We’ve continued to work hard behind the scenes to ascertain the duty rate on the iPad and we’re edging ever closer to a definitive (and hopefully favourable) outcome. In our previous post, we reported that there are potentially two tariff classifications in focus; the one we want is duty free; the one we don’t want attracts 3.7% duty.
Our ‘tech’ specialist contact at Customs has returned to work and following numerous telephone calls and email exchanges, it appears he may have come to the same conclusion as me regarding the correct tariff classification for the iPad – good man !
As things stand, we only have his ‘non legally binding’ verbal opinion and, since we pride ourselves on the accuracy of tax information we provide to our customers, that isn’t good enough for us here at Bundle Tech. Consequently, we’ve chosen to opt for the belt and braces approach – no one’s going to be caught with their ‘trousers down’ under our watch!
In circumstances where the classification of a product is contentious, or subjective, we take steps to ensure legal certainty and this can only be achieved by way of a written application to Customs for a tariff classification ruling; or to give it its’ official name, Binding Tariff Information (BTI). This document confirms the Customs tariff classification of a product and is legally binding across all 27 EU member states for a period of 6 years.
The application provides an opportunity to present an argument in favour of the classification we believe to be correct; clearly, we aim to secure the duty free classification if at all possible, and we believe we’ve put together a case that can achieve this.
Customs at Southend have confirmed receipt of our application and, from what we can gather, it could well be the first ruling application for the iPad to be lodged in the EU. It’s all exciting stuff and we’re now waiting with baited breath for the final (and official) outcome. While the Customs charter allows them up to 45 days to respond to the application, we would typically expect the ruling to be issued within 2 to 3 weeks.
So, regrettably we have to report a further delay before we can finally shout from the roof tops. However, we should certainly be ready for the US launch date, and it may well be worth the wait !
Hope to have news soon, watch this space.
Happy Bundling
Sean




Just so you are all aware, HMRC have announced the following changes to the de minimus levels for the collection of import duty into the UK from outside the EU as of 1st Jan 2010.


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