The most common requirement of Traders is to have their import consignments released from Customs controls upon arrival, so that they can take delivery and sell or use the goods as quickly as possible.
The procedure is called a Home-Use Import; releasing the goods immediately to ‘Free Circulation’ by meeting any Licence criteria and offering any Duty and Import VAT due, allowing onward delivery or sale anywhere in the EU without further permissions necessary.
In addition to Home Use Entries, Martintrux Dover regularly presents consignments for:
OPR – Outward Processing Relief: Reducing Duty against the value of components originally supplied from the EU.
IPR – Inward Processing Relief (Suspense): Avoiding Duty and Import VAT on goods nominated for eventual onward-sale outside the EU.
IPR – Inward Proceeding Relief (Drawback): Paying Duty on a deposit basis for goods which may be nominated for onward-sale outside the EU.
VAT Relief for EU Onward Sale: Receiving a cash-flow benefit for avoiding Import VAT on goods to be immediately sold-on to registered companies in other EU Member States.
Returned Goods Relief: Taking a cash-flow benefit of Import VAT against the value of components previously exported from the UK – or goods returned to the UK in the same state.
Bonded Warehouse Release: Allowing goods to enter a Customs Bond.
Bonded Warehouse Removal: Clearing goods out of a Bond.
CFSP Frontier Release: Granting import consignments release from the place of presentation to be entered to a
Customs Freight Simplified Procedure at other premises.
Martintrux Dover also acts as Fiscal Representative for non-EU companies wishing to relieve their EU clients of the responsibility of being an Importer.
For any Import consignment, Martintrux Dover will work with the Importer to;
Classify the goods for Customs purposes.
Identify any Preferential Duty treatment which may be available depending on the Country of Origin and details of manufacture, and advise which Preference Certificates should then be produced by the supplier.
Consider prohibitions or restrictions imposed by the EU, HM Revenue and Customs or any other Government Department.
Check the type of Entry and Customs Regime which best suits the Importer’s needs.
Prove the Value for Customs, the Value for Duty and the Value for VAT to be declared, making additions or reductions in regard to the quoted Shipping Terms to meet Customs requirements.
Calculate any Duties and Import VAT to be paid, and ensure the proposed method of payment has sufficient funds.
HM Revenue and Customs offer a 24 Hour national computer system to receive Import Entry submissions, which must be submitted via different protocols dependant on the system being operated by the Inventory Manager at the specified Place of presentation – and clean declarations have a very high percentage chance of receiving immediate clearance. The UK is not a separate trading nation, our rules are dictated by the EU – but interpretations are policed by HM Revenue and Customs. Policing of the procedures is on behalf of all Government Departments and ‘risk based’; many consignments are released almost immediately upon presentation, but all declarations are liable to audits at a later time.
Martintrux Dover will anticipate each point necessary and prepare declarations in advance whenever possible; giving HM Revenue and Customs every opportunity to award immediate clearance upon arrival. It is the job of the Customs Clearance Agent to ensure that all original documents are to hand when consignments are presented, and then retained for any audit, and create accurate entries which will stand up to any subsequent challenge.
The Supplier should be encouraged to quote as much detail as possible of the transaction on his invoice:
The exact Sales Terms – usually expressed in INCO Terms, which must state a ‘place’ for the terms to be effected – such as, ‘CIF Brentford’ rather than just ‘CIF’, and clearly state the currency of the sales value.
If not showing a Commodity Code (otherwise known as an HS Code or Tariff Heading) – provide a full description of the goods to assist the classification – and identify the exact quantities as appropriate; number of units, as pieces or metres or square-metres.
Should the invoice only be for manufacture of otherwise sourced components, quote the value of materials supplied free of charge.
Breakdown inclusive charges, such as ‘Bank or Finance Charges’ or ‘Commissions Paid’ – as we may be able to exclude some elements of cost for the Value for Duty to be declared.
Preferential Rates of Duty are not awarded automatically just because a Preference Certificate has been issued by the Supplier of the goods and his Customs Authority has endorsed the certificate. A Preferential Rate of Duty must be claimed by the Importer at the time of Entry and the Importer must be aware why the goods qualify for Preferential Treatment – by virtue of meeting laid down criteria of manufacture.
Textiles or Textile Products always require an original Certificate of Origin to be imported to Free Circulation within the EU. A Preference Certificate can ‘double’ as a Certificate of Origin, but only if it is correctly issued and a Preferential Rate of Duty is claimed.