VAT and Duty Relief

When goods are bought into the EC from the rest of the world a tax called ‘duty’ is normally charged on the value of the goods (normally the purchase price). The duty applicable is calculated as a percentage of the value of the goods, but the percentage varies depending on the exact type of goods being imported.

Duty rates

You can determine the duty rate applicable to a particular import via the trade tariff sections page on the GOV.UK website.

If you need help you can get advice by emailing classification.enquiries@hmrc.gsi.gov.uk

It is recommended that formal advice on potential duty rates be obtained in advance for large value items on price sensitive projects. This can be done by seeking a Binding Tariff Information (BTI) ruling to give certainty about the correct classification and how much duty you’ll need to pay when importing your goods into the EU.

BTI rulings are:

• legally binding throughout the EU for 3 years
• free, but you may have to pay costs (for example, for laboratory analysis or expert advice)

You apply for a ruling using the eBTI online service. More information can be found on the trade tariff page on the GOV.UK website.

Reliefs

The availability of reliefs means that certain goods can be imported free of duty and/or VAT.  It is each Department’s responsibility to deal directly with HM Revenue and Customs and their freight forwarders when securing duty or duty and VAT relief who will be able to advise fully on the procedures and commodity codes to be used on the import documentation.

CPC or customs procedures code

The CPC code is the way by which you advise customs that the shipment is claiming a particular duty or VAT relief.  It is very important therefore that the correct CPC code is selected.  It is very hard to change once the goods have been imported so particular care should be taken when communicating with the shipping agent.

Authority to use a relief

A number of these reliefs are available for a limited number of shipments in a calendar year (usually 3 times across the whole University) before a formal application to be able to use it is required. VAT Notice 3001 deals with the application process.

 As the application is specific to the type of goods being imported and the controls existing over their import it is the departments’ responsibility to apply for it where relevant.

Below are links to various reliefs that may be available which show the details of what rules apply in respect of eligibility and how to import the goods concerned.

• Temporary Admission
• Inward Processing Relief (IPR)
• Outward Processing Relief (OPR)
• Returned Goods Relief

Community System of duty relief for goods that promote culture and science:

Including

• Museums and galleries relief
• Importing scientific instruments free of duty and VAT (linked to medical and veterinary research)
• Misc. Documents and other related articles
• Importing Donated Medical Equipment
• Importing Animals for Scientific Research
• Importing Biological & Chemical Substances for Research
• Importing Goods for Test

Relevant information can be found on the GOV.UK pages for import, export and customs for businesses.