Can you claim duty and VAT back on your trade processes?
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Special procedures can be applied by your business to suspend or delay the payment of duties for your export/import.
There are three main types of special procedures:
-Inward Processing Relief
Provides relief on non-UK imports that are being processed in the United Kingdom, to then be re-exported within a specified time frame. No duty or VAT is due unless the time expires or the good enters circulation of the UK market. Processing can be anything from repacking to complex manufacturing, but the process must be declared to HMRC.
-Customs Warehousing
Specifically authorised storage areas where non-UK goods can enter without being subject to duty or VAT. Duty is applied if the goods enter free circulation. Customs Warehouses are HMRC monitored, so goods can only be stored in Customs Warehousing, with limited processing allowed.
-Returned Goods Relief
Allows you to bring back previously exported or imported goods, for example, if they are rejected at the border. Goods must be brought back in the same condition they left, unless for maintenance, and within 3 years of leaving.
You must ensure you are using the correct Customs Procedures Code to benefit from special procedures. Normally, you must be HMRC authorised to benefit from such procedures, but you can “authorise by declaration” three times a year.
There are other mechanisms and procedures to claim duty back, to check if your good or process can benefit from this, Click here.
If you are planning to send products for exhibitions or showcasing, you should use an ATA Carnet. Find out more in our dedicated section on Carnets by clicking here.