International Trade Guidebook

International trade guidebook
Table of contents
Are you ready to import?

Introduction Plan your import objectives Understand what importing involves Decide your approach to importing Negotiate the right import deal Review your import readiness Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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Assess your skills and resources for importing 7
Importing your goods from outside the European Union

Introduction What is an import? Import declarations Taxes and duties on imports Suspending or delaying import charges Reliefs on imports for export or re-export Import reliefs on previously exported goods Special import reliefs Reclaiming taxes on rejected imports Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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11 11 12 13 14 15 16 16 17 18 18 18
Importing and exporting by post

Introduction
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International trade guidebook | Created by nibusinessinfo.co.uk on 11 January 2012 12:49 Crown copyright 2010
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How to declare goods when importing by post20 Calculating Customs charges when importing by post Examination of postal packages entering the UK by post and Royal Mail handling fees Postal imports and exports requiring full declaration outside the European Union Union Related guides on nibusinessinfo.co.uk Related web sites you might find useful 25 26 27 28 28 Customs declarations when sending packages Receiving postal packages from the European 23 23 Paying outstanding charges on goods imported 21
Related web sites you might find useful
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Import Control System

Introduction Import Control System - an overview Control System Entry summary declarations Import risk analysis for safety and security Import Control System fallback measures Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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38 38 39 39 42 42 44 44
How to register for and lodge entries into Import
Rules for lodging entry summary declarations 40
How to value your imports for customs duty and trade statistics 45
Introduction Declaring an import value Other methods of calculating import value Value for import VAT Import value for trade statistics purposes Where to find information on the valuation of imported goods Related guides on nibusinessinfo.co.uk Related web sites you might find useful 46 46 48 50 51 52 52 52
Customs procedures when transporting goods by road 29

Introduction to or via the European Union Taking road vehicles temporarily into or out of the UK or European Union Trader registration, VAT and other customs systems UK Other requirements and logistical documentation Helplines Related guides on nibusinessinfo.co.uk 33 35 35 31 32 Penalties for carrying clandestine entrants to the 30 29 29 Customs transit options when moving goods in,
The main method of calculating import value 47
UK's import and export processing system CHIEF 54

Introduction exports How to gain access to CHIEF 54 54 55 How the CHIEF system expedites imports and
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How to send National Export System information to CHIEF via the internet How to use CHIEF efficiently Fallback options if CHIEF is unavailable Using the Management Support System Related guides on nibusinessinfo.co.uk Related web sites you might find useful 56 57 58 59 60 60
Moving your goods

Introduction for your consignments Labelling and packaging of goods Regulations and the movement of goods Weights, measures and the movement of goods Choosing a freight forwarder Movement-of-goods insurance Paperwork and documentation Here's how we successfully ship our goods abroad
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Choosing the right transport and customs route
Classification of goods
Introduction The importance of classifying your goods The role of the Tariff Classifying your goods The Tariff Classification Service Further help with classification of import or export goods Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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62 62 63 64 66 67 68 68
Importing and exporting via post and courier 85 86 87 88 88
Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful
Introduction to the Tariff

Introduction What the Tariff is Commodity codes and the TARIC Enforcing the Tariff Classifying goods and how to do it Tariff quotas Binding Tariff Information and banned and restricted goods Further help and advice on the Tariff Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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70 70 71 72 72 73 73 74 75 75 75
Imports and purchases from abroad: paying and reclaiming VAT 90

Introduction VAT on goods from European Union (EU) countries VAT on imports of goods from non-EU countries VAT on services received from overseas suppliers New vehicles, boats and aircraft Payment of VAT on goods from abroad and arrangements to defer or suspend payment 96 93 95 Claiming relief if you re-import exported goods94 91 90 90
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Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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Understand what customs procedures and reliefs apply to you 99

Introduction 99
Introduction to VAT
Introduction What is VAT? Who charges VAT and what VAT is charged on Rates of VAT Items not covered by VAT The difference between exempt and zero-rated Find out more about VAT VAT glossary Here's how I got to grips with VAT More Useful Links Related guides on nibusinessinfo.co.uk Related web sites you might find useful
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When to register for VAT

Introduction Related web sites you might find useful
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Subjects covered in this guide
Introduction
Introduction Plan your import objectives Understand what importing involves Assess your skills and resources for importing Decide your approach to importing Negotiate the right import deal Review your import readiness Related guides on nibusinessinfo.co.uk Related web sites you might find useful Suppliers around the world offer a wide variety of goods that might suit your business. You might be able to find lower-priced supplies, giving you a competitive edge, or new supplies that allow you to sell a completely different product. Just as when you buy within the UK, it's important to find good suppliers, make sure they offer what you want and negotiate the right deal. But importing also presents complications, such as managing long-distance relationships and organising international transport and customs clearance. It's important to be sure that you are ready to import before you commit yourself.
Plan your import objectives

You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Importing and exporting basics > Starting out in international trade > Are you ready to import? Before you start importing, it's a good idea to be clear about what you are trying to achieve. You might want to find a cheaper source of supplies overseas, or to import products that aren't yet available in the UK to sell to your customers. At the same time, importing should fit in with your overall business strategy. For example, importing low cost goods might be part of a cost-control strategy, but you want to be sure that this does not compromise your reputation for quality. It's worth thinking about how much time, money and effort you want to devote to setting up and managing your importing activities. You are unlikely to want to invest heavily for a small, one-off import. But if importing is going to be an important part of your business, you might be prepared to
International trade guidebook | Created by nibusinessinfo.co.uk on 11 January 2012 12:49 Crown copyright 2010 Page 5
spend more on finding the best suppliers, building relationships and so on. For more information, see the page in this guide on how to understand what importing involves. You also need to decide how much involvement you want to have in the import process. Importing can be fairly straightforward if you only deal with experienced suppliers who handle most of the paperwork and logistics, and get help from an import agent. On the other hand, dealing with less experienced suppliers and handling more of the process yourself could be more time consuming but also more profitable. See the page in this guide on how to decide your approach to importing. Whichever approach you choose, you should ensure that all the key people in your business agree and are committed to it.
Check that any goods will suit your production processes and satisfy customer demands. There are also extra issues to consider, such as whether imported goods meet UK legal requirements or require an import licence. See our guides on licences and enforcement for international trading and do you need an export or import licence? Resolving problems - such as incomplete deliveries - can be difficult, so it's important to plan ahead. For example, you might decide to hold extra stocks so that you don't run out even if a delivery is late or contains faulty goods. See our guide: manage the risks of importing. Logistics and payment There are also practical issues to consider. Depending on the contract you agree with your supplier, you might be responsible for clearing goods through UK customs. You might also need to arrange some of the transport and insurance, eg from a UK port to your premises. Draw up a clear agreement setting out each party's responsibilities and who is at risk if goods are delayed, damaged or lost while being delivered. See our guides on international transport and distribution and international trade paperwork: the basics. Allow for of the extra costs involved, including transport, insurance and import duties and taxes. Whether you pay these directly, or through a mark-up added by your supplier, they can significantly increase the overall cost of imported goods. Use our interactive tool to understand your tax obligations when importing and exporting.
Understand what importing involves

Importing goods from overseas suppliers involves all the same issues as purchasing from suppliers in the UK. It's up to you to establish what you require, and find the right supplier. Check the supplier is creditworthy and can meet your quality standards. You'll want to check the supplier's subcontractors as well. You'll need to negotiate deals and manage the relationship. All of this can become more complicated because of the distances involved and different languages, business cultures and legal environments. See our guide: manage overseas suppliers.
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Payment issues can also be more complex, particularly if you are dealing in a foreign currency. See our guide to foreign currency and exchange risks.
Assess your skills and resources for importing

Importing requires special skills and extra resources. Before you start importing, you should assess whether you have the right skills and resources and decide how to cope with any shortcomings. You need to understand UK customs procedures and ensure you have the right paperwork when deliveries arrive in the UK. International trade often uses payment methods, such as letters of credit, that require an understanding of payment documentation. If you agree to pay in a foreign currency, you also need to be able to handle foreign exchange. You will probably need new administrative systems to track deliveries and payments and manage the paperwork. If you do not have the skills in house, you may want to invest in training. Or you could use someone else - such as an import agent - to handle specialist areas. You may also need extra personnel to handle the additional workload. Alternatively, you might decide to only deal with suppliers who handle most of the procedures. Many first time or small scale importers prefer to keep things simple. See the page in this guide on how to decide your approach to importing. Financial resources
As well as skills, you need to think about what resources you can devote to importing. Researching overseas markets and managing overseas suppliers can be time-consuming and expensive, particularly if you need to visit them. See our guide on how to manage overseas suppliers. If your finances are limited, you may prefer to deal with suppliers who offer credit. On the other hand, agreeing to pay promptly could help you negotiate a competitive price. Make sure you have planned how you are going to use the imports, and have the skills and resources you need in place. For example, you might need production capacity for processing imported components, or a marketing plan and sales resources for selling imports on to your customers.
Decide your approach to importing

It's up to you to decide how involved in importing you want to be, and whether you can cope with the paperwork, logistics and payment issues. Dealing with inexperienced suppliers, and organising most of the logistics yourself can offer greater profit potential. But it also requires more investment, and tends to carry greater risks. Businesses that are new to importing often prefer to keep things relatively simple and low risk: It's generally easiest to import from countries within the European Union. It's also relatively easy to import from developed countries such as the USA. Importing from developing countries can be more complicated.
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If you deal with experienced exporters, it's usually possible to negotiate a contract where they take responsibility for delivering the goods to the UK - or even to your own premises. Of course, the supplier will want to build all these costs into the price they charge you. You can also negotiate contracts in pounds sterling, rather than the supplier's currency. Again, the supplier will want to build extra costs into their price for this. Some suppliers, particularly in developing countries, require payment by letter of credit. This can cause problems, especially if you are inexperienced. You can use third parties to handle your responsibilities. For example, you can use an import agent to handle UK customs clearance, and a freight forwarder to handle onward delivery to your premises. As you build experience and confidence, you may want to increase the scale and complexity of your importing. You can choose which skills to develop. For example, if your supplier offers a substantial discount for dealing in their currency, you might want to arrange training in managing foreign exchange, open a foreign currency bank account and invest in accounting software that can handle transactions in other currencies.
The best way to split responsibility for delivery and customs clearance depends on your skills and what third parties you use. It can be more cost-effective for you (or your agent) to handle UK customs clearance and onwards delivery to your premises. Before you finalise the contract, make sure you can handle everything involved. Try to plan ahead, anticipating what could go wrong and working out how you could deal with it. Even if the supplier is responsible for something, or you use an agent, you could still have problems if things go wrong, eg if a delivery doesn't arrive and you can't supply your own customers. See our guide on how to manage the risks of importing. Whatever you negotiate, it's important to have a clear contract setting out exactly what payment and delivery terms you have agreed. Using internationally agreed Incoterms (International Commercial Terms) helps reduce the risk of delivery problems or misunderstandings. The contract should also cover what payment is required, when and in what currency, and what payment method will be used. See our guide to international trade paperwork: the basics. You may want to take advice from a lawyer with experience of international trade. Imports tend to run most smoothly if you build a good relationship with your suppliers. See our guide on how to manage overseas suppliers.
Negotiate the right import deal

Understanding your own strengths and weaknesses, and what your supplier's priorities are, helps you negotiate the best deal. For example, if you have a healthy cash position, you could offer to pay more promptly in return for a good price.
Review your import readiness

You can use these points to help you decide whether you are ready to start importing or
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and delivery, or have you built relationships with third parties to do this for you? How do you plan to develop your importing skills? Have you organised any training? Have you set up administration systems to handle importing, eg tracking deliveries and payments? Do you have the personnel resources to handle the additional work? Which individuals will be responsible for each task? Finances Have you identified all the costs of importing, including transport, insurance and import duties and taxes? Do you have enough working capital to finance imports or will you need to negotiate credit from suppliers or arrange a trade finance package with your bank?
discover what else you need to do to prepare. Planning and strategy Are you committed to importing? Have all the key people in your business agreed? Do you have a well-defined import strategy? How much time and money are you prepared to invest in starting to import? Do you know what suppliers, in which countries, you will consider? Have you planned how you will research and select them? Do you understand your own strengths and weaknesses? What will be your objectives in negotiating import contracts? Have you planned how you will store, process and/or sell the imports? Do you have the resources you need? Product specifics Do the goods you plan to import need an import licence? Do the goods need to meet any UK standards or legal requirements? What requirements are there for the goods to fit in with your production processes or customer demands? Skills and administration Do you understand international payment methods and can you handle them? Do you understand international delivery contract terms - ie Incoterms? Have you got the right legal advice? Do you have the skills to handle import tasks like customs clearance
Related guides on nibusinessinfo.co.uk

Manage overseas suppliers | Manage the risks of importing | Entering overseas markets | International transport and distribution | International trade paperwork: the basics | Foreign currency and exchange risks | Licences and enforcement for international trading | Do you need an export or import licence? | Trading in the European Union | Importing your goods from outside the European Union | International Commercial Contracts - Incoterms |

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Find guides on importing on the HM Revenue & Customs website - Opens in a new window Import strategy advice on the HSBC KnowledgeCentre website - Opens in a new window Import legal considerations on the HSBC KnowledgeCentre website - Opens in a new window Download shipping document guidance from the Royal Bank of Scotland website (PDF, 65K) - Opens in a new window Letter of credit tutorial on the Barclays Corporate website - Opens in a new window
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Introduction
Introduction What is an import? Import declarations Taxes and duties on imports Suspending or delaying import charges Reliefs on imports for export or re-export Import reliefs on previously exported goods Special import reliefs Reclaiming taxes on rejected imports Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful In some cases, overseas suppliers offer goods that aren't available from UK sources. Purchases from overseas are treated differently depending on whether the goods come from countries within the European Union (EU) or from elsewhere. Within the EU, most goods can be imported with minimal customs control and, mostly, no import duty or VAT to pay. Imports make an important contribution to the UK economy. It can be far more cost-effective to import goods than to manufacture them in the UK, giving importers a competitive advantage.
What is an import?
Within the European Union (EU) most goods are in free circulation. Importing goods from the EU is sometimes not termed as 'importing' - this is often referred to simply as a 'movement' of goods, or as an 'acquisition'. The term 'importing' is often used with the implied meaning that the goods have come from outside the EU. Goods can be moved freely within the EU, although VAT and excise within member states should be taken into consideration. Goods in free circulation in the EU can be moved from country to country with minimal customs control. Unless the goods are subject to excise duty, eg alcohol, or licence requirements such as agricultural goods, they generally cross borders without any special taxes and minimal import paperwork. For more information, see our guide on trading in the European Union. You can also see the page VAT on goods from European Union (EU) countries in our guide
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Trading with countries outside the EU > Importing your goods from outside the European Union
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on imports and purchases from abroad: paying and reclaiming VAT. Imports from outside the EU are treated differently: You must make an import declaration to customs. See the page in this guide on import declarations. You generally have to pay import duty and import VAT (plus VAT on import duty), although use of some customs procedures may suspend or relieve you from these taxes. See the page in this guide on taxes and duties on imports. Businesses that are already involved in international trade and have an Economic Operator Registration and Identification Number (EORI), may wish to consider registering with HM Revenue & Customs (HMRC) as an Authorised Economic Operator (AEO). While the scheme is not compulsory, companies that meet the requirements will be registered as AEOs and can take advantage of simplified customs procedures that relate to the security and safety of their imported goods in transit. See our guide on Authorised Economic Operators. import and export processing system CHIEF. To make the declaration the correct customs classification is required. See our guides on classification of goods and an introduction to the Tariff or find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. The declaration also includes a customs procedure code explaining what is being done with the goods, eg import to free circulation or use of one of the customs procedures such as temporary admission. Together with the commodity code, this helps determine what rate or type of import duty is to be charged and how the goods are to be treated. You can use an agent, such as a freight forwarder, to make the declaration on your behalf. This can make importing simpler and faster if you are not authorised to make electronic declarations yourself. You can register for some electronic Customs declaration processes such as Exports on the Government Gateway website Opens in a new window. See our guide on how to value your imports for customs duty and trade statistics. New safety and security laws in force since 1 January 2011 mean that goods destined to arrive in the EU must be declared to the Office of First Entry to the EU - that member state's Import Control System (ICS) - within set time limits. The legal onus is on the Carrier of the goods to make the ICS declaration, however the Carrier may, with its explicit knowledge and consent, delegate
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Import declarations
Imports from outside the European Union (EU) into the UK must be declared to HM Revenue & Customs (HMRC). This is usually done using the Single Administrative Document (SAD), also known as form C88. SADs can be submitted either electronically using the Customs Handling of Import and Export Freight (CHIEF) system, or manually (although manual submissions may take longer to process). See our guide on UK's
this activity to the importer and/or his agent. As such, an Entry Summary Declaration must be made for your goods. UK ICS will provide the Carrier, or delegated declarant, with an Movement Reference Number for the goods. Find guidance on the Import Control System and frequently asked questions on the HMRC website - Opens in a new window. Community/common transit (CT) procedures Community transit (CT) is a customs procedure which allows customs and excise duties and VAT on imported goods to be suspended until the goods either reach their point of destination in the community or are exported out of it. The community transit procedure can also be used for movements to and from the European Free Trade Association (EFTA) countries, and is then known as common transit. The EFTA countries are Switzerland, Liechtenstein, Norway and Iceland. The New Computerised Transit System (NCTS) must be used for all community/common transit declarations except for private travellers (with goods in excess of their allowances) and for some authorised simplifications. Any potential taxes and duties on the goods must be guaranteed. Use of NCTS does not normally preclude use of other customs procedures such as customs warehousing. Traders who are approved as Authorised Economic Operators can gain access to certain simplifications in customs procedures such as guarantee waivers and approval to start NCTS movements at their own premises (Authorised Consignors) or
end the movements there (Authorised Consignees) without having to produce the goods to Customs. If the journey begins outside the EU, the Transport Internationaux Routiers (TIR) procedure can be used for movements to and from countries that are contracting parties to the TIR Convention. The goods must travel by road in approved vehicles or containers under customs seal, accompanied by a TIR carnet document. You, or your freight forwarder, must be authorised to use TIR and the potential taxes and duties on the goods must be guaranteed. All traders moving goods across the EU under TIR are required to submit a declaration using NCTS when the consignment reaches the frontier of the EU. Find details of TIR and NCTS and links to newsletters on Community/Common Transit and TIR on the HMRC website Opens in a new window. Download the European Commission Transit Manual for the TIR procedure from the Europa website (PDF, 245K) Opens in a new window. See our guides on moving your goods and moving goods by road.
Taxes and duties on imports

It's important that as a trader you know whether you have to pay import VAT and duty on your goods before they can be cleared for entry into the UK. Import duty
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Imports may be liable to import duty, depending on the classification of the goods and where they come from. See the page in this guide on import declarations. Your goods might also be liable to additional duties such as anti-dumping duties. See our guide on anti-dumping and countervailing duties. You can download a guide to anti-dumping from the Europa website (PDF, 677K) - Opens in a new window. You can pay a reduced or zero rate of import duty on imports of certain goods from some countries, though there may be a limited annual quota. You usually need to provide documentary proof showing where the imports originated from. See our guide on rules of origin. Find out how to access Tariff quotas on the Europa website Opens in a new window. Find a guide on tariff preferences on the HM Revenue & Customs (HMRC) website - Opens in a new window. Goods are not normally released by HMRC until you have paid all the charges due. However, you can defer payment. See the page in this guide on suspending or delaying import charges. You may also be able to claim a relief allowing you to pay lower charges, or none at all. VAT VAT is charged on goods imported from outside the European Union at the same rate as if you bought the goods in the UK. VAT-registered businesses can reclaim the VAT as input tax in the same way as VAT is
paid on UK purchases. You will also have to pay VAT on any import duty. Import VAT is paid directly to HMRC, whereas domestic VAT is normally paid to a supplier of goods. After an Import VAT payment is made by a UK VAT registered trader an HMRC form C79 showing the VAT paid will be electronically produced and sent to the business address. You can use this as evidence of the VAT paid on your VAT return; authorised traders may also be able to use the deferred accounting scheme to pay VAT. Goods such as tobacco and alcohol products are subject to excise duty. For more information, see our section on excise duties. Use our interactive tool to understand your tax obligations when importing and exporting. For wider reading, see our section on VAT, excise & duty.
Suspending or delaying import charges

