The draft implementing provisions of the Modernised Customs Code (MCCIP) propose removing the option for businesses to use "First Sale" planning to reduce the amount of customs duty paid when imported goods are subject to a number of sales before import. The business community is lobbying hard against the removal of this valuable trade facilitation measure.
The EU Parliament voted this week to postpone the implementation of the Modernised Customs Code from July 2013 to 2016. Within this vote was a clear warning for the EU Commission to drop any plans for abolishing First Sale and clauses to widen to situations when royalty payments attract customs duty. Although this does not kill any proposals dead, it is a real shift in the battle.
Changes to Customs Treatment of Buying Commissions
The customs valuation rules allows importers to exclude buying commissions from the customs value provided certain conditions are met. Conversely, selling commissions may need to be added to the customs value highlighting the importance in determining the correct type of agency relationship and drafting appropriate supporting contracts.
Buying commissions are however subject to VAT, even where the agent provides his services to you from overseas. . HMRC issued an information paper (CIP (11)59) on 14 July updating its position on for imports. Up to 1 January 2010 the VAT on buying commissions was to be accounted for by making an adjustment to the import VAT value on the customs declaration and a failure to do this could have resulted in penalties, collection of underpaid VAT (which could subsequently be recovered) and interest. From 1 January 2010 this import VAT should be accounted for on your VAT return using the reverse charge mechanism.
If you are purchasing from an intermediary or through an agent then there may be ways to reduce your customs duty cost or risks of HMRC challenges to your valuation of goods. If you would like to explore this matter further then please call us.
Are the New Import Control System Charges to be included in the Customs Value of your goods?
Until now, one of the unanswered questions relating to the new Import Control System and in particular the charges introduced by freight forwarders to ensure compliance with the new system was whether these charges should be included as part of the Customs Value declared to HMRC?
Standard import value for determining the entry price of certain fruit and vegetables
The European Commission has introduced Regulations 704/2009 and 716/2009 establishing the standard import price for certain fruit and vegetables. The table below concerns 704/2009 and is taken from the Annex of the Regulation and contains details of the new provisions.
The European Commission recently published Commission Regulation (EC) No 518/2009 amending Regulation 503/2009 fixing the import duties in the cereals sector. The Regulation came into force on 16 June 2009.
"Rob has provided customs advice on many occasions, always demonstrating deep knowledge of his subject to help the business mitigate its duty liabilities."
{/tpfont}
Stuart Reid, Financial Director Komatsu UK
{tpfont}
"ITSs experience and knowledge has ensured projects were completed with a favorable result."
{/tpfont}
K R Maddison, Financial Controller Bard Limited
{tpfont}
"ITS helped us to reach a successful conclusion when HM Customs tried to reject our proposed changes by using technicalities."
{/tpfont}
D. Suddens, Finance Manager Blanc Aero Industries UK Ltd
{tpfont}
"Rob explains clearly, and gets on with people. He is very constructive and pragmatic. His loyalty to the reds is admirable, if misguided. One of my favourite Scousers!"
{/tpfont}
Nick Mallett, Partner DHM Stallard
{tpfont}
"ITS have highlighted significant cost saving opportunities."
{/tpfont}
CW Winter, Financial Controller Special Metals Wiggin Ltd.
{tpfont}
"I have worked with Rob on complicated HMRC issues. As well as direct assistance, Rob has provided excellent training for operational staff. I recommend ITS."
{/tpfont}
G. Mitchell, Senior Operations Manager EPSON
{tpfont}
"ITSs broad knowledge of Customs has proved invaluable"
{/tpfont}
D. Widdowson, Director of Financial Accounting Croda Chemicals Europe Ltd
