Date of publication: November 2016
Customs Duty is an ad valorem tax. This means that it is based on a % of the value of the goods, therefore the valuation is important.
There are a number of acceptable methods of valuation, which should be considered in the following order. The first suitable method that applies to that particular business being the correct one to use:
There are a number of different options which may provide relief from paying Customs Duties, either temporarily or permanently depending on circumstances.
Some of the most common are:
Duty deferment - registered importers can pay their duty on a monthly basis rather than at point of import through a Deferment Approval Number (DAN.)
Customs warehousing - goods can be held in duty suspension in the EC until they are shipped onward to a customer.
Inward processing relief - goods can be brought into the EC for processing and re-exported without charge.
Outward processing relief - goods of EC origin can be exported from the EC to be processed and returned without charge.
Relief is also often available where imported goods are returned or sent back for repairs or alterations.
It is important to plan ahead if you want to import goods into the EC. If you wish to reclaim the VAT back on importation into the UK it would be best to obtain your VAT number first and then obtain your EORI (same EORI number is valid throughout the EU)as they are linked, and otherwise it is very difficult to reclaim your VAT.
However, VAT numbers can take up to 6 weeks to be issued, so in some circumstances you may be forced to just get an EORI number, which can be issued in a few days. Talk the process through with your shipping agent. They will probably complete all the paperwork for you but will need to know how the Duty is to be paid and what value to assign to the goods.
If you wish to recover import VAT you will need the certificates called C79’s which are your proof of payment from HMRC. These are important documents which cannot be replaced. Check with your shipping agent to ensure you are going to get these.
Note: This guide is from Pre Brexit information and will be updated as more information becomes available.
Disclaimer: This note does not contain a full statement of the law and it does not constitute legal advice. Please seek legal advice if you have any questions about the information set out above.
Copyright © 2013 - Oury Clark.