September 2008 Newsletter

Welcome

Welcome to the September issue. This month we've news on two separate aspects of HMRC legislation, an update on our trip to the Far East and some news of a most worthy charity who we met at a client event. There's the usual coffee break story too, which harks back to those lazy, hazy days of summer holidays!

This month we wanted to wish a big HAPPY BIRTHDAY to Anj, our Head of Operations. Anj's birthday was on 6th September, but it would be far too indiscrete to disclose her age, so we are keeping tight-lipped.

There's nothing like a bit of reciprocity in business, so if you would like a free promotion in a future issue of the newsletter, all you need to do is say something nice about us that we can put in print, and in return, we will spotlight your business and link to your web site.

Enjoy the rest of this issue and don’t forget, for any customs and importation queries, make our friendly and approachable Customer Services team on +44 (0)20 8231 0900 your first port of call.

In this issue

Changes to the De Minimis Limits to Customs Duty for Goods Imported by Post
Low Value Bulking Concession - Deadline Delayed
Our Man in the Orient
Q&A - Everything you wanted to know about importing, but were afraid to ask!
A Word on CANCERactive
Coffee Break Story: Not in the Mood for Work!

Changes to the De Minimis Limits to Customs Duty for Goods Imported by Post

If you are either a business or a private individual who imports low value goods by post, we have some good news for you. From 1st December 2008 the value threshold for consignments dispatched by letter or parcel post which will be admitted free of Customs duty is changing.

Currently the limit is €22 (£18) but from 1st December 2008, this will increase to €150 (£105). Note also that customs duty is not collected if the amount of duty due is less than €10 (£7). Thus you will be able to import goods with a value of up to €150 (£105) without there being any requirement to pay Customs duty.

However… when we spoke to HMRC for clarification, they alerted us to the fact that this change, whilst welcomed, appears to have been misunderstood, so we're taking the opportunity to set the record straight. It is mistakenly believed by some, that there will be no import charges on goods which fall below the new threshold. In fact, the change applies only to Customs duty and both VAT and Excise duties (where applicable) will still apply at the current rate.

Thus where there is clearly some gain after 1st December 2008, there is no real reason to delay your internet-based Christmas shopping, for example, until after this date. Indeed if you do, you may well run the risk of unexpected in-transit delays due to the almost certain bottleneck arising out of the misunderstood changes, and you will still have to pay VAT and, if appropriate, Excise duties anyway.

Bear in mind too, that HMRC also plans to review the Sterling value against the €150 revised de minimis on an annual basis and may adjust this in line with changes in the Euro exchange rate.

It seems the old adage, "shop early for Christmas" still applies (along with the one that says "there's no such thing as a free lunch"...)!

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Low Value Bulking Concession - Deadline Delayed

We reported last month on the HMRC’s review of the low value bulking concession and the revised authorisation conditions which were to be introduced first in July and then from 1st September 2008. We have learned that the go-live date has been pushed back again, but as yet, no revised date has been given. However, our recommendation would still be that if you have an interest in importing goods under the Low Value Bulking Concession you still need to become compliant with the new authorisation conditions as soon as possible, as they are still expected to come into effect soon.

If you need the details, please refer back to the last issue or check out the HMRC’s document entitled “CIP (08)33 – Changes to the Authorisation Conditions for The Low Value Bulking Concession”.

Contacts for further advice at the HMRC include:

Gerry Callaghan
Tel: 028 66 321222
e-mail: gerry.callaghan@hmrc.gsi.gov.uk

Mrs Attracta Burns
Tel: 028 66 321 227
e-mail: attracta.burns@hmrc.gsi.gov.uk

HMRC National Import Reliefs Unit. (NIRU)
Customs House, Killyhevlin, 15 Lough Yoan Way, Enniskillen, N. Ireland, BT74 4EJ

Application form(s) for the Bulk authorisation and the Temporary storage authorisation can be accessed on the HMRC web site, here.

