Permanently importing a motorcycle into the UK (from outside the EU)
 

Hi Everyone

I am currently trying to get my New Zealand registered motorbike re-registered in the UK with the DVLA.

The DVLA have sent me a bundle of re-registration papers to complete. However, they will not even begin the process until they receive clearance from HMRC (Customs).

I am corresponding with HMRC (vehicle team import control) in Salford, who have emailed me a list of requirements, which includes: fully completed C88/E2 import entry paperwork.

Has anyone ever dealt with one of these C88/E2 forms, which at first view appears to be a dastardly difficult document to complete - e.g. loads of technical gobbledegook, sections and codes to enter?

Or

Alternatively appointed a customs agent to deal with the import process on their behalf. If so, were they any good (and how much did they charge)?

Note: Despite writing (posted letter) to HMRC 3½ weeks ago, on Feb-19th, they have only just emailed me back today, advising that I must get everything in order and submitted to them within the next 14 days, or they will close the case! Therefore I need to work fast on this one. :confused:

Thanks in advance

Keith
[somewhat bemused by it all!?]

Okay, I’ve taken the proverbial “bull by the horns” so to speak. I guess I’m just an inpatient fellow.

For general information purposes: I recommend that you do not attempt to deal with HMRC direct. You could easily make mistakes with a DIY approach .. and worse still, you might open-up a whole can of VAT issue making you liable to paying tax when you could be exempt from this form of Duty.

I’ve been in touch with a Kent-based vehicle import agent, who will take care of everything for me. I’ve been assured that, because of my circumstances, I almost certainly will not be liable to pay VAT on this personal import.

Btw, the agent’s cost is very affordable at:

Customs Clearance (Manual) ....... GB£ 75.00
Input Fee (Software charge) ........ GB£ 3.50
TOTAL ...................................... GB£ 78.50

I ask: why bother doing it yourself and in doing so run the risk of exposing yourself to a potential VAT liability?

Hi Keith, how is the case that you're exempt from paying VAT? Can you provide more details for the community?

In my view it's smart thing to do and let the professional deal with this ;)

Cheers
Dooby

I'd also be interested in what's what with VAT. When I looked at importing the bike I have in the USA it was the likely VAT bill that stopped the project in its tracks.

Hi Dooby - it's good to hear from you. :thumbup1:

I am dealing with the agent right now. Once I get confirmation that I am exempt from VAT, then I'll post again and give a full explanation.

I 'think' the reasons are that:

• I have owned the moto for more than six months
• I will be using it only for personal, private transport purposes, and
• because I do not intend to sell it on (deal away) the moto on a commercial basis once it's imported.

But as said, I will post again when the import clearance is complete, which should be in about 10-14 days' time.

cheers

Keith [& Ellen]

Hi Keith & Elen :)

I'm really curious about this so when you finalize the whole thing, let us know :thumbup1:

Kind regards
Dooby

That sounds like the rules that applied to me when I brought a car back to the UK after living and working in mainland Europe, nearly 20 years ago - the key point was that I bought it more than 6 months before I imported it to the UK, and I had used it and racked up some miles (IIRC, that is another kind of requirement - which might relate to your list above - the vehicle should be not just more than 6 months old at importation but there should be evidence that it has been duly used before the importation).

What these rules amount to is that the importation is of a second hand vehicle, even if you are the first owner (as in my case) - it could be different for importation from outside Europe?


There is this thread also, if you haven't found it previously:
http://www.horizonsunlimited.com/hub...uy-dr650-81272

A friend imported a Harley from the States a few years ago and the same applied, he had owned it for more than 6 months previously and there was a note on the V5 saying that if the vehicle was sold less than 12 months after registering it in then UK duty was payable. It only works for one off importations for personal use.

Dissapoined!
 

I've just received the following self-explanatory email msg from the vehicle importer .. :(

-----------------------------

On Tuesday, 15 March 2016, 13:59, Ops Team 2 wrote:

Hi Keith

I have just spoken to Customs to clarify whether you would be eligible for VAT relief, and as it turns out since you have not lived abroad for 12 months, you will be required to pay VAT on the market value of your motorbike.

