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Customs Hold Up TIR Carnets For Tax

1st October 1965, Page 38
1st October 1965
Page 38
Page 38, 1st October 1965 — Customs Hold Up TIR Carnets For Tax
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Which of the following most accurately describes the problem?

BY NORMAN H. TILSLEY

IF they gave away weekly prizes for the 1 best performance in red tape procedure, I am sure this week's prize would go to HM Customs and Excise. For, during a week in which Lord Rhodes, opening the Export Services Exhibition, stressed the need for Britain to increase her exports by more than 5 per cent, and following closely behind Mr. George Brown's National Plan—which stressed the need for faster handling in the movement of exports and the setting up of a committee to bring this about—a ridiculous situation appears to have risen over TIR carnets arriving here by air from the IRU at Geneva.

Carnets in respect of 200-plus vehicles addressed to the RHA and the TRTA apparently arrived at London Airport on September 15. But Customs refused to part with them until a 25 per cent purchase tax and a 10 per cent temporary import tax had been paid—despite the fact that for several years carnets have been allowed through without tax and that Article 30 of the TIR Convention (to which this country's Customs' authorities were signatories) asks that duties should be waived on these documents.

Naturally, both the RHA and the TRTA were vitally concerned about this situation and immediately contacted Customs and Excise headquarters in London. Eventually after a lot of explanations the forms went through.

According to Mr. R. H. Insoll, executive secretary of the RHA. some vehicles with export loads were actually held up because of this, while a spokesman for the TRTA intimated that a strong protest would be made to the Ministry of Transport about the matter.

Upon inquiring at Customs and

Excise HQ in London, I was informed that, to some extent, "everybody had been under a misunderstanding ". And this indeed appears to be the case. The Officer at London Airport, I was told, had acted quite properly and there was no question about the fact that the taxes were chargeable. Up to now such documents had been allowed in under the 'simplified entry" procedure, where goods which are deemed to be of no commercial value can be imported free of tax. This was the wrong method, a Customs official told me. In the particular case mentioned an invoice was called for, but it was not produced until September 23 when a proper entry was made.

It was pointed out that a Treasury direction should be requested, and where it could be shown that the documents were of vital importance, such a direction would normally be given. Until such a direction is received by the Customs, they have no right to part with the goods without the appropriate tax.

I understand that the situation now is that the authorities are reviewing the whole question of TIR carnets—in particular whether Treasury direction should be applied for each consignment, or whether some sort of blanket direction can be allowed, and a decision will be given as soon as possible. Meanwhile, 1 am told that a further three parcels of documents have been allowed through without tax.

Whoever is at fault here—and both sides seem partially to blame--let us hope that Mr. Brown's new committee will simplify this ridiculous system, which could be the cause of export loads leaving the country by road being held up because of—let's face it—red tape.


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