Pay no Customs Duty and VAT on importing museum and gallery exhibits
You can claim a relief to pay no Customs Duty and VAT if you’re permanently importing museum and gallery exhibits into the UK.
If you temporarily import goods for examination, analysis or test and then re-export them, you may be able to use temporary admission.
Who can get relief
Relief can be claimed by:
- museums
- galleries
- state (or government) agencies such as:
- the Arts Council
- local councils
What you can claim relief on
You can get relief on importing museum and gallery exhibits.
The goods must be of a:
- scientific nature
- educational nature
- cultural nature
The exhibits must also be:
- dispatched directly on import to your approved establishment
- used exclusively as exhibits under your control
VAT relief
You can get VAT relief if the exhibits have been donated free of charge to you.
You may also be able to get relief if:
- you buy the exhibits from a private person
- the supply to you is not in the course or furtherance of any business
Some goods, including works of art, may already be subject to a nil rate of duty in the Tariff.
Most are however liable to VAT, either at the current full standard rate or, in the case of certain works of art at a reduced rate of 5%.
You need only follow the guidance in this notice if you want to claim relief on goods liable to a positive rate of duty, or you want to claim relief from VAT.
Goods you cannot claim relief on
You cannot claim relief if the goods are for sale.
Before you claim
You should check if your goods are strictly controlled and if you will need an import licence.
When you get the commodity code for your goods using the tariff it will tell you if you need a licence.
How to apply for approval
Your establishment must be HMRC approved before you can apply for relief.
The head of your establishment or an authorised representative must contact the National Imports Reliefs Unit to apply for approval if you are not already approved by HMRC.
You must explain the scope and nature of the exhibits in your application. You should do this as far in advance of the first anticipated importation as possible.
If your application is successful, the National Imports Reliefs Unit will issue you with an approval letter.
The approval letter entitles the holder to use this relief for the next 3 years, from the date of issue of the letter.
You should give plenty of time to reapply before the 3 year approval period ends.
When to claim to relief
You should claim relief at the time of import. if you do not do this, we may accept a late claim and repay the appropriate charges subject to conditions.
How to claim
Goods imported as freight or in baggage
If your goods are imported as freight or in baggage you must complete an import declaration.
Enter one of the following codes in box 37 of the declaration:
- 40 00 C12 for exhibits imported from outside the UK on which you claim relief from duty and VAT
- 49 00 C12 for exhibits imported from the Channel Islands on which you claim relief from VAT
You will need to show a copy of the approval letter from the National Import Reliefs Unit.
You’ll also need have the necessary supporting documentation or evidence to show you’re entitled to this relief.
If you’ve applied for but not yet received National Imports Reliefs Unit approval, you must give us financial security (for example, a cash deposit or bankers’ guarantee) to cover the duty and VAT before we’ll release the exhibits.
As soon as you receive the National Imports Reliefs Unit approval letter, send a copy to us at the place where the import declaration was made. Quote the declaration number and date.
We’ll discharge the security if we’re satisfied you qualify for relief.
Goods imported by post
Ask the sender to write ‘Museum exhibits - relief claimed’ clearly on the package and its accompanying customs declaration.
Find out more information about importing goods by post.
Getting someone else to complete your customs declaration
You can use someone else to complete entries on your behalf but you must make sure you give clear written instructions for the goods that you’re claiming relief on.
After you’ve claimed
If you dispose of your goods
You must tell the National Imports Reliefs Unit if you dispose or transfer your goods to another entity.
Records you must keep
You must keep:
- any National Imports Relief Unit acknowledgement letters
- receipts
- bills
- invoices
- insurance documents
You need to keep additional records if:
- you transfer goods to another approved entity – keep any official documentation detailing transfer between you and the other entity
- you re-export the goods – keep the New Export System declaration details or export documentation providing information about the date of export
- your are goods stolen, lost or destroyed – keep police or insurance incident reports, or official documentation providing details of the date of the incident or loss
You must keep all records for a minimum of 4 years.
If you break the conditions of the relief
If you no longer meet the conditions of the relief, you must immediately notify the National Import Reliefs Unit orally, electronically, or in writing.
Provide full details of the importation and why you think the conditions of the relief have been breached.
If you want to appeal
Appeal if you disagree a decision made by HMRC.