Customs Duty and VAT
Goods arriving into the UK from third countries (i.e. non-European Union) are liable to VAT (value-added tax, a sales tax) and may be liable to customs duty, excise duty (only for specific luxury products and petroleum) and agricultural levy (only for certain agricultural products).
All these are the responsibility of the importer. In order for the importer to claim relief from customs duty under the GSP scheme (The EU Generalised System of Preferences) the Arab producer may be required to complete forms to satisfy the origin rules for the scheme.
If an Arab exporter needs to know in advance what customs duty will be payable on his goods, it will first be necessary to obtain an accurate eight or nine-figure commodity code. To do this a detailed and accurate description of the goods is needed. The Integrated Tariff of the United Kingdom can then be consulted and an eight or nine-figure commodity code assigned to the product. With this detail accurate information can be obtained on the level of duty and any relief that may be available. It may be possible to consult The Tariff at commercial sections of British embassies in Arab countries, or by contacting HM Revenue & Customs Tariff Classification Service (see Useful Addresses) or the Arab-British Chamber of Commerce.
Important note: The Integrated Tariff of the United Kingdom is an extremely detailed publication; vague or general descriptions of goods will make it impossible to ascertain the correct commodity code and customs duty.
Related Links
- General Notes
- Locating Potential Importers in the UK
- Approaching a UK Importer Directly
- Checking a Company' s Background
- Arranging Terms of Payment
- Customs Duty and VAT
- The EU Generalised System of Preferences
- Exporting Agricultural Goods to the UK
- Standards and Safety Regulations
- Sourcing Goods in the UK
