Customs Information

Letters Of Credit

An irrevocable letter of credit, confirmed on a UK bank is the safest way to guarantee the payment of your goods by what may be a one off overseas client. They can also be used to pay overseas supplies ensuring that you receive your goods prior to releasing a substantial amount of money.

If a letter of credit is to be used it is very important that your client is given a full copy of the terms of the letter of credit. If these are not followed, to the letter, you or your supplier could be heading for trouble.

In drawing up the letter of credit think carefully about the routing, payment terms whether it be on receipt of the goods at your premises, 30 days after receipt of the goods or on arrival at the port.

The bank will retain the funds until the terms of the letter of credit have been fulfilled. If any of the documentation is wrong, you do not have delivery receipts or the consignment is delayed you may well have problems in obtaining your money.

Talk to your bank about letters of credit or call FFM Humbair. Our advice is free and we can ensure that everything will run smoothly thus ensuring youreceive your goods or your money ….

Temporary Imports

Consignments being imported into the UK on a temporary basis can be entered free of duty and VAT.

If the goods are being brought into the country for repair and return the procedure is very simple. The goods will remain under customs control and when exported H.M. Customs must be notified at the port of export by using a special declaration.

If the value of the goods will increase then the procedure is slightly different and you will have to pay duty and VAT.

If you are unsure whether they will remain in the UK or not or you do not know how long they will remain then any duty/VAT can be paid on deposit. You will then have two years to re-export the goods and receive a full refund. You must notify H.M. Customs at the port of departure by using a special declaration and then the duty is refunded to you. After two years no refund will be payable.

Check with FFM Humbair if you have or expect to have temporary imports

Temporary Exports

Where goods are to be exported to a country on a temporary basis, most countries operate schemes whereby taxes can be paid on deposit pending the subsequent re-exportation. However many countries can take many weeks, if not months, to refund any money.

In many countries the consignee has to pay any import taxes so ensure that this is agreed beforehand. If you are paying then ensure the money is available quickly and that your consignee will assist as they will probably have to be shown as the importer.

It is important that paperwork is completed correctly when exported otherwise delays may be experienced clearing customs on return to the UK. The export paperwork must match exactly with the import paperwork otherwise duties will have to be paid on return into the UK. If you do not have or cannot provide evidence of export which must be by a waybill/bill of lading and/or invoice then you will have to pay full duty and VAT.

An alternative and quicker method is to obtain a Carnet prior to export. The benefits of a carnet are quick and easy clearance but this does come at a cost.
A Carnet is issued by the Chamber of Commerce and you will have to pay a deposit based on the value of the goods—this deposit could be up to 50% of the value.
However provided the carnet is presented correctly to the relevant customs authorities you will normally receive the deposit back within a matter of weeks.

It is very important that the carnet is present to all the customs authorities on the prescribed route.

A voucher for each border crossing is attached to the carnet and every voucher must be stamped by the relevant authority. If it is not stamped you will almost certainly loose your deposit.

Carnets can be used to many countries and are ideally suited for exhibitions and professional tools on short trips overseas.

One very important point with carnets is that the packing list must detail EVERY item being exported and EVERY item must accompany the carnet. At every customs border the carnet list must match the contents of the vehicle/crate.

FFM Humbair can prepare and obtain authentication of the carnet. On return to the UK we can also arrange for the carnet to be discharged and the bond returned. Contact us for free advice on any matter relating to temporary exports.

ATA Carnets can be issued to the following countries:-
Algeria, Andorra, Australia, Bulgaria, Canada, China, Cote d’Ivoire, Croatia, Cyprus, Czech Republic, Estonia, Gibralter, Hong Kong, Hungary, Iceland, India, Israel, Japan, Korea, Lebanon, Macedonia, Malaysia, Malta, Mauritius, Morocco, New Zealand, Norway, Poland, Romania, Senegal, Singapore, Slovakia, Slovenia, South Africa, Sri Lanka, Switzerland, Thailand, Tunisia., Turkey, U.S.A.

Correct at time of printing and subject to change. Check with FFM Humbair for the latest information.