Importing - Manually writing the EORI on the Commercial Invoice, and reclaiming DDP VAT?

[D0minic]

Hello, I am attempting to import and I have a shipper that can ship to me using air couriers such as UPS/FedEx/DHL from the USA to the UK but he uses a USA service for cheaper shipping rates that does not allow for PVA to be requested and also does not allow for the EORI number to be entered when booking the shipment.

I have two questions for this shipment:

1. Can he manually write my EORI in the empty field on the three copies of the commercial invoice when he attaches them to the parcel? Would this be allowed?

2. If I am charged DDP VAT from the courier company then can I still reclaim the VAT if I did not use PVA?

Thanks for any advice on this as it's hard to find info on this.

 

[Customs Geek]

Hi

There needs to be some way of communicating your EORI and the requirement for PVA to whoever is effecting the clearance in the UK.
To answer your questions.
1. Yes they can write the EORI on the commercial invoice buts it’s unlikely anyone will see it . Almost all customs clearance of parcels is highly automated. There isn’t a person going and looking at paper invoices attached to a package.
2. If import VAT is paid and your EORI number is declared then you will get a C79 certificate from HMRC. ( Downloadable via your government gateway as for the PVA statements ). It is only the C79 that you can use as evidence for a n import VAT reclaim. You cannot use the invoice from the courier.

You say it’s DDP which indicates that the sender is picking up the import charges.

 

[D0minic]

Hi

There needs to be some way of communicating your EORI and the requirement for PVA to whoever is effecting the clearance in the UK.
To answer your questions.
1. Yes they can write the EORI on the commercial invoice buts it’s unlikely anyone will see it . Almost all customs clearance of parcels is highly automated. There isn’t a person going and looking at paper invoices attached to a package.
2. If import VAT is paid and your EORI number is declared then you will get a C79 certificate from HMRC. ( Downloadable via your government gateway as for the PVA statements ). It is only the C79 that you can use as evidence for a n import VAT reclaim. You cannot use the invoice from the courier.

You say it’s DDP which indicates that the sender is picking up the import charges.

Sorry I assumed DDP was when the courier pays for you and then you pay them, my bad on the wording there.

I was under the assumption also that if you use UPS/FedEx/DHL they would do the customs clearance for you? I spoke with a customs company and they said they weren't for small parcels like that as they would clear customs and charge brokerage fees, is this not correct?

So basically as long as the EORI is included it would go in the CDS account either way, via PVA or C79 if the courier charges me?

Thanks for the information this is very helpful for me.

 

[Customs Geek]

No DDP means delivered duty paid and it’s something you would agree with the seller.
Couriers have a DDP service where they will charge import duties back to the seller.
Properly DDP Incoterms should be that the seller doesn’t involve the buyer with the customs import at all and will clear the goods at import in their own name.

Yes if you use FedEx/ ups etc then yes they will do the clearance. They use simplified procedures that are unique to imports by fast parcel operators.

If you are not using a courier / fast parcel operator but a customs broker the process is very different. As the importer you should be providing the broker with the clearance instructions including the documentation,your EORI the goods classification and value and whether you want to use PVA etc.

Yes if your EORI / VAT number is used on the declaration then both the C79 and PVA statement will be on your CDS account . With the C79 the VAT is paid an reclaimed but with PVA you account for both payment and reclaim through your VAT return.

 

[D0minic]

No DDP means delivered duty paid and it’s something you would agree with the seller.
Couriers have a DDP service where they will charge import duties back to the seller.
Properly DDP Incoterms should be that the seller doesn’t involve the buyer with the customs import at all and will clear the goods at import in their own name.

Yes if you use FedEx/ ups etc then yes they will do the clearance. They use simplified procedures that are unique to imports by fast parcel operators.

If you are not using a courier / fast parcel operator but a customs broker the process is very different. As the importer you should be providing the broker with the clearance instructions including the documentation,your EORI the goods classification and value and whether you want to use PVA etc.

Yes if your EORI / VAT number is used on the declaration then both the C79 and PVA statement will be on your CDS account . With the C79 the VAT is paid an reclaimed but with PVA you account for both payment and reclaim through your VAT return.

OK thank you once again this is unbelievably helpful, you have confirmed what has taken me weeks to get my head around, even customs companies would not confirm this to me, so basically as long as I use fast parcel operators I do not need to get a customs broker, is what I am taking from this.

And also I need to find a way to ensure that the EORI number is definitely included on the parcel when shipped. The difference in shipping direct with the fast parcel operators compared to the companies (our equivalent of Parcel2Go) is staggering, talking like 5X the price to go direct to UPS. The downside is that there is no option to include the EORI number on the booking form, which is why he did it on the three copies of the commercial invoice.

If I was only shipping to myself using fast parcel operators like this would there be no real need for a customs broker in your opinion, or should I start using new processes. I am thinking if its only a few parcels this would be cheaper but really appreciate this advice. And thank you for fully explaining DDP.

Should I contact the fast parcel operators and see if I can communicate I wish to use my EORI and PVA if a parcel arrives for the company without it, or would this be impossible?

 

[Customs Geek]

Sorry now I’m getting confused on how you are actually shipping . It’s sounds like you are having a package sent so it’s likely going through some sort of fast parcel operator.
If so they include the clearance as part of their service.
If you are lucky they may contact you for details.


You only need to worry about getting a broker if you are shipping as freight.

 

[D0minic]

OK understood thank you, I phoned HMRC about using fast parcel operators doing the customs clearance, and the guy told me I needed a customs broker, which was contrary to what I had read.

Thanks again for clarifying.

 

[D0minic]

Could the EORI possibly be entered as a line of the shipping and billing address?

 

[MOIC]

If your seller is sending via DDP terms, they will get a much cheaper shipping rate, and look after Customs fees in their name, using their EORI.

If you need to claim back Import Duty & VAT, then you must have your information and EORI details on the paperwork.

Ultimately you have to choose one, a cheap shipping cost, but unable to claim back the Import Duty & VAT, or a more expensive shipping cost, allowing you to use your EORI and claiming back the Import Duty & VAT.

You can’t have both.