Guidance

Refunds and waivers on customs debt by HMRC

Find out about repayment and remission of customs duties by HMRC and how to apply.

In certain circumstances HMRC can repay or remit (waive) a customs debt. We can either:

  • repay – refund an amount of import or export duty that’s been paid
  • remit – waive the payment of import or export duty that has not yet been paid

When HMRC can repay or remit duties

Your claim must be more than 10 euros in value (£8.86 in pounds sterling) for each customs declaration (for goods that were imported before the 31 December 2020), and £9 for goods that were imported after the 31 December 2020), and we can repay or remit customs duties when:

  • you paid duties that were not due, for example, an over payment
  • you reject the imported goods because they’re damaged or defective, or do not meet the conditions of their contract
  • the debt results from:
    • an error made by customs authorities that you could not have identified
    • circumstances that put you in an exceptional situation compared to other businesses, is outside of normal commercial risk and not the result of any negligence or deception on your part
  • you pay the duties but you ask us to invalidate the customs declaration, for example on mail order goods

Claims for rejected imports

You can claim repayment or remission on goods imported from outside the UK when:

  • you’ve rejected the goods because at the time of declaring them to a customs procedure they’re:
    • defective
    • damaged before being cleared by customs
    • not compliant with the terms of the contract you imported them under
  • they’re the same goods from the original customs declaration
  • you’ve not used any goods, other than the minimum necessary to establish they were defective or did not comply with the contract
  • you’ve not sold the goods after finding them to be defective, damaged or not compliant with the contract
  • you’ll re-export or destroy the goods

You cannot make a claim if you already knew the goods were damaged or defective when the contract for sale was made.

You must submit form C&E1179 at least 48 hours before the goods are packed for re-export or destruction.

Claims for defective parts

You can claim for repayment of duties where only part of the goods are defective. You must only claim the difference between the duty:

  • charged on the whole of the goods
  • that would have been charged, if it had been imported without the defective parts

You must use the rate of duty that applied at the time of the original customs declaration.

Claims for goods located in an EU member state

For repayment or remission applications for goods that were imported before the 31 December 2020, you can claim for goods that are being rejected and are currently located in an EU member state, as long as you have paid or are liable to pay the import duty.

If you’re holding goods that are being rejected having originally been imported into an EU member state, the original importer can submit a claim.

There are special procedures for dealing with this situation. Contact HMRC for more information.

Claims for Common Agricultural Policy (CAP) goods

If your claim is approved before disposal of the goods that you’ve paid import duty or CAP charges on, the goods are classed as ‘removed from free circulation’.

How to apply

You apply for repayment or remission of import duties using form C285.

You can claim repayment or remission of charges on rejected imports and CAP goods using form C&E1179.

For declarations made by CHIEF or the Customs Declaration Service, you must submit your claim either:

  • 3 years from notification of the debt
  • 3 months from the date the customs entry was accepted
  • 1 year from notification of the debt for rejected imports (C&E1179 claims)

HMRC can extend these time limits if there are exceptional circumstances, for example, a fire or flood has destroyed your records. You can contact HMRC to ask for an extension.

Cases dealt with by the European Commission

For repayment or remission applications for goods that were imported before the 31 December 2020, in certain circumstances, HMRC must refer your case to the European Commission, this happens when there’s a special situation, customs error, and either the debt:

  • exceeds 500,000 euros in value
  • results from an EU investigation

We’ll notify you if we refer your case to the Commission, and we’ll keep you informed.

Complicated cases can take over a year to reach a decision.

Published 28 April 2016
Last updated 31 December 2020 

Guidance

Apply for a voluntary clearance amendment (underpayment) (C2001)

Use this form to tell HMRC about voluntary underpayments arising on import of goods.

Who should claim

Use form C2001 to make a voluntary disclosure of underpayments arising on the import of goods. This will result in a charge (C18) being raised for the extra duty or VAT due.

If you account for import VAT on your VAT Return you should not use form C2001. You can make adjustments on your VAT Return.

What you’ll need

If you use the Customs Handling of Import and Export Freight (CHIEF) system to import

To complete the form, you’ll need certain information. For the Customs Procedure Code (CPC), this includes:

  • the original CPC
  • the revised CPC, if it’s changed
  • details of the amendment

You’ll need the name, address, telephone number and VAT registration number of the:

  • importer
  • representative

For the commodity code, you must include the:

  • item number
  • box number
  • entry number
  • amended entry number

You’ll also need any underpayment details such as the amount of any duty or VAT paid already. In addition, you’ll need details of any:

  • amount of duty or VAT owed to HMRC
  • other amounts paid
  • other amounts owed to HMRC

If you use the Customs Declaration Service to import

You’ll need certain information to complete the form. For Procedure Codes, this includes:

  • the original Procedure Code and Additional Procedure Codes
  • the revised Procedure Code and Additional Procedure Codes, if changed
  • details of the amendment

You’ll need the name, address, telephone number and Economic Operators Registration Identification (EORI) number of the:

  • importer
  • representative

For the commodity code, you must include the:

  • item number
  • data element number
  • movement reference number (MRN)

You’ll also need any underpayment details such as the amount of any duty or VAT paid already. In addition, you’ll need details of any:

  • amount of duty or VAT owed to HMRC
  • other amounts paid
  • other amounts owed to HMRC

How to apply

If you used CHIEF to import

You can apply using form C2001 (PDF57.8 KB3 pages) or by using the Tell HMRC about an underpayment of Customs Duty or import VAT service.

If you used Customs Declaration Service to import

You’ll need to apply using form C2001CDS (PDF153 KB3 pages).

Published 8 July 2020
Last updated 22 December 2021 
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