Green shadow on vat plan
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FEARS that a proposal to overhaul the vat system for imports could lead to Irish-style delays has prompted the British Shippers Council to protest to the Treasury and the Confederation of British Industry.
The BSC, part of the Freight Transport Association, has responded swiftly to a proposal from the Knitting Economic Develpoment Council that Britain should follow the Irish Republic's example and demand payment of vat at the point of entry to the country.
When the Irish system was introduced in September 1982, three-day delays became the norm for goods entering the country and at least one major parcels carrier, TNT Overnite, had to scrap its then new 24hour guaranteed delivery service from Britain.
The vat change was seen then as a way of relieving the Irish Government's strained cash flow and also acted as the sort of non tariff barrier which can slip through the net of EEC legislation.
It led B+I Line to recruit extra staff and to provide additional storage space for trailers at Dublin's ferry terminal. By taking advantage of deferred payment systems, clearance was reduced to two days.
The BSC has warned that a point-of-entry vat system would lead to similar cost increases in Britain and would hinder export efforts. It would also spoil the chances of simplifying intraCommunity trade in the EEC.
• Documentary evidence is required to support importers' claims that transport costs within the EEC increase the cost of goods.
The Customs and Excise has stated that evidence must be obtained from the seller of the goods that a lower price would be charged at the EEC frontier.