Import Duty for a returned parcel

We are a chemical company based in the UK and shipped a parcel to Bulgaria containing high value precious metal. UPS lost the parcel and confirmed it as lost. 3 months later then suddenly found the parcel in Bulgaria and returned it to us the manufacturer. We recieved a bill for return shipping but also £400 of import charges and I have been chasing them for help to deal with/remove the charge for 6 months as the this is our own product being returned and the customer did not pay for the order as it was never delivered. How do we deal with this import charge if not sale took place? We have no paperwork other than a charge on our UPS account and the original commercial invoice we sent with the parcel last June. The product is also exempt from import duty in Bulgaria due to preferntial origin as manufactured in the UK

Firstly I am assuming the charges relate to UK Import charges. If so UPS should have declared the goods as returned goods as they had all the required information to do so particularly as they had exported them for in the first place. It should therefore be possible to amend the customs declaration and reclaim any import duties. If UPS won’t help and you can get entry details from UPS then you can claim yourself. If some of the charges were import VAT as is likely you should have a C79 to enable you to reclaim that through your VAT return. On a separate point goods can incur duty and tax charges on any goods crossing the border whether there is a sale or not. The preferential trade agreement does not allow duty free returns instead returned good relief must be used to exempt import duty.

Thank you. I have asked UPS what the charge is exactly as the invoice doesn't even show on my account anymore it's taken them so long to answer. Is a C79 something I would find online to fill in and wat would I need to ask UPS to provide to complete this? The package was lost in June 2022 and found 3 months later and eventually returned to us but UPS have taken 8 months to reply to any emails relating to this (10+) so how long have we got to reclaim it if we have to pay it to them? Thanks

Hi Rebecca Boots,

I would advise contacting the Customs and International trade helpline on 0300 322 9434.

Thank you.

A C79 is not a reclaim form but a certificate of VAT payment made by a VAT registered business. In 2022 it should have been sent to you by HMRC. They are now available to download from your CDS account. You the n reclaim the amounts on your VAT return. If you haven’t paid UPS yet I would keep pestering them. If you have paid then to make a reclaim of customs duty you need to apply online using a C285. You have 3 years from the date of import to do this. As I am not an HMRC employee I can’t post a link but if you search for the c285 on the .gov website it should find it.

Hi,
You can claim for repayment if you’ve overpaid import duty and VAT.
You may be able to use our new service or apply on form C285.
First, you’ll need to check if the declaration was made on either:
CHIEF — you may be able to apply using our new service
Customs Declaration Service — apply on form C285 for CDS
If you’re unsure you can ask your agent or representative to confirm which service the declaration was made on.
In some cases you may also be able to claim for repayment if you’ve overpaid excise duty.
If you are a VAT registered business, you must not use form C285 to claim for repayment of overpaid VAT, any adjustment must be made through your VAT return. Adjustments to a VAT return are subject to normal VAT rules.
If you are not VAT registered you must continue to use form C285 to claim for a repayment.
Thank you.