Making savings with Customs Facilitation Schemes
Imports for Repair
A very successful client sold very expensive equipment to the US, Japan and the Far East. Since the equipment was so specialised if there were any maintenance or repair issues the customer would return the equipment to the UK. There is a trade facilitation scheme which allows import duty and import VAT relief where goods are imported for process or repair, and then re-export, but there are stipulations over at what point it can be used, so forward planning is essential.
Our client used this scheme, but was unaware that it needed to be able to trace import to re-export. HMRC were due to visit and on reviewing the system it was evident an assessment would result. We successfully implemented a system which satisfied HMRC and avoided the assessment – we estimate this saved our client around £50,000.
We have assisted a number of overseas businesses, including one which with a large scale contract with a UK organisation to import and supply specialised equipment. We have assisted with all areas of the import process, including applying for relevant authorisations. One authorisation allowed the client to avoid import duty, meaning that the company can sell more products to the customer given the contract is a fixed price contract.
If you are an accountant we advise
that if you have any clients that specialise in import from non-EU countries,it is worth considering whether any of the available schemes may be of benefit to them, especially since Customs is an area often overlooked by businesses and accountants alike.
Latest Case Studies
Watch Our Videos
Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.