How to get to grips with:
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Check out resources for helping you deal with the paperwork - including
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THE PAPERWORK
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WHAT ELSE YOU NEED TO KNOW AND DO
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This site does NOT provide:
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I recommend that you pay a professional for tax advice IF:
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I've known more than a few artists, art societies and art competitions where packages of art have got stuck in Customs and artwork did NOT appear in exhibitions because the artist had failed to pay adequate attention to the processes and paperwork required for import and export.
Similarly if you want your art back after sending it to another country, you need to send it with the correct documentation for re-import. |
Leaving details off customs declarations can lead to delays, or can in some instances lead to your item being returned to sender or even seized by customs. (Royal Mail) |
Consequently, I'm starting with the three really important topics / documents:
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Plus further down the page I'll be considering
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REFERENCE:
Various articles discussing the challenges and pitfalls of importing and exporting art - and the implications in terms of dealing with Customs and Tax
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Articles by Professionals / Professional Organisations
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This is an export invoice.
This is REQUIRED for all artwork sent to a country outside a customs union (eg the European Union) Below I explain all the items that need to be included. Some of them are NOT optional. You can DOWNLOAD this Export Invoice for Art template (Word doc) for FREE from my Making A Mark website If you intend to re-import the art then you need to produce an
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Your Information
Client Information
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Customs Information (ESSENTIAL)
Artwork Information
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You can read a DETAILED EXPLANATION of what’s required of an export invoice and packing slip in my blog post Exporting Art (Part 1): The Invoice
Provenance: Recently I've been watching too many television programmes about establishing provenance! Plus I also saw some invoices recently for works sold by Paul Durand-Ruel in the nineteenth century and I was very impressed by the detailed description of the work. Hence I have now added this into the invoice I use!
Remember however that the only things Customs and Shippers are interested in are:
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If the artwork is valued at more than £270 you will need to include the invoice with the customs declaration
You should attach an invoice for all commercial items. I recommend two EXPORT invoices - one in the plastic envelope on the outside and one on the inside of the package - in case the external envelope gets detached after the package has arrived at its destination country and made it out of customs.
Plus - for a return journey - an Import Invoice for return to your studio within a Customs defined period - generally under two years (eg coming back from an exhibition; a dissatisfied customer etc) to claim relief from payment of import duty. |
The Harmonized Commodity Description and Coding System has been developed by the World Customs Organization to help speed up parcels and packages through Customs - and you MUST use the correct commodity code.
200+ member countries use this system - but not all countries do. |
REFERENCE:
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Commodity codes classify goods for import and export so you can:
* fill in declarations and other paperwork
* check if there’s duty or VAT to payTrade Tariff: look up commodity codes, duty and VAT rates | GOV UK
- * find out about duty reliefs
You need to use these codes to
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SEE THE CALL OUT BOX BELOW FOR HOW TO USE THEM
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Understand the Tariff Codes
A code has six digits
The images below relate to this code classification model to ART as detailed on the UK Government website. |
Look up the Right Code to Use
In the UK you can confirm the right code using this page on the .gov.uk website - Trade Tariff: look up commodity codes, duty and VAT rates (look for Chapter 97)
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Do make sure you pay close attention to what is and is not defined as artwork!
What is Art? | Taxation is a summary of an important case where HMRC had asserted that an installation when disassembled for transport was not art. However it was trying to charge VAT at the higher rate but on the value of the artwork as opposed to the value of the materials which comprised the installation. It's an important case and relevant to the international transport of art and, in particular, sculpture and installations and any oversized artwork which comes apart. |
At trial, HMRC argued that the works were not art when disassembled into their various electrical component parts and crated for shipping..... The tribunal rejected HMRC's argument that whilst the installations may be works of art when assembled, they were not when unassembled or disassembled and packed into crates at the time of importation. The tribunal "[regarded] it as absurd to classify any of the works as components ignoring the fact that the components together make a work of art". ' |
Valuation for duty and tax payable |
Country of import |
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The country that imports the art gets to set the rules as to which duty and taxes apply and what rates they will use.
