Shipping Good for Repairs ATA Carnet
The UK company must visit not just Customs but also Excise departments in Germany and France where their goods are most likely destined for repair before export back within the EU. The core idea here is that using a carnet for processing or repair means that even if your product looks almost identical when it leaves France (or wherever), it will have been altered or repaired in some way so you won’t be able to use a carnet again.
To qualify for ATA carnets, goods must be of equal value and more or less identical when leaving and returning to the UK.
There is still a way to avoid paying VAT and import duty twice if temporary exports are required for processing or good for repairs ATA Carnet. The UK term for this is Outward Processing Relief (OPR).
Do Your Homework Before Sending Good for Repairs via ATA Carnet
Sometimes when shipping freight internationally, local laws may not allow you to cl aim relief retroactively. This means that if there has been a dispute and your shipment is returned or destroyed you will likely not be able to claim compensation from the carrier who is usually liable for the loss.
However, this doesn’t mean that you should stop trying to get your package back! You can contact your freight forwarder or at least inquire about what happened as they may be aware of an application process that can help speed up the whole process and ensure your package gets returned swiftly! It’s also useful to know if any items were not properly declared or if a customs code was incorrect when sending any products overseas. This can help avoid unnecessary delays and save money on return shipping costs. Make sure all details — including the commodity codes — are exact when sending yourself international packages to avoid problems with balance payments and import duties.
Keep customs informed as well. There may be several reasons for this. Items may be returned in batches rather than individually, or they may be unable to be repaired and require replacement.
This would likely result in you being liable for VAT and duties as if the item were new.
OPR Regulatory Principles
For duty and value-added tax (VAT) relief to apply, the origin of items can matter and with Brexit, the date of purchase can determine whether that item is eligible. In essence, the date of acquisition can matter when it comes to duty claims. If your items meet the criteria for duty and/or VAT relief, you should have been paying appropriate duties at the time you purchased them. However, if they did not apply at the point of purchase (e.g., due to duty being zero-rated), you cannot go back after Brexit to claim any rebates with your OPR application.
As a result of the UK leaving the customs union, there are no longer any old ‘advance payment certificates’ known as APCs issued before Brexit. This is why before using OPRs one needs to add prior importation through Self-Assessment (a different process than OPR) as well as pay relevant duties in advance so that importing under an OPR does not incur additional costs in the event of an additional adjustment or repayment becomes necessary.
