirect representation without realising the broker will be co-liable. When a classification error is discovered, both the importer and the broker are held accountable. This not only creates unexpected costs but also complicates their business relationship.

By understanding the differences between direct and indirect representation, companies can avoid these pitfalls and keep their supply chain running smoothly.

Conclusion: Choosing the right representation model

Representation in customs declarations is more than just a procedural choice – it directly impacts liability, compliance, and efficiency. Whether opting for direct or indirect representation, both the declarant and the broker must be clear about their obligations.

How Gaston Schul can support your customs process

At Gaston Schul, we go beyond compliance – we help companies turn customs procedures into a competitive advantage. Whether you are importing, exporting, or re-exporting, our specialists ensure your declarations are handled correctly, efficiently, and in full compliance with EU legislation.

Here’s how we support your business:

• Tailored advice on choosing the right form of representation for your supply chain.
• Fast and accurate declarations that prevent delays at the border.
• Risk reduction and peace of mind through proactive compliance with customs rules.

By partnering with us, you benefit from expert guidance, fewer administrative burdens, and a smoother international trade flow.