Commercial Cargo

Imports: Commercial Imports

Once you have decided what goods you intend to import you will need to arrange customs clearance into the UK and on some items, clearance from Port Health. On this page you will find the following Topics:

Customs Clearance
Port Health
Duty and VAT
After Clearance

CUSTOMS CLEARANCE

To enable us or your agent to arrange Customs Clearance on your behalf, you will require the following information and documentation. Once these are received a customs entry is prepared and normally sent electronically to H M Revenue & Customs and then, if required, original documentation is lodged with Customs. If Customs are happy with this and they do not require any further checks on the cargo, such as a physical examination, they will release the shipment.

Your EORI Number / VAT Registration Number / TURN Number

If your company is not registered for VAT and you do not have an EORI number you will need to contact the National Advice Service on 0845 010 9000 and apply, If you are a private individual and you are importing the items for onward sale or part of your business you will have to apply for an EORI number from H M Revenue & Customs and Excise. Please see:- http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_029353&propertyType=document
Application Form download:- http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_029338

Customs Commodity Code
This is normally a 10 digit number and is dependent on the nature of your goods. Commodity Codes are found in Volume 2 of the Integrated Tariff of the United Kingdom and it is from the Commodity Code that the rates for any duties and taxes on your goods are taken. Most agents will have a copy of the Tariff so they can help you classify your goods. If your goods are difficult to classify in this way, H M Revenue & Customs have a telephone help line and they will be able to offer assistance to find the codeTel: 01702 366077 (National Call Rates apply). Opening hours: 9am to 5pm Monday to Thursday, 9am to 4.30pm on Fridays (excluding Bank Holidays). Alternatively most Public Libraries in the UK have a copy of the Tariff or you may try online at http://www.businesslink.gov.uk/bdotg/action/tariff

Freight and Insurance Amounts
The value on which Customs Duty and VAT are calculated is the 'CIF' value. This is The Cost of the Goods (C) plus the Insurance Premium paid to insure the goods during transit (I) plus The Cost of the Freight from the origin of the goods to the port of entry into the UK (F). If the invoice supplied by the shipper does not include the Insurance Premium or the Freight these amounts will be required for the customs entry.

Deferment Authority
A Deferment Account is an account with H M Revenue & Customs and Excise with which you can pay any duties and taxes due on your import. If you have your own account we will require an authority from you to use this. If you do not have a deferment account there are other ways to pay these charges. Please contact us or your agent to discuss these.

Original Bill of Lading
The Bill of Lading (B/L) is issued by the Agent or Shipping Line who shipped your goods in the country where they were sent from. The Original B/L is not required for customs clearance but it helps us to locate and identify the goods for clearance. The Original B/L will be required to enable you to get release of your goods as it is your entitlement to the cargo and an Original must be presented to the Lines agent in the UK. The B/L is normally sent to you direct by the supplier or via a bank if the cargo is arranged on a letter of credit.

Commercial Invoice
Your supplier will issue you with an invoice for your goods. The invoice should show at least the following information: Suppliers details, Importers details, Description of the goods, Number of Packages, Value of the Goods, The Currency the invoice is Issued In, Shipment terms EG CIF, FOB, Shipment details EG Vessel name, Container number.

Packing List
The packing list will sent to you by the supplier and should show the following information: Suppliers details, Importers details, Description of the goods, Number of Packages, Net Weight, Shipping Marks, Shipment details EG Vessel name, Container number.

Original Preference Certificate - Not always required
A preference certificate gives a reduced rate of duty against some products. There are different types of preference certificates and it depends which country the goods are from as to which type are issued. Not all goods or countries have preferences. The two main types of certificate are a Generalised System of Preferences (GSP) certificate and an EUR1 certificate. Your shipper would arrange for a certificate to be raised and endorsed by the appropriate authority in the country of origin and this should then be sent to you.

Original Certificate of Origin - Not always required
A Certificate of Origin is sometimes required to provide proof of the origin goods. Like a Preference Certificate, a Certificate of Origin is issued by the appropriate authority in the country from which the goods came. Textile goods are the main commodity which will require a certificate of origin.

