Import Tax: Repair work?

[wateroftyne]

Hi folks

I have two high-value items to send back to America to have mods done.

One is having the work done under warranty, the other item is a having a modification that I'm paying for.

So, theoretically, all I need to pay import tax on is the value of the work done on the latter item.

C&E told me I need to get form C&E132 from the post office, fill it out etc. etc. and bingo! Nothing to pay when I re-import them. (They say there is a chance I'll have to pay duty when they're returned, but I can claim it back.)

So... how easy is this in practice? Anyone done it?

Ta in advance...

[Musky]

[quote name='wateroftyne' post='108806' date='Dec 24 2007, 09:31 AM']Hi folks

I have two high-value items to send back to America to have mods done.

One is having the work done under warranty, the other item is a having a modification that I'm paying for.

So, theoretically, all I need to pay import tax on is the value of the work done on the latter item.

C&E told me I need to get form C&E132 from the post office, fill it out etc. etc. and bingo! Nothing to pay when I re-import them. (They say there is a chance I'll have to pay duty when they're returned, but I can claim it back.)

So... how easy is this in practice? Anyone done it?

Ta in advance...[/quote]

I've no idea how this works, but I received a bass from the States on behalf of a friend a few years ago. When it arrived the documents were marked 'repair'. No taxes at all were applied.

[WalMan]

VAT & duties are not my area but looking at VAT notices on the HMRC Practitioner Zone you need to get authourisation on the way out not to get charged on the way back in. Look from 3 onwards [url="http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_CL_000225&propertyType=document#P20_925"]HERE[/url]

[skywalker]

Hi WOT

This is part of my job, I will check in the morning the correct procedure and let you know the full details. It is called outward processing, and you will need to give the carrier (DHL, UPS or whoever) full details of the process being undertaken. You are correct in saying you only pay duty and tax on the repair value.

I will confirm the forms to be completed (they should be downloadable form the HMRC website).


Steve

[WalMan]

[quote name='skywalker' post='109642' date='Dec 26 2007, 09:02 PM']Hi WOT

This is part of my job, I will check in the morning the correct procedure and let you know the full details. It is called outward processing, and you will need to give the carrier (DHL, UPS or whoever) full details of the process being undertaken. You are correct in saying you only pay duty and tax on the repair value.

I will confirm the forms to be completed (they should be downloadable form the HMRC website).


Steve[/quote]
The forms (many, various, lengthy and by & large impenetrable) are [url="http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_Forms"]HERE[/url] but Steve can clearly help you far better than I - that's why I point such queries at the VAT/Duties guy in the office rather than rely on my studies in the dim distant past

[wateroftyne]

Hi folks!

Ta for that. I've spoken to C&E already - I was just interested in wether anyone here had done it, and how straightforward (or not!) it was.

The C&E guy did sound a little unsure so... if you could check, Steve, that would be a great help.

Cheers!

[skywalker]

[quote name='wateroftyne' post='109678' date='Dec 26 2007, 10:03 PM']Hi folks!

Ta for that. I've spoken to C&E already - I was just interested in wether anyone here had done it, and how straightforward (or not!) it was.

The C&E guy did sound a little unsure so... if you could check, Steve, that would be a great help.

Cheers![/quote]

Hi WOT

This I think is easier than it looks, the problem being that the Customs Notices and forms were devised by consultants and therefore in the main difficult to understand and fairly useless. Also most Customs Officers these days are kids with a load of A Levels who have no clue what they are supposed to be doing (apologies if there are any Officers on the Forum - but this is a personal observation arrived at from years of working with Customs). Hence why the man on the phone was vague.

To give you the correct info, I need to know if these are going specifically for repair (being damaged or faulty) or just being modified in some way. It also helps that these are personal possessions rather than items for use in business. If you can let me know, I can give you the correct places to look to confirm the information and also the procedure codes which need to be used at export and re-import.

Cheers

Steve

[wateroftyne]

Hi Steve

Excellent... thanks!

The items are personal.

One item is going back to the manufacturer for a repair & service, both under warranty. The other is going for a modification, costing approximately $200.

Let me know if you need owt else!

Cheers again..

WoT

[skywalker]

Hi Wot


PM coming over


Steve

[Gazm]

Hi Steve,

Can you share this info with the rest of us?
IMO it would make a useful pinned post.

Pete.

[skywalker]

[quote name='Gazm' post='109915' date='Dec 27 2007, 04:14 PM']Hi Steve,

Can you share this info with the rest of us?
IMO it would make a useful pinned post.

Pete.[/quote]

No Prob, I will copy off the PM in the morning and put it here.


Steve

[skywalker]

This is the message I sent to WOT, if anyone needs more information on this let me know.


Hi Mate

A couple of things you need to do:-

When you send the goods out you need to send some covering documents which state that these are being exported for repair and return. You will also need to keep a copy of the courier waybill as evidence of export. If you need me to mug up some export docs let me know.

When the goods are returned, the repairer has to show which item was repaired "at cost" and which one was under warranty, and show a value for the amount of the repairs. This value will be used as the value for duty and vat. If the repairer is paying for the return leg, he must state that the cost of repairs also includes the shipping costs, otherwise you will pay duty and vat on those costs also.

You need to instruct the courier company to import the goods under CPC 61 21 05. This should make sense to them, they should be doing this all the time.

I have a couple of extracts from the Customs Website to send to you, but I can't attach them to a PM, so if you send me your e-mail address I will scan them over.

When you get them all packed up send me the weights and sizes, I will let you know what it should cost, for the outward leg at least.

Best of Luck

Steve

[Gazm]

Ta mate.