Duty and VAT

All goods imported from outside the European Union (EU) are liable to Customs Duty and VAT.  However EU customs legislation provides for relief from Duty and/or VAT in specific circumstances and when certain conditions are met.

euro-zoneBefore identifying and applying for any individual relief procedure, Budget Centres are advised to confirm the correct tariff classification of the goods to be imported.  This action is recommended to establish the applicable duty rate which for some goods (eg most computers and their parts and accessories) is 0% regardless of where they are imported from.  In these cases Duty relief applications are superfluous, but equally it may be possible to claim relief from VAT even where no Duty is payable.

Where relief from duty and/or VAT is available, goods are declared to the relevant procedure by showing one of a number of specific seven character Customs Procedure Codes (CPCs) in Box 37 of the customs import declaration form (UK version C88).

If Duty relief is not applicable or available, then Customs Procedure Code (CPC) 40 00 000 must be used.

The purpose of this guide is to identify CPCs which give relief from Duty and/or VAT on the importation of goods from outside the EU, and to give an indication of the circumstances and conditions under which relief from Customs Duty and/or VAT may be claimed.

Budget Centres should be aware that there are now many other CPCs, and specific advice should be sought for Inward Processing Relief and Returned Goods Relief and any other reliefs required.