There are a number of customs procedures which can benefit traders and can be used to help delay or suspend paying duty. Imported goods are not normally released by customs until you have paid duty and VAT. Import duty is one of two main duties collected by HM Revenue & Customs (HMRC). Import duty is a tax charged on goods imported into the European Union (EU). The other main duty is excise duty, which is a tax on goods such as alcohol or tobacco. For more information see our
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section on excise duties and see the page VAT on goods from European Union (EU) countries in our guide on imports and purchases from abroad: paying and reclaiming VAT. However, if you import regularly you can set up a deferment account with HMRC, allowing you to pay monthly in arrears. You must provide a financial guarantee from a bank, insurance company or building society to cover the charges you owe. Read guidance on deferring import duty and VAT on the HMRC website - Opens in a new window. You can also find more information in our guide on customs warehousing. Delaying liability Depending on your circumstances, you may be able to delay your liability to import duty or VAT. If you do not need the imported goods immediately, or you intend to re-export them, you can store them in an authorised customs warehouse. You do not have to pay import duty, excise duty or VAT until you remove the goods into free circulation. Read about customs warehousing on the HMRC website - Opens in a new window. Similar rules apply for goods held in one of the UK's designated Free Zones. A Free Zone is a holding area for non-EU goods where import duty and VAT are suspended or delayed until the goods are released into free circulation. Read about Free Zones on the HMRC website - Opens in a new window.
There are a number of customs procedures that can benefit traders who plan to send their goods out of the UK. If you are importing goods that you will later export or re-export, you may be able to claim relief from customs charges due on importation. Temporary Admissions (TA) It is important to note that TA does not remove the need to comply with any import/export prohibitions or restrictions, for example for drugs, counterfeit/pirated goods or endangered species (including derivatives such as ivory, furs and goods made from skins). If goods are to be temporarily imported for use, relief from import duty or VAT may be available provided the goods will remain in the same condition as they are imported, eg goods for demonstration, professional equipment, samples, goods for an exhibition or for humanitarian purposes. Read about temporary admission on the HM Revenue & Customs (HMRC) website - Opens in a new window. One method of TA is the ATA carnet. The carnet is issued in the country of dispatch usually by local chambers of commerce and industry and is used in place of customs documents normally required at import and/or re-export. ATA carnets are only applicable in countries which are signatories to the ATA Carnet or Istanbul Conventions. Read about ATA carnets on the HMRC website - Opens in a new window. You cannot use any of these reliefs for goods that you plan to process before re-exporting. However, minor handling is
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Reliefs on imports for export or re-export

need to be authorised to claim this relief. Download a guide on OPR from the HM Revenue & Customs (HMRC) website (PDF, 1.35MB) - Opens in a new window. For imports of goods that were previously exported but have not been processed overseas, you may be able to claim Returned Goods Relief (RGR). For example, you might use this if your customer rejects and returns the goods. Depending on the circumstances, you may be able to claim full or partial relief from import duty, import VAT or both. Download a guide on RGR from the HMRC website (PDF, 289K) - Opens in a new window. For more information on either of these reliefs, see our guide on customs procedures." with "For more information on these reliefs, see our guide on outward processing relief (OPR) and the page on claiming relief if you re-import exported goods in our guide on imports and purchases from abroad: paying and reclaiming VAT. For quick access to information on all types of relief, see our section on duty relief procedures.
permitted to preserve the goods and prevent their deterioration. Processing and re-exporting If you are importing goods that you intend to process and then export, you can claim Inward Processing (IP). There are two methods of duty relief - suspension and drawback. IP suspension allows you to import and process the goods while suspending duty and VAT payments. With IPR drawback, duty and VAT is paid on importation but can be reclaimed. You must be authorised by HMRC to claim these reliefs. Read a guide to IPR on the HMRC website - Opens in a new window. Onward supply to the European Union (EU) If you are importing goods that you plan to supply to another EU member state, you may be able to claim Onward Supply Relief (OSR). This allows you to import the goods without paying import VAT. Instead, VAT is paid when you supply the goods to your customer. Read about OSR on the HMRC website - Opens in a new window. For more information on these reliefs, see our section on duty relief procedures.
Import reliefs on previously exported goods

If you export goods to be repaired or processed outside the European Union before being re-imported, you may be able to claim Outward Processing Relief (OPR). You claim relief from import duty on the value of the goods you originally exported or the difference in duty between the exported and re-imported goods. You
Special import reliefs

You should be aware that there are further types of relief that can be claimed for certain types of goods or goods that are used in certain ways. There are several special reliefs that may apply to your particular circumstances. For example:
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You can import goods for charities, goods for exhibitions, and low-value samples, free of duty. Read a guide on importing samples on the HM Revenue & Customs (HMRC) website - Opens in a new window. You may be able to import scientific goods to be used in tests free of duty and VAT. Read a guide on importing goods for tests on the HMRC website - Opens in a new window. These reliefs are part of the Community System of Duty Reliefs (CSDR). Typically, these reliefs apply to imports that serve a social purpose, such as imports of goods for people with disabilities or museum exhibits. To see if any reliefs apply to you, find reference guidance on CSDR on the HMRC website - Opens in a new window. If you import goods to process into a product that carries a lower rate of import duty than the imported goods, you can apply for processing under customs control (PCC) and pay duty on the lower rate applicable to the processed goods. However, the duty and import VAT due must be calculated on the higher value of the processed products. Download a guide on PCC from the HMRC website (PDF, 1.04MB) - Opens in a new window. Special industries The special relief from import duty for imports of spare parts for civil aircraft ceases on 31 December 2009. From 1 January 2010, these goods will come under the regular customs warehousing procedure, which allows suspension of payment of import duties and/or import VAT when non-Community goods are stored within premises or under an inventory system authorised as a customs warehouse. If excise duty is applicable, it too is suspended while non-Community goods are under the customs warehousing procedure. If you operate a depot for aviation spare parts, you can either apply to be authorised to operate a customs warehouse or deposit your goods in an existing customs warehouse facility. If excise duty is applicable, it too is suspended while the goods are in customs warehousing. For more information, see our guide on customs warehousing. You can read Notice 232 on the customs warehousing procedure on the HMRC website - Opens in a new window. For quick access to information on all types of relief, see our section on customs duty reliefs.
Reclaiming taxes on rejected imports

If you have received a faulty delivery, you will probably need to reject the goods you have been sent. You can usually do this if the goods are defective or were damaged before clearing customs. You can also reject goods that are not in accordance with your purchase contract. You may not want to pay import VAT or duty, or you might want to reclaim any VAT or duty you have already paid. You must notify HM Revenue & Customs (HMRC) in advance, and then dispose of the goods. Claims must be made within a year of the duty becoming due. You can do this by exporting them outside the European Union, for example by returning them to
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your supplier, or destroying them. Read about rejected imports on the HMRC website - Opens in a new window.
useful
Import licence guidance on the HMRC website - Opens in a new window Common transit procedure guidance on the Europa website - Opens in a new window NCTS information on the HMRC website Opens in a new window Postal imports guidance on the HMRC website - Opens in a new window TIR and NCTS usage explained on the HMRC website - Opens in a new window Import VAT guidance on the HMRC website - Opens in a new window Tariff preference guidance on the HMRC website - Opens in a new window Generalised System of Preferences guidance on the Europa website - Opens in a new window VAT and import duty deferment advice on the HMRC website - Opens in a new window Free Zones information on the HMRC website - Opens in a new window Download processing under customs control guidance from the HMRC website (PDF, 1.04MB) - Opens in a new window ATA carnet guidance on the HMRC website - Opens in a new window
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Helplines
AEO Central Site Enquiry Line 0845 001 0089

Use our interactive tool to understand your tax obligations when importing and exporting | Importing and exporting by post | Customs procedures when transporting goods by road | Authorised Economic Operators | Economic Operator Registration and Identification (EORI) Scheme | Import Control System | Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff | How to value your imports for customs duty and trade statistics | UK's import and export processing system CHIEF | Classification of goods | Introduction to the Tariff | Moving your goods | Anti-dumping and countervailing duties | Using the New Computerised Transit System (NCTS) to move goods across the EU and EFTA countries | Excise duties | Customs warehousing | Free Zones | Imports and purchases from abroad: paying and reclaiming VAT | Understand what customs procedures and reliefs apply to you | Inward Processing |
Related web sites you might find
Temporary admission on the HMRC website - Opens in a new window IP guidance on the HMRC website Opens in a new window OSR information on the HMRC website Opens in a new window Download OPR guidance from the HMRC website (PDF, 1.35MB) - Opens in a new window Download an RGR guide from the HMRC website (PDF, 289K) - Opens in a new window Sample import advice on the HMRC website - Opens in a new window Goods import for tests guidance on the HMRC website - Opens in a new window CSDR reference guidance on the HMRC website - Opens in a new window Rejected imports explained on the HMRC website - Opens in a new window
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Introduction
Introduction How to declare goods when importing by post Calculating Customs charges when importing by post Examination of postal packages entering the UK Paying outstanding charges on goods imported by post and Royal Mail handling fees Postal imports and exports requiring full declaration Customs declarations when sending packages outside the European Union Receiving postal packages from the European Union Related guides on nibusinessinfo.co.uk Related web sites you might find useful All goods arriving into the UK by post from beyond the European Union (EU) must be declared to HM Revenue & Customs. The sender must attach a completed declaration form CN22 or CN23. Goods worth more than 2,000 need a full Single Administrative Document declaration. When you receive goods from overseas, you become liable for any Customs charges (excise duty, Customs duty and/or VAT), which must be paid before you can take delivery. In most cases, charges must be paid whether you purchase the goods or receive them as a gift, whether new or used, for sale or private use. When you send a package to a non-EU country, you must complete a Customs declaration on form CN22 or CN23, which can be obtained from the Post Office or online. This guide will help you understand more about importing and exporting goods by post to and from the EU and elsewhere.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Importing and exporting basics > Starting out in international trade > Importing and exporting by post
How to declare goods when importing by post

All postal items that enter the UK may be examined by Customs. If you are importing goods into the UK by post - from non-European Union (EU) countries - the sender must complete a Customs declaration form CN22 for goods and gifts worth up to 270 or CN23 for goods and gifts worth over 270. This should be attached to the package.
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The declaration should include: a description of the goods their value whether they are gifts or commercial items If you are importing goods by post, it is important to make sure that the sender makes a complete and accurate declaration. As the importer of the goods, by law, you are legally responsible for the information on the Customs declaration and for any charges due. Charges may include VAT, customs duty and/or excise duty. If you buy goods and the declaration is found to be incorrect, you may be liable to financial penalties or prosecution. It is therefore in your interests to ensure the sender completes the Customs declaration accurately. If no declaration is made - or the information is incorrect - the package may be delayed while further enquiries are made. In some cases, the package and its contents may be seized. Some imports require a full declaration. For more information see the page in this guide on postal imports and exports requiring full declaration. Declaring the goods yourself As the importer you can carry out your own Customs procedures. If you want to do this, you will need to ensure the sender clearly marks the Customs declaration form (CN22 or CN23) 'goods to be Customs cleared by the importer'. Do not write on the wrapping. If the Customs declaration form (CN22 or CN23) is not marked in this way by the
sender, the goods will be cleared by customs in the normal way; once goods have been Customs cleared you cannot then retrospectively apply to self clear them. For items that have been marked for clearance by the importer, a full declaration will be sent to you to complete and return to the appropriate customs postal office. They will calculate any import charges and write and advise you of your tax liability. When you have paid this and the funds have been cleared, your goods will be released for delivery. However, as a manual procedure there could be a considerable delay in the receipt of your goods. You can obtain copies of the import declaration form and further information on the HMRC VAT Helpline on Tel 0845 010 9000.
Calculating Customs charges when importing by post

Most goods arriving in the UK from outside the European Union (EU) are liable to import VAT and Customs duty if certain limits are exceeded. Some goods are also liable for excise duty. Any charges due must be paid whether the goods: were purchased or received as a gift are new or used are for private use or sale Charges are raised by Customs staff at the postal depots where the packages are
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received. Import charges will depend on the type of goods imported and their value, which is stated on the Customs declaration form CN22 or CN23. Goods are not chargeable if the total value of goods in the consignment does not exceed 18. Goods over 18 are liable for VAT. Please note that with effect from 1 November 2011 the 18 threshold will be reduced to 15. There is a different rate for imported personal gifts, which is 40. Gifts above 40 will attract VAT, and if the value is above 135, according to their type, Customs duty and/or excise duty may be due. For goods to qualify as a gift they must be sent between two private individuals, for example as a birthday present. An item bought online to give to someone else as a present is not considered to be a gift for Customs purposes. If the package contains gifts for more than one person, the gift limit of 40 can be applied to each person, providing the goods are separately wrapped, individually addressed and separately identified on the Customs declaration on the front of the parcel. If there is more than one gift addressed to a particular person, the value of the goods will be aggregated. Import VAT on goods imported on or after 1 November 2011 With effect from 1 November 2011, the threshold over which commercially imported goods are subject to import VAT will reduce from 18 to 15. However, this change does not affect any other Customs thresholds or reliefs.
This means that from 1 November 2011, commercial consignments of 15 or less, excluding alcohol, tobacco products, perfume or toilet waters, will be free from customs duty and import VAT. Commercial consignments with a value exceeding 15 imported on or after 1 November 2011 will be liable to import VAT. Customs duty Customs duty is payable on imported goods with a value over 135 although payment is waived if the amount of duty is less than 9. This is usually charged as a percentage of the value. The percentage varies depending on the type of goods and their country of origin. Duty is charged on the price paid for the goods, including any local sales taxes plus postage, packing and insurance costs. However, postage is excluded from the calculation for duty on gifts sent by post except for goods sent by Express Mail Service. Where the value of gifts is below 630 per consignment, a flat rate of duty of 2.5 per cent will be applied - but only if it is to your advantage. Excise duty This is charged on alcohol and tobacco products and is additional to Customs duty and VAT. The excise duty rate on wines and spirits depends on the alcohol content and whether wine is sparkling or still. Duty on cigarettes is based on a percentage of the recommended retail selling price as well as a quantity charge. On other tobacco products, such as cigars or hand rolling tobacco, it is charged on the net weight. You can read about excise charges on
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alcohol and tobacco on the HM Revenue & Customs (HMRC) website - Opens in a new window. VAT Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to all goods over 18 unless they are gifts, when the limit is raised to 40. Please note that with effect from 1 November 2011 the 18 threshold will be reduced to 15. The calculation for import VAT is based on the price paid for the goods, including any local sales taxes, plus postage, packing and insurance costs, plus any import duties charged. Used goods and antiques Any goods which have been purchased are considered a commercial transaction and are therefore subject to import duty/VAT. However, rates of duty and VAT do vary on antiques. Exchange rates The rate of exchange from Euros to pounds sterling is set annually by the EU Commission. These rates are published in the European Commission Journal on the first working day in October, to take effect from 1 January the following year. weapons endangered species counterfeit goods Checks also take place to make sure the description and value stated on the declaration is correct, as well as to find out whether any Customs duty, excise duty and import VAT is payable by the recipient. Customs sometimes need to examine a package when the sender has not completed the declaration fully. When directed by Customs, Royal Mail staff carry out package opening, repacking and resealing.
Paying outstanding charges on goods imported by post and Royal Mail handling fees
Where Customs charges are payable, Royal Mail and Parcelforce levy a handling fee to cover the costs of operating the postal Customs depot, carrying out Customs formalities, paying the import charges on the importer's behalf and collecting it from them. Royal Mail/Parcelforce may also handle the package for Customs examination and, if required, open, repack and reseal the package if information is missing from the declaration. If you have been sent an item from overseas and Customs charges are due, Royal Mail will hold the item and send you a 'fee to pay' card, letting you know how much you owe. In the case of Parcelforce, a letter will be sent explaining the amount to be paid. Items that have outstanding Customs charges are kept at the local delivery office
Examination of postal packages entering the UK

Postal packages arriving in the UK from outside the European Union are checked to make sure they do not contain banned or restricted goods, such as: drugs indecent or obscene material
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for three weeks. If they are not paid for and collected, or if no enquiries are made, they are returned to the sender. Royal Mail/Parcelforce fees are itemised separately on the charge label and collected at the same time as the Customs charges. You can find more information about Parcelforce Worldwide handling fees on the Parcelforce Worldwide website Opens in a new window or find information on the Royal Mail Handling fee on the Royal Mail website - Opens in a new window. How can you get your items There are several options available. You can: Put postage to the correct value on the other side of the 'fee to pay' card and send it back to the Royal Mail. Bring the card to the delivery office (as stated on the 'fee to pay' card), pay the charge and collect the item. Please remember you will need to bring proof of identity. Pay online on the Royal Mail website - Opens in a new window. Once you have paid the fee, the item will be delivered along with your post, or you can arrange a delivery online on a convenient date. Alternatively, you may pick it up from the postal depot. If you are sent a Customs declaration form (C88 or C160), you must complete and return it to the address in the top right hand corner of form C87 'Notice of Arrival' which accompanies the Customs declaration form. Only then will your package can be
delivered. You should not send payment with this form unless you are asked to. Pre-payment of import VAT on goods purchased online For goods purchased online, HM Revenue & Customs (HMRC) operates a scheme which allows some authorised overseas traders to charge, collect and pay import VAT on your behalf under a Memorandum of Understanding with that country. Items that are purchased through this scheme are not subject to a handling fee by Royal Mail/Parcelforce in the UK. Read more about international shopping on the internet on the HMRC website Opens in a new window. If you are a VAT-registered business and purchase goods for use in your business, you should keep the outer wrapper and invoice from the supplier to support your claim to input tax. Querying Customs charges If you believe you have been charged too much because your goods have been valued too highly, you can contact the UK Border Agency (UKBA) at the postal depot shown on the charge label on your goods. You will be asked to supply evidence of the value, eg an invoice or receipt of purchase. If you do not agree with any decision issued to you, there are three options available. Within 30 days of the date of the decision you can: Send new information or arguments to the decision maker.
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Request a review of the decision by someone not involved in making the disputed decision. Your request must be in writing and should set out the reasons why you do not agree with the decision. Please write to: UK Border Agency Reviews & Appeals Team Crownhill Court Tailyour Road Crownhill Plymouth PL6 5BZ Appeal directly to the tribunal who are independent of the UKBA. If you opt to have your case reviewed, you will still be able to appeal to the tribunal if you disagree with the outcome. Further information relating to reviews and appeals is contained in leaflet HMRC1. You can download HMRC1 from the HMRC website (PDF, 65K) - Opens in a new window or phone the HMRC Self Assessment Orderline on Tel 0845 900 0404. For further information, you can read about how to deal with Customs Appeals on the HMRC website - Opens in a new window. Repayment of duty and VAT on mail order/internet goods If you decide to return imported goods to the sender after paying duty and import VAT, you can ask for a refund of the charges. If you aren't able to provide this information, your claim may be rejected.
You will have to make your claim in writing within three months of the date of import to the UKBA at the address shown on the charge label, enclosing: the original charge label the sender's declaration (CN22 or CN23) and outer wrapper showing your address a certificate of posting stamped by Royal Mail confirming the goods have been returned to sender
Postal imports and exports requiring full declaration

When trading with non-European Union (EU) countries, you or the sender need to complete a full Customs declaration when: the value of the goods being imported or exported exceeds 2,000 you are claiming relief from Customs duty and VAT eg inward processing relief, outward processing relief or temporary importation In these circumstances you must complete a Single Administrative Document C88 (SAD). The UK Border Agency (UKBA) will send a copy to you which you must complete and return. UKBA will also send you form C87 'Notice of Arrival of Goods by Post'. This informs you that your goods have arrived in the UK but cannot be delivered until you have completed and returned the SAD form. It contains the customs reference number for the package which you should use if you
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wish to speak to UKBA about your delivery. If you are sending or receiving goods within the EU, you don't need to complete a Customs declaration. Completing the SAD You can complete a SAD yourself or arrange for an agent to act for you. For more information on using agents for SAD submissions, see our guide on declarations and the Single Administrative Document. Each form contains four pages which you must complete. Once you have completed the SAD, you should make sure that you have completed all the necessary boxes. See our SAD completion checklist in our guide on declarations and the Single Administrative Document. You should return the SAD promptly as any delays could result in additional storage charges and the package might even be disposed of. You should not send any payment with your form unless you have been asked to. Royal Mail will collect charges from you when the package is delivered. If you want to postpone the payment of Customs charges, you will need to quote the appropriate deferment number in Box 48 of the SAD.
CN22 (for goods worth up to 270) or CN23 (for goods worth more) at your local Post Office. Download the CN22 form from the Royal Mail website (PDF, 52K) - Opens in a new window. Any necessary certificates or licences should also be attached to the outside of the package and clearly identified before posting. A commercial invoice should be sent with packages containing commercial items. A 'C&E 83A' (sticky label) should be attached, which directs the postal authority to present the parcel to Customs for checks prior to export. If you leave important details off your Customs declarations, it could lead to delays or even seizure of the goods by Customs. You must also include your name and address on the Customs declaration or item being sent overseas. You do not need to fill out a Customs declaration for packages sent to another EU country. For help with classifying goods for export by post, see our guide UK Trade Tariff. UK Customs controls Customs carries out selective checks to stop banned or restricted goods, or items relating to the proceeds of crime, from being sent overseas. Customs and postal agencies throughout the world have restrictions on types of goods that can be sent by post. You can read about postal restrictions on the Royal Mail website - Opens in a new window.
Customs declarations when sending packages outside the European Union

