The tax Tribunal of Forth Wines v HMRC ruled that HMRC approach to an application for Simplified Import VAT Arrangements (SIVA) was wrong.
Most businesses that import on a regular basis use a duty deferment account to pay any customs duties and import VAT. These arrangements:
• Provide cash-flow savings by enabling you to pay customs duties and import VAT on the 10th day of the month following import • Make it easier to clear goods • Provide a useful record against which to reconcile your imports
Compensatory interest is charged on Inward Processing Relief (IPR) Suspension goods to prevent businesses who divert goods to the EU market gaining a cash-flow advantage. In our experience, businesses are not seeking a cash-flow advantage but end up releasing some goods to the EU market because it is difficult to predict with accuracy the split of EU and non-EU sales.
HMRC has issued an information paper (CIP (11)71) clarifying the conditions for temporary removal from warehouse and the introduction of a simplified notification procedure for frequent removals.
Application and Renewal of End Use Applications (and Other Duty Relief)
HMRC have issued an information paper (CIP(11)73) providing guidance on application and renewal of end use authorisations. This guidance is issues against a background of incomplete submissions that are causing delays in the renewal process. HMRC has tightened up its processing of all customs duty relief applications in the last two years with major changed to the information requirements and closer scrutiny of the qualifying conditions. This may be due to criticism flowing from recent EU Commission and National Audit Office reviews.
Returning your customs documentation on time: Tax Tribunal adopts a zero-tolerance approach
In the recent Tribunal case of Euro Trading Ltd (TC00934), the appellant failed to have a customs debt rescinded because HMRC had not received paperwork the appellant had sent. The Tribunal ruled that an appellant could not rely upon the defence that the paperwork had been "lost" and instead should have carried out checks to ensure that it had arrived.
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