An Emerging Threat

UK businesses involved in international trade are facing an increasingly sophisticated form of fraud—one that can result in unexpected and significant VAT and duty liabilities.

At Spatial Global, we have recently seen a rise in suspicious shipment requests from previously unknown organisations. On the surface, these shipments appear legitimate: documentation is complete, a UK-based freight forwarder is named, and a recognised UK company is listed as the importer or consignee.

However, the reality is very different.

How the Fraud Works

This type of fraud is carefully constructed:

• A freight forwarder is approached by an “importer” to manage a shipment clearance into the UK
• The shipment is usually prepaid, with full documentation provided
• A legitimate UK business is named as the importer/recipient—without their knowledge. Often the named ‘exporter’ is recognised as a supplier by the UK business.
• Once the goods clear customs, they are diverted elsewhere
• The named UK company is then left with an unexpected import VAT and duty bill

In many cases, the first a business knows about this is when a customs demand or invoice is received for goods they never ordered or received.

Why This Matters

Under UK customs rules, the named importer can still be held liable for duties and VAT—even if they were unaware of the shipment. As HMRC guidance makes clear:

“If you do not take due care you could find yourself liable to additional customs duties and import VAT debts…”

This highlights the importance of vigilance and due diligence across the supply chain.

Why the Fraud is Difficult to Detect

What makes this fraud particularly challenging is its level of sophistication:

• Genuine company details are used
• Documentation appears accurate and compliant
• Payments to logistics providers are made in advance
• There is often no obvious red flag at the point of booking

It is likely that these schemes extend beyond simple VAT fraud, potentially involving wider supply chain manipulation.

Spatial Global’s Approach

In response to this growing risk, Spatial Global has strengthened its internal due diligence processes. Before accepting new shipment instructions, our team now takes additional steps to verify:

• The legitimacy of the shipper
• The relationship between all parties involved
• Confirmation from the named UK importer/consignee

In several cases, we have proactively contacted the listed recipient—only to find they had no knowledge of the shipment.

A Challenging Enforcement Landscape

Where concerns have been raised, there appears to be limited immediate recourse. Current guidance advises businesses to report suspected fraud, but enforcement can be complex and reactive rather than preventative.

This makes early detection and prevention even more critical.

What UK Importers Should Do

We strongly encourage UK businesses to remain vigilant:

• Monitor for unexpected customs notifications or VAT demands
• Query any shipment or import documentation you do not recognise
• Ensure internal controls are in place for import activity
• Work only with trusted logistics partners who carry out due diligence

A Trusted Partner in a Changing Risk Environment

At Spatial Global, we understand that protecting our customers is just as important as moving their goods. Our experienced team takes a proactive, personal approach—ensuring every shipment we handle is legitimate, compliant and secure.

If plans change or concerns arise, we are ready to act quickly—providing guidance, support, and practical solutions to minimise risk and disruption.

Stay Alert, Stay Informed

If you receive an unexpected customs charge or have concerns about a shipment, we recommend seeking advice immediately.

For further information or to discuss any concerns, please contact your usual Spatial Global representative. We’re here to help you navigate an increasingly complex global trade environment with confidence.

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