Customs audit – how does it work?

A customs audit is an inspection carried out by Swedish Customs to ensure that the information your company has provided in its customs declarations is correct. We also check that you have declared all imported and exported goods correctly and that your company has sound and accurate customs procedures in place.

Here you can find out more about customs audits and how they work. You will also find tips on how to prepare for an audit.

What is a customs audit?

A customs audit is a form of post-clearance check. There are two types of post-clearance checks: post-clearance reviews and customs audits. A post-clearance review involves us requesting a number of specific customs declarations and their supporting documents and checking them.

A customs audit, by comparison, is a more in-depth check where our auditors both examine the company’s documents and visit your premises. During the visit, we ask questions about your business, inspect various documents, examine the accounts and take a tour of the premises.

Examples of what we check include:

That all goods for import and export have been declared.
That the correct information has been provided – that the details in the customs declaration match the supporting documents you refer to.
That the conditions and criteria of the authorisation have been complied with – that you still meet the criteria and conditions set for your authorisation, for example active or passive processing.
That proofs of origin have been issued correctly.

Why does Swedish Customs carry out customs audits?

We assume that all customs declarations submitted are correct, but laws and regulations are extensive and sometimes difficult to interpret. There is therefore a risk that you and your company may make mistakes and commit unintentional errors.

There are also deliberate attempts at fraud, and this creates unfair competition that can drive law-abiding companies out of the market. By ensuring everyone follows the same laws and pays the same duties, no one gains an unfair advantage.

Swedish Customs carries out customs audits to check compliance, but also to inform and help your business prevent future errors.

Why is it important to get it right from the start?

You are always responsible for ensuring that the information in your declaration is correct, regardless of whether you have filed it yourself or used a representative. By submitting the correct information in your declaration, you save both time and money.

Save time by getting it right from the start

An audit is a time-consuming process; there are many documents to be submitted and it can involve a lot of staff. Even a small error, such as referring to the wrong invoice number, can mean that automatic matching is not possible, and the audit is delayed.

Save money by getting it right from the start

Surcharges and penalties may apply if you have paid the wrong charges.

How do you know if your company is due for an audit?

A customs audit begins with us contacting you to inform you that your company has been selected for a customs audit. At that point, the decision to carry out the audit has already been made and cannot be appealed. You will also be told how the audit will be conducted and when it will take place – we try to arrange a time and place that suits both your company and us.

You will also receive a written notification of the decision, which will state, among other things, why we are conducting the audit, who will carry it out, and the laws and regulations on which we are basing our actions.

If it is relevant to the audit, we are entitled to hand over the decision on the customs audit only when we are carrying out the audit.

How does the customs audit work?

Before the on-site visit, we want to gain an understanding of your business. We therefore request certain information and documents in advance. We may also obtain information from, for example, your suppliers.

This is what we do during the visit itself:

We meet with company representatives and ask questions.
We carry out a transaction test and examine a customs declaration from start to finish.
We may take a tour of the premises.
We review documents, either on-site during the visit or once we are back at the agency. The advantage of reviewing documents on-site is that we can ask any questions immediately.
- You have the option to request that certain documents be exempted. In that case, you should inform the auditor. If the auditor still wishes to review the documents, they will be sealed and you must submit a request for exemption of the documents to the Administrative Court.

Obligation to cooperate

During an audit, the company is obliged to cooperate, for example by answering questions and ensuring that the auditor has access to the business premises. Otherwise, Swedish Customs may issue an order to anyone who refuses, for example, to provide requested documents or apply to the Administrative Court for the preservation of evidence.

What questions will we ask?

During the customs audit, we ask questions about, among other things, the company’s operations and organisation, business systems, accounting, customs procedures and goods reception procedures.

The questions may vary depending on your business. Examples of questions include:

Who determines the classification of the goods?
Who determines the customs value of the goods?
What happens when the goods arrive and are received?
How do you file your documents?

We may ask additional questions based on what we discover during the audit.

What documents do we examine?

We review the documents relating to your company’s operations. These may include, for example:

Accounting records such as the general ledger, accounts payable ledger, vouchers and charts of accounts
Supporting documents, such as invoices, shipping documents, product sheets, certificates of origin
Contracts, correspondence, bank statements etc.

We can also check stock levels and take samples of goods.

The audit covers your company’s operations over a longer period, generally no more than three years.

How do we communicate the results?

The most common procedure is for the auditors to send an audit report presenting the results. You then have 30 days to comment on the audit report – perhaps Swedish Customs has made an error in its assessment or misunderstood something during the visit? In that case, you can submit supplementary documents or explanations. This 30-day period cannot be extended.

What are the possible consequences of a customs audit?

Based on the audit report and any comments, Swedish Customs will make a decision. There are three possible outcomes of the audit:

Refund or debt
You will receive a refund if you have overpaid and a charge if you have underpaid duties. In the event of a debt, you may also be required to pay an administrative penalty in the form of a customs surcharge. The customs surcharge is usually 20 per cent of the amount evaded.

Penalties

Revoked authorisations
We may revoke a granted authorisation if your company fails to comply with the conditions and obligations arising from the authorisation.
Suspicion of criminal offence
In certain cases, we refer the matter for criminal investigation.

If you are dissatisfied with Swedish Customs’ decision

Are you prepared for your customs audit?

There are certain things you need to keep track of in your business, and ahead of a potential audit, it becomes particularly important to have sound customs procedures already in place.

Are you prepared for your customs audit?