Customs Duties - A Forgotten Cost
VAT charged by Customs is usually recovered by importers whereas duty is not. Surprisingly, however, and for a variety of reasons, the duty cost often receives very little attention even from the very largest importers.
The Complexities
Duty is payable, usually as a percentage of the value of the goods, using one of the 14,000 or so classification codes contained in the Customs Tariff. Import charges can also, however, be based on a variety of measures such as weight, volume etc. and there may be other levies such as Anti-Dumping Duties. There are also various types of relief such as Tariff Quotas and Duty Suspensions, and a number of regimes which are either administratively helpful or which actually reduce or nullify duty cost. All these variations can introduce complexity.
The Dangers
Accurate classification of goods or correct use of regimes can be difficult to ensure, and underpayments or overpayments of duty may be a consequence of errors. The commercial fallout may be:
- unbudgeted duty/penalty/interest bills from H M Revenue and Customs and/or
- lost opportunities to reduce cost of current and future sales (or windfalls are lost in relation to past trading).
There can of course be other implications, such as the cost and stresses of addressing and rectifying the matters raised by HMRC in the course of their investigations.
Where Does DUTYPlus Fit In?
DUTYPlus is the Customs Duty Consulting Division of Reeves+Neylan LLP, Chartered Accountants and Business Advisers. DUTYPlus is headed by duty specialists with decades of experience gained within Customs and Excise, and is ably supported by a dedicated infrastructure covering IT, client care, legal, and clerical matters.
The technical knowledge gained with HMRC is combined with the consultancy's awareness of what is of value to clients.
DUTYPlus Provides:
- Technical advice on a single matter or on a continuing basis.
- Health checks to ensure that duty rates and regimes are the best available for past, current, and future imports, and the peace of mind that legislative requirements are being met.
- Representation and dispute resolution in any disagreements with HMRC.
- Training at importer's premises, or elsewhere.
Fees
DUTYPlus usually charges on a success basis, in relation to duty recovery and savings. Other assignments may be charged on a different basis.