Express vat bond
Page 10
If you've noticed an error in this article please click here to report it so we can fix it.
AT LEAST three international parcels carriers have lodged bonds with HM Customs and Excise to help their customers cope with the point-of-entry vat system which is being introduced in November.
Elan, which has 23 depots in up on the first trading day of the UK, Ireland, the Nethereach month.
lands, Belgium and Luxembourg, TNT-Ipec and Roadline have lodged the bonds so that companies which have either been unsuccessful in obtaining their own bonds or have decided not to try can still expect reasonably fast imports.
Elan describes its bond as a "multi-million dollar" one and claims it is the first express carrier to lodge one of that size. It means that all goods carried by the company will be released immediately, with Elan paying vat on goods carried for companies which are not approved for deferment of vat. Elan will recover the vat either by direct debit or by cash on delivery.
TNT-Ipec has taken out a £5m bond which customers may use by prior arrangement with the company, provided the customer has been cleared by TNTlpec's vetting arrangements.
It is advising its customers that they should make their own deferment applications, but has three other options available to customers.
One is to place a deposit with TNT-Ipec of twice the commercial value of goods being imported. This must be topped Another is for TNT-Ipec to inform the importer up to 12 hours before the goods are imported and for a cheque for the vat to be forwarded either to the headquarters at Northampton or the nearest depot.
The third, and least attractive to TNT-lpec, is for the carrier to hold the goods until a banker's draft is forwarded.
Roadline is telling its European Express customers to use either its deferred payment system or their own, if they have one.
• The Freight Transport Association has pointed out that, contrary to some misconceptions, goods subject only to vat are not eligible for customs warehousing; only goods subject to Customs/excise duty may be.
Vat payment may be suspended on non-dutiable goods at the six British freeports.
• The FTA is holding a further seminar on the point-of-entry vat system at the London International Hotel on September 13. Details are available by phoning 0892 26171.