Import duties

The Transition Period has now ended, and a Free Trade Agreement (FTA) , or 'The Deal' has been signed between the UK and EU.  As a consequence importing goods from the EU has become more complex,.  It may take more time and cost more to complete the required import declarations.  We recommend that a customs/import agent is used.

Contents:

- The amount of duty due
- Key actions for departments
- What will my carrier/import agent need to know?
- Evidence of import
- Movement of goods from Northern Ireland
- How do I process the supplier and agent's invoice on CUFS?
- Where can I get more information?
- Reliefs FAQs

Last updated 19 Jan 21

The amount of duty due

From 1 January 2021, the Free Trade Agreement means that duty-free imports are not automatic. Goods can be imported from the EU with zero tariffs only if the goods originate in the EU.  In order to benefit from 0% duty, the University (as importer) must:

1. Prove the goods meet certain qualifying criteria (known as rules of origin), and
2. Make an active claim for 0% duty (on import declarations).

Shipments worth less than £135 will not attract customs duty - different rules apply.

Key actions for Departments

• Determine the tariff classification (commodity code) of imported goods to locate the relevant rules of origin and importing requirements under the deal – this is crucial and will inform next steps.

• Rules of Origin - determine whether the goods qualify as ‘originating’ in the EU.
   
• Proof - obtain proof of origin certification (a supplier’s statement of origin).
   
• Make a claim - duty-free benefits are not automatic, they must be claimed when making import declarations (e.g. Import agents need to be informed of this PRIOR to the import being declared).

What will my carrier / import agent need to know?

• The University’s VAT registration number: GB 823 8476 09

• The University’s EORI number : GB823847609000

• Instruct the agent to use Postponed VAT accounting and to make standard customs declarations.

• The Commodity Code that is being used (also called HS code).

• If relief from Import VAT and/or Import Duty can be claimed (eg scientific equipment or medical exemption), the agent should use the correct Customs Procedure Code and you will need to provide an NIRU Certificate [available from the University Tax Team] and/or an Import VAT Relief Certificate.

• You may also need to provide import license certificates

• If you wish to claim for preferential duty rates (0%) because of the EU/UK trade deal, you need to ask the supplier to provide evidence to the University of the Country of Origin of the goods.This should be via a statement of origin.

• INCOTERMS that will apply to the movement of the goods. Where possible, University Standard Terms & Conditions should be used – DDP INCOTERMS (Delivery Duty Paid).
   

Evidence of import

Once the goods have entered the UK, the customs agent and/or supplier will need to provide the following to the University. You must retain these documents for 6 years:

• airway bill/bill of lading
• delivery note
• proof of origin
• C88 (official Customs evidence)
• commercial invoice

Movement of goods from Northern Ireland

There are different rules regarding goods being moved into Northern Ireland and for goods moving between GB (England, Scotland, and Wales) and Northern Ireland. Please contact the University Tax Team  .

How do I process the supplier and agent’s invoices on CUFS?

It is important that BOTH the supplier invoice and any customs duty amount are coded to the relevant IMPORT codes on CUFS – this is to ensure that the import VAT is captured for postponed VAT Accounting via the VAT return – see the Finance Division’s guidance

Please code any customs duty element of an agent’s / carrier’s invoice to the same IMPORT tax code as the related goods (e.g. supplier’s invoice coded to IMPORT20%, then customs duty coded to IMPORT20%).

Where can I get more information?