Fill them in!
Page 5
If you've noticed an error in this article please click here to report it so we can fix it.
HM CUSTOMS and Excise estimates that there are some 60,000 traders in the UK who are regular importers, and the vast majority will be affected by the new rules on settlement of vat which apply from October 1. These changes were a result of the Chancellor's 1984 Budget, according to the Freight Transport Association.
It is understood that up to July 20 only 30,000 traders had applied for deferment forms from HM Customs and Excise. Deferment permits the delaying of vat payments on imports for an average period of one month. Failure to obtain deferment obliges importers to pay vat at the time and place of importation.
Of those 30,000 applications, only some 2,000 have actually returned forms to Customs and Excise for processing. As yet another 30,000 traders would seem not to have applied at all. Unless they apply for deferment by July 31, Customs and Excise will not guarantee that applications will be processed in time for the changes on October 1.
The FTA has considerable fears that importers will not apply in time and that the consequence will be substantial delays at the ports.
The FTA, in conjunction with SITPRO and the British Importers Confederation, have been running seminars to explain the new arrangements.
In an effort to help traders further, the three organisations are now providing an additional seminar to be held in London on September 13.