As this is contrary to what you were told earlier it is our policy in this case to confirm with you whether you wish to continue to use our services before we proceed.

Thank you

Regards

-----------------------------

Damn & ouch, maybe it's better to disassemble the bike, sell the parts and buy another one if the duties are too much?

Cheers from sunny Zagreb ;)
Dooby

Nooooooooo way Dooby! :eek:

We've been through too much together. It would be like disassembling and selling-on the body parts of a child of mine.

I will keep this bike forever. 'Till Death Us Do Part' .. and all that! :mchappy:

Cheers, from an equally sunny Cornwall (southwest England)

Uhm ok I got your point :mchappy:

I'm sure Ellen is also tied up to Transalp as much as you are :thumbup1:

cheers
Dooby

I've just paid 20% VAT and 6% Import Duty (26% in total) on the current value of the bike.

This is the definitive position:

VAT is usually payable to HMRC (Customs) if a vehicle is imported from outside the EU. If you are a VAT registered business then HMRC needs to be notified using the NOVA (Notification of Vehicle Arrivals) system.

There are some exemptions to the payment of VAT on vehicles imported from outside of the EU. You would be exempt if you qualify for transfer of residence relief. You can qualify if you can prove the following:

• you are moving your normal home to the UK
• your normal home was outside the EU for a continuous period of at least 12 months
• you have owned and used the vehicle for at least 6 months outside of the EU
• you did not get the vehicle under a duty or tax-free scheme
• you are going to keep the vehicle for personal use for at least twelve months.

Furthermore, you may not pay VAT on an imported vehicle if it has been previously exported from the EU or the vehicle is imported from outside the EU and is registered to a non-EU resident.

------------------------

AND I haven't finished paying yet! In addition to the import agent's fee (that is, if you employ a specialist agency), I still have to pay:

First registration fee to the DVLA .................... £55
Cost of getting a UK reg plate made-up ........... £??
Change speedo reading from kms to miles ...... £20
MOT test .................................................. .. £30
Vehicle road tax to the DVLA ..........................£82

There may be one other fee of £85, which will is the cost of a MSVA (Motorcycle Single Vehicle Approval) test, IF I cannot get hold of a COC (Certificate of Conformity) from the maufacturer's national agent from where the bike was first registered, which in my case is Blue Wing Honda Ltd in New Zealand.

:(
------------------------

I guess it could have been worse, as you are obliged to notify HMRC within 14 days of bringing a vehicle into the UK permanently. If you don't then you can be fined £5 for every day you’re late telling HMRC.

I imported my bike - ferry to Plymouth from Santander, Spain - on the 21st October last year (2015), but didn't notify HMRC until 23rd March this year. Therefore I could have been facing a fine of £700 (140 days x £5).

BUT no fine has been imposed.

:mchappy:

Hmm. 26% plus all the add-ons. On that basis my Gold Wing is likely to spend the rest of its days in the USA as importing it isn't going to be cost effective.

Can I ask though what that is 26% of? Is it some UK market value that HMRC puts on the bike or is it based on what you say you paid for it ? The latter option sounds like it might be open to, err... creative valuation.

Presumably the list of VAT exemptions is inclusive - you need to qualify under all of them rather than just one?

Lucky with the fine!

Good questions.

1. Firstly, the valuation aspect: HMRC advised:-

" .. you need to send us: A current market valuation from a local garage or a statement made by an independent motor company, showing details of mileage, condition, left hand drive, on headed notepaper. As you state that the vehicle was purchased in December 2006, the value of the vehicle will have altered over the years, therefore this is why we require a current market valuation."

However, the import agency reckoned that this was a bit OTT, and that all I needed to do was base the valuation on contenporary sales of similar machines. With this in mind, I found two advertised online: (a) one on eBay selling for: £2,200 (10,891 miles); and (b) a second on motorcyclenews.com going for £2,100 (23,000 miles).

As mine had covered 102,664 km (63,792 miles), I placed a value on it of £1,900, which was accepted by HMRC.

2. Secondly, the VAT 'residence relief' aspect: Yes, you need to qualify under all of the above bulleted points.