Relief on Tariffs for Returned Goods and Motors
As any of you in the motor trade business will be aware, the EU-UK Trade and Cooperation Agreement (TCA) provides, that for the most part, only cars that were manufactured in the UK can qualify for a 0% import duty rate. This has caused quite an expensive problem for importers getting cars from the UK distributors that are either second-hand or are being distributed from the EU through the UK!
The good news is that Revenue has just published a guidance note. This note allows customs duty relief where importers have the paperwork proving those vehicles were originally exported from the EU. We know that the 10% tariff costs was a big challenge for some of our customers in the Irish motor industry and are delighted that this step will help them get business moving again.
What Scenarios are Covered?
1) EU vehicles moved to the UK from another EU Member State before January 2021 and returned to an EU Member State (e.g. Ireland) after 1 January 2021.
2) EU vehicles moved to the UK from another EU Member State after the 31 December 2020 and returned to an EU Member State (e.g. Ireland)
3) USA manufactured vehicle exported to an EU Member State e.g. Germany, is moved/exported to the UK and returned to an EU Member State e.g. Ireland.
The 3 scenarios have time limitations around the imports/exports and specific processes, so be sure to read through carefully if this applies to your business.
Keeping it Simple for Customers
Declaron customers can simply provide our system with the relevant documentation as established by Revenue and we, in turn can apply this relief to your imports.
Need more help?
Our sister company BDO have written a lot about this over the last two months. If you not sure whether you can qualify or advisory services, get in touch.