UK Waives Import Taxes on Vital Medical Supplies

No Customs Duty or Import VAT

Goods such as ventilators, coronavirus testing kits and protective clothing arriving from outside the EU are no longer subject to customs duty or import VAT. This will reduce red tape to ensure frontline health workers get vital equipment quickly and removes barriers to those who want to donate supplies to the NHS.

NHS suppliers will no longer have to pay customs duty and import VAT, the removal of tariffs on these vital supplies will reduce the import price by up to 12 per cent. 

Goods imported into the UK for donation or onward sale to the NHS are also eligible for this relief and can be imported free of import duty and import VAT. Importers will need to pay import duties and VAT if they loan, hire out or transfer their goods to organisations or individuals not affected by coronavirus outbreak.

International Trade Secretary, Liz Truss said:

We are removing tariffs and barriers on essential medical supplies imported into the UK to ensure our front-line workers have everything they need to treat people suffering from Covid-19.

As I agreed with my G20 trade minister counterparts, we will work together to keep trade flowing and ensure the supply of essential goods and services.

HMRC Explanatory Notes: Vital Medical Supplies

HM Revenue & Customs have published the following explanatory notes:

• Under the current rules, importers require a duty deferment account with HMRC backed by a guarantee. Importers of these critical goods would need to increase the level of their guarantee to cover any additional duty due.
• This new approach, in place until 31 July 2020, will allow companies to import goods critical for our fight against coronavirus at a faster rate and reduce costs significantly.
• The relief can be claimed from HMRC immediately by state organisations, including state bodies, public bodies and other bodies governed by public law who are supplying the NHS. Other approved organisations wanting to supply the NHS can also apply to HMRC.
• HMRC has published new guidance about the import relief on GOV.UK. Only organisations supplying the NHS can utilise this relief.
• All imports will continue to arrive through the same channels and face the same checks as before, so there is minimal chance of fraud. Companies benefiting from the relief also need to first be approved by HMRC.
• The EU’s disaster relief regulation can be used in relation to COVID-19. This allows certain items that are needed to deal with C-19 to be imported free of VAT and customs duties.

If you would like more details, please call +44 (0) 118 932 8447 or email info@icsglobalservices.com

ICS Global Services Limited