Returned Goods Relief
Claiming relief for re-imported UKCS goods into the UK.
If you’re re-importing goods into the UK that were previously exported or transported from the UK, you can claim relief of both customs duties and import VAT, subject to meeting certain conditions. This is known as Returned Goods Relief (RGR).
RGR can be claimed when making an import declaration, whether this is an electronic declaration into Customs Declaration Service (CDS) (simplified or full), or via the new Declaration by Conduct process for UK Continental Shelf (UKCS) goods.
If you’re making declarations on CDS, read about the Additional Procedure Codes (APCs) that need to be entered into CDS when claiming RGR by this route.
Customs Duties
To be eligible to claim relief from customs duties the goods must have been:
- UK domestic goods (for example, either obtained wholly in the UK or if imported, all applicable import charges were paid) when they were exported
- re-imported within 3 years of original export (HMRC can waive this on application in certain circumstances)
- re-imported in an unaltered state, apart from any work that may have been carried out to maintain or restore the goods in working order
Please note, if only a proportion of the original export is returned, this may still be eligible for RGR, provided the normal conditions are met.
RGR is also available for goods that were exported from the UK to the UKCS whilst subject to Authorised Use (AU), assuming the:
- AU procedure was discharged on the UKCS
- goods were used on the UKCS under AU for energy exploration, or the construction, repair, maintenance, etc. of drilling and production platforms
To discharge goods from AU evidence must be supplied that shows that the goods have been used in accordance with the conditions of the authorisation.
This is not an exhaustive list of all the eligibility criteria. Read more information on Returned Goods Relief on import duty and VAT when re-importing goods to the UK.
VAT
Under normal circumstances goods that leave the UK, including those moving to the UKCS, are exports. When goods are exported, they are zero-rated for UK VAT purposes (VAT is not chargeable), but they then cease to be UK goods. As a result, if the goods return to the UK, they would be subject to UK VAT on re-import.
This rule also applies where the ownership, or control of those goods changes whilst they are outside the UK. For example, if goods are taken out of the UK under the ownership of one entity, but whilst ‘exported’ are then sold to another company the ‘ownership’ or ‘control’ of those goods changes and so UK VAT becomes due on these goods when they return to the UK. This is designed to maintain the integrity of the UK VAT system.
However, subject to meeting certain conditions, VAT relief can be claimed on imports, returning from the UKCS.
To be eligible for VAT relief, goods returning to the UK must not have been ‘supplied’ either at the point of export, or whilst they are outside the UK. In this context supply typically means the transfer of ownership of goods for a payment.
In addition, where it can be proven that legal control of the goods is held by the ‘same person or entity’ at the point of export and re-import then the goods should qualify for relief from import VAT under RGR.
Traders who wish to claim a relief, such as RGR, are responsible for ensuring they are certain of their entitlement to the relief and that they retain sufficient evidence to demonstrate eligibility.
All records must be kept for a minimum of 4 years and HMRC will assess evidence on a case-by-case basis. Read more about records that must be kept.
Demonstrating that the goods were previously exported and were in UK free circulation are both necessary to claim RGR.
These requirements can normally be met by providing the Movement Reference Number (MRN) from the original export declaration. However, in cases where this is not available, including when the UKCS Declaration by Conduct is used, HMRC will consider alternative evidence.
If the goods are readily identifiable and duty status is clear, HMRC may accept one or more of the following documents as evidence:
- a document that proves the goods were previously in Great Britain (England, Scotland and Wales), Northern Ireland or the EU (where relief is being claimed in Northern Ireland for goods originally exported from the EU)
- a copy of the export invoice
- a copy of the export manifest, airway bill or bill of lading
- a commercial certificate of shipment prepared at the time of export
- a certificate of posting relating to the export of the goods
- a copy of the import invoice if it clearly shows that the goods are being returned
- a suitable statement from the manufacturer or exporter if other than yourself
- a preferential origin form EUR1 in certain cases
- in the case of collectable items, catalogue information or qualified opinion from a recognised expert in the field such as national institutes and specialist auction houses
- record from the trader’s stock record book
If you’re regularly importing returned goods and presentation of the evidence at the time of import is difficult for you, HMRC may be able to offer alternative arrangements.
To claim VAT relief, evidence must also be held in the records of the importer or exporter, clearly showing the goods were exported and re-imported by the same person or entity.
HMRC currently offer facilitations to traders that claim RGR when re-importing eligible goods from the UKCS. Traders need prior approval from HMRC to use these facilitations and can seek this by contacting the National Import Reliefs Unit (NIRU) at niru@hmrc.gov.uk.
Once approved, the facilitations can be used for all eligible movements for a period of 3 years, after which a trader can reapply for the facilitations to continue. If there are changes during the 3-year period, then you must inform NIRU as soon as possible in case a new approval is required. Misuse of these facilitations may result in revocation of the approval.
There are 4 facilitations:
Waiver of the 3-year rule
Goods must normally be returned within 3 years of their original date of export to be eligible for RGR, however with prior approval this requirement can be waived. The waiver covers all consignments within the 3-year approval period.
The circumstances under which HMRC can consider providing a waiver are specified in legislation, and some that may be relevant to UKCS users are:
- specialised goods or equipment have been on long-term hire or loan outside the UK
- building equipment or machinery have been used in one or more capital projects outside the UK
- personal property of a UK resident is being returned to the UK
This list does not cover them all. Read about more circumstances under which HMRC can consider providing a waiver.
When applying for the waiver you must provide details on which circumstances apply.
HMRC expects that you maintain all necessary documentation related to this wavier and may request it is made available for review.
Use of a single commodity code
This facilitation allows goods returning from the UKCS to be declared using one commodity code for a single consignment. This must be the commodity code with the highest duty rate for any of the goods imported within this single consignment.
Goods that are subject to controls, prohibited and restricted and excise goods cannot be declared using a single commodity code.
This facilitation is only available when submitting a CDS declaration (full or simplified) as commodity codes are not required for the Declaration by Conduct process.
Waiver of the need to present evidence of previous export
This facilitation waives the requirement to present evidence of the previous export at the point of re-importation.
It does not remove the need to hold and store the evidence in your records and HMRC may request it is made available for review.
Waiver of the need to present evidence of the duty status or VAT status of the goods on import
To be eligible for RGR goods must have been UK domestic goods. This means that the goods must either have been obtained in the UK, or if they were imported to the UK, any applicable import duties were paid.
This facilitation waives the requirement to present evidence of the duty or VAT status of the goods when they were exported, at the point of re-importation.
It does not remove the need to hold and store the evidence in your records and HMRC may request it is made available for review.