Your cost price would be above what people would be retailing at. Guernsey has, like Jersey, taken steps to protect its international reputation and protect the viability of the fulfilment industry in the Bailiwick. You will have to pay duty on the full value of the item. Significant lobbying by UK retailers affected by LVCR was reported widely on the BBC in 2011. As Hong Kong is not part of the EU, importing from here to the UK requires VAT and duty to be paid. Your shipper should give you a Consignment Line Code (CLC) reference number to make a declaration and pay online or by visiting Customs at Maritime House. For goods exported from the UK to the Channel Islands a non-statistical export declaration is required see section 2.1 of UK Trade Tariff - Exports. We are currently changing our freight providers and have been advised by the new company that duty is applicable on goods being shipped from the mainland to the Channel Islands over the value of £250. Why are the public not told about their Duty Free Allowance when they purchase duty … Full customs declarations will need … Please note, whilst VAT relief was previously allowed for goods less than £15, this is no longer the case. Extent: Jersey Updated: 8 June 2020 _____ Words you may need to know. [1] The UK currently sets the limit to £15 for commercial goods. Information about customs charges, procedures and rules when importing and exporting goods into or out of the Customs Union (UK, Jersey, Guernsey and the Isle of Man Disclosing cash when travelling Find out about disclosing large amounts of cash that you import into, or export from Jersey, including possible penalties if you fail to disclose He argued that this was to ensure that the Island was not taken advantage of by UK business and that tangible economic benefits would remain in the Island. Under this agreement the Channel Islands are not part of the European Union but are part of the customs territory of the union. Some UK businesses have claimed that this kind of VAT avoidance is potentially "abusive", in terms characterised by the 2006 Halifax Judgement. [6], Historical documentation indicates that LVCR was originally allowed by the UK for the Channel Islands in order to expedite Jersey and Guernsey grown agricultural goods such as fresh flowers and daily mail that would have been damaged by the delay caused in VAT processing. 2.7.4. If the total value of your consignment (including any shipping, insurance, packaging or custom costs) exceeds £135 you must declare it and pay GST. To find out more information on paying your GST and avoiding customs delays please visit The States of Jersey Customs and Immigration Service and read their GST quick guide. Knowing all costs upfront and clearly communicating with your customer how it will be paid will result in a smoother shipping experience. As businesses based in the Channel Islands have become more sophisticated, however, goods are now imported from the Far East, including electronics and accessories. EU travel from January 2021. Member … In relation to LVCR and the Channel Islands it recommended that "The UK Government should immediately apply the lowest threshold applicable for the relief of low value consignments permissible in the directive, which is currently 10 euros (approximately £7) – this would eliminate the vast majority of exploiting trade almost immediately" it also recommended that "The enforcement, by government bodies like Customs and Excise, of VAT should be reviewed to ensure a level playing field" [18]. For more information on VAT, please read our further advice. Threshold: GBP 15. The Guernsey authorities also claim that three of the largest retailers on the Island have agreed to voluntary caps on the amount of VAT that they can avoid by way of LVCR. What is the rate of Import VAT? From the UK, anyone heading to a non-EU destination is able to buy alcohol and tobacco free of duty, and all other goods free of VAT. The TPA is a formal agreement between Ireland, United Kingdom (includes Channel Islands) and France, which allows certain categories of horses to move between these three countries without prior inspection or certification. This administrative relief is known as low-value consignment relief (LVCR). VAT: 20%. Another group of retailers, called the Retailers Against VAT Abuse Schemes (RAVAS) have filed a complaint with the EU Directorate of Taxation, alleging that the UK Government has breached the Directive covering LVCR by failing to take action to stop abuse. Import Duty Charges The general rule is that import charges are to be paid when importing goods to the country in accordance with the customs tariff that has legal validity in Iceland. Want to read more? Avoid issues at customs. Existing subscriber? There are two types of duty chargeable within the Bailiwick of Guernsey. Member states which allow the relief must ensure that it does not cause competitive distortion or allow VAT abuse. It looks to address these concerns through the mutual co-operation of the Guernsey Mail Order and Fulfilment