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Our Man in the Orient

Since retuning from Hong Kong after the WCA conference earlier this year, we have been inundated with business enquiries from organisations across China. Whilst we’re absolutely delighted at the success of our visit, and the level of interest generated, it’s become apparent that there may be some confusion as to our role in the goods movement process.

Customs Clearance Limited is not a freight forwarder, but a wholesale customs broker – in effect a handling agent, offering gateway customs clearance and delivery/distribution options to the UK and mainland Europe.

This means that when working with a partner company, wherever they are located, we protect your charges and will never try to back-sell to your clients as we don’t offer the services of freight forwarder. The real advantage to you as a consignor/shipper or consignee/importer, is peace of mind that your valued client base is being taken care of on your behalf and that your customs clearance processes are being handled by a team of experienced, specialised professionals.

One fascinating thing Rudee noticed in China (and rather liked, we think!) is that the Chinese like to take a photograph of the people they do business with. Much though Rudee would like to think it’s because he’s a world-famous celebrity, it’s actually a custom within the business community, because the Chinese like to know and remember who they are trading with. Still, we have it on good authority that Rudee perfected his pose and made sure they all got his good side!

We’re looking forward to a return visit to Hong Kong or mainland China on business next year, and also to attending the 2009 WCA conference which is taking place in Thailand in February. If you’d like to meet up with Rudee on either trip, please let us know by emailing rudeeb@customsclearanceuk.com, and we can make the connection.

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Q&A - Everything you wanted to know about importing, but were afraid to ask!

Each issue, we answer in brief one or two of your more specific customs and importation questions.

Q: If I am importing children’s clothing valued at over £18.00 but there is no duty and VAT to pay, do I still need to declare my consignment to HMRC by submitting a customs entry declaration?

A: Yes indeed you do! It’s not necessarily straightforward, so please contact us for a detailed discussion on your specific situation.

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A Word on CANCERactive

Earlier this year we were invited to an excellent Formula 1 event at Silverstone courtesy of mail distribution company, Keymail UK (www.keymailuk.com). Whilst there, we met one of Keymail’s customers, CANCERactive, and we’ve offered them a little space in our newsletter to spread the word on their important work:

CANCERactive is a national charity dedicated to supporting cancer sufferers and their families in a unique way. CANCERactive gathers all the very latest research about cancer found in medical journals, reports and on websites around the world and translates it into easy-to-read information. The overall aim is to empower people to combat cancer by providing them with the tools to make more informed choices about cancer, whether through treatment or prevention.

CANCERactive brings a truly holistic view covering both orthodox and complementary approaches; pointing out objectively, using research evidence, the good and bad aspects of each. All of this is presented on its web site at www.canceractive.com, through its magazine “icon” which is provided free of charge in hospitals and cancer centres, and through periodic e-newsletters.

As an entirely independent organisation, CANCERactive brings an unbiased view, free of vested interest. But independence comes at a price and as a result, CANCERactive is actively seeking personal and business supporters who can sponsor parts of their operation.

If you think you might be able to support this important work, take a look at the web site, then contact Nick Streeter on telephone 01296 712142 or e-mail orders@canceractive.com.

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Coffee Break Story: Not in the Mood for Work!

Here’s another of our ‘coffee break’ stories for your time-out time. Enjoy!

Typical, just as I’m about to go on holiday I get presented with a file that had “PROBLEM” written all over it. It was the type of problem you’d rather delegate to somebody else but somehow you knew you wouldn’t get the best result unless you did it yourself. Giving it to somebody else would only mean so much checking up and sorting out and delivering constructive criticism that you might as well do it yourself anyway and save the hassle of upsetting somebody else or even worse putting somebody’s nose out of joint. Don’t get me wrong, I’m no perfectionist or control freak or anything like that but I like certain things done a particular way. Anyway, to cut a long story short I packed the file in my hand luggage. The flight was about 8 hours long anyway, so I had time to spare with little else to do - or so I thought.

