asked Her Majesty's Government:
Further to the Written Answer by Lord Davies of Oldham on 8 January (WA 196), in what way the low value consignment relief scheme for imports from the Channel Islands is monitored; and how they take into account the revenue consequences and impact upon the United Kingdom market if no assessment is made of the import of specific products. [HL1687]
The majority of companies exporting goods from the Channel Islands to the UK apply to use the import VAT accounting scheme. For those goods which have a value over £18, the scheme provides for the VAT to be paid by the consignee at the time the order is placed rather than on delivery. The VAT is paid by each company to the Channel Islands postal authorities, and they, in turn forward this to the UK Exchequer.
Users of the scheme are required to enter monthly accounts to their customs authority, and provide details of the exports, both under and over the £18 de minimis level. This information is used by HMG to monitor the LVCR scheme and to assist in assessing the revenue consequences and impact on the UK market.