If you are exporting goods to countries outside the European Union (EU) you must complete and attach a Customs declaration. You can get Customs declaration forms
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Slovenia Spain Sweden UK
Should I retain evidence of posting? If you are registered for VAT, you need to keep a certificate of posting to support your VAT zero rating.
Receiving postal packages from the European Union

There are selective checks on goods imported from the European Union (EU) to prevent banned items, such as drugs, indecent or obscene material and weapons, from entering the UK. These also help to make sure that the correct charges are being paid. Which countries are full EU members? The current member states are: Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia
Goods received from areas of Cyprus that are not under the control of the government of the Republic of Cyprus are treated as non-EU imports. What are the 'Special Territories'? These are part of the EU when it comes to Customs procedures. If you import goods from these places, you do not have to pay Customs duty, but they are subject to excise duty and import VAT. The special territories are: land Islands (Finland) Canary Islands (Spain) Channel Islands Guadeloupe, French Guiana, Martinique and Reunion Mount Athos (Greece) Because goods from the Special Territories are liable for excise duty and import VAT, they are handled in the same way as goods imported from outside the EU. Following the establishment of a Customs Union between Turkey and the EU in 1996, many Turkish goods do not have to pay Customs duty, although excise duty and import VAT still apply. VAT rates Within the EU, every country is required to charge a standard VAT rate of at least 15 per cent, and a reduced rate of at least 5 per cent, on a wide range of goods and services. But VAT rates vary between EU member states and for different goods. In
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addition, some countries have special rules and exceptions. You can find the most up-to-date VAT rates applicable in all EU member states on the Europa website Opens in a new window. What about receiving alcohol and tobacco from the EU? If you buy alcohol and tobacco by post on a commercial basis from the EU, excise duty and import VAT must be paid. The seller should arrange to pay these taxes before the items are sent to you. If this isn't the case, the goods may be confiscated. Read information about paying duty on excise goods in Public Notice 203 on the HM Revenue & Customs (HMRC) website Opens in a new window. If you are sent alcohol and tobacco for personal use - as a gift through the post - or you send it to yourself from another EU member state, you must pay excise duty but not import VAT. Gifts of alcohol and tobacco from the Special Territories do not attract Customs duty. However, they are liable to excise duty and import VAT.
useful
Alcohol and tobacco excise charge information on the HMRC website Opens in a new window Parcelforce Worldwide handling fees information on the Parcelforce Worldwide website - Opens in a new window Pay import charges on the Royal Mail website - Opens in a new window Internet shopping information on the HMRC website - Opens in a new window Download information on appealing customs charges from the HMRC website (PDF, 56K) - Opens in a new window Restrictions on goods that can be sent by post explained on the Royal Mail website - Opens in a new window

Importing your goods from outside the European Union | Declarations and the Single Administrative Document | Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff |
Related web sites you might find

Customs procedures when transporting goods by road
Introduction
Introduction Customs transit options when moving goods in, to or via the European Union Taking road vehicles temporarily into or out of the UK or European Union Trader registration, VAT and other customs systems Penalties for carrying clandestine entrants to the UK Other requirements and logistical documentation Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful The documents and data required by each of the customs authorities in markets throughout the world are the keys to international trade routes. In moving goods from one country to or through another, it is imperative that you correctly complete the required documents, or input the right computerised information online. This guide provides an overview of the systems and customs documentation you will need to work with when transporting goods by road. It also provides links to the guides in which you can find detailed information on each topic to enable drivers of goods vehicles to smoothly cross those international borders.
Customs transit options when moving goods in, to or via the European Union
All goods moved within the European Union (EU) have a Customs status of either Community or non-Community. Community transit (CT) is a customs procedure used to facilitate the movement of non-Community status goods between two points in the customs territory of the EU. Common transit extends CT to include the EFTA countries of Switzerland (and Liechtenstein), Norway and Iceland. Customs duties and other charges are suspended on non-Community status goods whilst they are under a customs transit procedure (T1 Status). Movements of Community status goods to the EFTA countries travel under Common transit (T2 Status).
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Taking lorries abroad > Customs procedures when transporting goods by road
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third country or two third countries via the EU. For the detail on all the above procedures see our guide on community transit procedures. Unless approved by the customs authorities to do otherwise, all transit declarations must be submitted electronically via the New Computerised Transit System (NCTS). The NCTS will process the declaration and control the transit movement. It is used by all member states of the EUC and the EFTA countries. Read more about the NCTS in our guide on using the New Computerised Transit System (NCTS) to move goods across the EU and EFTA countries. You can read about Community and Common Transport, TIR and NCTS on the HMRC website - Opens in a new window. You can also find transit procedures illustrated in model transactions on the European Customs Information Portal website - Opens in a new window.
Community goods: Originate in the EU or have been imported from outside the EU and released for free circulation - ie all import formalities have been completed and duties and other charges paid. Do not need to move under Customs control within the territory of the EU. However, where Community goods go via a third country, proof of Community status is required. This proof can be provided by a Community status document (T2L declaration). Non-Community goods are goods not in free circulation in the EU. Such goods can be moved between two points in the EU using a transit procedure. You should use: Community Transit to move goods that are not in free circulation in the EU - ie Non-Community goods in and between EU member states or to and from Andorra, San Marino and the 'special territories' of the EU, such as the Channel Islands. There are three distinct categories for this procedure. Common Transit to move goods across the EU to, between or via the EFTA countries (ie Iceland, Norway, Liechtenstein and Switzerland). This procedure is very similar to Community Transit. Transports Internationaux Routiers (TIR) ie International Road Transport only for the movement of goods by road in secure/approved vehicles or containers and under cover of a TIR Carnet. TIR movements can only be between two Contracting Parties to the TIR Convention ie between the EU and a
Taking road vehicles temporarily into or out of the UK or European Union

European Union (EU) road vehicles can move between member states without customs formalities. An example of a road vehicle would be motorised vehicles, cycles with engines, trailers and caravans. Non EU road vehicles being imported into the UK for private or commercial transport use are often eligible to avoid customs duties or formalities under a relief called
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Temporary Admission. For full details please see our guide on temporary admission or read Notice 308 on temporary admission of means of transport on the HMRC website - Opens in a new window. Specialist Road Vehicles If you are bringing in non-EU road vehicles for sport, demonstration, exhibition, or some other specially adapted vehicle for a professional endeavour you should consult Notice 200 on Temporary Admission on the HMRC website - Opens in a new window. CPD carnets The CPD carnet (Carnet de Passages en Douane) acts as a passport for vehicles. A CPD is not required for vehicles entering the UK however it may be required by other countries. Those wishing to take their vehicles outside the UK should check with the authorities in the country they are visiting. A fee is charged for the carnet as well as the need to have a guarantee to secure the customs liabilities in case the vehicle is not re-exported within the prescribed time limits. In the UK CPD Carnets are issued by the Royal Automobile Club (RAC). Further information is available in our guide on ATA and CPD carnets.
guides to make sure you are complying with all your duties as an international trader moving some or all of your goods by road. Firstly you need to be registered for the Economic Operator Registration and Identification (EORI) Scheme. If you don't as yet have an EORI trader number, or do have one but want to take it to the AEO level, see our section on EORI and Authorised Economic Operators. VAT rules and how they affect you, will depend on whether you are acquiring goods from the EU, dispatching them to another member state, or importing or exporting from or to a third country. Use our interactive tool to understand your tax obligations when importing and exporting. If you're new to VAT, see our section on VAT. National Export System (NES) If you're exporting goods out of the UK to a third country destination, you will need to make an electronic export declaration via the NES. The NES is a computerised process operated by HMRC for electronically capturing export declarations at all stages of the export process. Export declarations can be submitted either directly by the exporter or through a third party such as a freight forwarding agent - at any time before the export of the goods. All export declarations should be submitted to CHIEF (Customs Handling of Import and Export Freight). The NES procedure is particularly important for exporters of goods subject to Common Agricultural Policy (CAP) control and which qualify for export refund payments. Under the NES, there are also simplified and local export procedures. You can find out about the NES in Notice
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Trader registration, VAT and other customs systems

Customs procedures are not the only rules with which you will have to comply when transporting goods by road. You may want to refer to the following

275 on the HMRC website - Opens in a new window. See our guide on export declarations and the National Export System. Export Declarations The export declaration is normally submitted to customs electronically online by the importer or exporter of the goods, or by an agent acting on their behalf. For indirect exports (ie those leaving the EU via another member state) a paper Export Accompanying Document with Movement Reference Number (MRN) and bar code should accompany the goods to the customs Office of Exit from the EU. If you're importing goods into the EU, you may want to consider using the voluntary Customs Freight Simplified Procedures (CFSP). CFSP enables: faster processing and release of imported third-country goods at the point of entry the use of simpler customs declarations cash flow benefits Most third-country goods are eligible for CFSP. See our guide on Customs Freight Simplified Procedures (CFSP). Special requirements apply if you trade in excise goods - alcohol, cigarettes and tobacco products, or energy products. See our section on excise duties. Use Excise Movement and Control System (EMCS) Online.
entrants to the UK
In the UK, the UK Border Agency (UKBA) is the body responsible for securing the UK borders, controlling migration, managing border control and enforcing immigration and customs regulations. You can read vehicle operator guidance on the UKBA website - Opens in a new window. The UKBA has taken steps to strengthen the borders and has invested in new technology to detect people hiding inside vehicles. Teams of staff carry out checks on freight, along with other various methods, to detect clandestine entrants. However, vehicle operators are also expected to have effective systems in place to prevent people hiding in or on their vehicles. Drivers and haulage companies must protect their vehicles to prevent people from coming into the UK without going through the proper immigration controls. When the vehicle driver or company has no effective system to protect vehicles from being used by clandestine entrants, or if they fail to operate the system properly, the UKBA will impose a fine - known as a civil penalty. A clandestine entrant is a person who hides in or on a vehicle as it enters the UK, with the aim of avoiding or attempting to avoid immigration controls. If your vehicle is found to contain clandestine entrants, you may face a fine of up to 2,000 for each entrant you are carrying. The driver of the vehicle, the driver's employer and the owner or hirer of the vehicle can each be fined, and the vehicle in question may be detained. You can download the civil penalty code of practice procedure from the Home Office
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Penalties for carrying clandestine

website (PDF, 103K) - Opens in a new window. The law that allows civil penalty fines to be imposed for carrying a clandestine entrant applies to all road vehicles and rail transport, and applies to all arrivals into the UK from all European sea ports and on Eurotunnel. It is designed to encourage hauliers and drivers to take responsibility for protecting and checking their vehicles before crossing into the UK from mainland Europe. If you find clandestine entrants in or on your vehicle after arrival in the UK, you are urged not to approach them but to contact the local police. The police will take your details and those of your company and inform the UKBA about the clandestine entrants. If UKBA officers find clandestine entrants in a vehicle at the UK immigration controls at a UK port or a UK Control Zone in mainland European port, they may interview the driver or the company about the security system they were using to prevent people hiding in the vehicle on that day. If the security system is found to be poor, the vehicle driver and/or the company may be subject to a fine. If a fine is imposed, a form IS11 showing the amount of the fine will be sent to those responsible. Drivers and vehicle operators have a right to object to the Civil Penalty Unit and/or to appeal to any county court against the fine. This must be done within 28 days of the date on which form IS11 was issued. You will also receive guidance on objections and appeals with form IS11. You can download guidance on objections and appeals from the Home Office website (PDF, 28K) Opens in a new window.
The UKBA has an accreditation scheme whereby road haulage companies which are accepted onto the scheme and operate in accordance with the scheme will not be fined in the event that clandestine entrants are discovered in or on their vehicles. To qualify, a company must show that it has an effective preventive system and that it takes all reasonable steps to ensure the system operates properly. Individual drivers cannot apply to join the scheme, but hauliers should provide regular training and monitoring for their drivers.
Other requirements and logistical documentation

Labelling and documents for international transport Using the correct labelling and shipping marks on your consignment helps to ensure the smooth and efficient processing of your goods. If your goods are being consolidated, ensure that your own consignment is individually labelled, as it will be shipped along with other business' goods. Download a guide to shipping container labelling from the Book Industry Study Group website (PDF, 2.05MB) - Opens in a new window. For more information about labelling and documents for international transport, see our guide on international transport and distribution. Temporary admission of non-EU pallets and containers Pallets or containers are not duty and tax-paid within the European Union (EU) if they are temporarily imported into the EU to
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transport or carry non-EU goods within the EU. They must remain in the same condition other than natural depreciation through use. EU pallets and containers do not need to be entered into temporary admission (TA) as they are duty- and tax-paid within the EU. For more information, see our guide on the temporary admission for pallets and containers. You are no longer required to make prior application for a full authorisation using form C&E 1331A. If you already hold a C&E 1331A authorisation, you will not need to use it to claim relief but should keep it in your records for four years after the disposal of any imported containers/pallets for which you used it to claim relief. Relief under TA can also cover containers used under the Container Pool Convention or pool arrangements under the European Convention on Customs Treatment of Pallets. You can read about Pool arrangements on the HM Revenue & Customs (HMRC) website - Opens in a new window. The Single Administration Document (SAD) The SAD - or Customs Form C88 - is the customs declaration document for all imports from, and exports to non-EU countries, and goods transiting the EU. It is required for all exports, although there is a small list of exceptions, such as postal packages. The SAD is normally submitted to customs electronically online by the importer or exporter of the goods, or by an agent acting on their behalf. A paper copy, often known as the 'travelling Copy 3' or 'SAD Copy 3' usually accompanies the goods to the
customs office of exit from the EU. The travelling Copy 3 can be produced through the Customs Handling of Import and Export Freight (CHIEF) system and does not need to be presented to UK Customs as it conforms to an EU standard format. The exporter may ask that the form is stamped by the customs office of exit from the EU and returned. The driver may be asked to hand it in when he or she reaches that office. The stamped form is needed as official evidence of export, allowing them to claim zero-rating for VAT. If it is not returned, they may have to pay VAT to HMRC as though the goods were sold at the standard rate in the UK. For more information about the SAD, see our guide on declarations and the Single Administrative Document. Guidance on completing the SAD is also available in the customs UK Tariff, Volume 3. You can find a full copy of the SAD from the HMRC website - Opens in a new window. Certificates of Origin Certificates of Origin are required by some countries as evidence of the origin of the goods. There are two versions: the EU Certificate of Origin or the Arab-British Chamber of Commerce Certificates of Origin. They are available from Chambers of Commerce and, once completed, must be validated by the Chamber of Commerce stamp. In certain circumstances, the Certificate of Origin and the accompanying commercial documents must be legalised by the UK Embassy of the country of import. In instances where preferential trade agreements exist, goods may have to be covered by a correctly completed and
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endorsed EUR1 or EUR2 form, or an ATR form for Turkey. These are used to claim preferential (reduced or even zero) rates of duty in the country of importation. You can find information about rules of origin and export procedures for countries with preferential trade agreements in Notice 827 on the HMRC website - Opens in a new window. You can find details of how the export preference system with Turkey works in Notice 812 on the HMRC website - Opens in a new window.
Helplines
FTA Helpline 01892 526 171 RHA 01932 841 515 VOSA Helpline 0300 123 9000 RAC Carnets Helpline 01454 208 304 UKBA Helpline 0870 606 7766
Using the New Computerised Transit System (NCTS) to move goods across the EU and EFTA countries | Exporting your goods from the EU to a third country | Importing your goods from outside the European Union | Transit and other suspensive regimes | The TIR test for taking goods vehicles outside the EU | ATA and CPD carnets | Temporary admission | VAT rates explained: standard, reduced, zero, exempt | Excise duties | Customs Freight Simplified Procedures (CFSP) | Customs declarations | International transport and distribution | Economic Operator Registration and Identification (EORI) Scheme | Authorised Economic Operators | International trade paperwork: the basics | Declarations and the Single Administrative Document |

Community and Common Transport, TIR and NCTS information on the HMRC website - Opens in a new window Transit procedures information on the European Customs Information Portal website - Opens in a new window Vehicle operator guidance on the UKBA website - Opens in a new window Download the civil penalty code of practice procedure from the Home Office website (PDF, 115K) - Opens in a new window Download objections and appeals guidance from the Home Office website (PDF, 27K) - Opens in a new window
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Pool arrangements explained on the HMRC website - Opens in a new window AEO applications explained on the HMRC website - Opens in a new window Download the Single Administrative Document on the HMRC website (PDF, 410K) - Opens in a new window European Community export preferences guidance on the HMRC website - Opens in a new window Trading with Turkey export preference information on the HMRC website Opens in a new window Notice 306 on temporary admission of non-EC pallets and containers on the HMRC website - Opens in a new window
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Subjects covered in this guide Introduction Import Control System - an overview How to register for and lodge entries into Import Control System Entry summary declarations Rules for lodging entry summary declarations Import risk analysis for safety and security Import Control System fallback measures Related guides on nibusinessinfo.co.uk Related web sites you might find useful
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Customs IT systems > Import Control System
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Introduction
The Import Control System (ICS) is part of the EU-wide Automated Import System to facilitate import procedures so that traders only have to submit information once. The safety and security amendment to the European Community (EC) Customs Code requires that carriers or their authorised representatives - lodge electronic entry summary declarations (ENS) at the first (air)port of entry into the customs territory of the EC at a prescribed time ahead of the arrival of the goods, even if the eventual destination of the cargo is outside of the EC. Member states are responsible for performing risk analysis based on the ENS information and agreed EC risk profiles, and passing on the information to subsequent ports or airports for the vessel or aircraft's journey. This guide explains ICS, including the rules and processes you will need to follow.
Import Control System - an overview

The Import Control System (ICS) handles electronic communications between: national customs administrations national customs administrators carriers or their appointed representatives national customs administrations and the European Commission It is mandatory for carriers to provide customs authorities with advance information, by way of entry summary declaration (ENS), for goods being brought into the customs territory of the European Community (EC). ICS is designed to incorporate: The lodging, handling and processing of ENS in advance of the arrival of goods. Safety and security risk analysis and the exchange of results between member states. The handling of international diversions. The issue of a Movement Reference Number (MRN). The MRN is a customs computer system generated number that is automatically allocated by the member state which after successful validation - accepts or registers the received ENS. The MRN must be issued to the carrier and, where different, the declarant.
The electronic ENS must be lodged before arrival - before loading in the case of maritime deep sea containerised shipments - at the first point of entry into the customs territory of the EC - the Office of First Entry. See the page in this guide on entry summary declarations.
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The carrier or their authorised representative submitting the ENS must have a valid Economic Operator Registration and Identification (EORI) number. The EU consignees declared on the ENS are also identified by their EORI number. For more information, see our guide on Economic Operator Registration and Identification (EORI) Scheme. The ICS does not replace the need to make customs import declarations that ordinarily are submitted to the Customs Handling of Import and Export Freight (CHIEF) system. For more information on CHIEF, you can read our guide on UK's import and export processing system CHIEF. If you import goods into the European Union from outside of the EC and its territories then the ICS requirements will apply to your business.
How to register for and lodge entries into Import Control System
You can register and enrol for the Import Control System (ICS) via the HM Revenue & Customs (HMRC) website or via the Government Gateway. For the full detail on how to register, you can download guidance for registering and enrolling to use the ICS from the HMRC website (PDF, 506K) - Opens in a new window. Carriers, and others making declarations on behalf of carriers, must lodge an entry summary declaration (ENS) with the ICS ahead of the arrival of any goods at the first customs Office of First Entry (OoFE) into the customs territory of the European Community. For information on the pre-arrival deadlines, see the page in this guide on rules for lodging entry summary declarations. Once you have registered, enrolled and activated the ICS online service, you must lodge the ENS with the OoFE in the form of an XML message, which you can submit by one of two methods: a dedicated community service provider message gateway over leased lines conforming to HMRC/IMS security and thus regarded as pre-authenticated the Government Gateway web service (Trader Front End), available to registered gateway users authorised to use the online ICS system You can find the latest trader and technical news on ICS on the HMRC website - Opens in a new window.
Entry summary declarations
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Most goods brought into the customs territory of the European Community (EC) must be pre-notified in an electronic entry summary declaration (ENS), which is submitted to the customs Office of First Entry (OoFE) into the European Union for safety and security risk analysis purposes. Another customs office - the office of lodgement - may accept it if an electronic link with the first customs office of entry is available, and subject to the agreement of the other office or member state. It is however the customs office of entry which remains responsible for risk analysis. The ENS is common to all 27 member states. Agreed datasets, rules and conditions are provided to help declarants to complete the ENS. See the page in this guide on the rules for lodging entry summary declarations. It is the carrier's responsibility to present the ENS to customs - as the person who brings the goods, or assumes responsibility for the carriage of the goods, into the customs territory of the Community. The 'carrier' is the operator of the means of transport on or in which the goods are brought into the customs territory of the EC. For deep-sea containers, this is seen as the ocean carrier that issues Bills of Lading for the carriage of the goods into the EC. Someone other than the carrier can lodge the ENS. However, as it is the carrier's responsibility to ensure that it is submitted, it must only be done with the carrier's explicit knowledge and consent. Whoever submits the ENS is responsible for the content, accuracy and completeness of the information. When a customs OoFE is satisfied with the ENS data and validates the declaration, a unique 18-digit alpha numeric reference - the Movement Reference Number (MRN) - is automatically allocated and issued to the declarant lodging the ENS. Where this is not the carrier, the MRN is also issued to them. Goods for which an ENS will not be required include: electrical energy goods entering by pipeline letters, postcards and printed matter, including on electronic media goods contained in travellers' personal luggage goods for which an oral customs declaration is permitted
Rules for lodging entry summary declarations

