What duty do we have to pay when shipping goods to our own stores in the channel islands and what Export terms should they be despatched on. Eg DDP, DAT etc.?

Question posted by Ian Bull

We ship daily to our stores in the channels islands and they ship back to us as well. What are the rules and regulations regarding duty, shipping etc for this?

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Antony Stanbridge, on behalf of Livingston Ltd in TW11.

Hi, I'll make the assumpsion that you office in Channel Islands is a registerd business there and I would sugest DAP rather than DAT (although it might change if I knew more about what your business is and the process you use to export...personally, I would never recommend shipping on a DDP term..and to certain destinations, its impossible to do so anyway as you need a licence and to be registered in the destination itself).
A primary purpose of Incoterms is to set out who is responsible for what and and who pays for what...but when shipping to one of your own offices this becomes less of an important factor, depending on registration and the financial "hub"....goods that are already in free circulation within the EU would normally enter the Channel Islands duty free. So if your office was registered it would most likely be able to reclaim any tax that might be applied to imports. You also mention that you have goods that ship back and forth (are these the same goods...ie you shipped from UK to Channel Islands and then later are shipping back from the Channel Islands to the UK the same item?...if so you might want to look at the kinds of temporary import/export options avlb). Hope this helps.

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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.

Section 14.2 of notice 275 explains the requirements for exporting goods to the Channel Islands

Do I need an Export Declaration if I export to the Channel Islands?
Although the Channel Islands are part of the customs territory of the EU they do not form part of the fiscal territory. This means that under the Value Added Tax Regulations 1995 (SI 1995/2518) export to the Channel Island have to comply with the Customs Code and its Implementing Provisions.
For goods subject to excise or customs controls a NES export declaration is required, and an arrival message must be submitted.
However, for goods in free circulation a simplified (non-statistical) declaration is sufficient .
For goods in free circulation exported on regular ferry routes, a single non-stat declaration for the ferry sailing is adequate for NES purposes.
For maritime exports from certain ports, simplified arrangements may be used, a combined Consignment Note and a Customs Declaration (CNCD),
For exports by air at inventory linked locations a form C21 procedure may be used. - At non-inventory linked sites an airway bill and manifest may be used.

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

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