Dismantling vehicles and export to Asia

Question posted by Victor L, on behalf of Stark Corporation (UK) Ltd in B17

Hi,

I have a few enquiries from Thailand/Malaysia/Burma asking me to dismantle a car and export to them as parts, which is completely new to me. Can someone assist me in this matter please.

Do i need license for certain vehicle parts, such as airbag from the steering wheel, engine, batteries, tyres and etc.

Do these parts needs to be in pallet form or loose while shipping? What is the rate like if ship in a 40" container or in different calculation?

If a VAT Qualifying vehicle being dismantled into parts and exported eventually, is the VAT claimable? What documents do i need?

Many Thanks
Victor

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Dear Victor
So we can calculate freight costs for 40ft Container pse advise collection point.
The car parts should be clean and if being shipped as lcl should be palletised.
You can contact us directly with details on 01263 513127 or email colin.crown@ntlworld.com
Best regards
Colin;
Crown Freight Ltd

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Phill Potter, on behalf of UK Export Finance in SW1A.

Victor
My colleagues within UKTI should be able to give some guidance on most of these topic areas. Suggest you call Mark Sankey in your local team on 07971 198196 who will help.

For VAT enquiries you should talk to your accountant firstly or one who specialises in VAT.

Phill
UK Export FInance

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Nitin Datta, on behalf of Kobalt Notaries Limited in SW10.

Dear Victor

I had seen your question and you will be amazed that many people do this business to Asian countries from UK. Yo can get cheap cars in Uk and get them dismantled and secure parts and send for export.

All VAT is claimable in this matter as all the parts are exported outside of EU, with no intention of bringing them back.

In relation to your freight you will be getting many options from here itself. Usually people just hire a container and send in the goods in the required declared quantity to the country where it is required. It is a bulk business and it just depends on numbers.

In relation to licences you will need a licence to dismantle a vehical in UK and taking the parts as spare parts. In the countries recieving they will need proper licences in position to import such declared parts. Usually they import it as scrap.

If you need any further help in pertaining to this matter , please feel free to contact us.

Regards
Nitin Datta

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HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Information on the Customs requirements for declaring the value of goods for export can be found in Volume 3 part 1 of the Customs Tariff states:

Box 46 – Stats value
The value to be declared is the cost of the goods to the purchaser
abroad (or, if there is no sale, the price the goods would fetch if
sold to a purchaser abroad), It should include packing, inland and
coastal transport in the UK, dock dues, loading charges and all
other costs, profits, charges and expenses (e.g. insurance and
commission) accrued up to the point where the goods are
deposited on board the exporting vessel or aircraft. Outward sea/
air freight and marine/air insurance should be excluded; and any
cash or trade discounts to the purchaser abroad should be
deducted.

Further Information on the Customs requirements for exporting is given in HMRC Public Notice 275. All notices can be found on our website www.hmrc.gov.uk under Quick Links > Library > Official Statistics – Publications – Notices, Info Sheets & Other Reference Materials > Import, Export & International Trade. The Public Notices are in numerical order.

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Information on the Customs requirements for exporting is given in HMRC Public Notice 275. All notices can be found on our website www.hmrc.gov.uk under Quick Links > Library > Official Statistics – Publications – Notices, Info Sheets & Other Reference Materials > Import, Export & International Trade. The Public Notices are in numerical order.

If the car is dismantled then each part will have to be declared separately on the export declaration. And depending on the Commodity Code these items may require an export licence from the Department of Business Innovations and Skills (BIS).

I would also contact the customs authorities in the country of import to ascertain if they have any import restrictions on such items.

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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