VAT & Duty When returning an item to a company within the EU (From UK)

[MattLW]

Hi,

Hopefully I am posting in the right forum.

I'm looking for some advice with an issue I have just come across returning an item to an EU based supplier:

Item purchased from an EU based company, (I'm in the UK, done via website so wasn't immediately obvious shipping would be from outside the UK / Not something that really occurred to me until it was shipped) decided to return the item once received and with in 7 days (original shipping box not even opened), got an RMA number, took to the post office with the return label attached, posted off, filled in the customs document and marked as a return, though job was done. waited a few weeks, nothing, check the tracking to find the shipment was on it's way back to me.

Seems VAT/Duty was charged on entry back in to the EU (Netherlands specifically) and the receiver dully refused to accept the delivery as they did not want to pay the charges.

First time since the UK left the EU I have had to send something back to the EU, hence looking for some help (also can't find much when searching about returning goods).

Am I correct in thinking these fee's were incorrectly charged as the item was been returned to the supplier or can the receiving country charger duty/VAT etc on return in this post Brexit world?

If the latter and the fee's were justified, can the sender pre-pay these? As I fear another £20 shipping will result in exactly the same outcome and I'll be down two lots of postage and still have the item with me, and the cycle will just keep repeating until the package get lucking and does not get any charges slapped on it.

Any thoughts and advice from anyone familiar with returning goods to the EU very much appreciated.

Cheers,

matt

 

[LPB 123]

On your customs forms CN22 / CN23 there should have been a question asking about the reason for sending which should be marked "returned goods" or similar and this should mean no import costs should have been charged.

 

[MattLW]

I ticked the box Contents: 'Returned Goods' . Which I was assuming is the correct way to do that and fee's/duty etc should not be applied?

I would also assume in the case fee's were incorrectly applied, it is the receiver that has to dispute them and get them refunded, not the sender? Which is then causing issue as the receiver just flat refused o accept the return and there only response thus far has been 'the sender is liable for any fee's' and they will not accept any responsibility for having refused it (despite my position that I have done what I had been asked to do and they should have accepted and then disputed the fee's).

Regards,

matt

 

[LPB 123]

Yeah you're correct it should not have been applied.

I do understand their position as I doubt they've be able to get the fees reversed after the fact but also get that you wouldn't want to resend it again and have the same thing happen again. I have never sent a return back to the EU before but as a UK retailer we receive plenty of returns from the EU and have never had import charges be incorrectly charged to us before.

Who did you send the parcel with? If you can show them that the customs forms had the correct info on, could you make a claim for a refund of the outbound postage from them?

 

[Customs Geek]

I would first check the supplier T&Cs as these should tell you what their policy is on returns. Some don’t accept them back because of the hassle and potential extra duties.

As others have mentioned returned goods should be given duty free entry but there is usually a requirement to provide some sort of proof such as the original tracking number or postal details.

can the receiving country charger duty/VAT etc on return in this post Brexit world?

In short yes they can - the default position is that everything entering a customs territory is treated as a new import and charged duty and taxes. The trade agreement we have with the EU does not cover return of goods to the EU duty free.

 

[DontAsk]

In short yes they can - the default position is that everything entering a customs territory is treated as a new import and charged duty and taxes. The trade agreement we have with the EU does not cover return of goods to the EU duty free.

Can you provide a link to the definitive information on that? It certainly still works the other way, post-brexit, i.e., returns to the UK.

 

[DontAsk]

Lots of hints through google search that duty and vat should not be levied on returns to the EU.

It seems you can also claim for the original duty and/or VAT you were charged on import, when you return goods to the EU, https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

 

[Customs Geek]

Can you provide a link to the definitive information on that? It certainly still works the other way, post-brexit, i.e., returns to the UK.

I am not permitted to attach links but it’s exactly the same rules in the UK .
It’s also hard to provide a link to a negative.
You cannot use the terms of the trade agreement to return goods, instead you need to use returned goods relief in the UK and EU .
The trade agreement only allows UK origin goods duty free entry to the EU and EU origin goods duty free entry to the UK.
it may seem odd but there is no provision in the TCA for re- entry of of goods previously exported.
we therefore look to domestic customs legislation . Both the UK and EU have returned goods relief as an alternative.

E.g To quote from HMRC guidance

For goods that were imported from the EU and are being returned or redistributed in the EU without obtaining UK origin, the importer in the EU may be able to claim Returned Goods Relief.

introduction-to-rules-of-origin-and-claiming-duties-when-trading-between-the-uk-and-eu

 

[DontAsk]

Sorry, I was thinking in general terms rather than what's specifically written in the trade agreement.

I did recently go to specsavers!

 

[Customs Geek]

Sorry, I was thinking in general terms rather than what's specifically written in the trade agreement.

I did recently go to specsavers!

Sorry I must have the wrong end of the stick. I was just trying to explain as it’s a common misconception that goods can go back and forth on the trade agreement terms without payment of duty.