The entry summary declaration (ENS) must be made electronically into the Import Control System (ICS) as messages will need to be exchanged between HM Revenue & Customs
(HMRC) and their counterparts in other Member States. You can find details on the UK Technical Interface Specification on the HMRC website - Opens in a new window. This specification is for software developers. There are different datasets for different circumstances, including mode of transport and Authorised Economic Operator (AEO) status. You can find ICS guidance and FAQs on the HMRC website - Opens in a new window. Traders wishing to register for ICS, and who are not registered as an AEO, must be registered with and have a valid Economic Operator Registration and Identification (EORI) number. This is a number issued to economic operators, and persons involved in customs-related activities involving one or more member states. You can find more information about EORI in our guide on the Economic Operator Registration and Identification (EORI) Scheme. International Diversion Request If the active means of transport - eg the vessel or aircraft - is to be diverted to a Member State other than that declared as the Office of First Entry (OoFE) and that is not one of the declared Offices of Subsequent Entry (OoSE), the operator for the active means of transport must lodge a Diversion Request to the originally declared OoFE. The originally declared OoFE sends the ENS data and any positive risk information to the actual OoFE. Depending on the mode of transport or shipping service used, there are different time limits for submitting the ENS. When shipping goods via... maritime containerised cargo You must submit the ENS... at least 24 hours before loading at the port of departure at least four hours before arrival at least two hours before arrival
maritime bulk/break bulk cargo maritime sea voyages of less than 24 hours short-haul flights - less than four hours' duration long-haul flights
at the time of actual take-off
at least four hours before arrival
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rail and inland waterways road traffic
at least two hours before arrival at least one hour before arrival
Import risk analysis for safety and security

On receiving an entry summary declaration, member states carry out a risk analysis for safety and security purposes. This is based on agreed European Community (EC)-wide risk profiles. The common risk analysis for safety and security is applied by the customs Office of First Entry for all goods entering the customs territory of the EC. This includes goods actually destined for subsequent Member States and a non-EC country. The customs office will undertake the risk analysis before the goods arrive. Where a risk is identified, the customs Office of First Entry will do one of the following, depending upon the level of the threat: take immediate action pass on the risk analysis results to any identified subsequent ports or airports In exceptional circumstances, where the level of physical threat is deemed to be severe, the customs office may decide not to allow goods to be loaded. This instruction is called a 'Do Not Load' (DNL) notification, and will be sent to all parties identified as being involved in the movement of the goods. DNL functionality is only relevant to deep sea containerised maritime cargo. Once issued, a DNL notification can not be revoked. International Diversion Request If the active means of transport - the vessel, aircraft or road vehicle - is to be diverted to a member state other than that declared as the Office of First Entry and that is not one of the declared Offices of Subsequent Entry, the operator for the active means of transport must lodge a Diversion Request to the initially declared Office of First Entry. This office then sends the ENS data and any positive risk information to the actual Office of First Entry.
Import Control System fallback measures

There may be times when you experience technical difficulties while using the electronic Import Control System (ICS).
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The European Commission has developed a Business Continuity Plan (BCP) to allow the continuity of activities in case of failure of the various EU-wide import and export control systems, including the ICS. This includes unavailability of: the Economic Operator Registration and Identification (EORI) Scheme the customs Office of First Entry (OoFE) system when lodging the Entry Summary Declaration the customs OoFE system or Office of Subsequent Entry (OoSE) system upon arrival of the goods You can download information on the procedures together with scenarios for each eventuality from the Europa website (PDF, 513K) - Opens in a new window. UK Fallback Arrangements for ICS The UK's ICS fallback policy and scenarios below are also available in the UK Tariff at Volume 3, Section 3, Para 3.2.12. These have been developed along the EU guidelines for business continuity. Please note that this is the position for UK ICS only, other Member States will have their own fallback provisions. If an Economic Operators system is unavailable: The UK will not accept ICS declarations by 'other means' - eg by paper, data key or email. Economic Operators will need to make arrangements for the Entry Summary Declaration (ENS) to be submitted by another Economic Operator on their behalf, or keep trying to submit an ENS up to the point that the Arrival Notification is processed. The later the ENS is sent in these circumstances the greater the possibility of encountering delays upon arrival. A valid ENS declaration will be required to be submitted to enable Economic Operators to fulfil their legal obligations. Not being able to declare ENS data from their own systems due to system failure will not automatically be accepted as a valid excuse for not declaring an ENS to the UK ICS. If a CSP system is unavailable: If a CSP system is unavailable, Economic Operators should operate under their individual CSPs fallback arrangements (usually by use of another CSP system) or submit their declaration via the Trader Front End (TFE). If all CSP systems are unavailable, Economic Operators will need to either use the published CSP fallback provisions or use an alternative electronic means (ie an other

traders system where the trader links to the front end) to enable the ENS to be declared. If the core UK ICS system, including TFE, is unavailable to both UK and Economic Operators: Economic Operators and CSPs should continue to send messages to UK ICS until HM Revenue & Customs (HMRC) confirms the non availability of the core ICS system. These will be queued until the system is restored. When the ICS system is restored, an ENS can be sent for consignments en-route that have not yet had the Arrival Notification processed. HMRC will advise other member states when the UK ICS is not available so that they can be aware that some consignments, particularly involving short flights, may not have a Movement Reference number (MRN) allocated.

Using the New Computerised Transit System (NCTS) to move goods across the EU and EFTA countries | UK's import and export processing system CHIEF | Authorised Economic Operators | Economic Operator Registration and Identification (EORI) Scheme | International transport and distribution | Moving your goods |

Safety and security Customs Code procedures on the Europa website - Opens in a new window ICS technical guidance and general FAQs on the HM Revenue & Customs website Opens in a new window Electronic Community Customs Code Legislation on the Europa website - Opens in a new window
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How to value your imports for customs duty and trade statistics
Subjects covered in this guide Introduction Declaring an import value The main method of calculating import value Other methods of calculating import value Value for import VAT Import value for trade statistics purposes Where to find information on the valuation of imported goods Related guides on nibusinessinfo.co.uk Related web sites you might find useful
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Tax obligations > How to value your imports for customs duty and trade statistics
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Introduction
This guide explains the requirements of the import valuation system. It outlines the different valuation methods for determining the value on which customs duty on goods produced outside the European Union and import VAT are calculated. It also provides links to sources of further help and advice. At importation from third countries you must declare the value of your goods to HM Revenue & Customs (HMRC) in the single administrative document (form C88). This value determines the amount of customs duty and import VAT payable and forms the basis of the trade statistics compiled by HMRC. This guide contains intermediate information. For additional information see our sections on customs declarations and VAT, excise and duty.
Declaring an import value

Every time you import a consignment of goods from outside the European Union (EU), you must provide HM Revenue & Customs (HMRC) with details of its value - you may also need to provide a valuation declaration. You must declare the import value on your Single Administrative Document (SAD or form C88). You can find the detail on SAD in our guide on declarations and the Single Administrative Document. SAD forms can be completed manually or electronically using the Customs Handling of Import and Export Freight (CHIEF) system, although manual submissions usually take longer to process. For more information, see our guide on UK's import and export processing system CHIEF. You can register for electronic declarations via the Government Gateway website. Find out about the Government Gateway on the HMRC website - Opens in a new window. The Import Control System (ICS) is the first phase of an Automated Import System (AIS) that will apply across the EU, streamlining processes and bringing new safety and security requirements to SAD completion. For more information on ICS and AIS see our guide: Import Control System. How import value is used There are three main reasons why HMRC needs to establish a value for imported goods: customs duty - often charged as a percentage of the value of goods and known as 'ad
valorem' duty import VAT - also calculated as a percentage of the value of your goods, plus other expenses and any customs duty - see the page in this guide on value for import VAT trade statistics - arrived at using the customs valuation rules - see the page in this guide on import value for trade statistics purposes For information about calculating import values, see the page in this guide on the main method of calculating import value.
The main method of calculating import value

There are six methods you can use to calculate your import valuations. Method 1 is the first method you must try. It applies to over 90 per cent of import consignments. Method 1 is the 'transaction value' method. This is based on the price paid or payable by a buyer to a seller for the imported goods when sold for export to the European Union (EU). You'll need to provide evidence of the price paid with your import entry, eg a copy of the seller's invoice. What to include in your Method 1 calculation If they're not already included in the seller's price, you must add the costs of: delivery to the EU border most commissions (except buying commission) royalties and licence fees paid by you on the imported goods as a condition of sale containers and packing any proceeds of resale the seller will receive goods and services you provide to the seller for free or at a reduced cost - eg components incorporated in the imported goods, or development and design work carried out outside the EU and necessary for the production of the imports
If you import goods from a processor - ie a business that assembles or otherwise works on one or more sets of existing products to create your new imported products - transaction values can be built up by adding to the processing costs the value of any materials or components you provided to the processor. What to exclude from your calculation Items to be left out of the customs value if certain conditions are met include: delivery costs within the EU
EU duties or taxes taxes paid in the country of origin or export quantity and trade discounts and those relating to cash and early settlement, that are valid at the time the goods are valued dividend payments to the seller marketing activities related to the imports buying commission export quota and licence costs interest charges rights of reproduction post-importation work, eg construction or assembly management fees When does Method 1 not apply? Method 1 can't be used if the goods are imported on consignment, ie there has been no sale, or they've been supplied free of charge or on loan. For more information, see the page in this guide on other methods of calculating import value.
Other methods of calculating import value

There are six methods for calculating the value of imported goods to assess the amount of customs duty and import VAT you have to pay. The same value is also used for trade statistics. For information about Method 1, see the page in this guide on the main method of calculating import value. All six methods are outlined below and should be tried in order. If Method 1 doesn't apply to you, try Method 2. If that doesn't apply, try 3 and so on. However, Method 5 can be tried before 4. The six methods of calculating import values Calculate on the basis of... Method 1 Method 2 the transaction value - the price payable to the seller Try the next method if... there has been no sale of goods
the customs value of identical there are no identical goods goods, produced in the same country as your imports the customs value of similar goods, which must be: produced in the same country there are no similar goods
Method 3
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able to carry out the same tasks commercially interchangeable Method 4 the selling price of the goods (or identical or similar goods) in the European Union (EU) the production cost of the goods, including the cost of any materials, manufacturing and any other processing used in production reasonably adapting one of the previous methods to fit unusual circumstances there are no EU sales of the goods this production cost information is unavailable
Method 5
Method 6
N/A
You can download a guide to import value calculation methods from the HM Revenue & Customs (HMRC) website (PDF, 975K) - Opens in a new window. This includes details of the evidence HMRC needs to support each method. The two schemes below apply specifically to fruit and vegetables. However, only one of the two may be used and this will depend on a number of factors including the type of produce, the method of import, and the time of the year. Simplified procedure values (SPVs) SPVs are customs values based on prices obtained daily from designated marketing centres within the EU. The average prices are published fortnightly and can only be used for whole fruit and vegetable produce, of a single kind, imported on a consignment basis. If the imported goods have been the subject of a sale between a buyer and seller, and thus have a transaction value, the SPV system cannot be used to determine a customs value. You must use Method 1 and the actual transaction value for that particular importation. As an alternative to using the SPV system, you can use Method 4b for goods imported on consignment. SPVs apply to whole fruit and vegetables, not produce that has been cut and diced. You can find a list of produce to which SPVs do apply on the HMRC website - Opens in a new window, or on the CHIEF Noticeboard. Standard import values (SIVs) SIVs is an entry price system that can also apply to named fruit and vegetables during defined
periods of application. You can find further details in the Customs Tariff, Volume 2, Section 11 or download the Annex to Regulation 1580/2007 from the Europa website (PDF, 642K) Opens in a new window to find the periods of application. Updated daily, SIVs set a standard price per 100 kilograms net. For more information, call the HMRC VAT Helpline on Tel 0845 010 9000.
Value for import VAT

As well as using the import value to calculate the customs duty payable on your imported goods, HM Revenue & Customs (HMRC) also uses that value as the basis to calculate import VAT. Import VAT is the transaction tax levied on all goods imported into the UK from outside the European Union (EU). You can read about import VAT on the HMRC website - Opens in a new window. When to submit a valuation declaration for VAT purposes You don't need to submit a separate valuation declaration if you have already submitted one for customs-duty purposes. If you don't need to submit a declaration for customs-duty purposes, you'll only need to submit one for VAT purposes if your consignment's value exceeds 6,500 and any of the following conditions apply: the importer is not VAT-registered the importer is VAT-registered and either o the goods aren't for the purpose of the business o deduction of input tax would not be allowed o the goods are being valued by one of Methods 2 to 6 - see the page in this guide on other methods of calculating import value How to calculate the value for VAT purposes To calculate the value for import VAT you must add all of the following items to the goods' value for duty, unless they have already been included: all incidental expenses incurred up to the goods' first destination in the UK, eg commission, packing, transport and insurance all such incidental expenses that result from transporting the goods to a further
destination within the EU (if that destination is known when you import the goods) any customs duties or levies payable on import to the UK any excise duties or other charges payable on import to the UK
Import value for trade statistics purposes

HM Revenue & Customs (HMRC) uses your import value to compile the UK's trade statistics. You don't need to complete a separate form to declare a value for trade statistics - you simply declare the value in Box 46 of the Single Administrative Document (SAD or form C88). Value for trade statistics when customs duty is chargeable If ad valorem customs duty (see glossary) is chargeable as a percentage of the value on your imported goods, then the value you have to declare for statistical purposes will be the same as the value calculated for customs purposes. For more information about calculating import valuations for customs purposes, see the page in this guide on the main method of calculating import value. Value for trade statistics when customs duty isn't chargeable If ad valorem customs duty isn't chargeable on your goods, then the value to declare for trade statistics purposes will be based on the price paid or payable to the seller. However, a number of adjustments must be made. The following items should be added to the price paid or payable when calculating the value for trade statistics: freight insurance any other costs, charges and expenses connected with the sale and delivery of the goods to the port or place of importation in the UK selling commission (except where incurred in the UK) The following items should be left out of the calculation: transport costs within the UK buying commission selling commission incurred in the UK duties or taxes chargeable in the UK
If there's no price paid or payable, you'll need to use one of Methods 2 to 6 to calculate your valuation. See the page in this guide on other methods of calculating import value.
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Where to find information on the valuation of imported goods

Calculating the import value and declaring it to HM Revenue & Customs (HMRC) is a complex area. However, if you need help, HMRC provides a range of support services. HMRC guidance publications The following publications will expand on the information in this guide: Notice 251: Valuation Declarations and Statements - this explains the types of declarations, when they are required and how to complete them. Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics - this explains the six methods you can use to calculate the value of your imports. Read Notice 252 on the HMRC website - Opens in a new window. HMRC National Advice Service If your queries aren't answered by the publications listed above, you can call the HMRC VAT Helpline on Tel 0845 010 9000. This service can help you with any problems related to import valuations in particular, or other customs-related aspects of international trading.

Import Control System | UK's import and export processing system CHIEF | Importing your goods from outside the European Union | Declarations and the Single Administrative Document | What could happen if you don't pay HMRC | Settlements, other penalties and miscellaneous taxes | How to pay VAT |

Calculating import duty advice on the HMRC website - Opens in a new window Download VAT on import guidance from the HMRC website (PDF, 357K) - Opens in a new window Notice 252 on valuation of imported goods for customs purposes, VAT and trade statistics on the HMRC website - Opens in a new window SPVs guidance on the HMRC website - Opens in a new window Valuation declarations and statements on the HMRC website - Opens in a new window
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UK's import and export processing system CHIEF
Introduction
Introduction How the CHIEF system expedites imports and exports How to gain access to CHIEF How to send National Export System information to CHIEF via the internet How to use CHIEF efficiently Fallback options if CHIEF is unavailable Using the Management Support System Related guides on nibusinessinfo.co.uk Related web sites you might find useful The Customs Handling of Import and Export Freight (CHIEF) system records the movement of goods by land, air and sea. It allows importers, exporters and freight forwarders to complete customs formalities electronically and automatically checks for entry errors. You can sign up to CHIEF via the Government Gateway for the National Export System (NES), or you can contact a Community System Provider for access to CHIEF. CHIEF includes NES functionality, which is used to declare exports to countries outside the European Union. If you register with our site you will automatically get a Government Gateway account. This guide provides an overview of what the CHIEF system is used for, how to use it, what to do if you have trouble gaining access to it and how to keep up to date with changes to the system. It also summarises the auditing benefits of subscribing to the Management Support System - an interfacing database with the CHIEF system.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Customs IT systems > UK's import and export processing system CHIEF
How the CHIEF system expedites imports and exports

Customs Handling of Import and Export Freight (CHIEF) is HMRC's nationwide computer system for the electronic control and reporting of all the UK's international cargo movements. You will need to make import and export declarations to CHIEF. However, although exports are processed through the CHIEF system, the inland and frontier clearance facilities are under the control of the National Export System (NES), which works alongside CHIEF. See the page in this guide
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on how to send National Export System information to CHIEF via the internet. Which services does CHIEF provide? CHIEF enables traders to: electronically process imports and exports communicate electronically with HMRC validate the accuracy of data as it is being keyed in calculate duties, currency and quantity conversions record, monitor and account for duties and taxes on imports as they are incurred If you make indirect exports via another European Union (EU) member state to a third country, you will need to register for and use the Export Control System (ECS), which is also accessible via and under the control of CHIEF. The ECS harmonises export management, including safety and security procedures, in the EU. For information on accessing CHIEF, NES and ECS, see the page in this guide on how to gain access to CHIEF. Authorised traders and export declarations You can make a full electronic export declaration directly into NES. This will need to include data on the origin of the goods, the country to which the goods are being sent, commodity codes, Customs Procedure Codes and values. The most important piece of information is the Unique Consignment Reference. Safety and Security information must also be supplied within the export declaration.
Simplified customs declarations - if you are authorised to use either the local clearance procedure or simplified declaration procedure, you must make your abbreviated declaration under NES into the central CHIEF system and then submit the final details within 14 days of shipment. Exporters may choose from Email, Web, XML, CSP or Customs Input to make their declarations. CHIEF facilitates the faster, safer flow of goods into and out of the UK CHIEF connects with six independent trade systems, which directly serve hundreds of carriers, transit sheds and freight forwarders to record and track the movement of goods within ports and airports, enabling them to operate more efficiently. CHIEF is also part of HMRC's risk assessment process and as such identifies which consignments or which goods within a consignment will need to be physically examined or their documentation examined. This gives legitimate goods and those deemed to be a low-level risk faster passage when they are directly imported from third countries or directly exported to them from the UK. As a result, importers, exporters and freight forwarders should generally be able to complete all necessary customs formalities with the minimum of manual intervention.
How to gain access to CHIEF

Traders can access the Customs Handling of Import and Export Freight (CHIEF) system via a variety of methods.
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They are: Community System Provider (CSP). CSPs are Customs-approved third party service providers offering trader access to inventory controlled ports around the UK. Other password protected electronic routes - including web form, email and XML. Customs do permit the submission of manually completed customs declarations. Completed hard copy declarations should be submitted to HMRC Customs Input of Entry (CIE) Seat in Salford. Facilities also exist to allow traders to input data direct to CHIEF. These facilities are available at Entry Processing Units sites with Direct Trader Input (DTI) links. A list of DTI locations is included in the Tariff, appendix C2A. The CHIEF computer is normally available to DTI users 24 hours a day. For various reasons, there will be times when CHIEF is not available, in full or in part, to traders. For more information, see the page in this guide on fallback options if CHIEF is unavailable.
to key in the data manually. You'll need: an internet connection Microsoft Internet Explorer (version 5 or above) an email address a CHIEF 'role' - if you have applied to use NES simplified procedures, you can get details of this from your local HMRC officer - in all other circumstances, you can get a role directly from the HMRC CHIEF Operations Team A digital certificate is no longer required for web access, although you can still obtain a digital certificate if you wish to. You can now access the system using the login and password facility on the HMRC website Opens in a new window. You can also try out the CHIEF test service. You will need to contact CHIEF Operations at chief.operations@hmrc.gsi.gov.uk for a NES role and location. Log in to the CHIEF test service by connecting to the welcome screen on the HMRC website Opens in a new window. You can log in to the live CHIEF system by connecting to the welcome screen on the HMRC website - Opens in a new window. Log in using a digital certificate
How to send National Export System information to CHIEF via the internet
For the National Export System (NES), traders can choose to send customs declarations to Customs Handling of Import and Export Freight (CHIEF) system electronically. It's simple to send this information via the HMRC website. This method is suitable for you if you're prepared
At the welcome screen, you need to: click the login button ignore the request for password and login ID confirm that you want to log in with a
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digital certificate once the status bar says 'done', click confirm choose the CHIEF service you need once you see the CHIEF command screen, start to key in your data Log in without using a digital certificate At the welcome screen, you need to: click the login button complete the Login ID/Password field click the HMRC service selection (New Export System (NES) service) select the CHIEF/NES role, then select the Live or Training service once you see the CHIEF command screen, start to key in your data If you require any help completing the PA7 access form, then contact CHIEF Operations at chief.operations@hmrc.gsi.gov.uk. For any other NES related problem, please contact the NES Helpline on Tel 029 2032 6371.
processes. Despite the fact that the independent trade systems are all based on different technologies, CHIEF handles each interface seamlessly. CHIEF has high-speed communications links to Community System Providers (CSPs). CSPs are commercial entities that directly interface with HMRC frontier systems including CHIEF. As their name suggests, CSPs provide community network services to specific port/airport communities of which HMRC or UK Border Agency form a part, along with other government agencies and commercial logistics entities such freight forwarders, shipping lines, temporary storage facility operators and haulage companies. The six CSPs are: CNS MCP CCS-UK DHL DHB PENTANT
How to use CHIEF efficiently

