How do I handle export returns of faulty goods

Question posted by Sam Crawford, on behalf of CMS Marine in GL2

I have a customer who has a fault on a product we sold them and am arranging to send them a replacement. I am going to ask them to ship the faulty item back to the UK but need to know how I handle this return with regards to UK import duty.

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Sam, as long as you can provide evidence of export for the faulty goods you will not pay duty/VAT on their return.

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Darren Playfoot, on behalf of ROCHARD SHIPPING LTD in KT15.

Dear Sam,

When the goods are being returned have your customer clause the return paperwork, Bill of lading / invoice "Goods of UK origin, being returned to supplier as faulty" when you come to clear the goods on arrival into the UK, you should submit a copy of the original export Bill of Lading / AWB and copy of the export entry that the goods were originally sent out on as proof of the original export. This should allow for the return goods to be entered in to the UK free of Import VAT & Duty. If you want me to assist with the import clearance / shipping the goods back, please do not hesitate to contact me on dplayfoot@rochardshipping.co.uk or 01932 565225.
Trust of assistance
Best regards
Darren

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Sandra Strong, on behalf of Strong and Herd LLP in M22.

Hi - the other responses are correct. The procedure you will be using is Returned Goods Relief (RGR) and you will need to be able to link the original export to the returned items. An alternative would be Inward Processing relief with replacements approved but this won't answer your requirement quickly enough. Ensure you retain the original export paperwork with the import paperwork as this is the type of import HMRC audit.

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Hello,
From your customer's point of view it is also important to consider customs duty/tax. If the export of the faulty item is not handled correctly your customer may have to pay import duty and tax on the import of the replacement item.

The options available will depend on which country they are shipping from.

If you can provide further information I can assist you further.

Regards,
Susan
enquiries@morley-consulting.co.uk
www.morley-consulting.co.uk

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