UK company selling goods in Cameroon to Burkina Faso

Question posted by Steve Truman, on behalf of Truman Accounts in Ha8 6qd

A company registered in England and Wales proposes to purchase goods in Cameroon and sell then to purchasers in Burkina Faso. The goods will be transported directly, without entering the UK.

Are there any UK export or VAT regulations that need compliance?

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There are many factors when dealing with both Cameroon and Burkina Faso, in the sense that one applies the Economic and Monetary Community of Central Africa (Cameroon) and the other one applies the West African Economic Union (Burkina Faso). They are both based on CIF Cost Insurance and Freight. From January 2013 there is an INTRASTAT Notice 60 on the UK Trade Info Website. http://www.globaltenders.com/government-tenders/ Also Notice 550 Tariff Preferences. Notice 826 covers Tariff preparedness (August 2013) -ACP (MAR) for Botswana, Burundi, Cameroon etc.. Notice 252 that covers both Burkina Faso and Cameroon. GSP rules of origin Notice 830 (Burkina Faso), as well as a DT 4202 customs info paper (09) 37 (PDF 16K) HM Revenue.

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The Library at the ICAEW has information email library@icaew.com or call 0207 920 8620/fax 0207 9208621. They will explain the Tax Treaties and whether there is a Double Taxation Treaty. http://focusafrica.gov.in/trade_agreements_africa fro your perusal.
For compliance as far as I remember for Cameroon the Economic and Monetary Community of Central Africa's Common External Tariff Available from IZF (French only), at Cameroon and the WTO look for "Get Tariff Data" applied on CIF . There is an 18.7% Value Added Tax on CIF and duty. An Excise Tax (indirect on consumption goods) of 25% on CIF and may also apply for specific categories of goods defined by ministerial ordinance.

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The Burkina Faso Tariff applies to the West African Economic and Monetary Union's Common External Tariff available from IZF (French Only) or the Cotecna Tariff Book. http://www.cotecna.co.uk/en/tools/tariff%20 (These need the correct HS Code and Descriptions related to the Burkina Faso Datasheet (192.56 KB pdf) ). Duty applied on CIF.
Value Added Tax is 18% 1% Statistical Tax, 1% Community Solidarity Levy. (Agricultural Industrial, Agro-Industrial Livestock Breeding, and the fishing industry products may be subjected to 2.5 % to 10% additional taxes. All taxes are applied on CIF). There are also Tariff Preference - New GSP Rules of Origin GSP 2.2/2.3/2.4.

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The Regional Coordinator for West Africa is based at UKTI Cameroon Frank.Hagan-Brown@ fco.gov.uk, and the Africa Market Contact for Burkina Faso is Mushtaq Bux mushtaq.bux@ukti.gsi.gov.uk telephone 0207 215 8446. Also HE Global heglobal.international.ac.uk>Home>Country Profiles>Africa. For Cameroon the Standard Value Added Tax (La Taxe sur la Valeur Ajoutee - TVA) rate in Cameroon is 17.5% basic tax rate plus 10% surcharge. Exports are Zero VAT rated. An Excise Duty to the rate of 25% is applicable to the cigarettes, drinks, cosmetics or products known as of luxury: Jewels, precious stones. Taxable transactions - VAT is levied on the supply of goods; the

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provision of services: the import of goods; real estate activities, construction and delivery of buildings by real estate professionals; the sale of second hand goods and equipment by professionals transfer of non-exempt assets; and the leasing of underdeveloped land and
unfurnished premises by real estate professionals. Rates - The effective standard VAT rate is
19.25% (i.e a 17.5% VAT and 10%Surcharge). Exports are zero rated. Certain essential goods are exempt. Registration - all corporate businesses with taxable turnover are required to register. Individuals must register if their turnover is over XAF 15 million. Non resident VAT payers are required to appoint a representative to be jointly responsible for the payment

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of VAT and the discharge of other VAT obligations. Filing and payment VAT returns, and any TAX payable, are due by the 15th of every month. Late payment incurs interest payments of
1.5% per month, up to 50% of the principal liability. Fines are levied for various omissions in discharging VAT obligations. Source of Tax Law: The Universal Declaration of Human Rights, the Constitution of Cameroon, International Treaties, the Tax Conventions for the avoidance of double Taxation, the laws and regulations relating to Tax - notably the General Tax Code.
Burkina Faso Value Added Tax is 18%. Companies pay a Tax on Profits, a Forfeit Tax, and Taxes on income from debt and investments.

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There are also a number of Real Estate Taxes, Sales and transaction Taxes are shared by most of the population. Indirect Taxes, include Customs Duties and License Fees. There are
Consumption Taxes on specified items, such as Petroleum products and Tobacco and Local Taxes on Motor Vehicles. Tax on Dividends at 12.5% Social Security Contributions 16% Payroll and Apprentice Tax 4% Property Transfer Tax 10% Mortmain Property Tax 10% Tax on Insurance Contracts 20%.

Rosa

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

A transaction such as you describe is not subject to UK Customs export regulations.

It is treated as taking place outside the UK and is therefore outside the scope of UK VAT.

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

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Fren Leo, on behalf of Trade Reader in United States.

I think u can have some guidance from here:
http://www.tradereader.com/
I hope this will help u..
Thanks Steve. :)

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