The Customs Handling of Import and Export Freight (CHIEF) system connects with six independent trade systems which directly serve hundreds of carriers, transit sheds and freight forwarders to record and track the movement of goods within ports and airports. Using Electronic Data Interchange inter-system messages, CHIEF checks that the data on the customs declaration matches the inventory maintained on each trade system. All these systems notify CHIEF as soon as goods arrive. CHIEF performs certain checks against data held on the inventory system as part of the custom declaration, validation and clearance
The CHIEF system is supported by detailed guides for trade users and the more technically minded, which address technical questions you may have on CHIEF functionality. You can find CHIEF trade user guides on the HMRC website Opens in a new window. If you connect to CHIEF via Direct Trader Input (DTI), you can refer to the documentation that has been provided by either your software package supplier or the CSP in question. Find a list of providers of commercial DTI links to CHIEF on the HMRC website - Opens in a new window.
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One of the benefits of using CHIEF is that it performs primary and secondary validation checks on your declaration data before system acceptance. The user will be alerted to an error message in the form of an error response code. Find guidance on the CHIEF error codes with accompanying explanations and solutions on the HMRC website - Opens in a new window. You may, however, sometimes receive an error response that doesn't include a solution to the problem. If this is the case, email the error code to the CHIEF Operations Team at chief.operations@hmrc.gsi.gov.uk. If you choose to use the National Export System (NES) web declaration service provided through the Government Gateway, you have the opportunity to manage your account details, make any amendments, or view a summary of all your CHIEF reports online, using access to CHIEF via the NES web route. Log in to the live CHIEF system by connecting to the HMRC welcome screen on the HMRC website Opens in a new window.
short term (system not available for up to 24 hours), and a long term (system not available for over 24 hours). Short term procedures allow for the manual clearance of goods during fallback but require that the declaration information is later keyed into the computer system. Long term procedures do not require the declaration information to be keyed in. If you can't get access to the CHIEF system using the National Export System (NES), try one of the other available routes under the NES. You may already have an arrangement with a fallback partner, such as a customs agent using a Community System Provider (CSP). They can make the customs declarations on your behalf. Find a list of CSPs on the HMRC website Opens in a new window. However, some traders may be unable to use an alternative route and may have to rely on HMRC's fallback plans. When connectivity is only out for a short period, fallback measures will not necessarily be invoked. But traders may, when directed, use the following fallback procedure. Once it is confirmed that some of the available routes into CHIEF have been down for at least half a working day and are expected to be unavailable for the foreseeable future, HMRC will invoke one of two fallback plans to enable entry procedures for users of the affected access route only. You can check the status of NES and other electronic systems on the service availability page on the HMRC website Opens in a new window.
Fallback options if CHIEF is unavailable

There may be occasions where the Customs Handling of Import and Export Freight (CHIEF) computer and/or the local computerised inventory control system is not available. The procedures which will be introduced in these circumstances are known as 'fallback'. Fallback procedures may involve manual processing of declarations and/or other documents by HMRC. There are two types of fallback procedures,
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on the HMRC website - Opens in a new window. Finally, you must complete form C130EX for authentication by customs to indicate that the goods have permission to progress. Find form C130EX on the HMRC website - Opens in a new window. All these forms must be headed "Fallback" in red ink. You must keep copies of all forms that you fill in under the fallback procedures.
CSP system local fallback forms CCS-UK In the event of sustained CHIEF unavailability and as part of local customs fallback procedures at London Heathrow Airport, users should use one of the CCS-UK user fallback forms, which any CCS-UK CHIEF user can submit through the Heathrow Entry Processing Unit (EPU). You can find CCS-UK user fallback forms on the HMRC website - Opens in a new window. You can find details of the fallback plans within Volume Three of the Integrated Tariff of the UK (the Tariff), or you can call the NES Helpline on Tel 029 2032 6371 or the HMRC Excise & Customs Helpline on Tel 0845 010 9000. You need to complete three forms under fallback procedures, including: If you're not authorised for simplified procedures, you must complete all the required boxes on form C88/ESS (Export Security Single Administrative Document) as a full export declaration. However, if you're authorised for the Simplified Declaration Procedure or Local Control Procedures, you can submit partially completed C88/ESSs as Pre-Shipment Advices. This is initial data which must be followed by a full supplementary customs declaration up to two weeks after the goods have left the UK. The C88/ESS must be supported with a form C1402 stating that you'll send the SAD declaration electronically once CHIEF is in operation again. Find form C1402
Using the Management Support System

The Management Support System (MSS) is an interfacing database with the Customs Handling of Import and Export Freight (CHIEF) system. It contains archive data for all cleared customs declarations for import and export, offering importers and exporters opportunity to purchase a subscription or one-off report to keep accurate records of their consignments. A purchased MSS subscription or report provides proof of sending the data to customs. This is useful for audits, and also cuts down on administration - for example, the system contains the total amount of duty paid against the value of goods entered for imports. You can find frequently asked questions on MSS data to the trade on the HMRC website - Opens in a new window. Reports available from MSS are: Sample reports - a single sample of one month's recent import and export data will be made available to prospective customers to enable them to assess whether or not
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subscription to the scheme will be of benefit to them. This information can only be provided by means of a written request on business-headed paper from a responsible person of the business, for example sole proprietor, partner or director. You can find frequently asked questions on MSS data to the trade on the HMRC website Opens in a new window. Standard reports - four standard reports are available covering import item, import entry, import tax lines and export item data. For a single standard report a charge of 180 per annum plus VAT for each type of report required. Customised reports - these cost 360 per report plus VAT and you can request additional data items or historical data. However, not all data items available on MSS are available for purchase in reports. HMRC reserves the right not to provide certain confidential information. MSS sends the information via email. The normal format for electronic delivery will be a downloadable Excel spreadsheet. You can fill in a sales agreement for MSS reports on the HMRC website - Opens in a new window. For any enquiries about MSS, you should email the MSS team at frontiersmssteam@hmrc.gsi.gov.uk. Import and export procedures |

CSP contact details on the HMRC website - Opens in a new window Enrol for the National Export System on the Government Gateway website Opens in a new window NES online web form facility on the HMRC website - Opens in a new window Download Customs Information Paper (09) 14 from the HMRC website (PDF, 30K) - Opens in a new window Live CHIEF system log in through the HMRC welcome screen on the HMRC website - Opens in a new window CHIEF trade user guides on the HMRC website - Opens in a new window How fallback measures apply to your business on the HMRC website - Opens in a new window NES information on the HMRC website Opens in a new window CHIEF information on the HMRC website - Opens in a new window

Export declarations and the National Export System | Import Control System |
Subjects covered in this guide Introduction The importance of classifying your goods The role of the Tariff Classifying your goods The Tariff Classification Service Further help with classification of import or export goods Related guides on nibusinessinfo.co.uk Related web sites you might find useful
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Classifying your goods > Classification rules and using the tariff > Classification of goods
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Introduction
All UK businesses must declare any imports or exports to HM Revenue and Customs (HMRC). This is to ensure that any import VAT, duty, excise or levies due on them under UK and European law are collected. How different goods are classified largely determines what duties and controls apply to them. HMRC uses commodity codes found in the Integrated Tariff of the United Kingdom (the Tariff) to classify individual products. Classification of commodities is necessary for import and export declarations as well as Intrastat returns. Other government departments also rely on Tariff classification for licences and other documents. This guide contains intermediate information about how to classify your goods correctly and explains the role of the Tariff when classifying your goods. The guide also provides information about useful resources and services that are available to help you, including the Tariff Classification Service, which can provide legally binding advice and decisions on the classification of the goods. For additional information see our section on using the UK Trade Tariff and for detailed information see our guide on classification rules and the Tariff.
The importance of classifying your goods

If you intend to move goods to and from the UK, it's essential that they're classified in order to identify what duties and controls apply and ensure a correct customs declaration. Whether or not you have an agent who handles customs entries on your behalf, you have a legal responsibility to ensure the correct classification is applied. Incorrect classification can lead to delays in clearing goods, overpayment of duty and possible penalties. HM Revenue & Customs (HMRC) uses classification information to collect data and trade statistics. It's in your interest to correctly classify your goods as it will help to ensure that you: pay the correct amount of duty and VAT know if duty is suspended on any of your goods know if any preferential duty rates can be applied know whether you need to obtain an import or export licence - for plant and animal products on health and conservation grounds or for firearms and hazardous materials know whether excise or anti-dumping duties apply (dumping relates to goods that are exported from one country to another at a lower than normal price) avoid paying interest on back-payments for incorrect classification avoid seizure of your goods or delays to their movement Many goods are subject to specific controls - eg those falling under the Common Agricultural Policy (CAP) of the European Union (EU), or those subject to anti-dumping duties or tariff
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quotas. By correctly classifying these products you'll know what measures apply to you. See the page in this guide on classifying your goods. The UK Trade Tariff is available from this website free and online for the majority of the information you'll need to import or export. The UK Trade Tariff also includes helpful tools for managing your Tariff information. You can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. The Tariff is based on the EU TARIC (TARiff Integre Communautaire). Member states of the EU hold commodity codes in the TARIC. Commodity codes and other regulations are updated daily, which ensures that importers and exporters can rely on the same standards and treatment throughout the EU. The UK Trade Tariff uses the daily updates of the TARIC directly, so that Tariff users have access to consistent accurate information. Occasionally correct classification relies on supporting resources such as HMRC industry specific classification guides, Harmonised System Explanatory Notes and Combined Nomenclature Explanatory Notes. See the page in this guide: further help with classification of import or export goods.
The role of the Tariff

In order to classify your goods you'll need to make use of the Integrated Tariff of the UK commonly known as the Tariff. This is a large document, containing a product coding system, which provides a comprehensive guide to importing and exporting. You can buy it in binder form or access it online. Volume 2 of the Tariff contains a list of commodity codes that HM Revenue & Customs (HMRC) uses to determine the class under which exports and imports are entered. The commodity code is a ten-digit number, although an additional four digits may apply to certain products. For imports from outside the European Union (EU), it's necessary to provide the full Tariff classification. For exports the first eight digits are sufficient. Tariff classification in the EU is based on the harmonised system which defines the first six digits. Although many countries subscribe to the same Tariff classification system, actual classifications may differ. The following diagram sets the structure of the TARIC codes and additional codes - 'HS' refers to 'Harmonised System' and 'CN' refers to 'Combined Nomenclature'. For more on these codes see the page in this guide: further help with classification of import or export goods.
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If you rely on the classification from your overseas supplier, you'll need to check whether it's applicable to the UK. Find out about the Customs Procedure Code (CPC) on the HMRC website - Opens in a new window. The Tariff is published as a whole every year, is updated monthly and is based on EU legislation. It is made up of three volumes: Volume 1 contains essential background information for importers and exporters. It covers duty relief schemes, contact addresses for organisations such as the Department for Business Enterprise & Regulatory Reform, the Department for Environment, Food and Rural Affairs and the Forestry Commission. It also contains an explanation of excise duty, Tariff Quotas and many similar topics. Volume 2 contains a schedule of duty rates and trade statistical descriptions on 16,600 Commodity codes. Volume 3 contains a box-by-box completion guide for import and export entries - the Single Administrative Document (SAD or form C88), the complete list of CPCs for importing and exporting, the Country Codes for the world, lists of UK docks and airports both alphabetically and by their Entry Processing Unit numbers, and further general information about importing or exporting. See the page in this guide on classifying your goods.
Classifying your goods

Before completing the Single Administrative Document (SAD), you need to know how to use the Tariff's General Rules to classify your goods.
General Rules for classification using the Tariff To find the correct code for your goods, use the General Rules contained in the Tariff. There are six rules which should be applied in order: 1. covers the main headings under which goods are classed 2. covers incomplete or unfinished articles and articles of mixed materials or substances 3. covers goods which can be classified under more than one description - it also covers composite goods of different materials and sets for retail 4. covers goods which can't be classified using the first three rules 5. covers packaging items that come with the goods 6. covers subheadings under which goods are classed In order to apply these rules correctly, you'll need to be able to describe your goods accurately. Many manufactured items are made up of several parts. If you're trading in foodstuffs or domestic products, for example, you need to know what they contain before you consult the Tariff. This will help make your classification as accurate as possible. For example, a fully assembled bicycle is classified as: Chapter 87 vehicles, other than railway or tramway rolling-stock and parts and accessories thereof bicycles and other cycles (including delivery tricycles), not motorised other bicycles
Heading 8712
Subheading 8712 00 CN Code 8712 00 30 TARIC 8712 00 30 00
(in this example there is no TARIC addition so the CN code is simply extended by two zeros)
Rules 2, 3 and 4 are used less frequently than the others and you should seek help from the Tariff Classification Service when referring to them. See the page within this guide on the Tariff Classification Service. The Single Administrative Document (SAD), or form C88, is used to declare goods that are moved from one part of the European Union to another. This form can be completed manually
or electronically, although manual submissions may well take longer to process. You can register for electronic declarations via the Government Gateway website. Find out about the Government Gateway on the HM Revenue & Customs (HMRC) website - Opens in a new window. Once you have found the commodity code matching the description of your goods, enter it in box 33 of the SAD - a copy of which can be found in Volume 3 of the Tariff. Alternatively, you can find the SAD form on the HMRC website - Opens in a new window. You should also enter the customs procedure code that applies to you in box 37 of the SAD. These two entries will determine how your goods will be treated by customs officials in the country of importation. Read about the SAD on the HMRC website - Opens in a new window. Where to find the Tariff The UK Trade Tariff is available from this website free and online for most of the information you'll need to import or export. The UK Trade Tariff also includes helpful tools for managing your Tariff information. You can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff.
The Tariff Classification Service

For further clarification, contact the Tariff Classification Service (TCS). The TCS will provide advice on up to three items for import or export per call. Goods are divided into: Option 1: Electrical, mechanical, vehicles, scientific or medical goods. Food, agricultural or chemical. Plastics and rubber and articles thereof. Option 2: Textiles, garments, fabrics, headgear and ceramics. Metal, footwear, jewellery, toys, cars of historic interest, wood, antiques, furniture, sports goods, games, glass, paper, books and printed matter. Option 0: This additional option is available if you are unsure to which category your goods belong or you require an application form for a legally binding classification decision. If you'd like customs to make a binding decision on correct classification of your goods, apply for Binding Tariff Information (BTI) from the TCS using form C103. To obtain a BTI application form, call the HMRC Tariff Classification Service Enquiry Line on Tel 01702 366 077. You can also find out about electronic BTI on the HM Revenue & Customs (HMRC) website - Opens in a new window. This BTI will be legally binding throughout the European Union (EU) for up to six years after
the date of issue. BTI is usually free - however, you'll have to pay costs incurred through laboratory analysis, obtaining expert advice and returning your samples. BTI provides you with: the correct commodity code for your goods a detailed description of your goods, enabling any customs regime to identify them legal justification for the decision TCS has reached a unique reference number
BTI can only be obtained before any customs procedures take place. Your request may be refused altogether if you: don't plan to import or export the goods in question have made a similar application in another EU member state can't provide complete information about your goods Enter your BTI reference number in Box 44 of the Single Administration Document (SAD), which must accompany your goods throughout the EU. See our guide on declarations and the Single Administrative Document. You should complete a separate application form for each type of item you want classified. BTI appeals If you're unhappy with a BTI decision you may lodge an appeal with HMRC. You have 45 days to request an independent review of the decision. If you're unhappy with the review you have 30 days to apply for a tribunal hearing. Find out how to apply for a review of a BTI decision on the HMRC website - Opens in a new window. Read about BTI on the European Commission website - Opens in a new window.
Further help with classification of import or export goods

There are many resources available to help you accurately classify your goods. Volume one of the Tariff provides much of this information. In Part 1, you'll find a list of other publications which are available to help you with classification, including:
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Harmonised System Explanatory Notes (HSENs). These give useful guidance on the scope of Tariff chapters, headings and sub-headings. You can buy HSENs on the World Customs Organisation (WCO) website - Opens in a new window. Combined Nomenclature Explanatory Notes (CNENs). These are supplementary to the HSENS. They are available on the European Commission site, and are updated once a year. Find the CNENs on the Europa website - Opens in a new window. The Compendium of Classification Opinions. These deal with decisions taken by the Harmonised System Committee which confirm classifications which were in doubt. You can buy the Compendium of Classification Opinions on the WCO website - Opens in a new window. If you want practical help on how to use the Tariff and HSENs you may request education from the Tariff Classification Service. You can call the HMRC Tariff Classification Service Enquiry Line on Tel 01702 366 077. The UK Trade Tariff is available from this website free and online for the majority of the information you'll need to import or export. The UK Trade Tariff also includes helpful tools for managing your Tariff information. You can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. If you're trading with a third country outside the European Union, you can access their tariffs via the European Commission Market Access Database. This database lets you search for a product code based on your product description. It also gives important tariff information as applicable in third countries. Search the Market Access Database website - Opens in a new window. If you still need guidance, you may want to contact your trade association or chamber of commerce. Find your local chamber of commerce on the Northern Ireland Chambers of Commerce (NICCI) website - Opens in a new window.

