UK: Pay no import duties or VAT on importing goods for testing

Relief can be claimed by any person importing goods for:

• testing
• analysis
• examination

What you can claim relief on

You can get relief from Customs Duty, VAT and Excise Duty on goods imported for testing to find out their composition, quality or other characteristics for information, or for industrial or commercial research.

Excise Duty relief (but not import duty or VAT relief) is available on goods imported to test machines for making or packing tobacco products.

You cannot get excise duty relief for:

• goods consumed by a person in the course of testing
• petrol or petrol substitutes
• heavy oil for use as fuel for a road vehicle

Goods you cannot claim relief on

You cannot get this relief if the testing is, or is part of, a:

• sales promotion
• publicity exercise

You may be able to get a different relief if you import commercial samples of negligible value.

Before you claim

You should check if your goods are strictly controlled and if you will need an import licence.

When you get the commodity code for your goods using the tariff it will tell you if you need a licence.

Prior approval from HMRC is not required unless you’re claiming relief on excise goods.

How to get approval for excise goods

You must write to the National Imports Reliefs Unit at least 48 before you claim the relief and give them:

• a full description and quantity of the goods
• the address where the goods will be tested
• the dates of the test
• the expected duration of the tests

If satisfied, the National Imports Reliefs Unit will give you an approval note to present with the import declaration. This will include confirmation of the quantity of goods that can be imported to the relief and the date by which the testing should be completed.

When to claim relief

You should claim relief at the time of import. But if you do not do this, we may accept a late claim and repay the appropriate charges subject to conditions.

How to claim

You’ll need to have the necessary supporting documentation or evidence to show you’re entitled to this relief.

Goods imported as freight or in baggage

If your goods are imported as freight or in baggage you must complete a declaration.

In box 37 of the declaration you should enter one of the following codes:

• 40 00 C33 for goods imported from outside the UK on which you claim relief from import duty, Excise Duty and VAT
• 49 00 C33 for goods imported from one of the EU special territories on which you claim relief from VAT and Excise Duty if appropriate

You must also show the month and year when you expect the tests to be completed in box 44.

Goods imported by post

Ask the sender to write ‘Goods for test – relief claimed’ clearly on the package and its accompanying customs declaration (CN22 or CN23).

Find out more information about importing goods by post.

Getting someone else to complete your customs declaration

You can use someone else to complete entries on your behalf but you must make sure you give clear written instructions for the goods that you’re claiming relief on.

After you’ve claimed

What you need to do after testing ends

You must contact the National Imports Reliefs Unit telling them:

• where you imported the goods
• the number and date of the import declaration
• the quantity of goods imported, their value and the date you received them
• details of the tests carried out, where the tests were carried out and where records are available for inspection
• the date on which testing finished
• details of any goods remaining and what you intend to do with them.

If you’re a regular user of this relief, there may be options to vary these arrangements. Contact the National Imports Relief Unit for details.

If you have goods left over as a result of not using them in the tests or they were not completely used up (including waste and scrap), you can:

• pay duty and VAT
• destroy them free of duty and VAT but you will need our permission first
• convert them into waste and scrap and pay any duty and VAT that may be due

If you want to re-export any remaining goods, you must contact the National Imports Reliefs Unit explaining why re-export is necessary. We will then advise you if re-export can be allowed.

If you dispose of your goods

You must tell the National Imports Reliefs Unit if you dispose or transfer your goods to another entity. You must do this at least 48 hours before the transfer of goods happens.

Records you must keep

You must keep:

• any National Imports Relief Unit acknowledgement letters
• receipts
• bills
• invoices
• insurance documents
• evidence of disposal

You need to keep additional records if:

• you transfer goods to another approved entity – keep any official documentation detailing transfer between you and the other entity
• you re-export the goods – keep the New Export System declaration details or export documentation providing information about the date of export
• your goods are stolen, lost or destroyed – keep police or insurance incident reports, or official documentation providing details of the date of the incident or loss

You must keep all records for a minimum of 4 years.

If you break the conditions of the relief

If you no longer meet the conditions of the relief, you must immediately notify the National Import Reliefs Unit electronically or in writing.

Provide full details of the importation and why you think the conditions of the relief have been breached.

If you want to appeal

Appeal if you disagree a decision made by HMRC.

Source – gov.uk