Value Added Tax (Temporarily Imported Goods) Relief Order 1986
| Jurisdiction | UK Non-devolved |
| Citation | SI 1989/1986 |
1986No. 1989
VALUE ADDED TAX
The Value Added Tax (Temporarily Imported Goods) Relief Order 1986
21st1986November
2nd1986November
1st1987January
Whereas it appears expedient to the Treasury that the relief from value added tax provided by this Order should be allowed with a view to conforming with certain of the provisions of Council Directive No. 85/362/EEC( a), determining the scope of Article 14(1)(c) of Council Directive No. 77/388/EEC( b) as regards exemption from value added tax on the temporary importation of goods which qualify for exemption from customs duties, or which would so qualify if they were imported from outside the Community, and with a view to implementing the provisions of Article 16(1)(D) of Council Directive No. 77/388/EEC:
Now, therefore, the Treasury, by virtue of the powers conferred on them by sections 3(3)(c), 19(1) and (1A) and 45(1) and (2) of the Value Added Tax Act 1983( c) and of all other powers enabling them in that behalf, hereby make the following Order:
Citation and Commencement
1. This Order may be cited as the Value Added Tax (Temporarily Imported Goods) Relief Order 1986 and shall come into operation on 1st January 1987.
Interpretation
2. In this Order:--
"approved" means approved by the Secretary of State;
"Community" means the European Economic Community;
"member State" means a member of the Community;
"personal effects" means any clothing and other new or used articles intended for the personal use of the traveller;
(a) OJ No L192, 24.7.85, p. 20.
(b) OJ No L145, 13.6.77, p. 1.
(c) 1983 c. 55; section 19(1A) was inserted by section 13 of the Finance Act 1986 (c. 41).
"personal luggage" has the same meaning as in Council Directive No. 69/169/EEC( a);
the "principal Act" means the Value Added Tax Act 1983;
"proper officer" means the person appointed or authorised by the Commissioners to act in respect of any matter in the course of his duties;
"transferee" has the meaning ascribed to it in section 19(1A) of the principal Act.
Revocation and savings
3.--(1) The Value Added Tax (Temporarily Imported Goods) Relief Order 1985( b) is hereby revoked.
(2) Where any document used or required for the purpose of the tax refers to a provision of the Order revoked by this Order, such reference shall, unless the contrary intention appears, be construed as referring to the corresponding provision of this Order.
Application
4.--(1) This Order shall apply without prejudice to temporary importation relief afforded under or by virtue of any other enactment.
(2) Nothing in this Order shall be construed as authorising a person to import any thing in contravention of any prohibition or restriction for the time being in force with respect thereto under or by virtue of any enactment.
(3) Means of transport, pallets and containers are excluded from relief afforded by this Order.
(4) Personal effects which travellers are carrying on their person or in their personal luggage for the duration of their stay in the United Kingdom are excluded from relief afforded by this Order.
Relief for goods imported from another member State
5.--(1) Subject to the provisions of this Order and to such conditions as the Commissioners may impose, where goods are imported from another member State into the United Kingdom with a view to their re-exportation therefrom tax chargeable on the importation shall not be payable, if the Commissioners are satisfied that the goods--
(a) are intended to be re-exported without alteration;
(b) satisfy the conditions laid down in Articles 9 and 10 of the EEC Treaty or, in the case of goods falling under the Treaty establishing the European Coal and Steel Community, are in free circulation:
(c) have been acquired subject to the rules governing the application of value added tax in the member State of exportation, and have not
(a) OJ No L133, 4.6.69, p. 6.
(b) S.I. 1985/1646.
benefited, by virtue of their exportation, from any relief from payment of value added tax;
(d) are the property of a person established outside the United Kingdom; and
(e) are not consumable goods.
(2) The relief afforded by paragraph (1) shall continue to apply provided that upon re-exportation from the United Kingdom the goods are unaltered.
6.--(1) Subject to the provisions of this Order, where goods are imported from another member State into the United Kingdom with a view to their re-exportation therefrom but do not qualify for relief under article 5, tax chargeable on the importation shall not be payable if, had they been imported into the United Kingdom from a country outside the Community, relief would have been granted under the provisions of article 7.