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Liability for duty and tax on sale of artwork |
Returned Goods |
Art sold to a client living in another country is liable for duty and tax (unless none is payable e.g. artist in EU country sells to collector in a different EU Country).
The principle is that the buyer pays all relevant duty and tax - because the amount that is payable is dictated by where he or she lives and what gets charged when importing art to that country. If your work is available for sale to anybody living anywhere in the world, you MUST state that the prices of art on your website (or third party site) are subject to the addition of any relevant duty and taxes on exporting permanently outside your country.
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Notices about how this works in your country will vary.
In the UK Notice 236 Returned Goods Relief details how this works (note also this gets updated on a periodic basis so be sure to click the link to make sure you are working with the latest version. See below for how this applies to artwork re-imported after an exhibition in another country within 2 years - it's one aspect which makes life a lot simpler! |
Within the EU, unless an exemption applies, the importer of art, antiques and collectibles is liable to pay import VAT at the rate determined by individual countries.
If you are re-importing art after an exhibition see Liability for duty and tax on art re-imported after an exhibition below. |
For detailed information on VAT relating to cross-border sales see below and VAT for Artists and the section on this topic
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These are based on valuation of the goods and agreed rates for trade and can comprise:
Countries tend to have trade agreements which mean at least some goods imported from some countries are charged a lower tariff. These agreements tend to be reciprocal rather than one way.
You can look up tariffs for the fine art commodity codes using the World Trade Organisation's Tariff Download Facility - this indicates those with a significant duty on imported art.
The Scribd document provides the Section Headings of the Harmonized System. Works of Art are in Section XXI |
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IMPORTING art to the UKUK Customs duties on IMPORTS are made up of 2 components:
IMPORTING art to the European Union (EU)In some EU countries, the standard rate of import VAT applies.
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IMPORTING art to the USAThe USA has
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Non-established taxable persons (known as NETPs e.g.international artists who do not live in the EU) who are IMPORTING art for sale at art exhibitions (for art competitions or otherwise) in the EU need to know about VAT and how it works.
This means that artists importing artwork FOR SALE into the UK for an art competition or juried exhibition or a gallery exhibition must pay 5% VAT to Customs & Excise. In principle this means they have to register for VAT with HM Customs and Excise (can take up to 4 weeks) prior to importing the art. |
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If you are importing artworks for an exhibition they are subject to duty and VAT relief as long as they are exported within 2 years.
Importing art into the UK - Brebners
In brief and in summary (and without liability) "exhibits for galleries or museums" are eligible for relief from duty if reimported without alteration after an exhibition.
You can defer duty and tax on artwork sent to an exhibition (ie temporarily exported). However it becomes liable if sold (and hence permanently exported). Hence the price at exhibition in another country must always include provision for any duty and tax payable - otherwise you'll be paying from your profit! The organisers of the exhibition should not allow an artwork to be released from the exhibition until there is proof of duty and tax having been paid. Reality may be different... |
UK Trade Tariff: relief from customs and excise duties and VAT sets out the reliefs available to those exporting art from the UK
The goods must be re-imported in an unaltered state, apart from any work that may have been required to maintain the goods in working order. Any work done must not have upgraded the goods to a higher specification or increased their value. Notice 236: Returned Goods Relief (Last updated: 26 January 2018)
This explains how to re-import commercial goods to the EU and obtain total or partial relief from customs duty, VAT and CAP charges. |
Customs declarations are required for all commercial items. This means
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Customs authorities around the world require international mail and parcels of value arriving in their country to have the required customs declarations. So make sure you've completed the necessary forms.
There are two forms:
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What the CN22 form looks like may vary from country to country
This is the form CN22 which is an international Customs Declaration Form for Great Britain for items valued at less than £270. People sending presents overseas will be familiar with completing it in terms of saying what a package contains and its weight and value. You must also declare whether the item is:
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Rated an average of 4.9 out of 5 stars by 12 customer reviews
These are self adhesive and hence save time for the despatch of all art parcels from the UK to destination countries outside the EU This is an exact copy of the form used by the Royal Mail and available at post offices in the UK Free delivery when included as an "add on" item |
Any item sent with a value in excess of £270 must have a fully completed Customs declaration form CN23. This should be attached using the plastic wallet available from any Post Office® branch.
