Removing Duty Costs on Goods Imported & then Re-Exported

We have recently been working with a number of businesses that bring goods into the EU where the goods are then re-exported to customers outside the EU. They have sought our assistance as the businesses are all in the clothing industry and the Customs Duty rate on many of the products involved is 12%.

In each case a proportion of the products imported have been sorted or repacked and then re-exported outside the EU but prior to our involvement the businesses have merely paid 12% duty on the re-exported stock with no consideration as to whether this can be alleviated.

It can be alleviated using a number of Customs approved methods although there are specific conditions and requirements that need to be met to ensure that relief can be given.

However, in our recent cases one business with an expanding export market had in its initial year paid £25K duty which with planning could have been avoided and another had paid around €100K duty which with prior planning and thought could have been saved.

In both cases we are currently working to implement systems so that future imports benefit from such savings but it just goes to show how taking advice can add to bottom line profit!