(2) Notwithstanding the provisions of paragraph (1) no relief shall be afforded where--
(a) the goods meet the conditions laid down in Articles 9 and 10 of the EEC Treaty;
(b) the goods were not acquired pursuant to the rules governing the application of value added tax in the member State of exportation or, by virtue of being exported, benefited from relief from value added tax; and
(c) the importer is not a taxable person or is a taxable person not entitled to deduct input tax in full.
Relief for goods imported from outside the Community
7. Subject to the provisions of this Order, where goods are imported from a country outside the Community into the United Kingdom with a view to their re-exportation therefrom, tax chargeable on the importation shall not be payable where the goods are of a description specified in Schedule 1 to this Order.
Goods for possible sale
8. Subject to the provisions of this Order, notwithstanding that goods are not intended to remain temporarily in the United Kingdom and to be re-exported therefrom, tax chargeable on the importation shall not be payable where the goods are of a description specified in Schedule 2 to this Order.
Transfer of goods
9.--(1) A person proposing to take a transfer of goods which have been imported with the benefit of relief under this Order may apply to the Commissioners for a direction that section 19(1A) of the principal Act shall apply;
(2) Where the Commissioners so direct, the provisions of this Order shall subject to article 12 and to any conditions which they may impose, have effectas if, on the date of the transfer, the goods were exported by the original importer and imported by the transferee.
Security
10.--(1) As a condition of granting relief the Commissioners may require the deposit of such sum of money or other security as may appear necessary to them; except that no security shall be required for goods covered by the procedure provided for in Council Regulation (EEC) No.3/84( a), or for goods within Annex 1 to Commission Regulation (EEC) No.1751/84( b).
(2) The amount of the security referred to in paragraph (1) shall not exceed the amount of tax chargeable on the importation.
(3) Where goods are imported temporarily into the United Kingdom from another member State the importer shall have the right to elect whether the security referred to in paragraph (1) is given by way of cash deposit or other guarantee.
(4) Where the Commissioners think it necessary they may refuse the security offered and may require alternative satisfactory security to be given.
Production of goods and records
11. The importer or other person having charge of the goods, including any transferee of the goods, shall--
(a) produce the goods for inspection by the proper officer if so required;
(b) keep such records relating to the goods as the proper officer may require; and
(c) on demand produce those records to the proper officer and furnish him with such information relating to the goods as he may require.
Time Limits
12.-- (1) Save as the Commissioners may otherwise allow and without prejudice to the maximum time limits laid down in Schedules 1 and 2 to this Order, the importer or other person having charge of the goods, including any transferee of the goods, shall re-export them within 24 months of their importation into the United Kingdom.
(2) In relation to goods which have been transferred under article 9, the time limits referred to in paragraph 1 shall be calculated by reference to the date on which the goods were first imported into the United Kingdom with the benefit of relief under this Order.
Treatment of certain transactions
13. Where goods remain eligible for relief and are supplied to a person
(a) OJ No L2, 4.1.84, p. 1.
(b) OJ No L171, 29.6.84, p. 1.
established outside the United Kingdom, that transaction shall be treated as neither a supply of goods nor a supply of services.
Termination of relief
14. Relief shall no longer apply but no tax shall be payable where the goods are--
(a) re-exported from the United Kingdom;
(b) with a view to their subsequent re-exportation from the United Kingdom placed in warehouse, in a free zone or under community transit arrangements; or
(c) destroyed under the Commissioners' authority or are proved to the Commissioners' satisfaction to have been--
(i) totally destroyed; or
(ii) irretrievably lost and incapable of use thereafter.
15. Relief shall no longer apply and tax shall be payable where--
(a) there is a breach of any of the provisions of this Order;
(b) the goods are entered for home use; or
(c) the goods are destroyed under the Commissioners' authority and result in the production of scrap and waste which is declared for home use.
16. Where relief has ceased to apply in circumstances other than those set out in article 14 the tax payable on the goods shall be determined as if the goods had been imported on the date the relief so ceased, provided that where the amount of the tax first relieved is less, such lesser amount shall become payable.
Supplementary provisions
17. Schedules 1 and 2 to this Order shall be interpreted in accordance with the notes therein contained. The titles of Groups in the Schedules are for ease of reference only and shall not affect the interpretation of the descriptions of items within those Groups.
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