Import and export procedures | Introduction to the Tariff | Moving your goods | Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff | Classification rules and the Tariff | How to value your imports for customs duty and trade statistics | Declarations and the Single Administrative Document | Importing your goods from outside the European Union | Exporting your goods from the EU to a third country |

CAP import procedures and special directions for goods advice on the HMRC website -
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Opens in a new window Plant health information on the Department for Environment, Food and Rural Affairs website - Opens in a new window CPC information on the HMRC website - Opens in a new window The Integrated Tariff of the United Kingdom available to buy on the Stationary Office Online Bookshop website - Opens in a new window SAD information on the HMRC website - Opens in a new window BTI decision application advice on the HMRC website - Opens in a new window European BTI information on the Europa website - Opens in a new window Find contact details for your local chamber of commerce on the NICCI website - Opens in a new window Trade association directories on the Trade Association Forum website - Opens in a new window
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Introduction
Introduction What the Tariff is Commodity codes and the TARIC Enforcing the Tariff Classifying goods and how to do it Tariff quotas Binding Tariff Information and banned and restricted goods Further help and advice on the Tariff Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful If you trade internationally, importing and exporting both inside and outside the European Union (EU) can seem complicated, but there are plenty of resources available to help make it easier. The Integrated Tariff of the United Kingdom, also known as the Tariff, is particularly useful. The Tariff could be mistaken for an additional duty that you have to pay, but is actually a guide that clarifies what you as an importer or exporter need to know and the rates of duty you should pay. This guide explains what the Tariff is and what information is contained in each volume, details of the online EU customs database (known as the TARIC) and how it relates to the Tariff, and how to classify your goods by using the Tariff Classification Service. It also shows you how to apply for reduced duty on your goods and explains what Binding Tariff Information is. This guide contains intermediate information. For basic information, see our guide on international trade paperwork: the basics and for additional intermediate and detailed guidance, see our section on using the UK Trade Tariff.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Classifying your goods > Classification rules and using the tariff > Introduction to the Tariff
What the Tariff is

The Integrated Tariff of the United Kingdom, also known as the Tariff, gives you the information you need to dispatch and acquire goods for trading throughout the world. Following the European Union (EU)-wide harmonisation of the Single Administrative Document (SAD), the Tariff has been

Volume 3 contains advice on how to fill out the relevant documentation for importing and exporting. It contains the Customs Procedure Codes needed, as well as Country Codes and a list of all UK docks and airports. You can find out how to buy a subscription to the Tariff on the Stationery Office Online Bookshop website - Opens in a new window. All Tariff products are produced annually with ten monthly updates. 'Stop press' updates are issued to Tariff subscribers on any immediate or important changes. Tariff subscribers who want to be included in the Stop Press information should subscribe via the following email address tariff.management@hmrc.gsi.gov.uk. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
harmonised. The electronic Tariff has appeared in harmonised format since October 2007. The Tariff is a three-volume guide designed to help importers and exporters meet their legal requirements. It is available in hard copy, as a CD-Rom and is accessible online. Volume 2 of the Tariff is particularly useful because it allows you to confirm the commodity codes for your products. This is a ten-digit reference number for imports or an eight-digit code for consignments traded within the EU. Volume 2 is available free on this website. You can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. Once you know the correct commodity code, you can use the Tariff to find the current duty and import VAT rates. The Tariff will also tell you whether your goods require a licence. The Tariff covers the following information: Volume 1 covers a range of general information for importers and exporters, including importing restrictions, VAT relief schemes and anti-dumping duties (taxes designed to prevent goods entering the EU at a cheaper rate than they can be manufactured and sold). Volume 2 contains the 16,000 or so commodity codes. It also lists duty rates and important information such as import licensing and preferential duty rates, which sometimes apply when exporting or importing to developing countries.
Commodity codes and the TARIC

If you import or export goods from within the European Union (EU) or outside it, you should understand the importance of commodity codes and the TARIC. Commodity codes When trading internationally, you will need to find the correct commodity code for your goods so you can fill out customs paperwork accurately. The code is an eight-digit number for exports outside the EU or goods moving within the EU, but is a ten-digit number for imports from outside the EU. Once you know the commodity code, you
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can look up other important information such as duty rates and any import or export restrictions. New commodity codes, suitable for use throughout the EU, have been published in the Tariff as of 1 January 2010. Find details about the new Combined Nomenclature system on the uktradeinfo website Opens in a new window. The TARIC Member states of the EU hold commodity codes in a database called the TARIC, or Tariff Integre Communautaire. Commodity codes and other regulations are updated daily in the TARIC, which ensures that importers and exporters can rely on the same standards and treatment throughout the EU. The UK Tariff is published once a year with ten monthly updates using data from the TARIC and is supplemented by UK-specific data on VAT, licensing, restrictions and excise duties. For general information on the UK Tariff, see the page in this guide on what the Tariff is. The TARIC is available online for importers and exporters from EU countries. However, UK traders can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
This page explains why you must follow the guidance in the Tariff, and the action HM Revenue & Customs (HMRC) can take if you don't. Whether you own a copy of the Tariff or not, it is essential to keep up with changes in commodity codes, rates of duty and regulations related to the products you are importing or exporting. The hard copy of the Tariff is published once a year, with ten monthly amendments. This also applies to the CD-Rom and online versions. If you are importing and exporting within the European Union (EU), the TARIC (the EU version of the Tariff) is updated online daily. You can find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. If you get your codes or rate of duty wrong, HMRC may impose a fine, or even seize your goods. HMRC can also take action if you fail to obtain licences or comply with regulations. Your goods could also be delayed, which could harm business relationships. For more information, see our guide on customs seizures and penalties. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
Classifying goods and how to do it

When trading internationally, you need to select the right commodity code for your goods. You can find classification codes in
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Enforcing the Tariff
the Tariff Volume 2. Classifying your goods correctly will help ensure that you: pay the right duty and VAT know whether an import or export licence is needed You are legally responsible for the correct classification of your goods, even if you use an agent. Incorrect classification can lead to your goods being delayed or seized and you will have to pay any duty and tax owed, plus possible financial penalties. To classify your goods yourself you can use the Tariff. There are six general rules described in volume two, section three of the Tariff to help with classifying goods. For further information, see our guide on classification of goods. If you have used the Tariff but are still unsure of the correct classification code, you can contact the Tariff Classification Service for help with identifying up to three items. Find out about the Tariff Classification Service on the HM Revenue & Customs (HMRC) website - Opens in a new window. A number of guides are also available to help with the classification of popular items. See our section on how to classify difficult goods. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
Tariff quotas (TQs) allow certain goods to be imported into the European Union at a lower level of duty than would usually apply. This page shows you how to find out if your goods are eligible for TQs and how they benefit you as a trader. TQs may only exist for a limited period and are not the same as Import Licence Quotas, which are designed to restrict the amount of goods that can be imported. You can find out whether the goods you are importing are eligible for a TQ by looking in volume two of the Tariff. To find out more about the Tariff, see the page in this guide on what the Tariff is. You can read a detailed guide to TQs on the HM Revenue & Customs (HMRC) website - Opens in a new window. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics. Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff.
Binding Tariff Information and banned and restricted goods

This page explains how to get your goods certified with the correct code if you are not sure which category your goods belong to. You need a classification code for your goods to enable you to fill out your customs documentation correctly and pay the correct duties and VAT. You can find the classification code by using the Tariff, but if
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Tariff quotas

you're not sure that you have the correct code, you can apply for Binding Tariff Information (BTI). BTI is a written and legally binding decision on a classification code from HM Revenue & Customs (HMRC) that applies for up to six years from the date of issue. It can help you with particular types of export and obeying rules of origin. An application form (C103) is available from the Tariff Classification Service. Find out how to contact the Tariff Classification Service on the HMRC website - Opens in a new window. You can also apply electronically for a BTI decision. Find out about applying electronically for a BTI decision on the HMRC website - Opens in a new window. Some goods are restricted or prohibited for import and export and it is important that items are checked before they are shipped. Volume one of the Tariff contains a chapter on banned and restricted goods. For further information on restricted goods, see our guide on sanctions, embargoes and restrictions. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
270 which is also the same price for the online Tariff and CD Rom, although the two electronic formats attract VAT on top of the price. You can order a copy of the Tariff on the Stationery Office (TSO) Online Bookshop website - Opens in a new window. For more information on purchasing the Tariff, you should contact TSO. You can call the TSO Tariff Enquiry Line on Tel 0844 4777 414. You can also email them at customer.services@tso.co.uk or write to them at the following address: The Stationery Office Publications Centre PO Box 29 Norwich NR3 1GN If you're using or planning to use the Tariff for help with importing and exporting, there are also some other contact details you might find useful. For general advice and queries, call the HMRC Excise & Customs Helpline on Tel 0845 010 9000. This helpline is open Monday to Friday from 08.00 to 20.00 for all queries. You can also get the classification of up to three items per call over the telephone. Contact the HMRC Tariff Classification Service Enquiry Line on Tel 01702 366 077. The TARIC is the online European Union customs database. See the page in this
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Further help and advice on the Tariff

You can buy the Tariff in printed and CD-Rom formats, or subscribe online. The cost of the Printed Tariff for 2011 is
guide on commodity codes and the TARIC. For a general overview of the documents you might need for importing and exporting, see our guide on international trade paperwork: the basics.
Inter-EU commodity code listings on the uktradeinfo website - Opens in a new window Classifying your imports or exports public notice on the HMRC website Opens in a new window Tariff quota information on the HMRC website - Opens in a new window TQ guidance on the HMRC website Opens in a new window Apply online for a BTI decision on the HRMC website - Opens in a new window
Helplines
HMRC Tariff Classification Service Enquiry Line 01702 366 077 HMRC Central Tariff Quota Unit 01702 366 787 TSO Customer Services 0870 600 5522

Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff | Classification of goods | Customs seizures and penalties | How to use the UK Trade Tariff |

Online Tariff subscription on the HMRC website (registration required) - Opens in a new window
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Introduction
Introduction Choosing the right transport and customs route for your consignments Labelling and packaging of goods Regulations and the movement of goods Weights, measures and the movement of goods Choosing a freight forwarder Movement-of-goods insurance Paperwork and documentation Importing and exporting via post and courier Here's how we successfully ship our goods abroad Helplines Related guides on nibusinessinfo.co.uk Related web sites you might find useful All businesses need to transport goods at some time or other. If you're an importer or exporter and you move goods within and/or outside the European Union, you need to understand the legal and regulatory requirements that your consignments have to comply with. You need to be careful when choosing the mode and route for your consignments because these factors can impact on your transport costs. You may also have to use more than one mode of transport to get your consignments to their final destinations. This guide provides an overview of the movement of goods and how to choose the right mode and route for your imports and exports. It also sets out the paperwork you must complete and how best to protect, package and label your consignments. For more detailed information see our sections on transporting your goods and preparing goods for transport.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Preparing your goods for transport > Moving your goods
Choosing the right transport and customs route for your consignments
You can choose from a wide range of transport modes and routes. Your choice will depend on, among other things, how quickly you want to transport your goods and how much you want to spend. When deciding the optimum route for your consignments, consider these questions: Does the country you're transporting to or from have a good transport
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Moving your goods

infrastructure? Do you need to use more than one mode of transport? How fast do you need to move your consignments? Do your consignments require special packing, eg refrigeration? Does your customer have any specific terms of sale you must comply with? These detail who has responsibility for the transport and any additional charges it may incur. Road Road transportation is probably the most common way of moving your goods particularly to and from mainland Europe, giving you the option of using a single mode of transport for door-to-door delivery, or moving your goods from one mode of transport to another for the channel crossing. See our guide on moving goods by road. Rail Rail transportation can be cheaper than other modes of transport, particularly for bulky goods over long distances and where environmental protection is more important than fast deliveries. See our guide on moving goods by rail. Airfreight This is the fastest way of transporting your goods but can be the most expensive depending on the quantity/volume of goods. See our guide on moving goods by air. Sea Transporting goods by sea can take longer but can be very cost-effective, especially if you are shipping large volumes. See our guide on moving goods by sea.
Roll-on roll-off ferries If you're using containers/trucks for your transportation, roll-on roll-off ferries can offer you cost-effective routes. Usually standard trailers can be accommodated, but check with the ferry company or your freight forwarder first. Consolidation Freight forwarders often consolidate several consignments with the same destination. This can save you considerable sums of money. Express courier If your goods are urgent or valuable, then express couriers can provide specialist services. Take care to check the route your goods will take. Use the expertise of your freight forwarder, who'll have detailed knowledge of the destination countries' infrastructure and may suggest more cost-effective alternative routes. Incoterms Incoterms (International Commercial Terms) are used to ensure there's no ambiguity about who pays the charges attached to the transport route and mode when goods arrive at their final destination and who is responsible for import and export clearance. See our guide on International Commercial Contracts - Incoterms. ATA carnets You can use an ATA carnet if you need to temporarily move goods into or out of the European Union (EU), subject to that country being part of the scheme. The
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vouchers replace the usual customs documentation. In the UK, they're issued by the Chamber of Commerce and Industry. You can find more detail on how to use these vouchers to temporarily move goods into or out of the UK in our guide: ATA and CPD carnets. Find out about ATA carnets on the HM Revenue & Customs (HMRC) website Opens in a new window. The Duplicate List You can use this procedure if you need temporarily to export from and then re-import goods into the UK, but not within the EU. It only applies to some goods, including: professional effects, eg portable computers and tools works of art and other items exported solely for exhibition, display or demonstration purposes trade samples trophies belonging to a recognised sporting association or organising body permanently established in the UK Goods under the Duplicate List procedure must travel with you as accompanied baggage. You must not alter, process or repair them while in the non-EU country, except running repairs designed to return the goods to their original state. Unlike the Carnet, this procedure does not help with Customs formalities in the country of destination, so you will need to complete the foreign Customs import and re-export documentation and give any financial security normally required in that country.
Before leaving the UK you must: prepare on your business stationery two copies of a list of all the goods being temporarily exported giving a description of the goods, the quantities - with serial numbers, where applicable - and the value declare the type of goods - eg professional effects - and the reason for their temporary exportation and if possible, the date of expected return complete Customs Form C&E 1246, which you can obtain either from HMRC or at the port of departure On exportation, present the goods, the C&E 1246, and the two copies of the list of goods to the Customs Export Enquiry Point. If Customs is satisfied they will endorse the documents and give you back the C&E 1246 and one copy of the list, which you must keep with the goods. You should allow yourself an extra hour at the port of departure to complete these formalities. When reimporting the goods, you must: present the C&E 1246 and the list with the goods to the customs officer at the red point (or in the red channel) declare to the officer any goods you have left in the country you have visited and they will advise you of the proper procedures Relief from customs duty may apply to your consignments. Read Notice 236 on importing returned goods free of tax on the HMRC website - Opens in a new window. You may also be able to claim customs duty
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relief when you re-import EU goods that have previously been exported from the EU for processing or repair using Outward Processing Relief (OPR). For more information, see our guide on outward processing relief (OPR). Authorised Economic Operator (AEO) status If you trade within the EU as part of an international supply chain and are actively involved in customs operations you can apply for AEO status. The AEO certificate is an internationally recognised quality mark which tells people that your customs controls and procedures are efficient and compliant and that you can be considered a secure and reliable trading partner in the supply chain. AEOs may benefit from simplifications provided for under the customs rules, or from facilitations of customs controls relating to security and safety. Read about AEO status in our guide on Authorised Economic Operators. Find out who can apply for an AEO certificate on the HMRC website - Opens in a new window. The Economic Operator Registration and Identification (EORI) Scheme As a trader, if you wish to register - or are already registered as an AEO, you will also need an EORI Scheme number. Read about the EORI Scheme in our guide: Economic Operator Registration and Identification (EORI) Scheme.
For packing, consider the following: check the destination country for specific regulations you must comply with choose the most appropriate packing materials try to consolidate smaller packages into one larger consignment to provide better protection and reduce your shipping costs consider how your consignments will be stowed, eg other consignments may be stacked on top of yours make sure you have adequate insurance in place while your goods are being packed secure your goods within the outer packaging by using a filling material There are several different types of packing material that you might choose to use, depending on your transport requirements. For more information on costs, best use of materials, and the environment, see our section on reducing and recycling waste. You should also be aware that subject to the volume of packaging you use and your business turnover, you may have to comply with packaging waste regulations. To find out whether they apply to you, see our guide on packaging and packaging waste - your environmental responsibilities. Wrapping This is often used to secure loose packages to a pallet. It can also be used to protect your consignments from environmental factors. Cartons, fibreboards and triwalls Lightweight cartons may be suitable for
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Labelling and packaging of goods

The way in which you package and label your consignments should be an integral part of your business' transportation and environmental systems.
Moving your goods
short distances. The sturdier triwall carton is better suited for sea voyages as it can protect against adverse environmental conditions. Crates and cases Crates tend to have a much more sturdy outer skin and can be stacked without buckling. They can also be handled by forklift, sling or grab. Wooden packaging and pallets Certain countries require wood packaging and pallets to be stamped with an approved mark which provides phytosanitary certification that the wood has been properly treated and is compliant with the International Standard for Phytosanitary Measures No. 15 (ISPM 15). See our guides on wood packaging and how to label and package goods being shipped out of the UK. ISPM 15 covers wood packaging material such as crates, boxes, packing cases, dunnage, pallets, cable drums and spools/reels, which can be present in almost any imported consignment, including consignments that would not normally be subject to phytosanitary inspection. Pallets facilitate the handling of consignments. They are usually made from wood, although for airfreight, aluminium is used. Containers Containers can be used for almost any kind of goods and tend to be used for multi-modal transport, so will be moved a number of times.
Labels Your packages must also be properly labelled. Each consignment, no matter which type of transport method is used, must have the correct shipping marks and numbers in accordance with the International Standards Organization's ISO R/780 standard. You can find guidance and symbols for the correct marking of packages on the Transport Information Service website - Opens in a new window. For more information about crates and cases, wooden packaging and containers, see our guide on labelling and packaging your goods for export.
Regulations and the movement of goods

Specific regulations apply to the movement of different types of goods. Dangerous goods If you transport dangerous goods, you must comply with strict rules. For more information, see our guide on moving dangerous goods. For goods transported by: road - see our guide on moving goods by road rail - see our guide on moving goods by rail air - see our guide on moving goods by air sea - see our guide on moving goods by sea Fruit and vegetables
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animal products. Import licences Import restrictions can be product-specific or trade-specific. Many products are subject to product-specific standards and need to be supported by applicable certificates, product-specific licences and documentation. Quite separately, quantitative restrictions or limitations and anti-dumping duties may apply to certain imported commodities. For more information, see our guide on anti-dumping and countervailing duties. For help identifying whether you require an import licence see our guide: do you need an export or import licence? Use the Tariff for classifying your goods to find out which duties and measures apply. See our guide for an introduction to the Tariff. You must also comply with local regulations and general export and import procedures. See our section on import and export procedures. You can also use our business tool to find information on regulations that apply in your business sector.
If you import certain types of fresh fruit, vegetables or nuts from a non-European Union country, you may need a Certificate of Conformity. See the page on understanding certification and inspection of fruit, vegetables and plant products in our guide on trading in fruit, vegetables and plant products. To obtain a certificate, you use the Procedure for Electronic Application for Certificates (PEACH) system. Apply for a Certificate of Conformity using the PEACH system from the Department for Environment, Food and Rural Affairs (Defra). For more information, see our guide on using the PEACH system to import plants and fresh produce. Plants and soil are subject to phytosanitary controls by the Plant Health Inspectorate. See our guides on plant health controls and trading in fruit, vegetables and plant products. Organic produce If you intend to market your goods as organic, you must comply with a number of trade regulations specific to organic produce. For more information, see our guides on importing organic produce and organic certification and standards. You can also use our interactive tool to check if you need to be certified to import organic goods. Animal and animal-based products A number of special rules apply to imports of live animal and animal-based products. See our guides on products of animal origin, importing animal furs, skins and fish and using TRACES to trade in animals and
Weights, measures and the movement of goods

The costs you'll incur when shipping your goods will depend on which form of transport and route you choose. Quotes will vary from operator to operator and from freight forwarder to freight forwarder.
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Sea transport Sea transport tariffs may include ocean rates, terminal charges and a range of surcharges. Ocean rates are normally quoted in US dollars, so the price you pay will be calculated on the day of your consignment's departure, based on the current exchange rate. Airfreight Airfreight prices are set by the Official Rates Policy, which is published in The Air Cargo Tariff. Airfreight is charged at a per-kilogram rate, with discounts for higher volumes. It's usually carried by either regular (scheduled) or charter flights. Consignments may be spread over a number of charter flights. Express operators offer door-to-door services, providing transportation systems in which the location and progress of packages is constantly tracked. They also provide cross-border clearance and collection of payments from customers. Shipments are usually charged by their weight, and door-to-door rates include all additional charges that may become due. Express operators specialise in delivering time-sensitive and/or smaller consignments. Box rates You may be quoted a price based on 'box' or 'freight all kinds' rates. These rates are a lump sum based on a full container, irrespective of the goods you are shipping. Prices for less-than-full containers are usually quoted as a rate-per-weight measure of 1,000 kilograms/1 metre cubed. Some cargoes will have particular rates based on the goods shipped (also known as commodity rates). These can include
dangerous goods, goods requiring refrigeration - reefer cargoes - and waste paper. Finished goods If you are transporting finished goods, including their packaging, you must be aware of the Weights and Measures (Packaged Goods) Regulations 2006.
Choosing a freight forwarder

Using a freight forwarder to help you with exporting and importing your goods can be very beneficial, as they have detailed knowledge about export destinations and the regulations you need to comply with. Forwarders can help you by: consolidating smaller shipments to save you time and money having a detailed knowledge of the paperwork and regulations that your business must comply with acting as a go-between when transporting to a new territory supporting you to set up multi-modal transportation and operating the system efficiently You can find your nearest freight forwarder on the British International Freight Association (BIFA) website Opens in a new window. When you start to look for a freight forwarder to handle your business' transportation, ask the following questions: Are they a reputable company? For example, are they accredited by
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BIFA? Do they have experience of transporting the goods that you sell? Do they have experience of shipping to countries inside and outside the European Union? Can they handle multi-modal transportation if this is needed? If you familiarise yourself with the Incoterms (International Commercial Terms) system, you'll be able to use your freight forwarder more efficiently. The system is a set of rules that interpret commonly used trading terms. For more information, see our guide on International Commercial Contracts - Incoterms. If you are using a freight forwarder or carrier, it's best practice to use an Export Cargo Shipping Instruction, as this contains all the information they need about your consignment to ensure it reaches its correct destination. See our guide on using brokers and forwarders.
regulated by the Financial Services Authority. Find out why it's important to insure your goods in our guide on transport insurance. General cargo insurance This is available in three varieties - A, B or C. Clause A provides the most comprehensive cover and clause C the least. Goods-in-transit insurance Goods-in-transit insurance is very important. Which insurance you have will depend on the agreements with your customers or suppliers. For example, road haulage falls under the Convention des Marchandises Routiers (CMR). This gives basic insurance cover, but it's advisable that you also take out extra insurance yourself or via your freight forwarder. Basic shipping insurance cover
Movement-of-goods insurance
Most modes of transport offer limited liability, which means that some basic although extremely low - cover is provided. Some traders may find this adequate. If, as is usually the case, greater cover than that offered by limited liability is required, you should take out your own insurance. The insurance cover type you choose for your goods will depend on how comprehensive you want the cover to be and how much you want to pay. If you are considering insuring your goods through your freight forwarder, you should check that they are registered with and
Under the transport modal conventions, you automatically have basic insurance cover (limited liability) as laid out in the Hague-Visby and Hamburg rules, which cover transportation by sea. It's advisable, though, to have additional insurance with a third-party broker or via your freight forwarder. Marine cargo insurance There are four types of marine cargo insurance. Open cover - the most flexible if you move goods regularly. You pay an annual premium plus a final adjustment based on the actual
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amount of goods shipped throughout the year. Annual policies - less flexible than open cover. You declare the details of each consignment before it's shipped. A single-voyage policy cost-effective if you ship irregularly. You pay a one-off premium. A forwarder's open policy - similar to open cover, but is linked to a specific freight forwarder. It's also advisable to take out contingency (seller's interest) insurance. This will protect you from your customer refusing to accept the goods if they're damaged in transit, which may not have been adequately insured by the buyer. Rail insurance The Convention Internationale des Marchandises par Chemin de Fer (CIM) consignment note sets the conditions for international movement by rail. These rules mean that your carrier only takes responsibility for insuring your consignments against loss or damage from the time they take possession up until delivery. Talk to your insurance broker, legal adviser or freight forwarder about additional insurance cover. Airfreight insurance The Warsaw and Montreal Conventions govern the international carriage of goods by air. For more information about airfreight insurance, see our guide on moving goods by air. Some countries have special requirements regarding invoice layouts. Ask your freight forwarder or Invest NI International Trade team for advice. Other paperwork needed for the movement of goods Other common documentation you need to be aware of includes: consignee details goods description - this is generally the container number and perhaps a description weight (in kilograms) value of the goods country of origin signature and date You could also include transport details, eg the registration number of the vehicle transporting the goods.
various documents when they're being transported. It isn't a legal requirement to carry documents within the European Union (EU), but it's good practice to do so and avoids delays at customs. Despatch notes and packing lists are often used as accompanying documents, although some carriers will demand an invoice. Invoices All consignments being exported outside the EU must be accompanied by an import declaration and another supporting document, the foremost of which is the invoice - although it is not mandatory that the invoice accompanies the consignment. At a minimum, aside from your business name, address and contact details, the invoice should contain:
Paperwork and documentation

