Questions and Answers

Inward Processing (IP) relief to import goods from the USA

18 February 2019

In November 2017 my company was approved by HM Revenue & Customs (HMRC) to use IP relief to import goods from the USA to be used in the production of our finished product that is mainly exported outside the EU. In June 2018 our goods became subject to the retaliatory EU import customs duties adding 25% to the standard duty rate. As we import under IP we didn’t worry as this 25% was suspended along with the normal duty rate. I have just read an information paper published by HMRC that states IP cannot be used for goods imported from the USA. This will make our finished products very expensive, is it correct?

Imports under DAP terms — some questions

11 February 2019

I have a few questions relating to imports under Delivered At Place (DAP) UK airport terms. We are receiving imports under the DAP Incoterms® rules and the supplier’s agents are clearing the goods on our behalf — all we do is pay the VAT, the duty seems to be invoiced back to our suppliers. In these instances should we be asking for the C88 import declaration? How do we know who the importer is and whether the goods have been correctly declared? Should HM Revenue & Customs (HMRC) find a problem would we be liable?

Also, would the suppliers be importing under their own name or their agent’s names? We have been quoted for an import from China on a Delivered Duty Paid (DDP) basis — would this mean that the supplier will be the importer?

Penalty for failing to submit an Intrastat Supplementary Declaration on time

4 February 2019

I have always believed that there would be no penalty for having failed to submit an Intrastat Supplementary Declaration (SD) on time if you had a “reasonable excuse”. I’m now informed that, except for some very strict “events”, there is no such thing as “reasonable excuse”. Is that correct?

Which Incoterm® should I be using?

4 February 2019

Our sales department is confusing me — they like to quote Free Carrier (FCA) Seller’s Premises (a recent change from Ex Works (EXW)) but they then ask me to organise the freight and raise an invoice for these costs and send it to the customer. I don’t think this is right and believe they should move to Carriage Paid To (CPT) or Delivered At Place (DAP) Incoterms® rules. What is the best way to be doing this?

Turkish customer has requested an ATR Form but my goods don’t qualify for ATR — help!

24 January 2019

Our Turkish customer has requested an ATR Form, but the goods being imported into Turkey are actually being shipped from China on Cost, Insurance and Freight (CIF) Istanbul Incoterms® rules. As the goods do not originate in the EU or Turkey and are not already in free circulation, I do not think they can qualify for the ATR Movement Certificate. The complication is that the Turkish company is being invoiced by the UK-based company. It seems the Turkish company has not factored in the import duties. Do I need to confirm with the customer that it will have to pay customs duties at import?

Submitting Intrastat to HMRC — has the threshold value changed?

23 January 2019

My company submits Intra-Community Trade Statistics (Intrastat) to HMRC for goods we supply into the EU, but we don’t make these reports for goods we bring in from the EU. I know the threshold value for submitting these reports changes every year, but I can’t find where the 2019 have been reported. Has there been any change?

Do you have any information on the new EU-Japanese free trade agreement?

16 January 2019

Do you have any information on the new EU-Japanese free trade agreement (FTA)?

What type of documents are needed for exporting goods to Dublin? How will this change once the UK leaves the EU?

16 January 2019

Can you advise on the type of documents needed for exporting goods to Dublin and how will this change once the UK leaves the EU?

Why does the UK online Trade Tariff have 21 sections and the paper version have 23 sections?

17 December 2018

Why does the UK online Trade Tariff have 21 sections and 98 chapters, but the paper version of Volume 2, Part 2 of the Integrated Tariff have 23 sections and 99 chapters?

Products manufactured in Germany and moved/sold to customers in the UK — issues with excise duty

10 December 2018

It is our intention to have products manufactured in Germany and moved/sold to customers situated in the UK. As the products are liable to a duty of excise within the territory of the EU, we understand that the goods may only be moved without payment of excise duty under the Excise Movement Control System (EMCS) procedure.

We believe that to utilise these procedures the receiving premises in the UK must be approved as an excise warehouse by HM Revenue & Customs (HMRC) and be allocated a System for Exchange of Excise Data (SEED) number relevant to the excise warehouse. Our issue is that our UK Ltd company is not physically based in the UK and the premises we will be using to receive the goods does not hold an excise warehouse approval and is not authorised as an authorised warehousekeeper.

I have contacted HMRC and it advised that, as we do not have premises within the UK, we cannot make an application for the UK warehouse to be approved as an excise warehouse and therefore it cannot be allocated a SEED number for the purpose of the EMCS system. This will make our planned business scheme expensive if we have to pay excise duty on the goods being manufactured in Germany. We wondered if you could review this and advise if what HMRC says is strictly correct and if there are any options available to us that will mitigate the costs?

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