Original Import Licence - Not always required
There are several types of Import licences that may be required. These are BERR import licencesand Rural Payments Agency Licences. The Customs Tariff will show if your goods may require a licence and you would then need to contact either BERR or the Rural Payments Agency with the commodity code of your goods and you would be advised if a licence is required. The majority of goods do not require licences and Rural Payments Agency Licences are generally for foodstuffs. You should always check this with the National Advice Service on 0845 010 9000

PORT HEALTH

Port health are interested in all types of foodstuffs and animal products and some products from certain countries are not allowed into the UK. For the majority of products which are not of Animal Origin all port health will require to release the cargo is a copy of the invoice and Bill of Lading. Goods which are of or contain products of Animal Origin, for example Eggs, Milk, Animal Skins, Meat, Honey, Mayonnaise etc. a Certificate for Veterinary Checks (CVC) will have to be completed on your behalf and presented to Port Health at the port of entry into the UK.

The normal documentation required to be lodged with the CVC is as follows:

Copy of Suppliers Invoice
Copy of the B/L
Health Certificate

The Health certificate will be supplied by the shipper of the cargo and is issued in accordance with current EEC legalization by the competent authority in the country of origin of the goods.

Once the CVC and associated documentation has been lodged with Port Health they will decide to either examine the cargo or check that the seal on the container matches the seal number on the documentation for the goods. If they are happy with this and the documentation they will release the container.

DUTY AND VAT

Most products imported into the UK are liable to VAT and Duty. The rate of duty depends on the commodity code of the goods and is sometimes reduced if the country of origin has a preferential rate of duty agree with the EEC. If a reduce rate does apply a preferential certificate will be required.

Duty is usually a percentage of the CIF Value of the cargo and VAT is calculated on the CIF Value + the Duty + The VAT Adjustment. The VAT Adjustment is the cost of all charges from arrival at port to the first point of delivery in the UK. This will include Terminal Handling, Shipping Line Documentation, Customs Clearance and UK Haulage.

On some products additional duties may be applicable, for example on some foodstuffs duties called Variable Charges are applicable and the amounts due often depend on the nett weight of the goods and also their ingredients and the percentage of the ingredients in the product.

If your invoice is in a currency other than Sterling, the value will be converted to sterling using the current Customs Rate of Exchange for that currency. This is set at the beginning of each month by Customs and will not change unless there is a large change in the market.

Example:

CIF Value of Goods 12500.00 GBP, Duty Rate 6%, VAT Adjustment 450.00 GBP, VAT Rate 17.5%.
Duty Payable = 12500.00 GBP x 6% = 750.00 GBP
VAT Payable = 12500.00 GBP + 750.00 GBP + 450.00 GBP x 17.5% = 2397.50 GBP

AFTER CLEARANCE

Once your cargo has been released by Customs and Port Health you will be able to arrange collection or delivery of your cargo.

When you know when you would like you cargo delivered you will need to book delivery of your goods. To do this the Shipping Line or agent with whom the original B/L has to be lodged will require the B/L and their charges. Instructions for delivery will also need to be sent. If you have sent the original B/L to us we can contact the appropriate parties on your behalf to find out what charges are required and make haulage arrangements.

For Full Container loads bookings can be made for specific a date and time. For groupage loads we can normally give a delivery date and either an AM or PM booking.

Rent and Demurrage will also be charged if your cargo is not removed from the dock or warehouse after a certain period of time after the vessel arrives. This time varies from line to line, but is normally between 5 to 7 days. It is therefore advisable to arrange your Customs Clearance and send your documentation to us as early as possible before the vessel arrives to enable all charges and any potential problems to be sorted out before the rent free time expires.

We hope you have found the above information useful and informative. If you require any further information or you would like a quote for us to arrange importation on your behalf please do not hesitate to contact us at ciship@rjjfreight.co.uk

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