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Food: Supplements

Volume 698: debated on Thursday 7 February 2008

asked Her Majesty's Government:

Further to the Written Answer by Lord Davies of Oldham on 8 January (WA 196), what are the relevant criteria with which imports from the Channel Islands must comply in order to benefit from low value consignment relief. [HL1689]

Goods imported into the United Kingdom from the Channel Islands are generally subject to import VAT in the same way as goods imported from any country outside the European Union.

EC Legislation provides that import VAT is not payable on commercial consignments, for example on goods purchased over the internet, if the total value of the goods in the consignment does not exceed £18. This de minimis limit is set out in Article 22 of Council Directive 88/331/EEC amending Directive 83/181/EEC as regards exemption from value-added tax on the final importation of certain goods.

The legislation states:

Goods of a total value not exceeding 10 ECU shall be exempt on admission. Member states may grant exemption for imported goods of a total value of more than 10 ECU but not exceeding 22 ECU.

The UK choose to exempt goods with a total value up to 22 ECU.

In order to comply with this legislation packets must bear a customs declaration which indicates that the value of the goods is 22 ECU (£18) or less.