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Understanding the EU-UK Trade Cooperation Agreement (TCA) for Repaired Goods
Under the EU-UK Trade Cooperation Agreement (TCA), there is a provision, specifically Article GOODS.8: Repaired Goods, that allows businesses to send goods to the EU for repair without needing prior approval for a special customs procedure like Outward Processing Relief (OPR).
However, this provision wasn’t initially available when the TCA came into force in January 2021. This has been amended and the guidance now states that you can export goods for repair, without advanced authorisation, to the EU (or any other country the UK has a trade agreement with, bearing a similar clause covering repaired goods) and re-import with duty and VAT waived.
- Original Requirement: Initially, specific approval under Outward Processing Relief (OPR) was necessary to export goods to the EU for repair.
- Current Situation: As of the updated guidance issued in September 2021, you can now export goods for repair to the EU without requiring advanced authorisation. This change means that businesses can benefit from the TCA’s Article GOODS.8, allowing goods to be sent for repair or “alteration” without the need for prior OPR approval.
- Duty and VAT Considerations:
- If the repair is covered under warranty (i.e., at no cost), duty and VAT will be waived.
- If the repair involves a cost (not under warranty), duty and VAT will be applicable on the repair charges.
Article GOODS.8: Repaired Goods
- A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters the Party’s territory after that good has been temporarily exported from its territory to the territory of the other Party for repair.
- Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in similar status.
- A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair.
Don’t let complex customs procedures slow down your business. Contact us today for a hassle-free export and return process tailored to your needs. Our team of highly experienced customs agents is ready to assist you every step of the way – contact Marie Burrows on 01254 356448 or email cds@chamberelancs.co.uk.
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