What is required to ensure no VAT or Duty will be applicable when a UAE company is buying from turkey delivering to EU destinations

Question

We are manufacturing goods in turkey to be delivered to various locations across the EU. We are getting conflicting information with regards to VAT/Duty from our suppliers. Could somebody confirm what is required to ensure no VAT or Duty will be applicable.

Answer

Hi Joe,
Goods moving to Europe Directly from Turkey or from Europe Directly to Turkey
that are in Free Circulation – it may be possible to use ATR movement certificate
for Industrial products.
These goods are covered by the Customs Union between the EU and Turkey and they can normally qualify for preference if they:

(a) originate in, or
(b) are in free circulation in either the Union or Turkey.
ATR Movement Certificate can be used to obtain the free rate of duty.
Goods must be in Free Circulation.
Goods must be directly transported.

For Full conditions you must read:
Customs Notice 812: European Community Preferences – Trade with Turkey
available on https://www.gov.uk/government/publications/notice-812

For your situation the ATR may not be possible as the buyer is a UAE company, they may need to have a European or UK registered addresses, I suggest you check with HMRC. Currently I believe there is no Free Trade Agreement between the EC and UAE.

Kind regards

Brigid Hodgkinson
International Trade Manager
Northamptonshire Chamber of Commerce

Answer

Dear Joe.

We can advise that you would be only able to import from Turkey with a suppliers ATR Movement certificate which would allow you to import Duty Free but VAT is generally applicable normally on items imported. However, if you have the description I will check if your items are subject to VAT in the EU.

Also the regulations on ATR are only applicable to EU members & VAT / Duty will be payable in the local member state by the customer there that you have against the invoice you supply them.

So long as the supplier in Turkey can meet the origin criteria for ATR it does not matter that the invoice is issued in UAE to you.

Hope of assistance & give our regards to Clive Peele too as been a while since we heard from him.

Regards
Peter Brialey
STI Global Logistics Ltd.

Answer

Dear Mr. Skinner

International trade under preference allows you to import and/or export goods at a lower or nil rate of customs duty and/or levy charge. The rate of duty payable depends on the type of goods, whether you’re importing or exporting, where the goods are deemed to have come from – the ‘originating’ country – and their destination. The preference agreements that apply in the UK are applicable across the EU. Customs authorities in the destination country require documentation to allow entry of goods imported using preferences.

Information regarding the requirements for the importation or exportation of goods to obtain preferential treatment for trade with Turkey can be found in Notice 812 Notice 812: European community preferences – trade with Turkey

All notices can be viewed on the GOV.UK website at www.gov.uk by typing ‘Notice 812’ in the search box and selecting the following links from the search results: > Notice 812: European community preferences – trade with Turkey

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

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