Areas of Assistance For Importers

Barnard Atkins Limited is the leading independent firm of VAT & Customs Duty advisers in the UK, which provides services that are designed to help businesses meet their compliance obligations whilst operating in a way that makes the most of indirect tax.

In relation to businesses which import, there are a number of areas of specific assistance.

Customs Duty and Import VAT – Non-EU Imports

There are 3 broad areas of compliance and opportunity:

1. Facilitation Schemes
2. Commodity Codes of Goods Imported
3. Valuation of Imports

Facilitation Schemes
In respect of facilitations schemes, there are a number of schemes available that provide both cash flow as well as actual duty and import VAT savings. A number of these are detailed below and include Customs Warehousing (which provides greater cash flow management) and a myriad of Temporary Import / Export schemes which alleviate or minimise duty and VAT payments.

Barnard Atkins Limited can provide proactive advice to determine whether facilitation schemes are available and if so assisting importers operate in a compliant but effective manner.

Valuation & Commodity Codes
Under 2 & 3 above, it is very important that importers act in a proactive manner since they are the responsible party for the information declared.

To that end it is imperative that the importer is actively involved in both determining and advising the correct values and commodity code descriptions (these determine duty rates) to ensure that neither underpayments nor overpayments of duty and import VAT occur since both kinds of error can significantly affect profitability in a negative way.

In addition, HM Customs & Excise have recently introduced (potentially) stringent Civil Penalties in respect of import declarations so compliance now has an added dimension to it.

As a result Barnard Atkins Limited can provide proactive advice in determining the correct values for duty and VAT purposes (the rules being complex in some instances) as well as assisting in the establishment of the most appropriate and beneficial commodity codes in order that all importers minimise their duty and VAT liabilities.

EU Imports

In addition to non-EU imports there are particular VAT and Statistical Reporting (Intrastat) rules that mean that all intra-EU transactions need to be considered in a proactive manner.

Again Barnard Atkins can assist business in ensuring that they meet their compliance obligations whilst maintaining optimum profitability.

Example of Facilitation Schemes

Customs Warehousing – Do you have stock on hand that may not move for several months? Are these duty and VAT paid? If the answer is "yes" to these questions, you may be able to significantly increase cash flow by operating a Customs Warehouse, a trade facilitation scheme that assists cash flow management.

Excise Warehousing - Similar to Customs Warehousing but for exciseable goods, e.g. Alcohol, Tobacco, Oils. Excise Warehousing may be available to importers of excise goods from both other EU countries as well as 3rd countries

Inward Processing Relief - designed to alleviate Customs Duty and import VAT where goods imported for processing and re-export

Returned Goods Relief – Customs Duty and Import VAT relief for UK goods re-imported following use abroad (avoids double taxation on UK/EU origin goods but has to be applied for at import otherwise duty and VAT levied again)

Outward Processing Relief – designed to minimise Customs Duty and VAT where goods reimported following process or repair

Processing Under Customs Control – Relief from import duty on some raw materials imported for manufacture (relief encourages businesses to manufacture rather than import finished products)

Reliefs for Specific Goods – for example, Civil Aircraft and their parts, scientific instruments, research goods.

Temporary Import Reliefs – for example, goods for testing, goods for exhibition purposes – can be imported VAT and duty free

Import VAT Relief – Import VAT can be relieved if goods imported and then shipped to prior order to EU

Examples of Compliance Issues (But Where Opportunities May Also Exist)

Valuation – Contract details will determine value for duty and VAT – importers should ensure all material facts, for example, retrospective discounts or rebates, are taken into account so as not to overpay (or underpay) duty. Overpaid duty will involve unnecessary costs affecting profit. Underpaid duty will involve unnecessary costs through possible interest and penalty charges.

Tariff Headings – Product description determines duty rate but more than 1 can apply to each product – is the most beneficial or appropriate one considered / used for each product?

Documentation Requirements – is all proper paperwork completed and presented on time to allow import. Common problem areas include failure to lodge AADs for excise goods on time thus, meaning C&E seize or detain goods or failure to apply proper authorisations / submit proper paperwork for facilitation schemes.

Contacts

We will be pleased to discuss any issue regarding Customs Duty, Excise Duty or VAT (Import or Generally) on an initial free, no obligation basis.

David Miller
Barnard Atkins Limited
470 Chester Road
Manchester
M16 9HS

Phone: 0870 420 8971
Fax: 0161 872 3121