Do i need to pay any VAT, Tax or get license?

Question

I recently open a company, so i am quite new for import and export. Could anyone help me on this question please. Big thanks.

My company is a UK company. We want to buy(import) some goods from oversea(Asia) and export straight away from that country to another oversea country(Asia). Do i need to pay any VAT or Tax and do i need to get the import and export license for this?

Answer

Dear Vincent, If I understand your question correctly, you are planning to ship the goods directly from the country where they are supplied, to your client’s destination. If that is the case, then the goods will never actually enter the UK or the European Union, therefore there is no need to pay import duties or VAT in the UK, although the goods may be subject to import duties & taxes when they arrive at their destination, which will usually be paid by your client, depending on what terms of delivery (Incoterms) you are selling the goods on.

Similarly, if the goods are not imported into the UK or EU, you will not need to obtain an import licence in the UK. However, if you are going to be trading in goods which have a military, weapons-related, strategic, high technology, repressive or “dual use” function (ie both commerical / civilian or miitary), you may have to obtain a UK export licence, even if you trade or broker sales of those goods from one non-EU country to another. You can find out more about export licencing & controls for traders & brokers by visiting: https://www.gov.uk/trade-control-licences-for-brokering .

You should also check whether you or your client need an import licence in order to import the goods into the destination country. This could apply even if the goods are not subject to UK or EU export controls.

Answer

Hi Mike

You can bring this product into the country under A temporary Import or IPR status which basically means you wont pay VAT/Duty providing the goods are re exported within 6 Months of arrival. All you need to do is produce to customs a Copy of the Import and export Entry.
For more detail on this you can contact me on the below:

Best Regards
Ian Robery
Business Development Manager
STI Global Logistics Ltd
Unit 1 Lords Court
Cricketers Way
Basildon Essex SS13 1SS
Tel: +44 (0)1268 289653
Mobile: +44 (0)7554 117585
Fax: +44 (0)1268 289649
Email: irobery@stigl.co.uk
Website: www.stigl.co.uk

Answer

Dear Vincent, If I understand your question correctly, you are planning to ship the goods directly from the country where they are supplied, to your client’s destination. If that is the case, then the goods will never actually enter the UK or the European Union, therefore there is no need to pay import duties or VAT in the UK, although the goods may be subject to import duties & taxes when they arrive at their destination, which will usually be paid by your client, depending on what terms of delivery (Incoterms) you are selling the goods on.

Similarly, if the goods are not imported into the UK or EU, you will not need to obtain an import licence in the UK. However, if you are going to be trading in goods which have a military, weapons-related, strategic, high technology, repressive or “dual use” function (ie both commerical / civilian or miitary), you may have to obtain a UK export licence, even if you trade or broker sales of those goods from one non-EU country to another. You can find out more about export licencing & controls for traders & brokers by visiting: https://www.gov.uk/trade-control-licences-for-brokering .

You should also check whether you or your client need an import licence in order to import the goods into the destination country. This could apply even if the goods are not subject to UK or EU export controls.

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