Jobbing Off in Customs Warehouse
Monday 25th April 2016
The ability to sell at below cost in Customs Warehouse - Jobbing Off - and thus legitimately realise a lower value for customs duty will not apply under the UCC if a proper sale for export occurred in advance of the entry of the goods into the EU Customs territory.
Currently, a clothing retailer may import a garment into Customs Warehouse declaring the purchase price of say £10 as the basis of the value for duty. If, after the relevant season, the retailer sells the garment at say £5 to a discount retailer or market trader ("Jobbing Off") whilst the garment is in the customs warehouse, the £5 can be used as the basis of the value for duty.
Under the valuation provisions of the UCC, only the £10 value can be used as the basis of the value for duty on removal from Customs Warehouse.