Return of goods sold to Italy

We are a VAT reg UK manufacturer and recently sent a small computer, value around £2000 to Italy via Fedex, using commodity code, commercial invoice, EORI number etc. The customer paid Italian customs charges. The product is faulty and the customer wishes to return it. Clearly he wishes return of his Italian VAT and we do not want to pay UK customs charges. I phoned HMRC and they advised that the customer should arrange the return and write RETURNED GOODS on the label. I assume that we would be better to arrange collection via Fedex but am unsure what documentation should be provided. Could someone suggest best procedure?

Hi blueshaze Your customer will need to contact the Italian customs for local procedures with regard to Italian taxes. There will likely be the option of either a duty reclaim of faulty rejected goods or if you are sending a replacement they can use outward processing exchange. Goods being returned unaltered to the UK can use returned goods relief. You would need to advise your chosen courier of the special procedures when booking their services as they will tend to treat the shipment as a standard shipment. It is often not sufficient to write on the package alone as these instructions are often not picked up. You will usually be expected to provide previous proof of export from the Uk. Although there isn’t a sale a customs invoice will still be needed.

Hi,

The guidance on returned goods relief states:

"Goods imported by post from outside Great Britain

Ask the sender to write ‘Returned goods — relief claimed’ clearly on the package and its accompanying import declaration. The declaration must include a complete and accurate description of the goods, their quantity and value. If you’re registered for VAT, make sure your VAT number is quoted on the declaration (CN 22 or CN23)."

You can speak to the courier who will submit import declarations and explain what documents are required.

Getting someone else to complete your import declaration

Thank you.
 

HMRC response - Ask the sender to write ‘Returned goods — relief claimed’ clearly on the package and its accompanying import declaration. The declaration must include a complete and accurate description of the goods, their quantity and value. If you’re registered for VAT, make sure your VAT number is quoted on the declaration (CN 22 or CN23)."You can speak to the courier who will submit import declarations and explain what documents are required. As far as I am aware CN22/23 only covers 'Post' as in goods sent through the post office of the export country it doesn't cover sent by courier