Your goods should be accompanied by
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and requiring verification although this can be done away from the initial point of entry - see our guide on importing organic produce. CIM (Convention Internationale des Marchandises par Chemin de Fer) consignment note - this sets the conditions for international movement by rail - see our guide on moving goods by rail. Declaration of Dangerous Goods must be provided if you ship dangerous goods which may require you to appoint a dangerous goods safety adviser - see our guide on moving dangerous goods. Regulations relating to the movement of goods You'll also need to comply with various regulations relating to the movement of goods. For more information, see our section on import and export procedures.
Standard Shipping Note (SSN) see our guide on moving goods by sea. Single Administrative Document (SAD) or form C88. SADs aren't often used for imports because of electronic submissions via the Customs Handling of Import and Export Freights (CHIEF) or exports because of electronic submissions via the National Export System. See our guide on UK's import and export processing system CHIEF for more information on electronic submissions of custom documents. Export Cargo Shipping Instruction (ECSI) - applicable if you're using a freight forwarder or carrier - see our guide on using brokers and forwarders. The CMR note - the standard contract of carriage, a copy of which should accompany consignments of good being transported internationally by road. You can find out more about this key road transport document in our guide on moving goods by road. Sea waybill and bill of lading these are used as evidence of the contract between your business and the carrier you're using. Sea waybills are used more often because they don't have a title of goods function and can be submitted electronically ahead of time. Certificate of Conformity - needed for some consignments of certain types of fruit, vegetables and nuts before they can move through customs and into free circulation in the UK - see our guide on using the PEACH system to import plants and fresh produce. Certificate of Inspection - required for imports of goods of organic origin
Importing and exporting via post and courier

If you decide to import or export your goods via post or courier, you need to comply with various procedures. You can import goods into the UK in your normal travelling baggage (called Merchandise in Baggage) if you declare them to customs on your arrival in the UK by taking them to the red 'Goods to Declare' channel. If you can't see a red channel, use the red point telephone in the customs area. Express couriers Courier services deliver consignments door-to-door for an all-in price. They use scheduled and their own charter flights to
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transport packages (many own aircraft). Scheduled airlines usually offer a lower cost, which is reflected in the costs that the courier charges you. Individual packages usually can't exceed 32 kilograms but some couriers take up to 500 kilograms. Tracking and insurance is usually included in the courier's charges. Post You can also import or export your goods via post, using Royal Mail - which includes Parcelforce Worldwide. If you are importing trade consignments from third countries via post, you must declare them to HM Revenue & Customs (HMRC). For low-value consignments, this might mean nothing more than completing the customs declaration on the form attached to the package. However, you must make a full declaration on a Single Administrative Document (SAD) form for postal imports - C88A - if: you import goods with a value exceeding 2,000 declared to home use and free circulation imports declared to one of the customs procedures with economic relief, temporary importation, customs warehousing, returned goods relief over 600 and processing under customs control or end-use relief, if the potential duty liability exceeds 10 you export goods with a value exceeding 2,000 Another form, C87, also accompanies the SAD. It informs you that the goods have arrived in the UK, but cannot be delivered until you complete and return the SAD form. It also gives the customs reference number
associated with your package. Read Notice 144 on how to complete customs documents for trade imports by post on the HMRC website - Opens in a new window. Any goods that you import on an infrequent or one-off basis must be handled correctly for customs purposes. Traders who acquire excise goods on an infrequent or one-off basis from within the European Union can apply to customs to become a temporary registered consignee (TRC). TRC arrangements are similar to the occasional importer scheme they replace. For more information, read Notice 204A on temporary registered consignees on the HMRC website - Opens in a new window.
Here's how we successfully ship our goods abroad

Peter Thompson Evans Vanodine - Opens in a new window Peter's top tips: "Employ logistics personnel - there are lots of people out there with the experience - and the quality of the experience has greatly improved over the past 10 years, as more UK businesses are trading overseas." "Commit to exporting - do it properly. Look at your export opportunity and examine every part of the business from an exporting standpoint, from marketing and packaging right the
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way through to dispatch." "Use the help and advice from UK Trade & Investment - people don't realise how easy it is to get this help and how incredibly valuable it is."
Evans Vanodine exports cleaning, janitorial and hygiene products to over 60 countries and overseas trade accounts for 25 per cent of the company's turnover. Export manager Peter Thompson says that managing shipping and other logistics doesn't have to be difficult. Here's how he does it. What we do Choose freight forwarders carefully "It's a buyers' market for us when we are looking for freight forwarders - there are lots out there. We tend to use around a dozen freight forwarders each year. For each shipment, we get three quotes. And it's not just the price we look for. "We always look for the best possible documentation management, advice and service levels. Of course, you won't know all of this until you try one, but you can minimise the risks by checking things, such as drivers being fully certified to carry hazardous chemicals, before you appoint the forwarder. As we export chemicals, we work with freight forwarders who know Customs' tariff codes and hazard classifications for our consignments." Keep on top of the paperwork "We employ a team of people with logistics experience to keep on top of the paperwork. They negotiate with customers on consignment sizes to make sure that we're all getting the best possible freight deal.
"Documentation is always our biggest issue. Our team always makes sure we've got copies to hand. For example, if a Dangerous Goods Notice goes missing, the goods can't leave the port, incurring costs for us and the freight forwarder. So, we always keep duplicate copies of all the paperwork, while sending one to the forwarder and one to the customer. That way we can easily and quickly send it over when problems arise." Handle insurance for consignments to protect our customers "We routinely insure consignments on our customers' behalf. Generally insurance only accounts for 1-to-2 per cent of the consignment's value. "Handling damage is sadly quite common and it's very difficult to track down liability for any damage. Occasionally a customer asks us not to bother with insurance, but we do strongly recommend it to them simply as part of the service. Otherwise, they could conceivably end up with empty consignments and no recourse. We use three of the larger insurance companies and add the most suitable insurance to the customer's invoice." What I'd do differently Set distributor targets more tightly "We have distributors in around 60 countries and, looking back, we should have initially been more forceful in managing their targets. If a distributor runs to their targets rather than ours, it can handicap growth and the efficiency of the operation."
Helplines
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move goods across the EU and EFTA countries | Export declarations and the National Export System | Transport insurance | UK's import and export processing system CHIEF | Export Control Organisation | Importing and exporting by post | Here's how an export agent helped me sell my products abroad |
FTA Enquiry Line 08717 11 22 22 BIFA Enquiry Line 020 8844 2266 Department for Regional Development 028 9054 0540 AEO Central Site Enquiry Line 0845 001 0089

UK ports of entry information on the Associated British Ports website - Opens in a new window AEO certificate application advice on the HMRC website - Opens in a new window ATA carnet information on the HMRC website - Opens in a new window Support for selling outside Northern Ireland on the Invest NI website - Opens in a new window Transporting perishable cargo information on the International Air Transport Association (IATA) website Opens in a new window Perishable Cargo Regulations Manual 2010-2011 on the IATA website - Opens in a new window Wood packaging regulations information on the Forestry Commission website Opens in a new window Freight container safety procedures on the Health & Safety Executive website Opens in a new window
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Moving goods by sea | Moving goods by road | Moving goods by air | Moving goods by rail | International Commercial Contracts - Incoterms | Import and export procedures | Authorised Economic Operators | Economic Operator Registration and Identification (EORI) Scheme | Import Control System | ATA and CPD carnets | Wood packaging | How to label and package goods being shipped out of the UK | Apply for a Certificate of Conformity using the PEACH system from Defra | Moving dangerous goods | Driving dangerous goods and special loads abroad | Using TRACES to trade in animals and animal products | Using the PEACH system to import plants and fresh produce | Weights and measures enforcement | National Measurement Office | NMO Certification Services | Using brokers and forwarders | Using the New Computerised Transit System (NCTS) to
Moving your goods
Download instructions on how to complete a PEACH application from the Rural Payments Agency website (PDF, 337K) - Opens in a new window Carriage of Dangerous Goods manual on the Health & Safety Executive website Opens in a new window Download a guide on air freight packaging from the United Parcel Service website (PDF, 2.95MB) - Opens in a new window Ocean freight prices on the Shipping-To website - Opens in a new window Download an introduction to freight transport from the BIFA website (PDF, 561K) - Opens in a new window Incoterms system overview on the International Chamber of Commerce website - Opens in a new window Insurance broker search on the British Insurance Brokers Association website Opens in a new window Goods that require an import licence on the Department for Business, Innovation & Skills website - Opens in a new window Transportation guidance for dangerous goods on the Department for Transport website - Opens in a new window Notice 144 on how to complete customs documents for trade imports by post on the HMRC website - Opens in a new window
Merchandise in baggage on the HMRC website - Opens in a new window
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Imports and purchases from abroad: paying and reclaiming VAT
Introduction
Introduction VAT on goods from European Union (EU) countries VAT on imports of goods from non-EU countries VAT on services received from overseas suppliers Claiming relief if you re-import exported goods New vehicles, boats and aircraft Payment of VAT on goods from abroad and arrangements to defer or suspend payment Related guides on nibusinessinfo.co.uk Related web sites you might find useful Generally speaking, VAT is payable on all purchases of goods and services that you buy from abroad at the same rate that would apply to the goods or services if supplied in the UK. You must tell HM Revenue & Customs about goods that you import, and pay any VAT and duty that is due. This guide explains how you need to report VAT paid on imports, how you may be able to reclaim it, and about the various ways you may be able to defer, suspend, reduce or obtain relief from import VAT.
VAT on goods from European Union (EU) countries

If you are registered for VAT in the UK and receive goods from other countries in the EU, technically known as acquisitions rather than imports, you will normally pay VAT at the time the goods come into the UK. The rate of VAT payable is the same rate that you would have paid had the goods been supplied to you by a UK supplier. This VAT is known as acquisition tax and you can normally reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make. If you are not already registered for VAT in the UK and acquire goods in the UK from other EU countries worth 73,000 or more you may have to register for VAT in the UK. When to register for UK VAT Record-keeping for acquisition tax You must enter the VAT details on your VAT Return. The time of supply for VAT
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > Tax, payroll and company information > VAT > International trade, international visits and VAT > Imports, acquisitions from abroad: paying and reclaiming VAT > Imports and purchases from abroad: paying and reclaiming VAT
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purposes is the time of acquisition normally, the earlier of: the 15th day of the month following the one in which the goods come into the UK the date the supplier issued their invoice You must account for the acquisition tax on the return for the period in which the time of supply occurs, and may treat this as input tax on the same return. When transactions take place for VAT purposes Value of acquired goods for VAT purposes The value for VAT of any goods brought into the UK is the same as the value for VAT of the goods had they been supplied to you by a UK supplier. You must account for the value of the goods or services in sterling, so you must convert their value into sterling if the goods or services were priced in any other currency. Foreign currency transactions and VAT Intrastat Supplementary Declarations You may have to complete an Intrastat Supplementary Declaration if your acquisitions of goods from the EU exceed an annual amount - currently 600,000. Download guidance for completing Intrastat Supplementary Declarations Customs in VAT Notice 60 from the HM Revenue & Customs (HMRC) website (PDF, 680K) - Opens in a new window
VAT on imports of goods from non-EU countries

VAT on imports of goods that you buy from non-European Union (EU) countries is normally charged at the same rate as if the goods had been supplied in the UK. However, imported works of art, antiques and collectors' items are entitled to a reduced rate of VAT. You can reclaim the VAT paid on the goods you have imported as input tax. You will need the import VAT certificate, form C79, to show that you have paid the import VAT. A shipping or forwarding agent cannot usually reclaim this input tax because the goods were not imported to be used in part of their business. If the goods have been misclassified, you can get a refund of any overpayment that was made as a result of the misclassification, but you must complete form C285 and this must be accompanied by a written declaration that you will not reclaim the input tax on the higher figure. Find form C285 Application for repayment/remission on the HM Revenue & Customs (HMRC) website - Opens in a new window If you are not registered for VAT in the UK If you are a UK trader but are not registered for VAT in the UK, you still have to pay the import VAT but you will not be able to reclaim it. If you are a non-UK trader and are not registered for UK VAT, you can arrange for
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an agent in the UK to import and supply goods on your behalf. The agent's supply of services to you will be standard rated for VAT which you will not be able to reclaim, but the agent will be able to recover the import VAT as input tax. Valuation of imported goods for VAT purposes The value for VAT of imported goods is their customs value, determined according to the rules described in VAT Notice 252, plus: incidental expenses such as commission, packing, transport and insurance costs incurred up to the goods' first destination in the UK and including any expenses of this kind that you incur on shipping the goods onto somewhere else in the EU, if you know at the time of importation that you're going to do that any Customs Duty or levy payable on importation into the UK any Excise Duty or other charges payable on importation into the UK except the VAT itself The value of VAT is normally automatically added to box 22 of the import declaration. If the VAT needs to be calculated manually, you must enter the code 'VAT' in the rate column of box 47, and enter the value in the amount column. Find out about the valuation rules for imported goods in VAT Notice 252 on the HMRC website - Opens in a new window Importing goods destined for another EU country If you are importing goods from outside the
EU that are destined for another EU country, you must either pay UK import VAT and put the goods into free circulation, or place the goods under the external transit (T1) arrangement. If you pay UK import VAT, you may be able to obtain relief known as Onward Supply Relief. Read more about external transit in the page in this guide on payment of VAT on goods from abroad and arrangements to defer or suspend payment. Goods supplied onward to another EU country: VAT relief Find out which countries and territories are part of the UK in VAT Notice 703 on the HMRC website - Opens in a new window EU country codes, VAT numbers and VAT in other languages Temporary importation If you're importing certain goods from outside the EU temporarily - that is, you intend to re-export them within two years you can use Temporary Importation (TI) to obtain total or partial relief from import duties. If your goods can benefit from TI total relief, then input VAT is also suspended. However, for most goods you'll have to provide security for the total amount of import duty and VAT. Under TI partial relief, you have to pay the import VAT when the goods enter the EU. If you import goods temporarily but then for whatever reason choose to put them into free circulation in the UK, you will have to pay duty, import VAT - and compensatory interest for certain types of goods.
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An ATA Carnet is a booklet of vouchers used for temporary imports, and which takes the place of normal customs declarations. If you use one when you import goods temporarily, you don't have to provide security for customs duty. Find out about temporary importation in VAT Notice 200 on the HMRC website Opens in a new window Getting a Customs identification number (EORI) If you plan to import goods from countries outside the EU you will need to get an identification number to deal with EU Customs authorities. This is known as an Economic Operator Registration and Identification (EORI) number. Your EORI number is unique and valid throughout the EU. You will need it when you supply information to customs authorities, for example when completing customs declarations. This new EORI system replaces the Trader Unique Reference Number system in the UK. You will need an EORI number even if you only occasionally import items for your business from outside the EU. Economic Operator Registration and Identification (EORI) Scheme
charge', and is also known as 'tax shift'. Where it applies, you act as if you are both the supplier and the customer - you charge yourself the VAT and then, assuming that the service relates to VAT taxable supplies that you make, you also claim it back. So there's no net cost to you - the two taxes cancel each other out. When does the reverse charge on services apply? The reverse charge on services only applies when the supplier is in a different country from you. It applies in two situations: Where you are in a business, belong in the UK and receive - from a supplier who belongs in another country - one of the services that are covered by the general rule for place of supply of services. Where certain other services are provided in the UK by a supplier who belongs in another country including some services related to land and property. For a full list of these services, see Section 18 of Notice 741A. The time at which VAT must be accounted for under the reverse charge will change on 1 January 2010, along with other changes to the VAT rules for international transactions. It is important that you consider now whether you will be affected by these changes and whether you may need to make changes to any of your software, systems or procedures. See the page on the general rule and the place of belonging in our guide on how to work out your place of supply of services for VAT
VAT on services received from overseas suppliers

When you buy services from suppliers in other countries, you may have to account for the VAT yourself - depending on the circumstances. This is called the 'reverse
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Find information on the services the reverse charge applies to in VAT Notice 741A on the HMRC website - Opens in a new window How do you deal with the reverse charge on services? You calculate the amount of VAT - output tax - on the full value of the services supplied to you, and then fill in the relevant boxes on your VAT Return as follows: put the amount of VAT you calculated in box 1, and if you're entitled to reclaim the VAT on your purchase of these supplies, also put the same figure in box 4 (this in effect cancels out the figure in box 1) put the full value of the supply in both box 6 and box 7 Value of services from other countries The amount of VAT payable of any service from another country is the same as the amount of VAT that would be paid if the service were supplied to you by a UK supplier for the same net amount. You must account for the value of the services in sterling, so you must convert their value into sterling if the services were priced in any other currency. Find information on the services the reverse charge applies to in VAT Notice 741A on the HMRC website - Opens in a new window
them, you may be able to claim back the VAT that you pay when you import them. If the goods were originally sent out of the EU temporarily - for example for exhibition, or because they were on sale or return and they were returned - there is no UK VAT due on import. Otherwise, as long as the goods weren't repaired or processed in any way while they were out of the EU, you may be able to obtain Returned Goods Relief (RGR). Outward processing relief (OPR) RGR To qualify for RGR, the goods must have been exported from the Customs Union which comprises the EU, Turkey, San Marino and Andorra - to a country outside the Customs Union, and must then have been imported back into, and gone into free circulation in, the Customs Union. The original export must not have been a temporary export for processing or repair. The goods must have been declared for free circulation within three years of their last export from the Customs Union, although this time limit can be waived in certain circumstances. The goods must also meet extra conditions to get relief from Common Agricultural Policy (CAP) charges if, when they were exported from the EU under the CAP procedures, any of the following were true: they required an export licence they were exported under an Advance Fixing Certificate they were subject to a claim for any refund or benefited from any other
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Claiming relief if you re-import exported goods

If you have exported goods from the European Union (EU) and you re-import

financial advantage they were subject to any levy To claim RGR on re-import you must normally complete a full Single Administrative Document (SAD) (form C88). You must provide evidence of the previous export from the Customs Union, EU or UK, and the duty status of the goods at the time of export. Re-importing RGR goods by post If you re-import goods by post, the package should be marked 'Returned Goods', and the sender's declaration (form CN22 or CN23) must be attached to the package or travel with it. HM Revenue & Customs (HMRC) will send you a form which you should complete and return with proof of export for the goods to be released. If you don't return this, you'll have to pay the VAT and duty before the goods will be released. Exporting goods for return under RGR Exporting goods for return under RGR is exactly the same as exporting goods that you do not expect to be returned. However, if you use the duplicate list procedure, when you return to the UK you must: mark on the copy of the list any goods that have been left abroad complete Part B of form C&E 1246 present the goods, the list and the form to a Customs officer in the red channel Find out about the duplicate list procedure in VAT Notice 236 on the HMRC website - Opens in a new window Find form C&E 1246 on the HMRC website - Opens in a new window Aircraft must meet all these conditions: have a take-off weight of more than 1,550 kilograms not be more than three months old have not flown for more than 40 hours Vehicles must meet all these conditions: have an engine with a displacement or cylinder capacity of more than 48 cubic centimetres, or be constructed or adapted to be electrically propelled using more than 7.2 kilowatts not be more than six months old have not been driven for more than 6,000 kilometres
Find out about RGR in VAT Notice 236 on the HMRC website - Opens in a new window
New vehicles, boats and aircraft

