Union Customs Code ― customs debt ― obtaining a refund or waiver

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Union Customs Code ― customs debt ― obtaining a refund or waiver
  • When can customs duty be repaid or waived?
  • Rejected imports
  • Applying for a refund / waiver
  • Cases dealt with by the EU Commission

Under the Union Customs Code (UCC), HMRC has the ability to repay or waive a customs debt in certain circumstances. This guidance note provides an overview of HMRC’s view of how the new refund / waiver procedure operates. Please note that this procedure does not cover import VAT repayments or repayments / waiver of excise duty.

These new rules replace the provisions outlined in the Rejected imports guidance note.

  • duties have been paid that were not legally due (eg an overpayment) (UCC , Article 117)
  • the imported goods have been rejected by the importer because they’re damaged or defective, or not in accordance with contract at the time of release (UCC , Article 118)
  • the debt results from an error made by the customs authorities that the business could not have identified and the business acted in good faith (UCC , Article 119)
  • the debt results from circumstances that have put the business in an exceptional situation compared to other operators in the same business and there is no obvious deception or negligence on behalf of the business (UCC , Article 120)
  • duties have been paid but the customs declaration is invalidated by HMRC at the importers request (UCC , Article 174)

More on Union Customs Code: