Import Duty And VAT

[jact25bd]

Hi
We imports goods to UK, store for few weeks and then export these to Asian countries. The goods are not sold or used in anyways in UK.
When we import we pay import duty and vat but don't get back these duties and VATs when we export the same goods.
Is there any customs procedure code that we can use during the import procedures so that we don't have to pay the import duty and vat.
Will highly appreciate anyone's response.
Regards
Junaid

 

[MikeFoulds]

Hi, could I ask where you are originally importing the goods from, and what the goods are?

I would suggest you need to look at bonded storage, you can then move the goods into bond WITHOUT paying any duty/vat, and then export from there.

 

[jact25bd]

Hi, could I ask where you are originally importing the goods from, and what the goods are?

I would suggest you need to look at bonded storage, you can then move the goods into bond WITHOUT paying any duty/vat, and then export from there.

Thanks Mike

We import from USA and EU countries and these are commercial electrical components.

Is Bonded storage the one where you first deposit the import duty and vat as security and get it back once the goods are exported. If this is the case will the goods have to be in any of the HMRC appointed warehouses or the goods can be first delivered to our own forwarder and then export from there?

 

[MikeFoulds]

HI.

Bonded storage is where cargo is kept in a customs controlled warehouse, where no duty/vat is payable, or used as security, however, the goods cannot be removed from that warehouse without any duty/vat being paid, or the goods being exported back out of the country. The storage cost is normally a little higher than a standard warehouse, but it saves paying duty/vat to hold goods. It HAS to be a HMRC approved warehouse, and your forwarder would then need to clear cargo out for export.

The other option would be to clear the cargo into free circulation, deliver goods to you/your warehouse for holding, and then claim back duty at time of export, but this can be a long winded process, as has been abused in the past, and HMRC are therefore now very strict and require detailed proof before they refund costs.

Hope this helps.

 

[Customs Geek]

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There is whole lot of info published on the HMRC website that covers a range of duty reliefs.
www.gov.uk/guidance/check-if-you-can-pay-a-reduced-rate-of-customs-duty

As previously mentioned you can use a public customs warehouse ( bonded) if you can find someone who will store your goods for you until you are ready to export. You can also get your own approval but it’s a lot of work to get one.
You can also consider applying for inward processing. Although this is for processing those processes can be very simple such as repacking so may suit your circumstances. There are admin burdens with most of the customs special reliefs so you need to work out your savings and the cost of running one of the schemes.
if you are UK VAT registered then you shouldn’t be incurring any actual VAT costs .

 

[Customs Geek]

The other option would be to clear the cargo into free circulation, deliver goods to you/your warehouse for holding, and then claim back duty at time of export, but this can be a long winded process, as has been abused in the past, and HMRC are therefore now very strict and require detailed proof before they refund costs.

There is no general ability to reclaim duties on goods reexported . It usually needs to be for a specific reason such as they are faulty. It is also possible to invalidate the original entry within 90 days of import if you can prove reexport. HMRC will refund the duties paid

www.gov.uk/guidance/refunds-and-waivers-on-customs-debt