§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer what vehicle of decision making within the EEC is to be used to complete proceedings to achieve approximation of the VAT system and excise duties within the EEC to satisfy the requirements of a true internal market; and for what reasons Her Majesty's Government agreed that the proceedings should be completed in the near future.
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§ Mrs. Gillian ShephardThe vehicle within the EC for deciding the arrangements for the operation of the VAT and excise systems after 1992 is the EC's Economic and Financial Affairs Council—ECOFIN—acting unanimously on proposals from the Commission.
Following extensive consultations with representatives of British industry, on 12 December 1990 the United Kingdom lifted its reserve on an outline agreement for the VAT control system to operate after 1992. Also, at ECOFIN on 17 December agreement was reached on the general principles which will form the basis of the system for excise controls after 1992. These have cleared the way for discussions on the details of the systems, early agreement on which is essential for businesses and tax administrations to have sufficient time to plan and implement technical changes.
The Government believe that the framework arrangements on the VAT and excise technical systems meet the requirement to remove fiscal frontiers by 1 January 1993, which is a key part of completing the single market. The Government remain of the view that centrally determined tax approximation is neither necessary nor desirable and that market forces can bring about such convergence of indirect tax rates as is necessary.
§ Sir John WheelerTo ask the Chancellor of the Exchequer how long it takes the Customs and Excise to process VAT registered trade importation packages from overseas; what is the normal expected delay before passing valuable goods packages to the Post Office, and what is the process in the case of VAT-exempt goods of more than 100 years old.
§ Mrs. Gillian ShephardAll packages imported through the post remain under the control of the Post Office and are presented by them to customs for clearance. Clearance times vary according to the nature and origin of the contents and the quality of accompanying information. Importers are notified of the arrival of all goods exceeding £2,000 in value, or £1,300 in the case of Datapost packages, and they are required to submit a formal entry. On receipt of that entry by customs, clearance is normally effected without delay. Where relief from customs duty and VAT is claimed in respect of goods of any value over 100 years old a separate declaration by the importer is necessary. Subsequent action will depend upon the nature of the declaration made and supporting evidence produced.