Specific rules relating to Outward Processing: risk - exporting or importing gold and jewellery
Exporting/importing gold and jewellery
Gold/jewellery should be sent to an assay office prior to export in order to identify the carat and quantity of gold being exported. At re-import when the gold has been made into jewellery documentation from the jewellery manufacturer should be made available showing that this gold has been made into the jewellery being imported.
Duty will only be paid on the processing costs as all duties must have been paid on the goods prior to export (that is, they must be Union goods).
OP authorisation holders should ensure that:
- the description of the manufactured jewellery is sufficiently detailed to identify the items presented for re-import
- the trader holds documentary evidence that the same carat and weight of gold has been processed into the finished jewellery
- the cost of any stones have been added to the value/processing costs as they are non-EU goods.
The importation of jewellery produced from gold exported under Outward Processing (OP) poses specific risks areas which supervising offices should consider as follows:
- The description of the manufactured jewellery is not sufficiently detailed to identify the items presented for re-import.
- Is there documentary evidence that the same carat and weight of gold has been processed into the finished jewellery? (We cannot expect it to be the trader’s original gold as a collection of scrap gold is amassed by the manufacturer and smelted all together so we can only check that the weight and carat is the same as that exported.)
- Has any further gold been added to the original weight? (Sometimes the original amount exported has not proved sufficient for the process and more is added. VAT is due on this extra gold as a new import.)
- Has the description of any stones included been listed including their carat, type and value?
- Are we able to calculate the weight of the jewellery and deduct that from the weight of the gold to ensure the correct amount of gold is returning?
- Has the cost of the stones been added to the value/processing costs as non-EU goods?
- Is the valuation correct? The value of the goods imported is often under-declared. The excuse being that jewellery here is valued a lot higher than the country of manufacture. A valuation should be obtained where this is suspected.