Facilitation Schemes

In respect of facilitations schemes, there are a number of schemes available that provide both cash flow as well as actual duty and import VAT savings. These include the following:

Preferences

– reduced rates of duty are available on imports of specified goods originating from named ‘preferential’ trading partner countries with the EU. However, the rules for determining origin require close consideration

Customs Warehousing

– Trade facilitation scheme that assist cash flow management – predominantly of interest to businesses who carry stock for at least several months

Excise Warehousing

- Similar to Customs Warehousing but for exciseable goods, e.g. Alcohol, Tobacco, Oils. Excise Warehousing may be available to importers of excise goods from both other EU countries as well as 3rd countries

Inward Processing Relief

- designed to alleviate Customs Duty and import VAT where goods imported for processing and re-export. BUT Beware the EU has recently tightened up on ensuring the conditions of use of the scheme are met in full.

Returned Goods Relief

– goods of EU origin lose their EU status at export, this is a Customs Duty and Import VAT relief for UK/EU goods re-imported following use abroad (avoids double taxation on UK/EU origin goods) – but there are of course conditions to meet

Outward Processing Relief

– designed to minimise Customs Duty and VAT where goods reimported following process or repair

Processing Under Customs Control

– Relief from import duty on some raw materials imported for manufacture (relief encourages businesses to manufacture rather than import finished products)

Reliefs for Specific Goods

– for example, Civil Aircraft and their parts, scientific instruments, research goods.

Temporary Import Reliefs

– for example, goods for testing, goods for exhibition purposes – can be imported VAT and duty free

Import VAT Relief

– Import VAT can be relieved if goods imported and then shipped to prior order to EU

The Customs People can provide proactive advice to determine whether facilitation schemes are available and if so can help importers operate in a compliant but effective manner.

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Valuation & Commodity Codes

As detailed on our home page it is very important that importers act in a proactive manner since they are the responsible party for the information declared.

To that end it is imperative that the importer is actively involved in both determining and advising the correct values and commodity code descriptions as these affect the rate of duty payable and amount of duty payable.

We can provide proactive advice in:

• Determining the correct value that should be used for duty and VAT purposes (the rules being complex in some instances) as well as;

• Assisting in the establishment of the most appropriate and beneficial commodity codes in order that all importers minimis2e their duty and VAT liabilities.

EU Imports

In addition to non-EU imports there are particular VAT and Statistical Reporting (Intrastat) rules that mean that all intra-EU transactions need to be considered in a proactive manner.

Again The Customs People can assist businesses in ensuring that they meet their compliance obligations whilst maintaining optimum profitability.