Anyway, there’s three of us sat at the back of the plane near the toilets and a noisy bunch of teenagers, getting right up my nose. The first thing I do is pull this problem file out, find the music that takes my mood on the old iPod and get a little comfortable. But I cant do it, I just cant concentrate; I’m reading but nothing registers. “Knock, Knock” – the lights are on but nobody’s home… I’m just not in the mood – after all, I am supposed to be on holiday!. Okay, no worries, I’ll get back to it later; After all, I’ve got 8 hours to go…

I must have been really exhausted as I drifted off, only to be woken by one of those ever so friendly “Trolley Dollies” whisking efficiently up and down the aisle serving food and beverages. My daughter was fidgety, wanting to use the toilet or dropping the games from her DS all over the floor and insisting that I find them for her because she couldn’t reach them under the seats in front whilst strapped into her own seat. She sweetly reminded me of the announcement “keep your seat belt fastened whilst you are seated”, but I had to undo mine anyway to rescue her games and it actually would have been easier for her to do it, with all the room they give you in aircraft seats these days. It seemed like we’d been flying for ages but it turned out only 45 minutes had passed. Just a little fidgety myself (so my wife observed…) I decided once again to attempt to do some work, but that only led to her giving me one of those killer ‘dirty looks’ we husbands have all seen once or twice, before commenting that we were supposed to be on holiday and you must relax a little and cant it wait until you get back? To be honest, it was a fair point, plus I really wasn’t quite in the mood. But I thought I’d wait for her to fall asleep then have one more go at the file.

She never did fall asleep but instead had me playing interactive games and watching a nice selection of really quite decent movies over the in-flight entertainment. I even managed to finish the book I’d started reading on last year’s holiday, so I was feeling kinda proud of myself, but I still couldn’t get any work done. I picked up the file, flicked through the papers, and put it down again. It was more than I could focus on right then. So I made an ‘executive decision’ to give myself a break and put it all on ‘pause’ until my head was straight. Maybe once I’d adjusted to being on holiday, got a bit more relaxed, laid back, chilled; maybe after a few rum punches I’d be ready. Maybe. But all the time, there was this niggling little feeling – I knew if I didn’t get the work done I was up for getting my ass kicked when I got back and most likely would blow my opportunity for promotion. I was just a little worried this tricky job was on the way to spoiling my holiday.

So I’m at the pool side reading the newspaper (no, not the file) and watching my little girl in the kiddies area. As you do, you get talking to the other parents about nothing very much really, just a little general chit chat and sporting banter. I got dragged into a conversation about the price of oil and fuel surcharging worldwide which evolved into a massacre of the stock exchange, a doom-laden diatribe on the cost of living, oh, and how the government is ripping us off and talking up “The Credit Crunch” rather than actually doing something about it. One guy seemed to be making some very good sense, a lot of sense actually, so when the other guy had to leave to get some lunch with his family, we carried on the conversation and then I asked him out of interest, what job he did for a living?

I could have kissed him when he told me that he was a customs broker. Christmas had come early as this guy was very knowledgeable about the changes in the rules and regulations of H.M. Revenue & Customs. When I told him my dilemma and that I had a deadline presentation to write for the entire organisation across the UK, he told me not to worry and over a few drinks gave me the answers to all my questions. The documentation that I had brought with me in that “PROBLEM” folder was all too complicated, open ended and just a little ambiguous – but being in the business, he understood it perfectly, and what’s more, he found a way to explain it to me that made me understand it too!

Look, I’m only sharing this story with you because I do believe it will do you, your colleagues and your organisation some good to get in contact with www.customsclearanceuk.com and see how they may be able to help you. Customs regulations are complicated and it’s easy to misunderstand, or miss some important detail. These guys will help you avoid the pitfalls – and they might even help you enjoy your holiday too!

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