In the European Union most goods have VAT added to the price in the country where they're purchased. However, if you plan to import into the UK a new vehicle, boat or aircraft intended for transporting passengers or goods, then UK VAT will be due if the vehicle, boat or aircraft is classed as a New Means of Transport (NMT), as defined below. Boats must meet all these conditions: be more than 7.5 metres long not be more than three months old have not travelled for more than 100 hours
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The age of the vehicle is determined by the date of first entry into service. Vehicles that are not suitable for use on public roads, and hot air balloons, are not means of transport and are not covered by the scheme. VAT becomes due on the 15th day of the month following the month in which the NMT was made available to, or taken away by, the customer - sometimes referred to as the date of removal - or the date of issue of the VAT invoice, whichever is earlier. HM Revenue & Customs (HMRC) will calculate the amount of VAT you owe and send you a demand for payment. You must pay the amount of VAT on the demand within 30 days of the date on which it was issued. Find out about NMT in VAT Notice 728 on the HMRC website - Opens in a new window
charge, but you'll need to arrange a bank guarantee. However, if HMRC authorises you to use another arrangement - Simplified Import VAT Accounting - this guarantee can be reduced. Find out about deferring import VAT payments in Customs Notice 101 on the HMRC website - Opens in a new window Reduce financial guarantees provided for import duty and VAT. Temporary imports from outside the European Union (EU) If you import goods from outside the EU on a temporary basis, you may not need to pay some or all of the import duty and/or VAT. See the page in this guide on VAT on imports of goods from non-EU countries. Goods from outside the EU imported to free zones Free zones are designated areas where you can store goods from outside the EU without first paying import duties and import VAT. This is because they are treated as if they are outside the customs territory of the EU. If you supply goods and services to a customer within a free zone, then you should treat them as UK supplies. They will be subject to normal domestic VAT rules. However, there is an Extra Statutory Concession that allows goods supplied in a free zone to be zero-rated - but only on condition that the supplier and the customer have agreed that the customer will clear the goods for removal from the free zone, and will pay the import VAT. This concession is available to all
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Payment of VAT on goods from abroad and arrangements to defer or suspend payment
Normally, you pay any VAT due on imported goods outright at importation. For postal imports that don't exceed 2,000 in value, you can leave the payment of the VAT until your next VAT Return. Deferring import VAT payments For larger payments, if you are a regular importer, you can defer paying import duty and VAT by setting up an account with HM Revenue & Customs (HMRC). You can then put off payment by an average of 30 days and your goods will normally be cleared for release more quickly. Setting up a deferment account is free of
businesses supplying imported goods in UK free zones, regardless of whether the business is established in the UK. However, you cannot use it where the customer is not registered for VAT and doesn't have to be registered. If the goods are from outside the EU, then customs duty and import VAT is due when they are released from the free zone into free circulation. If they are used and consumed within the free zone, then they are considered as released from the zone, so you must put them into free circulation. Find out about how you can zero-rate supplies to free zones in VAT Notice 334 on the HMRC website - Opens in a new window Goods from outside the EU stored under customs warehousing If you import goods from outside the EU and store them under an inventory system known as a customs warehouse, payment of import duties and/or VAT can be suspended. A wide range of goods can be stored in this way. Goods stored within a customs warehouse are treated as if they were stored outside the UK - so they're usually disregarded from a VAT point of view. Import VAT won't be due until you release the goods from the warehouse into free circulation. You'll normally pay it together with any customs duty due, and the amount of VAT will be based on the import value of the goods. When you release goods from a customs warehouse, they're subject to the normal VAT valuation rules. You must include any customs and/or Excise Duty that is due in
the value, unless Excise Duty is going to be suspended because the goods will be placed in a tax warehouse. Storage charges, and charges for the usual forms of handling carried out on goods under customs warehouse arrangements, can be zero-rated. However, services like brokerage, agent fees and transport between warehouses cannot be zero-rated. Services that are exempt from VAT outside the warehouse are also exempt on the inside. Find out about the how you can benefit from customs warehousing in VAT Notice 232 on the HMRC website - Opens in a new window External and internal transit If you use what's known as Community Transit, you can move goods within the customs territory of the EU without paying import duties and other charges, including VAT, until they reach their final destination. There are two types of transit procedure external transit (T1) and internal transit (T2 or T2F). You must use external transit for movements of: goods from outside the EU which haven't been put into either free circulation or another customs procedure allowing movement within the EU EU goods which have been placed under the common transit procedure and are travelling to or via a European Free Trade Association country (Iceland, Liechtenstein, Norway or Switzerland)
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out your place of supply of services for VAT | Outward processing relief (OPR) |
You must use internal transit for movements of EU goods when they are: moving from one point in the EU customs territory to another through one or more EFTA countries - but the procedure is not required when goods are being moved by air or sea to or from an EFTA country moving to, from or between the EU's 'special territories' - except when they are moving directly between the UK and the Channel Islands certain types of goods travelling to and from Andorra travelling to and from San Marino All Community Transit declarations must now be made electronically via the New Computerised Transit System. Find a list of the special territories of the EC in VAT Notice 275 on the HMRC website - Opens in a new window Find out about Community Transit procedures in the European Commission transit manual on the Europa website Opens in a new window Download information about Community Transit in VAT Notice 702/9 from the HMRC website (PDF, 533K) - Opens in a new window

Online demonstrator from HMRC - Opens in a new window VAT Online from HMRC (registration required) - Opens in a new window VAT Helpline and other contact details Opens in a new window VAT Return software providers from HMRC - Opens in a new window

When to register for UK VAT | When transactions take place for VAT purposes | Foreign currency transactions and VAT | Reduce financial guarantees provided for import duty and VAT | How to work
Understand what customs procedures and reliefs apply to you
Introduction
Introduction This tool is designed to support efficient and profitable international trade by helping businesses identify which customs regimes and/or procedures best suit their transactions. Customs reliefs and procedures are sets of rules and processes that improve efficiency, often reduce or simplify administration and help improve cashflow and profitability. However, each relief and procedure has rules which must be adhered to - this tool will help you map the way your business trades internationally with those rules. Go straight to the first question.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > International trade > Import and export procedures > Duty relief procedures > Understand what customs procedures and reliefs apply to you
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Introduction to VAT
Introduction
Introduction What is VAT? Who charges VAT and what VAT is charged on Rates of VAT Items not covered by VAT The difference between exempt and zero-rated Find out more about VAT VAT glossary Here's how I got to grips with VAT More Useful Links Related guides on nibusinessinfo.co.uk Related web sites you might find useful standard - 20 per cent reduced - 5 per cent zero - 0 per cent There are also some goods and services that are: exempt from VAT outside the UK VAT system altogether This guide explains the basics of how VAT works. It tells you where you can find more information and advice. VAT is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK. It's also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries. VAT is charged when a VAT-registered business sells to either another business or to a non-business customer. When a VAT-registered business buys goods or services they can generally reclaim the VAT they have paid. There are three rates of VAT, depending on the goods or services the business provides. The rates are:
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > Tax, payroll and company information > VAT > Introduction to VAT
What is VAT?
VAT is a tax that's charged on most business transactions in the UK. Businesses add VAT to the price they charge when they
Introduction to VAT
you think your turnover will soon go over this limit You can choose to register for VAT if you want, even if you don't have to. What is VAT charged on? If you're VAT-registered, you'll have to charge VAT on any goods and services that you provide in the UK that are VAT taxable. You charge VAT on the full sale price, even if you accept goods in part exchange or through barter instead of money. You can find more information about goods and services on which you have to charge VAT in the guide below. Products and services where you have to charge VAT How VAT is charged and accounted for If you're VAT-registered, the VAT you add to the sale price of your goods or services is called your 'output tax'. The VAT you pay when you buy goods and services for your business is called your 'input tax'. Filling in your VAT Return If you're VAT-registered you'll have to submit a VAT Return at regular intervals usually quarterly - and send it to HM Revenue & Customs (HMRC). The return shows: the VAT you have charged on your sales to your customers in the period - known as output tax the VAT you have paid on your purchases - known as input tax If the amount of output tax is more than the input tax, then you send the difference to
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provide goods and services to: business customers - for example, a clothing manufacturer adds VAT to the prices they charge a clothes shop non-business customers - members of the public or 'consumers' - for example, a hairdressing salon includes VAT in the prices they charge members of the public If you're a VAT-registered business, in most cases you: charge VAT on the goods and services you provide reclaim the VAT you pay when you buy goods and services for your business If you are not VAT-registered then you cannot reclaim the VAT you pay when you purchase goods and services.
Who charges VAT and what VAT is charged on

VAT-registered businesses add VAT to the sale price of most goods and services they provide. When you must register for VAT If you're a business and the goods or services you provide count as what's known as 'taxable supplies' (see 'What is VAT charged on?' below) you'll have to register for VAT if either: your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently 73,000)
Introduction to VAT
HMRC with your return. If the input tax is more than your output tax, you claim the difference back from HMRC. There are special schemes that some businesses can use to help them work out and pay their VAT. You can read about VAT Returns, payments and repayments, VAT accounting schemes and VAT online services in our guides below. How to complete your VAT Return box-by-box VAT accounting schemes: the basics How to submit your VAT Return online
depending on the product itself and the circumstances of the sale: domestic fuel and power installing energy-saving materials sanitary hygiene products children's car seats
This isn't a complete list of reduced-rated items and services. Examples of zero-rated items These are examples of goods and services that may be zero-rated, depending on the product itself and the circumstances of the sale: food - but not meals in restaurants or hot takeaways books and newspapers children's clothes and shoes public transport This isn't a full list of zero-rated items. You can read an explanation of different VAT rates and find out what rates apply to different goods and services in our related guides below. VAT rates explained: standard, reduced, zero, exempt Goods and services where you have to charge VAT
Rates of VAT
There are different VAT rates, depending on the goods or services that are being provided. At the moment there are three rates: standard rate - 20 per cent reduced rate - 5 per cent zero rate - 0 per cent The standard rate of VAT is the default rate - this is the rate that's charged on most goods and services in the UK unless they're specifically identified as being reduced or zero-rated. Examples of reduced-rated items These are some examples of goods and services that may be reduced-rated,
Items not covered by VAT

There are some items that aren't covered by VAT. These items are either:
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Introduction to VAT
exempt outside the scope of VAT Exempt items Some items are exempt from VAT because the law says they mustn't have any VAT charged on them. Items that are exempt include the following: insurance providing credit education and training, if certain conditions are met fundraising events by charities, if certain conditions are met membership subscriptions, if certain conditions are met most services provided by doctors and dentists Selling, leasing and letting of commercial land and buildings are also exempt from VAT. But you can choose - or 'opt' - to give up the right to the exemption and to charge VAT at the standard rate instead. This allows you to reclaim input tax when otherwise you wouldn't be able to. For more information, see the page in this guide on the difference between exempt and zero-rated. Find out about VAT exemptions for education in VAT Notice 701/30 on the HM Revenue & Customs (HMRC) website - Opens in a new window How VAT applies to fundraising events Find out about opting to tax land and buildings in VAT Notice 742A on the HMRC website - Opens in a new window
Outside the scope of VAT There are some things that aren't in the UK VAT system at all - they're outside the scope of VAT. They are not taxable supplies and no VAT is charged on them. Items that are outside the scope of VAT include: non-business activities like a hobby for example, you might sell some stamps from your collection fees that are fixed by law - known as 'statutory fees' - for example the congestion charge or vehicle MOT tests
The difference between exempt and zero-rated

If you sell zero-rated goods or services, they count as taxable supplies, but you don't add any VAT to your selling price because the VAT rate is 0 per cent. If you sell goods or services that are exempt, you don't charge any VAT and they're not taxable supplies. This means that you won't normally be able to reclaim any of the VAT on your expenses. Generally, you can't register for VAT or reclaim the VAT on your purchases if you sell only exempt goods or services. If you sell some exempt goods or services you may not be able to reclaim the VAT on all of your purchases. If you buy and sell only - or mainly zero-rated goods or services you can apply to HM Revenue & Customs to be exempt from registering for VAT. This could make sense if you pay little or no VAT on your purchases. You can find out how to apply for
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Introduction to VAT
exemption from registration, get details of exempt and partly exempt goods and services and check the rates of VAT and how they apply to different goods and services in our guides below. When to register for UK VAT Exempt and partially-exempt businesses for VAT purposes Rates of VAT on different goods and services VAT rates explained: standard, reduced, zero, exempt
hand. If you're not VAT-registered, you'll need your postcode - it's needed so HMRC can keep a record of your call. It's not always possible to answer your question straightaway over the telephone because the helpline adviser may need to research the answer. If this happens, they'll take your details and call you back as soon as possible. The helpline adviser will tell you how long it will take. In some cases, HMRC might need you to write in, especially if they need to look at your paperwork. The helpline adviser will tell you if this needs to happen and where you need to write to. Find contact details for the VAT Helpline on the HMRC website - Opens in a new window Business Advice Open Days
Find out more about VAT

There is a range of general guidance on VAT in this section of the website including: how and when to register for VAT VAT thresholds, fuel scale charges and exchange rates VAT rates on different goods and services online VAT Returns accounting schemes payments and refunds links to downloadable forms, guidance and notices VAT Helpline If you cannot find the answer to your question on the HM Revenue & Customs (HMRC) website, the easiest way is to ring the VAT helpline where you can get most of your VAT questions answered. Before you ring, make sure you have your VAT registration number and postcode to
The Business Advice Open Days are popular events designed especially for small and medium-sized businesses and they take place in different locations around the UK. It's not just HMRC at these events - there are other government departments as well, like the Department for Employment and Learning, the Health & Safety Executive, the Intellectual Property Office and Business Link. It's an opportunity to talk to experts and get all your questions answered in one place on the same day. You can: book a one-to-one session with a VAT adviser attend seminars about making VAT easier learn how to do tax online
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Introduction to VAT
get help with marketing, funding and business planning get tips on how to make your business grow Business Advice Open Days including barter and some free provision supply of goods: when exclusive ownership of goods passes from one person to another taxable person: any business entity that buys or sells goods or services and is required to be registered for VAT - this includes individuals, partnerships, companies, clubs, associations and charities taxable supplies: all goods and services sold or otherwise supplied by a taxable person which are liable to VAT at the standard, reduced or zero rate taxable turnover: the total value excluding VAT - of the taxable supplies you make in the UK (excludes capital items like buildings, equipment, vehicles or exempt supplies) tax period: the period of time covered by your VAT return, usually quarterly tax point: the date when VAT has to be accounted for - for goods, this is usually when you send the goods to a customer or when they take them away, for services, this is usually when the service is performed time of supply: see tax point
VAT glossary
These are some plain English definitions of common VAT terms that HM Revenue & Customs (HMRC) uses: accounting period: see tax period acquisitions: goods brought into the UK from other EU countries - (goods brought into the UK from outside of the EU are known as Imports) corporate body: an incorporated body such as a limited company, limited liability partnership, friendly, industrial or provident society distance sales: where a business in one EU country sells and ships goods directly to consumers in another EU country, eg internet or mail-order sales exports: goods sent to a non-EU country despatches: goods sent to another EU country imports: goods brought into the EU from another country input tax: the VAT you pay on your purchases output tax: the VAT you charge on your sales place of supply: the country in which a supply of goods or services must be accounted for VAT purposes self-billing: your customer issues your VAT invoice and sends a copy to you with their payment supply: selling or otherwise providing goods or services,
Here's how I got to grips with VAT

Dr Cuross Bakhtiar Harley Street Cosmetic - Opens in a new window Cuross's top tips: "Ask HMRC the moment you're unsure about anything." "Always keep a hard copy of your VAT return and file it securely."
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Introduction to VAT
"Invest in some training before you start using your VAT accounting software." Based in London, Harley Street Cosmetic is a range of innovative plant-based skincare products and natural perfumes, developed by the company's founder and owner, Dr Cuross Bakhtiar. From the start, Cuross was determined to keep a close eye on the business' finances. Here he talks about why he decided to register for VAT early, the importance of setting up an effective record-keeping system and what to consider when choosing a software package. What I did
Gather information
compulsory. One advantage of this was that we could reclaim some of the input tax (the VAT charged on purchases made by the company), which I had calculated could be a considerable amount. Another advantage of being VAT registered is that it helps project a professional image, which is important in the cosmetics industry because many people are wary of newcomers. Use our interactive tool to find out if you need to register for VAT or see our guide on when to register for UK VAT. "We sell our products direct to the consumer, so I considered the various VAT retail schemes, which provide an alternative to traditional VAT accounting rules. However, I decided against using one. Use our interactive tool to identify which VAT scheme your business is eligible to use.
Set up a record-keeping system
"While my background and core skills lie in medical research, plant chemistry and product development, I also wanted to understand and control the operational side of things, especially the finances. One area I knew I had to get to grips with was VAT. "I attended two of HMRC's VAT workshops, which were very beneficial, not least because I was able to talk to other business owners about how they approach VAT and pick up useful tips. The workshops also proved to be an unexpectedly good networking exercise! "There's plenty of guidance available online if you know where to look, such as the Business Link [or nibusinessinfo.co.uk as the service is branded in Northern Ireland] website."
Decide which VAT scheme to use
"If you want to keep on top of the VAT, good record-keeping is essential. I bought in computer software, recommended by a former colleague, to streamline the process. "It certainly made filing my first VAT return easier, as it generates a VAT summary and all the other figures required by HMRC. "I try to enter things into the system as soon as possible to ensure that nothing's overlooked and that any management information generated is as accurate and up to date as possible. Having a good system also makes it easier to tackle the more complex areas of VAT. For example, the natural oils we use have different VAT treatments according to whether they are classified as a raw material or a food
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"I decided early on that the company should voluntarily register for VAT, rather than waiting until the turnover made it
Introduction to VAT
records for your VAT | VAT Returns and accounts | VAT problems, mistakes, adjustments, visits and questions | Changing or cancelling your VAT registration | International trade, international visits and VAT | Charities and other not-for-profit organisations and VAT | What you can and cannot reclaim VAT on | When transactions take place for VAT purposes |
product by HMRC. That's a lot easier to manage when I can see all the figures at a glance." What I'd do differently
Use the same software package as the accountants
"Computerising the VAT accounts has been a huge benefit, but looking back, it would have been better to buy the same software that our accountants use. Even if you do the day-to-day bookkeeping yourself, you may have to send it to your accountant at some point, and using the same software makes it easier to transfer information."

A guide to VAT - VAT Notice 700 from HM Revenue & Customs - Opens in a new window VAT education exemptions - VAT Notice 701/30 from HM Revenue & Customs (HMRC) - Opens in a new window Opting to tax land and buildings - VAT notice 742A from HMRC - Opens in a new window Guidance on VAT for consumers - Opens in a new window Tax periods information - VAT Notice 700 from HMRC - Opens in a new window VAT FS1 'What you need to know about VAT' from HMRC - Opens in a new window
More Useful Links

Find factsheet FS1 'What you need to know about VAT' on the HM Revenue & Customs (HMRC) website - Opens in a new window When transactions take place for VAT purposes

Goods and services where you have to charge VAT | How to complete your VAT Return box by box | VAT accounting schemes: the basics | When to register for UK VAT | VAT rates explained: standard, reduced, zero, exempt | Exempt and partially-exempt businesses for VAT purposes | Rates of VAT on different goods and services | How VAT applies to fundraising events | Business Advice Open Days | Accounts and
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Introduction
Introduction Related web sites you might find useful Do you need to register for VAT? Just answer a series of simple questions with yes/no answers. Most people will be able to find out the answer in less than five minutes. If you do need to register, you'll be given links to the forms you need to fill in on the HM Revenue & Customs (HMRC) website. At any step along the way you can correct an earlier answer. If you already know you need to register, answering these questions will help you to find the correct forms for your particular business circumstances. If you already know which forms you need, you can download them from the HMRC website using the links on the right hand side of this screen. Go straight to the first question. Important: this tool does not apply to businesses based outside the UK.
You can find this guide on http://www.nibusinessinfo.co.uk/ by navigating to: Home > Starting up > VAT > When to register for VAT

VAT notification contact details from HMRC - Opens in a new window Register for VAT using form VAT 1 from HMRC - Opens in a new window Register for VAT on acquisitions using form VAT 1B from HMRC - Opens in a new window
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Register your partnership using form VAT 2 from HMRC - Opens in a new window Apply for VAT group treatment using form VAT 50 from HMRC - Opens in a new window Register an individual company for VAT group treatment using form VAT 51 from HMRC - Opens in a new window Transfer your existing VAT number using form VAT 68 from HMRC - Opens in a new window
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International Trade Guidebook

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International trade guidebook

Are you ready to import?

Assess your skills and resources for importing 7

Importing your goods from outside the European Union

Importing and exporting by post