Reselling shoes purchased from China to the US – import duties

14 September 2018

When we resell to the United States shoes purchased from China having paid all relevant duties, will the US customs authorities require payment of additional duties from those companies who are importing them from us?

At the moment there are no duties payable by customers in the US for goods which have a value of less than $800.

“Carriage Paid to (CPT) UK Airport” — problem with damaged shipment

7 September 2018

We buy under Carriage Paid to (CPT) UK Airport (Incoterms 2010 Rules) and have recently had a problem with a damaged shipment. Goods were badly damaged either during loading or unloading at the airport, a forklift truck appears to have run over one of the boxes and crashed into another. Our supplier is being very unhelpful, saying it is our problem, and is demanding their payment. We are trying to establish where the damage took place: what difference would it make to our claim on the seller if the damage was happened at the airport of loading or unloading?

Can I claim preferential origin for my end-product which is manufactured using EU produced (but not preferential origin) material?

6 September 2018

Regarding preferential origin, we purchase an EU produced, but not preferential origin (no supplier declaration) material under HTS 2921 and in the EU we use this material to manufacture a product with HTS 3908. Is it possible to claim preferential origin of the end-product? The origin rule for the end-product is:

RULE 1: Manufacture in which the value of all materials of Chapter 39 used does not exceed 20% of the ex-works price of the product. However, for products composed of materials classified in headings 3901 to 3906 on the one hand, and 3907 to 3911 on the other hand, this restriction only applies to that group of materials which predominates by weight in the product


RULE 2: manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product.

Preparing for a no-deal Brexit — trading with the Netherlands

30 August 2018

In the event that the UK leaves the EU without a “deal” either in April 2019 or January 2021, my company is trying to understand how best to mitigate paying customs duties. We currently import goods into the Netherlands, where they are stored, but as it isn’t a bonded facility customs duty is paid on arrival. A large percentage of the stock then comes to the UK, where it is stored and supplied to Ireland. Some of the goods are delivered as received, but we also manufacture different goods from the stock received in the Netherlands to be sold into the EU. We think post-Brexit there could be at least three lots of customs duty paid rather than just one. Any guidance for planning will be useful.

What values should be detailed on my Shipper’s Letter of Instruction for Inward Processing relief exports?

23 August 2018

I am unclear on what values should be detailed on our Shipper’s Letter of Instruction (SLI) for Inward Processing (IP) relief exports. As the goods being shipped are the return of items that have chargeable repairs we are currently indicating both the repair value and the value of the goods on the SLI — they are also clearly shown as separate amounts on the shipping invoice. However, our freight company has said that this is incorrect and only the value of the goods needs to be entered on the export declaration (National Export System (NES)). Can you help clarify this?

Customer in Morocco causing delays — what can I do?

16 August 2018

A customer in Morocco is insisting on handling the import of repaired and replacement items even though our agreement is to deliver on a DDP basis to their door. Their involvement is causing delivery delays. What would you advise in terms of next steps?

How do I obtain preferential treatment on my goods which are manufactured in Australia but sold from the UK?

16 August 2018

We sell goods from the UK and export them to international markets. The goods are manufactured in Australia, although they were designed and patented in the UK. A customer in Israel wants to get the most preferential treatment on import duties and has asked for an EUR1 form. We have confirmed with UK Customs that, as the goods are Australian origin and undergo no work in the EU, we are not able to issue this form. Is there any other way of obtaining preferential treatment on the goods?

Exporting a military specification product from the USA

10 August 2018

My company has sourced a military specification product from the USA to be incorporated into a defence product that will be exported from the UK to a destination outside the EU; the US supplier has obtained a US re-export licence to cover the movement from the UK. Does this mean that we do not have to obtain UK approval in the form of an export licence?