Where checks show that the goods do not qualify for preferential tariff treatment claimed, duty will be payable at the full (non-preferential) rate. Where a
warehousekeeper makes a customs declaration as an indirect representative, both depositor and warehousekeeper are jointly and severally liable for the debt.
Community legislation allows for the collection of duty covering a period of up to three years from the date of acceptance of the import declaration relating to the goods in question refer to Notice 826 Tariff preferences: Imports.
Note: Preference certificates/documents are only valid for a limited period of time and you should ensure that the procedure at paragraph 4.17is followed, to avoid losing the right to apply a preferential treatment to the goods.
10.27 How do I pay customs duty and/or
import VAT and excise duty?
You can make payments by:
Cash, guaranteed cheque, Bankers draft
Under the duty deferment arrangements, refer to Notice 101 Deferring duty, VAT and other charges
On deposit (in special circumstances, for example if evidence of value is incomplete or unsatisfactory)
The UK Tariff tells you how to show on the entry which means of payment you intend to use.
10.28 Can I deduct any import VAT paid as
input tax?
Yes, import VAT can be deducted as input tax subject to the normal VAT rules and if all the following conditions apply:
You are registered for VAT
You are the consignee on removal of the goods
To reclaim this tax on your next VAT return you must hold official evidence that the VAT shown has been paid or deferred. Evidence is normally in the form of a monthly VAT certificate on a form C79. We issue this direct to your VAT registered address on or about the twelfth day of the month and it covers transactions for the previous calendar month.
10.29 What do I have to do if I need to destroy
goods in a customs warehouse?
If you want to destroy warehoused goods (because they are damaged or outdated for example), you should write to your supervising office giving details of the goods and intended place and means of destruction. We will indicate whether or not the
intended process can be carried out under the customs warehousing procedure and whether we wish to attend. (There will be no liability to a customs debt where there has been a total destruction of the goods and there is no need for a customs
declaration to be made, but the stock records need to be adjusted if the remains after destruction do not have an economic use.) Destruction is classed as either total destruction whereby the goods are rendered totally unusable by any person or destruction of the original import goods which creates a secondary or residual product, for example the cutting up into rags of textile goods.
In general operations to change the nature of the original import goods to create a secondary/residual product cannot be carried out whilst the goods are under the customs warehousing arrangements. In most cases the operations can be done under cover of an authorisation for Processing under Customs Control (PCC) or Inward Processing dependant on whether the goods are for release to free circulation or for re-export. Further information can be found in Notice 237and Notice 221.
10.30 What are duty-free stores?
Duty-free stores are goods that will be used, consumed or sold to a passenger on an ‘entitled’ ship or aircraft leaving the UK – refer to paragraph 10.33. They include foodstuffs and goods for on board consumption, goods for retail sale, spare parts and other items of equipment whether or not for immediate fitting and fuel.
10.31 Removal of goods as stores
Stores for both vessels and aircraft may be removed using commercial
documentation. Authorisation to use the procedure will be included in your customs warehouse authorisation and it will specify the notification and documentation requirements. Goods intended as stores, but sent out from the UK, as freight to supply vessels abroad, must be declared for re-export (refer to Section 11) or Transit to another EU Member state.
10.32 Removal of goods from an Aircraft
Stores Floor
Aircraft commanders are required to use approved Aircraft Store Floors (ASF) for most of their requirements. No specific authorisation is required from us but you must ensure that the goods are for use as stores on a flight by an entitled aircraft refer to paragraph 10.33. An Aircraft Stores Floor will normally supply stores for an aircraft and the usual ordering procedure should be used.
10.33 What is an ‘entitled’ ship or aircraft
An entitled ship or aircraft is one making a voyage to a destination port or airport outside the UK or a cruise where the vessel will call into at least one non-UK port for stores which will be consumed. For goods for retail, the entitlement and sale can only take place when the ship or aircraft visits a non-EU destination.
10.34 What are the loading and removal
procedures for stores?
Warehoused goods can be removed for shipment as stores on entitled ships or aircraft using commercial document. Refer to paragraph 10.32concerning the removal of stores for an aircraft. Authorisation to use the procedure will be included in your customs warehouse authorisation and it will specify the notification and documentation requirements.
