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Posted Thu, 09 Mar 2023 09:41:37 GMT by Coralie M
Hi, My company is planning to buy some goods in one EU country (invoicing our company for goods). We will then take those goods directly to another EU country, where a different company will transform them (invoicing us for services). We need to then import the transformed goods into the UK. How does that work in terms of declaration? What value are we declaring and can we do one declaration with 2 separate invoices from our EU suppliers? Thank you for your guidance
Posted Thu, 09 Mar 2023 15:38:37 GMT by HMRC Admin 10
I would advise contacting the Customs and International trade helpline on 0300 322 9434.
Posted Thu, 09 Mar 2023 18:29:24 GMT by Customs oldtimer
Hi Coralie M There are means of determining a customs value.HMRC publishes guidance here: In the scenario you have described you will need to look at each method in turn to see how you can reach a customs value for your goods. As you are moving your own goods you will most likely need to look at the methods 2 to 6.
Posted Thu, 09 Mar 2023 20:46:06 GMT by Coralie M
Hi, thank you for the link. However I am struggling to see what applies in our case. - The goods are custom made - I will not be able to find any similar one - The goods will be used to make a larger item in the UK (complex manufature and design costs added on), which is also bespoke and cannot be compared to anything else. 1. Can we base the value on the price of the material purchased in the EU + the price of the transformation invoice in the EU? 2. How do I declare the value when I cannot provide a combined invoice (paperwork)? Thanks
Posted Fri, 10 Mar 2023 14:52:21 GMT by HMRC Admin 10
I would advise contacting the Customs and International trade helpline on 0300 322 9434.
Posted Fri, 10 Mar 2023 20:29:28 GMT by Customs oldtimer
Hi The methods described are the only methods used for customs valuation purposes. If methods 1-5 don’t fit your circumstances the fallback method 6 covers everything else. Method 5 is for building up a value from manufacturing costs which may be suitable. When there isn’t a sale, It is common practice when moving goods that you already own to create a pro forma invoice showing the customs value. You then keep the documentation you used to come to that valuation should the declaration be audited post importation. HMRC may be able to give some advice but ultimately the choice is yours to make.
Posted Thu, 16 Mar 2023 05:04:17 GMT by Coralie M
Thank you, That's very useful information.
Posted Wed, 22 Mar 2023 09:02:40 GMT by Coralie M
Hi, I need some precisions about the proforma invoice mentioned above. The supplier in the EU that has transformed the goods will be shipping them to us in the UK. So my understanding is that we import them on a proforma invoice and pay UK VAT on the basis of the proforma invoice. Is this proforma invoice in the name of our company, shipping to our company? Or should I ask the EU supplier to issue the proforma invoice shipping to us in the UK. Note: All the the materials are sourced in the EU before transformation. Many thanks
Posted Fri, 24 Mar 2023 11:35:42 GMT by HMRC Admin 2

If the goods are exported to your company in the UK, then there would be import VAT to pay the shipper based on the value of the goods, which you would then have an entitlement to reclaim subject to the conditions in VAT Notice 700, section 10.

If the EU company are raising a proforma invoice then this would be to you as the business customer.

Thank you.
Posted Sat, 25 Mar 2023 14:37:20 GMT by Customs oldtimer
Hi Coralie M Ok my previous answer was based on you shipping the goods you had purchased in the EU. I also understood the goods are your goods at the point of shipment. In that case you issue the pro forma yourself so you are both the consignor and consignee . If the business that has carried out the process using materials you have provided to them they can include that amount on the invoice for customs purposes. If you do not want to let them know the value of the supplied product then they would just invoice for processing costs. You would then advise your import agent of the total value of the goods including provided materials, so the full value is declared. If you are VAT registered I would expect you to be accounting for import VAT using postponed import VAT accounting. Otherwise Import VAT would be paid to HMRC on your behalf by your customs clearance agent. They would then charge this on to you. Depending on the value of the item import duty may be due . To benefit from duty free import from the EU you supplier must include the required statement on origin.
Posted Mon, 27 Mar 2023 21:17:29 GMT by Coralie M
Thank you, perfect!

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