PN1438 - Relief From Customs Duty And Vat (Import Duties) On Goods Re-Imported Into The European Community
PART I GENERAL
1. Introduction
Goods exported outside the European Community (EC) and subsequently re-imported into the EC may qualify for relief from Customs Duty and/or VAT on re-importation. If the returned goods are parts or accessories belonging to machines, instruments, apparatus or other products previously exported, they may also qualify for relief. This leaflet describes the relief available and the procedures involved at importation.
2. Law
Articles 185 to 187 of Regulation (EEC) No. 2913/92 (Community Customs Code) and Articles 844 to 855 of Regulation (EEC) No. 2454/93 (Customs Code Implementing Provisions) govern relief from Customs Duty on re-importation.
Similarly, Article 143 (e) of Council Directive 2006/112/EC and Regulation 14(5) of the Value-Added Tax Regulations 2010 (SI 639 of 2010) provide for relief from VAT but only in relation to goods which are being re-imported by the same person who exported them.
3. Conditions
In order to benefit from the relief from payment of Customs Duty and/or VAT as described, the following conditions must apply:
- Time limit - The goods must, as a general rule, be re-imported within three years from the date of export. However, Customs may allow this period to be exceeded to take account of special circumstances. Goods re-imported outside the authorised time limits are subject to any duties and restrictions applicable at the time of re-importation.
- Goods previously imported for a particular purpose - In the case of goods which had originally been imported at a reduced or nil rate of customs duty because of their use for a particular purpose, e.g. end-use, relief is subject to their being re-imported for the same purpose. Where the goods will not be used for the same purpose, the duty normally chargeable is reduced by the amount, if any, originally charged when the goods were first released for free circulation (if the amount originally charged exceeds that chargeable when the goods are being re-imported, no refund is allowed).
- Inward Processing – In the case of re-importation of compensating products originally exported after Inward Processing, the amount of duty chargeable on re-importation is the amount that would have been charged if the goods had been entered for free circulation on the date of the original exportation.
- Same-state goods – Normally, goods (including goods exported under the outward processing procedure) are not eligible for relief under the re-importation provisions unless they are re-imported in the same state as they were exported. However, exceptions to this rule are outlined in paragraph 4.
4. Treatment Abroad
As a general rule, goods do not qualify for duty-free re-importation if they have been subjected to treatment abroad. However, goods, which have received treatment, deemed necessary to keep them in good condition, or which have received handling which altered their appearance only, can qualify. In addition, goods after exportation found to be defective or unsuitable for their intended use and were treated while abroad can also qualify for relief, provided:
- that the treatment was applied solely to repair them or to restore them to good condition; or
- that their unsuitability for their intended use became apparent only after such treatment had commenced.
Where the value of the goods at exportation is increased by the treatment or handling while abroad, Duty is payable on re-importation in accordance with the provisions relating to Outward Processing. However, where it is shown to the satisfaction of Customs that such treatment became necessary due to unforeseen circumstances abroad, relief will be allowed, provided the treatment did not exceed that which was strictly necessary to enable the goods to be continued to be used in the same way as at the time of export even if this treatment resulted in an increase in the value of the goods.
5. Procedure at Re-Importation
Where goods are forwarded to him/her by post, the importer needs to ensure that the declaration on the parcel is endorsed:
“Returned Goods: Exemption from import charges claimed”.
The documentary evidence referred to at paragraph 6 should be attached to the outside of the parcel and marked ‘Customs Documents’.
Where goods are imported other than by post the goods should be presented to Revenue accompanied by an import declaration (SAD), with a claim to relief from import charges thereon.
| Code F01 | Relief from import duties for returned goods (Article 185 of the Code) |
|---|---|
| Code F02 | Relief from import duties for returned goods (Special circumstances provided for in Article 844, 1: agriculture goods) |
| Code F03 | Relief from import duties for returned goods (Special circumstances provided for in Article 846, 2:repair or restoration) |
Please note the relevant procedure code should be entered in box 37 a of the SAD. This may be confirmed at the following link - Procedure Codes (Appendix 18, AEP, Electronic Services, www.revenue.ie)
Also the related original Export SAD should be declared by entering 1Q27 in box 44/1 along with the Export SAD number in box 44/2 of the re-importation SAD.
The documentary evidence referred to at paragraph 6 is also required.
6. Documentary Evidence
The importer must provide evidence to satisfy Customs that the re-imported goods are those, which were exported. Where the goods were originally exported from this country, an original copy of the export declaration, or a certified photocopy authenticated by Customs will normally be required. For goods originally exported from another Member State, the copy of the export declaration (or certified photocopy) or Form INF 3 (see paragraph 7) completed by the competent authorities in the exporting Member State is usually required. The importer may present alternative evidence to the export declaration or the INF 3 if it is available. Customs at the office of re-importation may require additional evidence over and above the copy of the export declaration or the INF 3, in particular for the purpose of identifying the re-imported goods.
Where an ATA carnet has been issued in the EC for the goods, this would also be acceptable evidence. In such cases, goods may be released for free circulation with relief being allowed even if the period of validity of the ATA Carnet has expired provided that they are being re-imported within a period of three years from the date of exportation.
7. Information Sheet INF 3
The form INF 3 is normally used when the exporter believes that it is probable that the goods will be re-imported into a Member State other than the Member State of exportation.
