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Posted Fri, 22 Apr 2022 10:30:09 GMT by HMerca
Hello, We export our Lighting Intelligence products mostly outside of EU and majority of them are ex-works our warehouse in UK. Since it is ex-works we don't have any control about Custom declaration and leaving UK. Even the freight forwarder/clearing agent is arranged by the buyer. In the above situation how are we obliged to maintain export documentation? We don't have any control in Custom declaration and goods moving out of UK. How do we prove that the goods have actually left UK? Thanks for your help. Regards
Posted Fri, 22 Apr 2022 15:17:49 GMT by Customs oldtimer
If you are selling ex-works you are not exporting only selling to an overseas company. Once your customer picks the goods up there is no obligation for them to even export the goods let alone provide you with evidence of export. I would urge caution in using EXW if you need proof of export or you are zero rating VAT for export. You should consider using the FCA incoterm rule, where you arrange for the customs clearance instead.
You should also have a good contract that obliges the buyer to provide you with proof of export. this HMRC guide of proof of export for VAT useful: particularly paragraphs 2.9 and 6.6 If the goods are exported you should not expect to be named as the exporter on the customs declaration although this often happens without your knowledge.
If you are named you are responsible for the accuracy of the declaration. The definition of exporter often makes it difficult for an overseas buyer to act as exporter Definition of Exporter for GB Exports: For the purposes of Export Declarations from GB (England, Scotland, Wales): The Exporter for GB is defined as:
• The person who has the power to determine and has determined that the goods are to be taken out of that customs territory. Where the exporter is not established in GB, the exporter must appoint a representative, who is established in GB, to act on their behalf as an indirect representative.
Posted Mon, 25 Apr 2022 11:56:43 GMT by HMRC Admin 17

With indirect exports it is the business’s customer who is making the arrangements for transporting the goods out for the UK. Consequently it will be the customer or his agent who will have the evidence of export.

This can make it difficult for the business to obtain the evidence but the onus is on him to ensure that he is aware of what evidence of export will be sent to him in order that he can zero rate the transaction before he makes the supply.

If he has any doubts about obtaining the evidence he can ask the customer for a deposit equivalent to the VAT which is potentially at stake.

This type of transaction provides the greater risk for assurance purposes because the UK supplier effectively loses control of the goods
once they leave his premises.

Thank you.

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