Question of the month

This is the first in a series of articles of the month where we deal with questions that arise frequently and that cause some issues for traders in the Irish food industry.

This month’s article deals with the issue of reusable containers and from a Customs point of view, what must be done to get the empty containers back from Great Britain to Ireland so as they can be used on the next consignment of Irish food exports.

Importing and exporting reusable packaging to and from Ireland

Guidance from Irish Revenue Commissioners.

Reusable packaging is packaging that is designed to be reused multiple times to protect sensitive items or equipment from damage during transportation.

These items include plastic or metal cages, crates or frames.

Packaging like bubble wrap and cardboard boxes are not included as reusable packaging.

There are 2 options to declare reusable packaging to Revenue for import or export:

1. Option - Oral declaration

• In spite of its name, an oral declaration is in fact a paper-based form - please read on for more details.
• A procedure known as an oral declaration can be used to import or export reusable packaging without payment of import charges and should be filled in for each consignment.
• The oral declaration can be used in the following instances:
  • Import empty packaging – re-export packaging filled
  • Import filled packaging – re-export empty packaging
  • Export empty packaging – re-import filled packaging
  • Export filled packaging – re-import empty packaging.

• In addition to above requirement an importer or their representative must complete a valid PBN to Irish customs before the goods leave GB on the way to Ireland. 
• Similarly, an exporter or their representative must complete a valid PBN to Irish Customs before the goods leave Ireland on the way to GB.

How to create a PBN ID (option 1 – oral declaration used)

Prior to boarding the ferry, the business must:

• email customspbn@revenue.ie and request a PBN ID for the movement of empty packaging by oral declaration
• The request for the PBN ID must include details of the goods being imported
• The email with all relevant information should be sent to customsPBN@revenue.ie

2. Option - Oral Declaration Authorisation

• This type of authorisation is particularly suitable when frequently importing and exporting packaging
• You can apply for an authorisation to import your items without having to present the oral declaration form with each consignment.

How to apply for an oral declaration authorisation

• A form known as an  application form for oral declaration authorisationshould be completed and sent to customsreliefs@revenue.ie. 
• Revenue will review your application and if everything is in order, an authorisation number will be issued.

How to use an oral declaration authorisation

• From 1 January 2021 ferry operators carrying goods between Ireland and Great Britain (GB) must get a Pre-Boarding Notification (PBN) reference number from all truck drivers boarding.

How to create a PBN ID with the oral declaration authorisation

• An importer or their representative must complete a valid PBN to Irish customs before the goods leave GB on the way to Ireland. 
• Similarly, an exporter or their representative must complete a valid PBN to Irish Customs before the goods leave Ireland on the way to GB.
• When creating a PBN you should enter your “oral declaration authorisation number” for empty or return packaging.

Note:

You must keep records of the import or export of the empty packaging and the subsequent re-export or re-import of the filled packaging.

Generally, security is not required when you declare your goods using the oral declaration form or authorisation for oral declaration.

Importing and exporting reusable packaging to and from GB

Guidance from HMRC

Reusable packaging like all goods entering or leaving a jurisdiction requires an import or export declaration. However, when the Returned Goods Relief or temporary admission reliefs are being used for reusable packaging, it is possible to make this declaration by conduct or orally.

What this means is that you can declare reusable packaging by telling a Border Force officer about it.

If you have the authority to import or export reusable packaging for someone else, you also need to identify that person.

HMRC confirmed that no paper declaration or oral declaration will be needed to supplement the by conduct declaration.

Note: Not all locations can allow ‘oral’ or ‘by conduct’ declarations so it is important to check ahead with the location the reusable packaging is moving through if you want to declare it in this way.

Who can make the declaration?

The importer and exporter do not need to own the packaging or the goods contained in them to make the declaration. However, when claiming Returned Goods Relief suspending Import VAT as well, the importer and exporter should be the same person.

Declaring reusable packaging:

Imports

On import, the packaging can be declared for free circulation by conduct or orally to a Border Force officer. Further HMRC guidance is available here.

The goods can also be declared for temporary admission. These goods are intended to be re-exported.

You will not need to pay Customs Duty or import VAT on them. Further HMRC guidance can be found here.

It is possible to declare reusable packaging to free circulation and claim the relief from customs duties and VAT. Further HMRC guidance is available here..

Note - Safety and security declarations (ENS) will not be required until 1 July 2022 on imports into Great Britain from the EU

Exports

If declaring exports of reusable packaging by conduct, it will not normally be necessary to present these for examination. This is unless UK Customs stop you and want to make an inspection.

We would like to draw your attention to a new requirement introduced from 1^st October 2021:

When declaring by conduct, not using a full export customs declaration, safety and security declaration are required for reusable packaging exported from GB by Roll on Roll off (RoRo) vehicles from 1 October 2021!  

Who is responsible for submitting an exit summary declaration?

Carriers, defined as the operator of the active means of transport, have the legal responsibility to make sure the UK customs authority is provided with pre-departure safety and security information.

They will need to submit an exit summary declaration (EXS) when exporting consignments not covered by a full export declaration, which includes safety and security data.

Further HMRC guidance can be found here.

This information is provided on a general basis for information and support purposes.

If you have a specific query in relation to a particular transaction, then professional advice should be secured.