Please note -I do not work for HMRC but am trying to offer helpful advice from my experience.
All goods on arrival into the UK are subject to Import VAT and customs duty when applicable. The couriers are required to submit a customs declaration and they will usually ask their customers for the taxes to be paid prior to delivery.
You should provide a copy of your purchase invoice to the courier so they can declare the true value of the goods to customs .
I would strongly advise that you do not declare commercial goods as personal imports or be tempted to undervalue the goods when they are imported as this may lead to seizure of the goods.
Toys and games will also need to meet safety standards and be suitably tested and marked if you plan to sell them.
You will need to specify more clearly what you mean by personal air shipping. For instance do you mean that someone is physically bring the goods into the country or are you using post or one of the courier companies like fedex, UPS , DHL etc?
hi Aline Rodrigues.
DDU means delivered duty unpaid is an old incoterm rule and didn't appear in either the 2010 or 2020 revision . There is therefore a risk in using an old rule.
The incoterms do not determine when ownership of the goods changes only who is taking the risk and responsibility for the goods at each stage of transport and who is paying for those costs. The ownership point would need to be covered in your contract.
Under DDU the buyer would be responsible for customs clearance, duties & taxes.
I would double check that you have agreed the correct Incoterm rule for your intended transaction
A C88 is the customs entry and the C79 is a separate document generated for VAT registered business to evidence import VAT paid.
Both documents still exist.
What happened post Brexit was, as an alternative to paying and reclaiming Import VAT, postponed vat accounting was introduced and available to all UK VAT registered business without prior approval needed. Many freight brokers applied this automatically .
If you friend looks at the C88 document their name and EORI/ VAT no should be shown in box 8 . They will then need to look at the method of payment (MOP) in box47 . If method of payment is G then this means postponed VAT accounting has been used. If it is A, B, C or E I would expect that import VAT would be paid and a C79 should be sent monthly to the VAT registered address.
A C79 is usually needed to support any VAT claim.
I am not HMRC , however you need to look at each step as a separate transaction for VAT purposes:
1. Based on your description it sounds like you import goods to the UK in bulk which are then stored in an amazon warehouse. When this import occurs you will create an import VATable event. This is accounted for as postponed VAT accounting (PVA) . HMRC have already provided the link above which explains how it should be accounted for on your return.
2. You then make a zero rated 'deemed ' supply to Amazon.
you should look at https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces.
3. There is another VAtable event when your goods are then sold by amazon which amazon must charge and account for VAT.
You would be best to look at notice 252 that deals with the valuation of imported goods so you get an understanding of how the values are built up.
In the simplest terms Customs duty is based on the cost of the goods plus freight & insurance (CIF)
Import VAT is based on the CIF plus inland freight plus the import duty.
The details of how to enter this to the declaration depending on the Incoterm Rules used is in volume 3 of the tariff https://www.gov.uk/government/publications/cds-uk-trade-tariff-volume-3-import-declaration-completion-guide/group-4-valuation-information-and-taxes. You will need to look at the relevant parts for CHIEF or CDS depending on which system is being used.
Provided you are VAT registered in GB , are the named importer and your GB VAT/ EORI number is shown on the import entry you are usually entitled to use PVA.
There are a few exceptions such as you have bad compliance history and HMRC have advised you cannot use it or the entry is to some of the special procedures that don't allow for the use of PVA. The incoterm used is not a reason to be prevented from applying PVA .
Under exworks you as the buyer are responsible for both the export entry in the country of dispatch and the import entry in the country of arrival.
The process is not automatic so there are two ways this can be done.
1. You can reclaim the duty you have already paid under what is known as rejected imports. You will then pay import duties etc on the replacement at its full value.
2. you can use Outward processing but you would usually need to export out the faulty item first - When the replacement is returned you do not pay any additional duty as the replacement is free ( It will still be valued at its full value but the import relief claimed) HMRC guidance is here https://www.gov.uk/guidance/using-outward-processing-to-process-or-repair-your-goods.
Either way the seller will need to include the full value of the product even though it is a free of charge replacement. If you use outward processing the import agent who clears the item will need to be told it is under OPR - either the seller or you need to tell them this
No You don't need any software if you are using a representative.
When you register for CDS you are only signing up to get access to your PVA statements or C79 equivalent. You will also see your financial customs dashboard, so you can view and manage your duty deferment or other payment methods, your duty deferment statement, your direct debit instructions and your customs agent authorisations.
software is only required if you want to make your own customs declarations.
Hi new to customs,
In my view using importers knowledge can be quite a high risk strategy, particularly if you are not related to the party you are importing from . If you choose Importers knowledge this declared on the import entry so you would be expected at that time to have the evidence based on your own knowledge . You cannot think of it as a stop gap until you get another form of proof of origin from your supplier . It is therefore much more than having the confidence the supplier will be able to provide the necessary documents proving preferential origin, you must have the evidence at the time of import.
The risk remains solely on you , the importer, for the accuracy of the evidence, potentially leaving you open to duties and penalties. No statement on origin has to be provided by the exporter or producer.
To confidently use importers knowledge you would need to have an understanding of whether your supplier used any non originating material and a detailed understanding of the manufacturing process to ensure any processing goes beyond 'minimal processing'. You will need to understand what the product specific origin rule for the product is and whether the rule had been met. Depending on the rules you may need to know the value of materials uses, weights or whether specific processes had been undertaken. Commercial confidentiality is often a barrier to obtaining this information hence my comment about importers knowledge being a difficult choice where the exporter and importer are not related.
HMRC publish a list of the sort of evidence they would expect to see: https://www.gov.uk/guidance/get-proof-of-origin-for-your-goods.