Group and lays down similar trade restrictions to those covered by the Jersey Licence Scheme although unlike that scheme, the only sanction available to those breaking the code appears to be exclusion from the Fulfilment Group. If you need to pay import duty on a delivery from China, UK customs will automatically let Royal Mail or your courier know, and they’ll contact you. You'd be bringing goods into the UK from outwith the EU, so the following rules apply: https:/…arrivals-from-outside-the-eu. For more information on VAT, please read our further advice. VAT must be paid. Passengers are not allowed to combine allowances with other travelling companions, it is an individual allowance and is the responsibility of the person travelling to know the allowance of the country they are entering… These are Excise Duty and Import Duty (also referred to as Customs Duty). You'd basically be declaring anything over your allowance, if you're an honest type! In a written answer to Janet Dean MP on 18 June 2008 the then Financial Secretary to the Treasury Jane Kennedy stated that three quarters of the VAT avoided due to LVCR "is attributable to imports from the Crown dependencies". These retailers are able to offer the same products as UK retailers but at significantly lower prices. around £85 million per year. If you import a vehicle from within the EU, you'll need to pay GST at 5% on the value of the vehicle at import. Postal Headquarters VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). Furthermore, Kantar found that 95% of such sales are low enough that VAT charges were not applied to them. Buying goods from Gibraltar, the Canary Islands or the Channel Islands; How to locate your goods following arrival to Ireland; How to pay your import charges ; How to pay your import charges. Please could you advise us on this? Introduction Summary. [23] It was announced on 4 October 2012 that Condor Logistics would close its operations with the loss of about 180 jobs (110 in the UK, 50 in Jersey and 20 in Guernsey). You can declare and pay for your goods before they arrive by creating a pre-arrival declaration online via The States of Jersey Customs and Immigration Service website (please note, you must first set up an account in order to do this). Vehicle - a motor car, lorry, van used for transporting goods or people or anything that runs on the road and requires to be registered This group published in 2006 a report High Street Britain 2015 that covered many issues affecting retail in the UK. Pre-paying VAT is the quickest and cheapest option to get items to the UK. The Code is voluntary and acknowledges that in the UK there has been some cause for concern with regards to the relocation of UK companies to the Channel Islands to benefit from the LVCR concession, in particular with the CD and DVD market. However, in more recent years the Channel Islands have been used as a convenient location for selling goods VAT-free into the UK by mail order. All rights reserved. If you are ordering or receiving items from outside of the Channel Islands, it’s important you understand the regulations surrounding GST and when it is payable. If you import a vehicle from outside the EU, you'll need to pay GST at 5% and the Common Customs Tariff (CCT). Included in the import charges are duties, excise duties and value added tax as well as various other charges that may be added when a good is imported. Log in. You need a commodity code to ensure that you’re paying the right amount of tax and duty. [7][8] More recent documents, including a 2006 States of Jersey Scrutiny Panel, have challenged this claim.[9][10]. London, United Kingdom. This administrative relief is known as low-value consignment relief (LVCR). Jersey introduced a Goods and Services Tax (GST) of 3% in 2008 which increased to 5% in 2011 on the majority of goods and services supplied in Jersey for local use, including imports, GST can be claimed back on exports. If you are a local business that regularly sells and sends items to the UK or internationally, we can also provide professional support and assistance with VAT clearance. Use the trade tariff link below to check duty rates. Thursday 10 November 2016, 11:59am. Duty on UK sales to Channel Islands. With reference to online music sales in particular, it has been noted that the low price offered by online retailers such as Play.com, Amazon.co.uk, TheHutgroup.com and HMV plays a significant factor in these sites' popularity. Travel. In fact exports from the Channel Islands account for a very small percentage of the CD/DVD market".[5]. L4 Export of vehicles from Jersey to UK . CDs are often licensed to specific territories and record companies strongly defend their regional licensing arrangements, as has been shown by the BPI action against play.com when they tried to bring in major label VAT-free CDs from outside the EU.[15]. VAT tax must be paid on most items sent from Jersey to the UK. The Channel Islands are treated as being outside of the EU. 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