Import duties for value added work in UK

Discussion in 'International Business' started by Jason Lachance, Apr 12, 2021.

  1. Jason Lachance

    Jason Lachance UKBF Newcomer Free Member

    4 0
    I have a specialty part here in the USA that I need to ship to the UK to have a plating/coating put on it by a UK-based company. This part will be processed and shipped back to me in the USA.

    I would like to know if there is a way to NOT have to pay duties and VAT since the part will not remain in the UK and is not being sold. I understand VAT/duties may need to be paid on the coating portion when it is re-imported back to the USA.

    If anyone knows how I should code and categorize this, I would be grateful for the help as I've not found anything on the internet about this.

    Thanks in advance for your help.
     
    Posted: Apr 12, 2021 By: Jason Lachance Member since: Apr 12, 2021
    #1
  2. japancool

    japancool UKBF Big Shot Free Member

    4,401 909
    Who will be the importer?
     
    Posted: Apr 12, 2021 By: japancool Member since: Jul 11, 2013
    #2
  3. Jason Lachance

    Jason Lachance UKBF Newcomer Free Member

    4 0
    Sorry, I'm not sure if I totally understand the question.
    I'm shipping the part to a company in Tongham, UK who I guess is the importer. They will coat it and ship it back to me. I will be charged for the work they do only (plus shipping, etc).
     
    Posted: Apr 12, 2021 By: Jason Lachance Member since: Apr 12, 2021
    #3
  4. japancool

    japancool UKBF Big Shot Free Member

    4,401 909
    If they are named on the waybill as the importer, they will be the ones to whom the tax bill will be raised.

    If they are VAT registered, it actually won't make a difference to them, since they can just claim that back.

    They can also apply for authorisation to delay their VAT payment:
    https://www.gov.uk/guidance/apply-to-delay-or-pay-less-duty-on-goods-you-import-to-process-or-repair

    The above may mean they pay less duty, but as far as I know, this is the only process available to them.
     
    Posted: Apr 12, 2021 By: japancool Member since: Jul 11, 2013
    #4
  5. Jason Lachance

    Jason Lachance UKBF Newcomer Free Member

    4 0
    Thank you much for your response and info, japan-cool! I will check with the company to see if they have this set up on their end.
     
    Posted: Apr 12, 2021 By: Jason Lachance Member since: Apr 12, 2021
    #5
  6. Mike Godwin

    Mike Godwin UKBF Regular Free Member

    162 42
    The goods just need to be shipped in under the correct customs procedure code (CPC) for temporary importation and re-export. Subject to the commodity codes and value, I would suggest IPR (Inward Processing Relief) applies here. Any UK Freight Forwarder will be able to advise and take care of this for you.
     
    Posted: Apr 13, 2021 By: Mike Godwin Member since: Mar 27, 2018
    #6
  7. Jason Lachance

    Jason Lachance UKBF Newcomer Free Member

    4 0
    Thanks much for the response, Mike!
     
    Posted: Apr 13, 2021 By: Jason Lachance Member since: Apr 12, 2021
    #7
  8. Import Expert

    Import Expert UKBF Regular Free Member

    350 139
    Posted: Apr 19, 2021 By: Import Expert Member since: Feb 1, 2012
    #8
  9. japancool

    japancool UKBF Big Shot Free Member

    4,401 909
    Posted: Apr 19, 2021 By: japancool Member since: Jul 11, 2013
    #9