Would there be customs duties to pay on repair returns?

[molan]

I've got an option to get some work done on something in the USA which, for lots of obscure reasons, actually works out cheaper than getting it done over here.

However I'm nervous that I might get hit for customs and import duties when it comes back into the country?

The US supplier said it would be clearly marked as "return from warranty repair" and thought that this would mean it wouldn't get taxed.

Anyone been through this before?

[tino]

[quote name='molan' post='1007398' date='Oct 31 2010, 02:37 PM']I've got an option to get some work done on something in the USA which, for lots of obscure reasons, actually works out cheaper than getting it done over here.

However I'm nervous that I might get hit for customs and import duties when it comes back into the country?

The US supplier said it would be clearly marked as "return from warranty repair" and thought that this would mean it wouldn't get taxed.

Anyone been through this before?[/quote]
As long as you have documented proof there will be no duties,however HMC may well hold its return to you until satisfied

[thisnameistaken]

You actually do have to pay duties on any new parts involved (I suppose some scammer must've used this as a method of bringing in components and avoiding duty on them in the past) but I don't know if the cost of labour is taxable. Have a nosey, but yes you probably would be liable for some duty, whether you end up paying it or not is another matter.

[tino]

[quote name='thisnameistaken' post='1007435' date='Oct 31 2010, 03:04 PM']You actually do have to pay duties on any new parts involved (I suppose some scammer must've used this as a method of bringing in components and avoiding duty on them in the past) but I don't know if the cost of labour is taxable. Have a nosey, but yes you probably would be liable for some duty, whether you end up paying it or not is another matter.[/quote]
If the dealer is declaring a warranted repair then there will be no duties payable.

[phil.i.stein]

i'm presuming it's something (relatively) expensive, if shipping it to the U.S. is the best option.

so, therefore some sort of recorded delivery will be involved.

if you can retain evidence of delivery to the U.S., and send the repairers a copy of that evidence, then they can return it with whatever goods you ship. (and include details of the value of parts replaced for duty purposes).

why not check it out with hmrc first ? they probably have to deal with this scenario often (albeit on a more commercial basis).

edit : if you do contact hmrc and get a favourable answer, it goes without saying to get the name of the person you dealt with etc..

Edited October 31, 2010 by phil.i.stein

[molan]

Thanks guys,

I found this on another forum that was taken from an official claim:


[i]"All goods (new and second hand) returned after being repaired from outside the European Community may be liable to Customs Duty and VAT even though you have paid customs charges on the initial import.

If the exporter charges you for the repair, customs duty is calculated on the charge made for the repair, plus any inward freight and insurance charges made for the return of the repaired goods. When faulty goods are repaired free of charge under a guarantee or warranty, or because of manufacturing defect, you can claim total relief from import duty and VAT. You must provide evidence to support the claim for example a guarantee or warranty document advising that the repair was free of charge.

Customs charges had been calculated on the declared value of US$350 and postage US$25.

If you would like us to further investigate these charges would you please forward to this address the items indicated below:-
· The ORIGINAL Red and White Customs Charge Label. (You may have to cut this off the box)
· The ORIGINAL Customs declaration. (Which should be attached to the side of the parcel.)
· Can you please confirm the value of the repair to the item including all shipping and postage costs i.e. an invoice/receipt. This should clearly detail all items contained in this parcel. If a nil cost can you please confirm this direct from the sender.
· Some evidence of the re-exportation of the goods e.g. a certificate of posting completed and franked at the Post Office or an invoice from an alternative carrier.
· Please confirm where and when the item was purchased.
· Please provide a purchase receipt if no longer held confirm that you no longer have a purchase receipt."[/i]

Edited October 31, 2010 by molan