Exporting goods back to Italy for repair / service from the UK.

We received some goods from our supplier Brembo in Italy & the goods now have to be returned back for a service. I created the required commercial invoice on DHL express website to send the goods back & put a value of £500 against the goods to be returned as they are only being returned for a service & will be coming back to the UK once completed. I used incoterm DDP as we are going to be covering the import duty on this shipment. The goods are currently sitting in customs in Italy & I am being told from the supplier that the reason for this is that the value of the goods does not match the value on the value in which they sold us the goods. We are not selling the goods back to them. Italy also do not allow temporary import of goods & haven't done so for some time now for whatever reason. I did not think the value of the goods had to be the same for exporting back for repair as when they were purchased, as long as the actual goods themselves matched with part number & and / or serial number on the original paperwork or am I wrong?. Thanks.

Hi The value of goods for customs should be in accordance with the valuation rules . This applies whether the goods are sold or not. The rules are very similar in the EU and UK so have a look here . https://www.gov.uk/government/collections/working-out-the-customs-value-of-your-imported-goods As the goods are used or faulty they are unlikely to be valued the same as new goods in full working order. You can’t however pick a random value . Italy should apply the EU rules for special customs procedures. As the goods were sent back to the original exporter , Returned goods relief may apply , the alternative is inward processing for repair. Prior approval may however be needed but this should be something the importer in Italy should be able to investigate. Temporary admission is unlikely to be applicable as this is for goods that will not be be altered.

Hi there. Thanks for replying back to me on my query. I have went back to my colleague in Italy with the response & will see what they come back with. Thanks.

Hi,

Working out the customs value of your goods is covered in the guidance below, there are six methods available from which traders need to decide which one applies. 

Working out the customs value of your imported goods

Also, if goods are exported outside UK for repair, you can look in to outward processing relief for future:

Using outward processing to process or repair your goods

Thank you.
 

Is this only applicable for businesses? As an individual I purchased/imported an item from CZ/EU paid full VAT & charges for it of course It now needs to go back for servicing/possible repair work. I'm happy to pay the final bill VAT/duty, etc for the service/repair work. But my concern is the courier company could charge me the declared value as opposed to the final bill of the service work done? Having read gov.uk the instructions seem to be catered for businesses not lot information for individuals or purchased for personal use ?

As an individual you still need to follow the process of outward processing. As an individual sending goods for repair you use the authorisation by declaration process. This means that you need to tell the carrier you are using to export that you want to use outward processing for repair . If you are a private individual you do not need an EORI number. When the goods come back the sender must also say return after repair. You need to have proof you correctly exported under the procedure to be relived of import duty and VAT or just pay on the cost of the repair .. Remember this is a UK procedure and has no affect on whether the EU want to charge for goods entering their territory. The repairers may need to use a similar scheme called inward processing in their own country.

Hi Bronze Hawk,
You need to speak to the courier/parcel company who will be handling the shipments and declarations.
They need to ensure that they submit the declarations correctly in order to apply the relief.
Thank you.

I sent an Italian made vintage pen to a private individual in Italy for repair. When he received it he had to pay 70 euro customs fees. Is this correct?

Hi Omas Pen Greaney If these charges were made for entry into Italy then this is a matter that would need to be raised with the Italian customs authorities who would have made the charges. Italy does have temporary imports for processing and repair duty relief however they will need to be requested or applied for. That is up to the importer to do so. If these are not applied for then normal duty and vat will apply at import. You may also get charged again on reimport into the UK if you have not used the outward processing procedure. https://www.gov.uk/guidance/apply-to-pay-less-duty-on-goods-you-export-to-process-or-repair

Thank you for your informative reply. I have looked at the process and enquire if it is applicable to me? I am a collector of vintage fountain pens. A friend in Italy agreed to repair an Italian made pen for me and I sent it to him. When he has repaired it he will send it back to me. Should I have incurred the Italian customs duty and will I be subject to further GB duty when it is returned? If so the pen will not be worth the cost of duties incurred.

The customs requirements apply to everyone, it doesn’t matter whether you are an individual or a business . Nor does it matter whether the goods were bought or sold or intended for resale. As mentioned if the taxes were charged in Italy it’s only the Italian customs authorities or possibly the carrier who can say why it’s charged . In the absence of of any request for a special concession the tax ( VAT) and possibly duties will be charged. When booking the return you should make sure your friend clearly mentions that the item is being returned after repair. Be prepared to provide proof that you had previously exported the item.

Hi Omas Pen Greaney,
As the goods are being imported into Italy, the importer needs to contact Italian customs to check whether inward processing relief is available, so they can reclaim the payment.
Thank you.

Hi Omas Pen Greaney,
When you export goods outside the UK for processing or repair and then re-import them, you can use outward processing to reduce your duty payments.
Please check below link for more guidance.
Apply to pay less duty on goods you export to process or repair
Thank you.