Cancelled China repair: Returned Goods Relief
Returned Goods Relief may apply when goods sent to China for repair return untouched because the work was cancelled. You must meet the relief conditions and support the unchanged return with evidence. Import VAT relief also requires the exporter and importer to be the same person. Cambridge China Bridge can help gather factory records.
Cancelled repair: the exception to check
HMRC says relief may still be available where goods were exported for repair or processing but that work was not carried out. Cancellation alone is not enough: establish that the goods actually returned unchanged. This guide focuses on returns to Great Britain.
Start with the factory’s account of what happened, rather than the original repair booking. For the wider repair shipment paperwork, see customs evidence for repair and return.
Check eligibility before arranging the return
For the ordinary free-circulation case, check that the goods were in free circulation when exported and will return within 3 years. HMRC has separate provisions for inward processing, end-use and agricultural goods. The goods must return unaltered, apart from permitted work to maintain working order, and must not have been upgraded to increase their value.
An outward processing export does not automatically rule out Returned Goods Relief: HMRC includes goods exported under that procedure which return unprocessed and in their original state. Give your customs agent the original export declaration before deciding how to declare the return.
Build evidence that no work took place
Ask the factory for a dated, signed statement identifying the goods and confirming that the repair was cancelled and no repair or processing occurred. Ask it to describe any inspection, dismantling, testing, cleaning or other handling. Do not ask for an untouched-goods statement if the records show otherwise.
Match serial numbers, identifying marks, photographs and packing records to the outbound shipment. Keep the cancellation correspondence, factory receipt and workshop records together. These are practical supporting records, not a guarantee of acceptance. A cancelled invoice or absence of a repair charge does not, by itself, explain what happened to the goods.
Check import VAT separately
Import VAT relief requires the exporter and importer to be the same person. HMRC asks for the original export declaration showing you as exporter and the re-import declaration showing you as importer; it will consider alternative export evidence if the original declaration is unavailable.
Compare the legal entity named on each declaration before shipment. If the names differ, ask your customs agent to resolve the VAT position rather than assuming duty relief settles it. For broader treatment of returned stock, see Returned Goods Relief for China-made stock.
Give the customs agent a clear return file
HMRC says to claim relief at import and use customs procedure codes for freight shipments. Send your agent the export declaration, evidence of the goods’ status at export, matching identifiers and the factory’s no-work records. Ask the agent to confirm the declaration route before the goods leave China.
Keep the return file separate from any claim against the supplier. Our guide to goods that arrived faulty covers that wider problem. Cambridge China Bridge’s staff in China can help request factory records and compare the goods’ identifiers before dispatch.
Frequently asked questions
Can I claim Returned Goods Relief if a China repair was cancelled?
Possibly. HMRC allows relief where the intended repair or processing was not carried out, subject to the other conditions. Gather evidence of the unchanged return before customs clearance.
Does a free repair invoice prove no processing occurred?
No. Ask for a statement describing what actually happened, supported by workshop records and matching goods identifiers. A price entry alone does not establish that no work took place.
Can I claim import VAT relief if another company imports the return?
HMRC requires the exporter and importer to be the same person for import VAT relief. Have your customs agent check the entities named on the declarations.
What if the factory started work before cancellation?
Disclose the work and give your customs agent the workshop records. Do not describe the goods as untouched. Ask the agent to assess the applicable relief against the actual handling and condition.