UK eCommerce brands face rising costs from international returns, processing, and re-exports, but 3 powerful duty reclaim opportunities: Returns Goods Release, Inward and Outward Processing, and Foreign Duty Drawback. They can recover up to 99% of duties paid. Many finance and supply chain leaders overlook these, leaving significant cash on the table, especially with up to 3 years of retroactive claims possible. Trade Duty Refund simplifies eligibility checks and recovery as your single point of contact, regardless of carriers or brokers.

Returns Goods Release (RGR)

Returns Goods Release allows UK brands to reclaim duties and import VAT on goods originally imported into the UK and later returned by customers or re-exported. Eligibility requires proof that the goods are the same as imported, unchanged in condition, within 3 years of import declaration. Missed claims from the past 3 years remain recoverable, even if logistics partners changed. TDR handles documentation across carriers and brokers seamlessly.

This mechanism applies to all eligible returned goods, but predominantely targets high-return sectors like apparel and sporting goods, where eCommerce return rates average 20-30%.

Inward and Outward Processing Relief

Inward Processing suspends duties and VAT for UK brands importing goods for processing, repair, or assembly before re-export outside the UK. Once re-exported, the duty liability discharges fully, ideal for brands outsourcing manufacturing or repairs abroad. Authorisation from HMRC demands a business plan showing processing intent, rate of yield, and waste management, with discharge via Export Declarations.

Outward Processing works in the opposite way. It enables businesses to export goods from the UK for processing or repair abroad. When the goods re-enter the UK, duty is charged only on the value added through the foreign processing, not on the total value of the consignment. For example, a UK clothing brand might export fabric to India for stitching and then pay import duty solely on the value added during production when the finished garments are returned.

Foreign Duty Drawback Schemes

Many countries like the EU, US, Canada, Australia, South Korea or Japan offer duty drawback for goods imported there and re-exported unchanged, mirroring UK schemes but requiring local filings. UK brands selling internationally can reclaim these via destination customs, often up to 99% of duties paid. TDR coordinates multi-country claims as a single contact, avoiding broker-by-broker setups.

Queries like “duty drawback uk” and “ecommerce return rate” spike in searches, signaling demand among importers. Eligibility hinges on same-state re-export proof. UK brands can easity evaluate their readyness to claim duties back in foreign countries using TDR’s simple questionnaires or by scheduling a discussion with our experts to project cash returns tailored to your operations.

Why Partner with TDR Now?

Setting up internal programs demands time, compliance risks, and multi-country navigation—most brands forfeit millions annually. TDR’s SaaS platform automates claims in the EU. Its network of partners across the globe provide seamless integration and optimum results. Start with our free eligibility check to reclaim duties effortlessly.

Resources:

• Online preliminary questionnaire

• Availability for a live discussion