The BIFA 2025 Wake-Up Call: Traders Still Hold the Risk

Many importers assume that appointing a freight forwarder or customs agent transfers compliance risk. However, the BIFA 2025 Standard Trading Conditions and HMRC’s updated guidance make it clear that accountability remains firmly with the trader. This article explains the key changes in Clause 18, their implications for traders, and how businesses can strengthen control over third-party relationships to mitigate compliance risk.

Importers cannot outsource compliance

Many traders still assume that compliance is effectively taken care of once they appoint a freight forwarder or customs agent. The reality is different. The revised BIFA Standard Trading Conditions (2025 Edition) and updated HMRC guidance make it clear that responsibility for correct data, classification, valuation and statutory compliance remains with the trader. 

Clause 18 of the BIFA 2025 terms explained

Clause 18 is one of the most significant updates in the 2025 BIFA Standard Trading Conditions edition. It requires traders to: 

  • Supply correct commodity codes;
  • Provide full and accurate data and fulfil statutory obligations; 
  • Give correct valuations with supporting evidence;
  • Comply with sanctions and licensing regulations;

These updates remove any ambiguity. Agents act on the instructions of the trader, but they do not guarantee compliance. The liability sits firmly with the trader. 

Alignment with HMRC customs guidance 

Recent updates to HMRC guidance on appointing someone to deal with customs makes the same point. Businesses are told explicitly that appointing a representative, whether direct or indirect, does not transfer accountability. The information supplied to the agent must still be correct, and errors will fall back on the trader. 

Why trader responsibility matters 

Failure to comply has serious consequences. Incorrect information can mean: 

  • Financial penalties and fines 
  • Repayment of underpaid duty 
  • Increased cost of sales  
  • Delays or seizures at the border 
  • Damage to reputation and regulatory trust 

HMRC will not accept that an error was caused by the agent. Traders must take ownership of their compliance processes. 

How to manage third parties effectively 

The answer is not to stop using agents but to manage the relationship better. Traders should: 

  • Establish governance and internal controls over classification, valuation and sanctions checks 
  • Set clear contractual terms with service providers 
  • Recognise that contracts cannot override statutory responsibility 
  • Acquire and review their own CDS data periodically  
  • Use tools like CAT360 to help automate post-clearance checks

Too many businesses leave CDS data entirely with their agents. Having this data in-house gives traders the ability to verify declarations, check values, monitor for errors and identify reclaim opportunities. It creates visibility and allows for a stronger, more accountable relationship with agents. 

Lindsey Roberts, Senior Consultant at Barbourne Brook, comments: 

“The updated BIFA terms place greater emphasis on trader responsibilities and reinforce legislation and customs guidance. While agents may provide support with classification, valuation, and other declaration data elements, the 2025 revision makes clear that accuracy remains the trader’s responsibility. Appointing an agent does not transfer accountability. Businesses must take full ownership of their customs data, recognising that the accuracy of declarations is their legal responsibility. Agents can support the process, but it is the trader who will ultimately be held to account. This makes it essential for businesses to maintain robust internal controls, validate the information they provide, and avoid complacency in assuming their agent will ‘catch’ mistakes on their behalf.” 

The direction of travel for customs compliance 

The BIFA 2025 terms and HMRC guidance point to the same conclusion. Agents remain valuable partners, but they are not a compliance shield. Traders must own their compliance, invest in tools to manage this risk, and ensure they have the right data and controls in place. Those who do will reduce risk, protect their supply chains and avoid costly liabilities. 

Peter Snaith at Womble Bond Dickinson UK had the following to say about the need to set clear contractual terms with service providers:

“There is an opportunity for traders to secure more favourable terms which reflect the level of contribution and support expected from their suppliers. In common with most contractual relationships, if you are trading on another party’s standard terms, it is likely those terms will be more favourable to the other party, and not you. BIFA terms are produced on behalf of all members of the British International Freight Association. It follows that they are more favourable to freight forwarders than they could be towards customers, but there is always scope for negotiation with any standard terms. The new BIFA terms make it very clear that responsibility for customs compliance cannot be sub-contracted to suppliers. However, that does not preclude a customer who buys freight forwarding services or other import or export support service from imposing reasonable service levels or KPIs with respect to the service to be provided, for example, with respect to error rates or turnaround times etc. If suppliers offer any consultancy or general guidance as part of their service, the trader should be able to rely on that advice and have a right of recourse for any failure. Whilst indemnity provisions will not protect a trader from having to pay a fine, that does not mean a freight forwarder or other service provider must absolve itself of all responsibility. Traders should get what they pay for. Suppliers should have some skin in the game. There is considerable scope for industry standards to change, to improve the position for the customer.” 

If you need help with your legal contracts and the BIFA terms, please reach out to Peter Snaith and the team at Womble Bond Dickinson UK.

Take Control of Your Compliance Risk

If your business relies on agents for customs declarations, now is the time to review your controls and data processes. Talk to our team about how CAT360 can help you verify, monitor, and strengthen your customs compliance.