If it’s about the general treatment of import goods and them being subject to import duties and taxes then that is always the default. It should be something on page 1 of a guide to imports. Obviously there are many duty reliefs, duty reductions because of origin etc that come into play thereafter.

Also the reason for the need for retuned goods relief is that goods lose their duty paid or free circulation status if they are exported.
This is the EU version. We have copied this across into the Uk legislation for goods that leave the UK but HMRC don’t publish something quite so clearly stated in general guidance You have to go to legislation to find it.

Do Union goods keep their status forever?​

No, goods released for free circulation, like goods made in the Union, may lose their status as Union goods.

This is notably the case where Union goods leave the EU customs territory (Article 154 UCC).

 

[MattLW]

Yeah you're correct it should not have been applied.

I do understand their position as I doubt they've be able to get the fees reversed after the fact but also get that you wouldn't want to resend it again and have the same thing happen again. I have never sent a return back to the EU before but as a UK retailer we receive plenty of returns from the EU and have never had import charges be incorrectly charged to us before.

Who did you send the parcel with? If you can show them that the customs forms had the correct info on, could you make a claim for a refund of the outbound postage from them?

My understanding is fee's can be appealed, I don't speak Dutch so I can't check with Dutch customs though. You can in the UK as I understand what I have ready in the past (if they will agree or not is anther matter.). In the worst case though the item is a return, they could charge me for them (not sure if I can appeal them from the UK as they would be addressed t the recipient).

Seems a bit of an odd situation as I can't guarantee the fees will not be charged again (ticking as returned good's with an RMA number written on the box etc you would think they would not have in the first place)...

So to be clear there is not a mechanism for returning goods to the EU beyond ticking the right box on the customs CN22 that is attached to the package? And it becomes a bit of a lottery as to how they will assess a package.

Package was sent with Royal mail, signed for and insured etc.. Yes I'l have to look in t that with them an see if they can do anything (Another grip is Royal mail have gone from post offices with a professional behind the counter that had a wealth of knowledge, to a convenience store with a set of scales and and Perspex size gauge.... in the old days they would have made sure everything was 100 and all.).

m

 

[MattLW]

I would first check the supplier T&Cs as these should tell you what their policy is on returns. Some don’t accept them back because of the hassle and potential extra duties.

As others have mentioned returned goods should be given duty free entry but there is usually a requirement to provide some sort of proof such as the original tracking number or postal details.



In short yes they can - the default position is that everything entering a customs territory is treated as a new import and charged duty and taxes. The trade agreement we have with the EU does not cover return of goods to the EU duty free.

Item went back with an RMA number supplied to me (and written on the outside of the box) so no issue with sending back in that regards, the issue has just been the fee's applied on entry to the Netherlands, and the recipient end has refused the delivery on the basis it had fee's to pay (there T^C's are sender is responsible for all fee's). At the very least it would be helpful if the fees could be charge to me to either pay or contest and try and get removed before delivery, but the way it seems I can't pay the as they are addressed to the recipient...

Cheers,

matt

 

[Customs Geek]

My understanding is fee's can be appealed, I don't speak Dutch so I can't check with Dutch customs though.

Most of the Dutch officers I’ve come across speak English . There is a legal mechanism to reclaim overpaid duties in the Netherlands and throughout the EU. The problem comes where you are not the importer and therefore not the legal customs debtor.

As there T&Cs say the sender is responsible for all fees have you checked withRM that you can’t pay any customs fees . I’m sorry I am not too familiar with postal procedures.
As you say on a return there should be returned goods relief.

Post NL appear to have a lot of info in English According to their site if the goods are returned to sender then the customs clearance fee is waived. There’s also info about appeals .

presumably returned goods relief has worked on the return to the UK though

 

[MattLW]

Most of the Dutch officers I’ve come across speak English . There is a legal mechanism to reclaim overpaid duties in the Netherlands and throughout the EU. The problem comes where you are not the importer and therefore not the legal customs debtor

Yes most Dutch people speak very good English, but I expect there government website and details for things like this to be in Dutch. (more so with been a fairly new a technical question). Yes I have said that the problem is I am not the recipient so the fee's have not been sent to me, thus the parcel did a circular trip and I foresee a high probability of the same happening again.

As there T&Cs say the sender is responsible for all fees have you checked withRM that you can’t pay any customs fees . I’m sorry I am not too familiar with postal procedures.
As you say on a return there should be returned goods relief.

I have not, I haven't had a chance to chase up with RM and see what, if any help they can provide as yet. I'm not familiar with this area either as it's the first time I have tried returning something to the EU.

Post NL appear to have a lot of info in English According to their site if the goods are returned to sender then the customs clearance fee is waived. There’s also info about appeals .

presumably returned goods relief has worked on the return to the UK though

The packages returned to me ok, no fee's in the UK, but it was returned as a refused delivery so had a more formal status as a return with the carrier and UK customs, as apposed to me returning something and filling in the CN22 form (a form that I would think a lot of people try and cheat on to avoid fee's...)..

Cheers,

matt