Client: Jacqueline & Edward Ltd
£30,000 of import duty legally avoided enabling Jacqueline & Edward Ltd to recruit more staff and invest in equipment to increase productivity.
Profile: Jacqueline & Edward Ltd is a family business based in Yorkshire. For over 30 years they have been working with recycled metals and alluvial river gold from across the UK to beautifully create artisan engagement rings, ethical wedding rings and ethical jewellery. Their ethos is to create sustainable, eco-friendly rings with unique designs and details whilst supporting ethical charities such as trees for life.
Problem: Increasing numbers of enquiries were coming in from the EU and the USA which Jacqueline and Edward Ltd were keen to capitalise on. However, the majority of the orders were for engagement and wedding rings and in order to size and fit them accurately, it was necessary to send and bring back ring sizing and contouring kits. Sometimes customers wanted to return a ring or a piece of jewellery for repair or to be resized. All of these activities attracted import duty and VAT for Jacqueline & Edward Ltd and their customers which detracted from their experience and added to the costs for both parties so a lot of sales were lost as a result.
Solution: The International Trade Consultancy applied to HMRC for Inward Processing and Outward Processing Authorisations on Jacqueline & Edward Ltd’s behalf. The Outward Processing authorisation allows them to send the ring sizing and contouring kits to their customers using the DDP (delivered duty paid) Incoterm so their customer isn’t charged import duty or VAT. Then they collect the kits and bring them back to the UK where they also don’t have to pay import duty or VAT.
When customers need to send pieces back for repair the Inward Processing authorisation means import duty and VAT aren’t payable. As the value is often over £2000 this adds up to a considerable sum over the course of the year. To simplify the process as much as possible for Jacqueline and Edward Ltd, The International Trade Consultancy wrote a series of process maps including screen shots to follow showing which options to select in the DHL portal when sending and bringing back the goods. Finally, we manage the quarterly process of discharging the inward and outward processing procedures on their behalf.
Oh my goodness this is AMAZING! I feel so much better now you’re managing this for us and it will dramatically increase our export sales if our customers don’t have to worry about duties etc.”
Jacqueline & Bell Ltd