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1232 posts
14 years
Glasgow
1. Introduction
In November 2011 it was announced that from 1 April 2012 Low Value Consignment Relief (LVCR) will no longer apply to goods imported to the UK from the Channel Islands.
2. Impact of the Change
The removal of LVCR will mean that from 1 April 2012 all imports into the UK from the Channel Islands will be subject to import VAT irrespective of the customs value of the goods.
3. Action to take from 1 April 2012
Traders importing low value goods from the Channel Islands must now enter them to the appropriate Customs Procedure Code (CPC) to ensure that import VAT is paid on all import consignments.
The Low Value Bulking Import (LVBI) concession will no longer be available for any goods imported from the Channel Islands and the goods must be entered to the appropriate CPC to ensure that import VAT due is paid.
Goods despatched by post will also be liable to VAT and this will be calculated at the Postal Offices of Exchange.
Note that this last paragraph means that goods purchased via websites such as Ebay, Amazon, etc that are despatched from the CI are affected.
Also note that the Channel Islands ARE NOT Member States of the EU.