The minefield of importing
VAT is only one consideration when importing goods.
Further to my article on proposed changes to imports and exports I have been asked what some terms used in the import of goods mean. So below is, what I hope, a helpful explanation of UK import terms.
We are happy to assist with any general queries and we provide a comprehensive Customs Duty service via our associates with specialised, in-depth knowledge of this complex area.
We recommend regular reviews of a business’ import procedures. This may highlight deficiencies but also provide opportunities to save money or improve cashflow.
| Term | Description |
| Anti-Dumping Duty | A customs duty on imports providing a protection against the dumping of goods in the EU at prices substantially lower than the normal value |
| ATA carnet | An international customs document for temporary importation and exportation regulated under the terms of the ATA or Istanbul Convention |
| C 88 (SAD) | The UK version of the Single Administrative Document (SAD) for making import, export and transfer declarations |
| CAP | Common Agricultural Policy |
| CDS | Customs Declaration Service to be launched from August 2018. Replaces CHIEF |
| CFSP (Customs Freight Simplified Procedures) | Simplified procedure for the importation of third country goods including the simplified declaration procedure and local clearance procedure |
| CHIEF | (Customs Handling of Import and Export Freight). The Customs entry processing computer system. Soon to be replaced |
| CIE | Customs input of entries to CHIEF |
| Community | Member States of the European Union |
| Community Transit | A customs procedure that allows non EU goods on which duty has not been paid to move from one point in the EU to another |
| Countervailing duty | A customs duty on goods which have received government subsidies in the originating or exporting country |
| CPC (Customs Procedure Code) | A 7-digit code used on C88 (SAD) declarations to identify the type of procedure for which the goods are being entered and from which they came. Details of CPCs can be found in The Tariff |
| Customs charges | customs duties import VAT specific customs duty (previously CAP charges) Anti-Dumping Duty Countervailing Duty excise duties |
| Customs duty | An indirect tax that provides protection for Community industry. Raised on imported goods, it does not include excise duty or VAT |
| Customs warehouse | A system or place authorised by customs for the storage of non-Community goods under duty and/or VAT suspension |
| EU | European Union |
| EU Country | Member country of the European Union |
| Euro (€) | European currency unit |
| Excise duty | A duty chargeable, in addition to any customs duty that may be due, on certain goods listed in The Tariff, volume 1 part 12 paragraph 12.1 |
| Free Circulation | Goods imported from outside the EU are in free circulation within the EU when:
all import formalities have been complied with all import duties, levies and equivalent charges payable have been paid and have not been fully or partly refunded goods that originate in the EU are also in free circulation |
| Free Zone | A designated area into which non-EU goods may be moved and remain without payment of customs duty and/or VAT otherwise due at importation |
| INF6 (C1245) | Information sheet 6 is a document used when TA goods travel between EU Countries. It provides details of the goods at the time of their first entry to TA in the EU. It does not replace the C88 (SAD) |
| IP (Inward Processing ) | A customs procedure providing relief from import duty on goods imported to the EU or removed from a customs warehouse, for process and export outside the EU |
| Member State | Member country of the European Union |
| PCC (Processing under Customs Control) | A system of import duty relief for goods imported or transferred from another customs regime for processing into products on which less or no duty is payable |
| Person established in the EU | In the case of a natural person, any person who is normally resident there.
In the case of a legal person or an association of persons, any person that has, in the EU: its registered office |
| Person established outside the EU | In the case of a natural person, any person who is not normally resident there.
In the case of a legal person or an association of persons, any person that has, outside the EU its registered office |
| Pre-entry | Notification to customs of your intention to export the goods by the submission of an entry |
| Preference | Arrangements which allow reduced or nil rates of customs duties to be claimed on eligible goods imported from certain non-EU countries |
| SAD (Single administrative document) | Document used throughout the EU for making import/export declarations – the UK version is Form C88 |
| TA goods | Temporary Admission goods |
| Tariff | The Tariff consists of 3 volumes
Volume 1 Volume 2 Volume 3 The Tariff is available on an annual subscription and is also available at some larger libraries. You can buy the Tariff in printed and CD ROM formats or subscribe to the new e-service from the Stationary Service referred to in paragraph 1.5 |
| Third country | Any country that is outside the Customs Territory of the EU |
It is likely that some of these terms will change in the future and with the uncertainty of Brexit who knows what changes will be required.