A US customer recently returned some items for repair. The problem is that we supplied them with a large system and they have only returned a small part of the whole but have declared the full system price on the paperwork but of $500,000. We will be using Inward Processing Relief (IPR) so duty won’t be paid we don’t want to have an artificial duty liability. Can we legally declare the correct price for the small bit to Customs ($25,000)?

Yes!! Any import with incorrect value shown on the senders’ paperwork can be amended. You must make a written declaration of correct value on your letterhead to HMRC via the freight forwarder. You must be able to justify the change in value. This is important for both higher and lower values. You can use IPR as you mentioned to suspend the duty/vat, but only the correct amount of duty/vat based upon the correct value of landed goods. Another alternative would be Returned Goods Relief (RGR) if items were exported in the last 3 years and have returned unchanged, other than them not working  


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