Supplies of Information Sheets INF 3, consisting of one original and two copies are available from your Regional Customs and Excise Office, contact details for all Revenue Offices can be found on the Contact Details Page. The INF 3 will be issued and endorsed at an exporter’s request provided the Customs officer concerned is satisfied that the particulars thereon relate to the goods which have been exported or are being exported. The original and one copy of the INF 3 will be returned to the exporter for presentation at the time of re-importation.
Where necessary, the INF 3 may be issued in respect of a proportion only of the goods being exported. Also, a number of INF 3’s may be issued to cover the total quantity of the goods exported or being exported. The latter situation could arise, where, for example, the goods are intended to be re-imported into a number of Member States.
Under the verification procedure for the INF 3, the customs authorities in the Member States of re-importation may seek verification of the issue of, and the information contained in, the information sheet from the Customs authorities in the Member State of exportation.
PART II – CAP GOODS
In general the provisions of part I apply to CAP goods. The following additional provisions also apply to such goods.
8. Prior approval by Revenue and the Department of Agriculture, Fisheries and Food
CAP goods (whether originally exported from the State or another Member State) may not be re-imported without the prior approval of Revenue and the Department of Agriculture, Fisheries and Food. Importers who intend to re-import such goods should make applications to CAP, Transit and Own Resources Branch, Government Offices, St. Conlon’s Road, Nenagh, Co. Tipperary (067-63134/63409) and to the Department of Agriculture, Fisheries and Food, Johnstown Castle Estate, Wexford (Tel: 053-9163400) enclosing all available documentary evidence from commercial and official sources, indicating the reason the goods are being returned, the intended purpose of the returned goods, and stating the proposed date and place of re-importation of the goods. Traders are advised to liaise fully with Customs Officers throughout the re-importation process.
9. Time Limit
CAP goods, which have benefited from export refunds may, subject to such refunds being repaid, only be granted relief from import charges if re-imported within 12 months of the date of exportation. Customs may allow this period to be exceeded where exceptional circumstances justify this. CAP goods which have not qualified for export refunds may benefit from relief if re-imported within three years. However, the three year period may be exceeded with Customs permission in order to take account of special circumstances. Goods re-imported outside the authorised time limits are subject to the same duties and restrictions as if they were being imported for the first time.
10. Goods on which Export Refunds were Paid or Claimed
These goods qualify for relief from import charges if the refunds are repaid or withheld provided the re-importation became necessary in any of the following circumstances:-
- where the goods could not be entered for home use in the country to which they were consigned because of any laws in force in that country;
- where the goods were returned by the consignee because they were defective or not in accordance with the provisions of the contract relating to them;
- where the goods could not be used for the purpose intended because of circumstances not brought about by the exporter as follows:
- goods returned to the EC following damage occurring before delivery to the consignee, either to the goods themselves, or to the means of transport on which they were carried;
- goods originally exported for the purposes of consumption or sale in the course of a trade fair or similar occasion and which have not been so consumed or sold;
- goods which could not be delivered to the consignee on account of his physical or legal incapacity to honour the contract under which the goods were exported;
- goods, which, because of natural, political or social disturbances, could not be delivered to their consignee or which reached him after the mandatory delivery date stipulated in the contract under which the goods were exported;
- products covered by the common organisation of the market in fruit and vegetables, exported and sent for sale on consignment, but which were not sold in the market of the third country of destination.
11. Information Sheet INF 3
Where CAP goods are re-imported into a Member State other than the Member State from which exported, entry for free circulation must be accompanied by a certificate on form INF 3 issued by the competent authorities of the Member State of exportation, in addition to any other documentary evidence necessary in the circumstances of the re-importation. The certificate must bear one of the following endorsements inserted by the competent authorities of the Member State of exportation:
“No refunds or other amounts granted on exportation”; or
“Refunds and other amounts granted on exportation repaid for…..(quantity)”; or
“Entitlement to payment of refunds or other amounts on exportation cancelled for …(quantity)”.
12. Form RG1
Where CAP goods originally exported from the State are re-imported into the state, a claim to relief from import charges under the re-importation provisions must be supported by Form RG1, available from and issued by the Department of Agriculture, Fisheries and Food in addition to the export declaration (copy 3 SAD) and evidence of rejection of the goods under the circumstances outlined in paragraph 10. The form must bear one of the following endorsements inserted by the Department of Agriculture, Fisheries and Food:
“No refunds or other amounts granted on exportation”; or
“Refunds and other amounts granted on exportation repaid for…..(quantity)”; or
“Entitlement to payment of refunds or other amounts on exportation cancelled for …(quantity)”.
13. Adjustment of licences/certificates
Where CAP goods have been exported under an export licence or advance fixing certificate are re-imported, it must be proved that the relevant Community provisions in regard to licenses/export refunds have been complied with. The importer must produce to Customs, at the time of re-importation, a duly completed certificate from the Department of Agriculture, Fisheries and Food on form RG1 to this effect.
14. Further Information
Enquiries regarding any issue contained in this Notice should be addressed to the Revenue District responsible for your tax affairs. Contact details for all Revenue Districts can be found on the Contact Details Page.
Customs Division,
Customs Procedures,
Government Offices,
Nenagh,
Co. Tipperary
Notice No. 1438
January 2011
While every effort is made to ensure that the information given in this leaflet is accurate, it is not a legal document. Responsibility cannot be accepted for any liability incurred or loss suffered as a consequence of relying on any matter published herein.