10.35 Details to be shown on the commercial
order document for stores
When removing goods from the warehouse you must ensure the commercial order includes all of the following:
A document serial number
The name and address of the warehouse The number and description of packages The quantity and description of goods
The ship’s name/aircraft flight number, place of loading and destination The following signed and dated declaration and undertaking: 'This
vessel/aircraft is entitled to receive duty-free stores. I undertake to pay to HM Revenue & Customs the amount of duty/tax due on any or all of the goods which are neither shipped intact nor re-warehoused in a customs warehouse if not shipped'
10.36 What action is required on the removal
of ships’ stores
You must as the warehousekeeper raise a despatch note with the information taken from the order and in addition:
The shippers own reference/order number
The authorisation number of the customs warehouse Warehouse stock reference numbers
Number and description of packages
The commodity codes and description of goods
The following statement 'Duty Free ships/aircraft stores to entitled vessels The date of removal from warehouse
The name and address of the agent at the port of shipment
Provision for a certificate by the authorised person that the goods have been received on board
As the warehousekeeper you must also:
Certify on the despatch note that the goods removed from the warehouse are those shown on the commercial document
Check that the shipper has included and signed the declaration of entitlement and undertaking to pay the duty on any goods not properly shipped on the request for stores
Record the removal in the stock account Notify us as specified in your authorisation
You will need 4 copies of the despatch note, headed to show their purpose and destination:
Purpose
Sent to your Supervising Office 48 hours prior to removal
Unless we wish to examine the goods you may allow removal as soon as you have completed the above actions. If a copy of the despatch note certifying receipt of the goods on board the ship or aircraft is not received within two months of removal, you must check with the shipper and report all such 'unconfirmed' shipments in writing to your supervising office. Please ensure you keep copy despatch notes and
commercial documentation in your warehouse records for our inspection if necessary.
10.37 What action is required for the removal
of stores to an aircraft?
The procedure for aircraft stores is similar to those for ship’s stores but may also involve the use of forms C208 and C209 in place of commercial documentation. Where stores are being supplied other than from an Aircraft Stores Floor you should follow the procedure for removal for ship’s stores, showing details of the aircraft where appropriate.
10.38 Re-warehousing of ships/aircraft stores
Stores that have not been used on the voyage or flight can be re-warehoused. Surplus stores without established Community status can be re-warehoused using form C88 (SAD) or C209 procedure for aircraft stores floor. Once warehoused the goods can only be removed as stores or into free circulation any other use is subject to prior permission by us.
10.39 What information is required in my
stock records for all removals?
On receipt of evidence of release from us, refer to paragraph 10.8, you must check that the details of the goods on the evidence agree with your stock records. Any discrepancies should be resolved with the depositor or the provider of the evidence. You must include the following details in the stock records:
The number and description of packages The quantity
The identifying reference of the removal evidence, for example date of acceptance and entry number on the form C88
The stock records should be completed for any removals from the customs warehousing procedure before the goods are removed.
10.40 Can I use a computerised stock control
system?
Yes. However, if you intend to use a computerised stock control system where the customs warehouse account is separate from the commercial records and the customs warehouse stock account is not updated with details of the removals at the same time (batch processing) you should notify your supervising office. They will provide you with the criteria you must satisfy in order to operate such a system.
10.41 Removal of goods before their release
is authorised
It is an offence to remove or allow goods to be removed from a customs warehouse unless we have authorised their release or you have other evidence that we have allowed their release. If you fail to comply we may issue a civil penalty and/or
withdraw your warehouse authorisation. You will be required to pay the duties on any goods not accounted for satisfactorily.
10.42 Closing the accounts
You must balance and close the stock record when all the goods have been recorded as removed. If the same goods had been declared to customs warehousing on
different declarations they should be discharged against the earliest declaration when removed from customs warehousing. If you wish to discharge removals against specific entry declarations, you should contact your supervising office.
11. Re-export procedures and discharge to
Community Transit
11.1
What this section is about
When you declare goods to the customs warehousing procedure you become
responsible for the duty and associated charges due on them on their release to free circulation. This Section explains how you can discharge your liability by entering to community transit (which discharges the customs warehouse procedure) or by re- exporting the goods from the EC.
11.2
Types of re-export declarations
Export declarations have to be submitted to the Customs computer system known as CHIEF (Customs Handling of Import and Export Freight) electronically. This can be
Full National Export System (NES) electronic declaration procedure (a three part procedure of pre-lodgment, arrival and departure) – refer to Note below. Electronic declaration using the National Export System (NES) simplified procedures (a three part procedure of pre-lodgment, arrival and departure), refer to paragraph 11.3below.
Manual declaration made on form C88 (SAD) and input to NES by us (Manual Declarations will be processed by the Customs National Clearance Hub and are likely to take longer to be released than those submitted directly into CHIEF).
Note: You will not need a National Export System (NES) authorisation to submit a full re-export declaration electronically but you will need to be granted access to the Customs CHIEF computer. Notice 275 Export Proceduresprovides information on how this may be arranged.
11.3
Export simplified procedures
Subject to authorisation for National Export System (NES) the following simplified procedures are also available
Local Clearance Procedure (LCP) - an electronic simplified procedure that allows you to export/re-export goods from approved inland premises. You either
complete a declaration containing a minimum of information followed by a supplementary declaration within 14 days or make a full declaration (in which case no supplementary declaration will be required.
Simplified Declaration Procedure (SDP) - an electronic simplified procedure for goods declared at the office of export or exit, by the completion of a declaration containing a minimum of information. A supplementary declaration will be required within 14 days.
Note: If you are authorised to use SDP or LCP you must send pre-shipment advice declaration and notifications and supplementary declarations to Customs
electronically. Further information on the use of NES simplified procedures can be found in Notice 275 Export Procedures.