VFR02600 - Importations and withdrawals from warehouse: contractors - supplies of goods and services to the US Government

General
Importations
Goods procured within the UK

General

The US visiting forces are entitled to receive relief from VAT and duty on goods for their official use while stationed in the United Kingdom. The relief is granted under the terms of an Exchange of Notes between the UK and US Governments dated March 1952.

Under this agreement the US force will contract with UK companies and include within the body of the contract a clause that refers to a policy agreement titled PRIV 46/7. This clause allows the supply of goods and services to be zero-rated for VAT purposes on condition that the supplier evidences receipt of the goods or services by the contracting body and that the supplies or services are being purchased for official purposes only.

Importations

UK companies who import goods in furtherance of contracts with the US visiting force must initially import goods in the normal manner paying any duty that may be liable.

When the contract is completed, the UK supplier should submit a written claim for repayment of duty to the local base control officer, enclosing a copy of the import entry(s) and Form C285. The contract should be verified by the local officer to ensure its eligibility and completion. After verification, the C285 should be submitted to the National Duty Repayment Centre for repayment.

Goods procured within the UK

Goods procured within the UK by the US contracting division for export, either commercially or by military transport, should not be supplied under the PRIV 46/7 clause. Normal export conditions apply. Contractors are required to lodge C88 export declarations for statistical purposes and certificates of shipment are required to evidence entitlement to zero-rate supplies. The same procedure is required for delivery of CAP goods to entitled destinations. This also applies to goods being sent to entitled destinations in other member states.