Royal Mail - Help with Customs
Rated an average of 4.9 out of 5 stars by 42 customers
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Rated an average of 5 out of 5 stars by 6 customers This envelope can be used to include your CN23 and any other relevant documentation which Customs need to see. These envelopes are:
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The ATA carnet is an international Customs document that can be used in different countries around the world to cover temporary use of goods without payment of Customs charges."
Item 18 states an ATA is available for:
"Works of art, collectors items and antiques imported for the purposes of exhibition, with a view to possible sale" The HM Revenue & Customs - ATA and CPD Carnets notice explains how ATA carnets can be used to:
One class of relief relates to artwork - you can read about this in ATA and CPD Carnets (Acrobat PDF, 250KB) However they can be quite difficult to obtain and they are not essential if you do the paperwork for Customs properly. |
A carnet can be used by private travellers or businesses. When a carnet is issued, the person who can use it will be named on the front cover of the carnet, this person is the ‘holder’. The carnet can be used by the holder or a representative. The representative is named in box B of the carnet or by a letter of authorisation. |
Transport of art within the EU |
Transport OUTSIDE the EU |
No specific documentation is required if importing and exporting where the art remains within the EU.
The 28 EC countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK. |
You do however need documentation when exporting from within the EU to e.g. the USA and other countries around the world.
Failure to use proper documentation completed in full will mean the package being returned or getting stuck in Customs. "When sending packets or parcels outside the EU, you need to make sure that it is presented with the right forms. If you don't, it's likely it'll be returned by the destination country's customs service." All items with contents up to the value of £270 must have a signed and dated Customs declaration form CN22 attached to the front. |
REFERENCE:
Forms are available to download from this link
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"A PS Form 2976, Customs Declaration CN22 - Sender's Declaration, must be used on all First-Class Mail International® package-size items (small packets), the Priority Mail International® Small Flat Rate Box, M-bags, and certain Express Mail International® items. Refer to the International Mail Manual at pe.usps.com for additional information.
In the USA Artwork is considered to be
"Examples of items that do not qualify as documents - rather, they are considered merchandise, so the sender is required to apply a customs declaration form and declare a value" Also use this form on a First-Class Mail International mailpiece or the Priority Mail International Flat Rate Envelope if ANY of the following applies:
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REFERENCE:
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Certain cultural goods that reach or exceed specific age and monetary value thresholds require an individual licence for export out of the UK – whether on a permanent or temporary basis. The provision of provenance by exporters for cultural objects that are intended for export, would appear to be a recurrent, contentious, and on occasions fractious issue for quite some time. |
The Export Licensing Unit of the Arts Council issues export licences on behalf of the Secretary of State in the UK.
The British Government seeks to keep items of particular cultural significance in the UK. Consequently there are export controls on art and other significant items. REFERENCE:
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Make sure you use the correct format of address for the country you are posting to. Not all countries format their addresses in the same way. Below you will find some resources which help you understand better how to format addresses correctly
USE CAPITALS FOR ADDRESSES - it avoids confusion due to handwriting. USE A WHITE LABEL FOR THE ADDRESS - it helps people and machines to read it easily ALWAYS INCLUDE THE POST CODE OR ZIP CODE - most post is processed by machine and the code is needed to speed up the process You need to have: * a correct and clearname of recipient and destination address * a correct and clear return address for the sender - which cannot be confused with the destination address |
REFERENCE
International addresses
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This website provides a compendium of resources about the art business for artists.
It helps artists learn how to do better at being business-like, marketing and selling art and looking after their financial security. |
Copyright Katherine Tyrrell | Making A Mark Publications - all rights reserved
If you've got any suggestions for what you'd like to see on this website please send me your suggestion
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