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EU Duty Suspension

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A brief overview of how I saved a client £90k in duties by successfully applying for an EU duty suspension. I may be able to help your clients too. My contact details are at the end of the presentation

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EU Duty Suspension

  1. 1. EU Duty Suspension Martin Parry A Case Study
  2. 2. EU Duty Suspension OR… How I saved my client £90,000 p.a 3rd June 2010 Presentation to IIB Midlands 2
  3. 3. EU Duty Suspension What Is The Issue? 5% Duty 3rd June 2010 Presentation to IIB Midlands 3
  4. 4. EU Duty Suspension How Does Duty Suspension Help? Temporary duty suspensions and tariff quotas allow the duty-free importation of raw materials, components and semi-finished products into the EU which cannot be supplied from within. Duty suspensions allow unlimited quantities to be imported into the European Union (EU). Tariff Quotas allow limited quantities to be imported. This system cannot be used simply to import goods for resale. 3rd June 2010 Presentation to IIB Midlands 4
  5. 5. EU Duty Suspension So Who Can Apply? Any business can apply for a duty suspension or tariff quota if the product being importing cannot be sourced - or supplied in sufficient quantity - from within the EU. If the imported product is to be further processed, the level of duty saving must be at least €20,000 per year. Duty suspensions allow unlimited quantities to be imported into the EU. Tariff quotas allow the importation of limited quantities. Once granted, a suspension or quota is available for ANY business in the EU to use - it is not specific to the company which applied. If your product is covered by an existing suspension or quota, you do not need to make a new request. 3rd June 2010 Presentation to IIB Midlands 5
  6. 6. EU Duty Suspension So, How Does That Translate To Reality? 1. My client is a £3m pa importer and distributor of PCB laminate. 2. All “raw” laminate is imported from China 3. There are EU-based manufacturers 4. Client adds value by cutting, drilling and packing 5. Clients in Automotive, Aerospace and Defence Industries 6. Client quality and approval process extremely detailed 3rd June 2010 Presentation to IIB Midlands 6
  7. 7. EU Duty Suspension The Application Process 1. Made sure we had an exact specification of all imported goods 2. Compared them against the Duty Suspension Code List 3. Worked with BIS to identify possible application routes 4. Drafted the Application Form – an iterative process. to help us out on this. 5. Waited for HMRC to respond 6. Answered questions and objections 3rd June 2010 Presentation to IIB Midlands 7
  8. 8. EU Duty Suspension Possible Outcomes 1. Success 5% savings are yours 2. Fail - because 1. There is already a code for your product 2. Non-applicable product 3. Objection from competitor 1. Left to you and the objector to negotiate. 3rd June 2010 Presentation to IIB Midlands 8
  9. 9. EU Duty Suspension Contact Details Martin Parry MGBA Ltd Phone: 01789 765321 Mobile: 07831 566300 Email: martin.parry@mgba.co.uk Web: http://www.mgba.co.uk Blog: http://www.ukba.co.uk/blog http://twitter.com/mgbabusiness http://uk.linkedin.com/in/martinsparry 3rd June 2010 Presentation to IIB Midlands 9

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