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Posted Mon, 10 Jul 2023 12:20:45 GMT by Monica Lungulescu
Which is the benefit in having an OPR License? Thank you.
Posted Tue, 11 Jul 2023 07:28:33 GMT by Customs oldtimer
An outward processing authorisation allows goods which have been sent out of the UK for processing or repair to be returned to the UK with full or partial relief from import duty. Goods being repaired free such as under guarantee can be reimported free of duty
Posted Wed, 12 Jul 2023 09:25:25 GMT by Monica Lungulescu
Thank you very much for your answer highly appreciated. How about VAT? I want to mention that we are importer of record for all imports and we have an OPR license. We have 8 commodity codes non-dutiable and 1 commodity code dutiable. We import repaired/ exchange goods under warranty and non-warranty. Goods repaired under warranty which are always owned by customer, import invoice value is zero but we have the value for customs purposes only on. Can you please advise how the VAT will be calculated? Also if this can be claim back and how? Thank you.
Posted Fri, 14 Jul 2023 14:25:53 GMT by HMRC Admin 20
Hi Monica,

I would advise reading over this guidance Apply to pay less duty on goods you export to process or repair
Posted Fri, 14 Jul 2023 16:46:58 GMT by Customs oldtimer
If you have an OPR authorisation then you should find details there on procedures. The relief can also give VAT relief. This is all in HMRC guidance You’ll pay duty at re-import on charges made for repair or replacement, plus any inward shipping and insurance costs you pay for the return of the goods. VAT is charged on the repair costs, plus outward and inward freight charges and duty, but excluding insurance charges. You do not need to pay duty on goods that have been repaired or replaced free of charge, by the manufacturer or seller, under a guarantee. You will need to pay duty on the value of any warranty or service contract that was not included in the original import value. This is because the cost is considered part of the overall value of the repaired or replacement goods. For replacements, you will be charged VAT on the full VAT replacement value. If you don’t own the goods then it’s unlikely you can reclaim any import VAT paid. You need to follow the requirements for import VAT recovery.
Posted Tue, 18 Jul 2023 08:54:30 GMT by HMRC Admin 19

You will need to contact our International Trade team:

Imports and exports: general enquiries

Thank you.

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