Manual regarding the Customs Treatment of Gifts and Items of Negligible Value (0)

 
 
 
 
Manual regarding the Customs Treatment 
of Gifts and Items of Negligible  Value  
 
 
 
Customs Procedures Branch 
Nenagh 
 
 
 
 
Date of Issue : December 2008 
Date Updated March 2010 
Queries: customsreliefs@ revenue .ie 
VPN 63229/63234/63235 
 
 
 
This manual provides a  guide to the interpretation of the legislation governing 
the Customs treatment of gifts and items of negligible value and should be read 
in conjunction with that legislation. 
 
(Previously O. I. 107 of 2005, replaced by O.I. 69 of 2008 as amended by O.I. 64 
of 2009) 
 
 
 
  
1 
 
CONTENTS 
 
 
1. 
INTRODUCTION  ..............................................................................................3 
 
2.  
LAW.....................................................................................................................3 
 
3.  
DE MINIMUS LIMITS  .....................................................................................4 
 
4. 
CONSIGNMENTS CONTAINING ITEMS OF NEGLIGIBLE VALUE....4 
 
5. 
GIFTS ..................................................................................................................4 
 
6. PROCEDURE AT IMPORTATION................................................................7 
 
7. 
ENTRY ON THE AEP SYSTEM .....................................................................7 
 
8. 
HOW VARIOUS TYPES OF DUTY , CHARGEABLE AT 
IMPORTATION, ARE CALCULATED .........................................................8 
 
9. 
REFUND CLAIMS ............................................................................................8 
 
10.   CASES OF DOUBT OR DIFFICULTY...........................................................9 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2 
 
 
1. INTRODUCTION 
 
When goods are imported into Ireland , from a country outside the European 
Community (EC) they are normally liable to  import charges (Customs Duty, Anti-
Dumping, Countervailing and Excise Duties where applicable   plus VAT) at the point of 
importation. Paragraph 8 below sets out how these charges are calculated. 
However, in certain cases relief from import charges arises because  
1.  the amount of import charges is below a de minimus limit  
 2.   the item being imported is of negligible value; or  
3.  the goods are Gifts, which are consigned to a private individual living in 
Ireland. 
This Instruction outlines the relief  available in these three situations, how it may be 
obtained and the Customs procedures involved. 
It is important to note that there are separate Reliefs (for different amounts) available 
for travellers who import goods with them on return from abroad . Full details of those 
Reliefs are available in the Baggage Control and Examination Manual and in the 
Information leaflet for Travellers arriving in Ireland from non-EC Countries who are 
importing goods purchased for personal use. 
Definitions 
Throughout this instruction the  following definitions apply : 
•  Customs Value: This is the value of the goods plus insurance and freight 
(which includes postage) costs (CIF value). 
•  Intrinsic Value: This is this is the value of the goods alone, and does not 
include insurance and freight. 
 
2.  
LAW 
Provision for relief from  payment  of Customs Duty in respect of consignments of 
negligible value and gift consignments is made under Article 868 of the Customs Code 
Implementing Provisions. 
2.1  Customs Duty:  
Council Regulation (EC) No. 1186 /2009, setting up a Community system of reliefs 
from Customs duty. 
2.2 VAT: 
 
 
Council Directive 2006/79/EC, on the exemption from  taxes of imports of small 
consignments of goods of a non-commercial character from third countries, given the 
force of law in Ireland by S.I. No. 549 of 2007, and Council Directive (EEC) 181 of 
1983, determining the scope of Article 14 (1) (d) of Directive 77/388/EEC as regards 
exemption from value added tax on the final  importation of certain goods, as amended 
by Council Directive 88/331/EEC. 
  
3 
 
2.3    Flat rate of duty: 
Provision is made under the following Legislation for the charging of Customs Duty at 
a flat rate of 2.5% on gift consignments valued in excess of €45, where the value of the 
dutiable goods in the consignment does not exceed €700: 
Point D1 of Annex I, Part One, Section II of Commission Regulation (EC) No. 
1214/2007 amending Annex I to Council Regulation (EEC) No. 2658/87 on the 
tariff and statistical nomenclature and on the Common Customs Tariff as 
amended by Council Regulation (EC) No. 275/2008. 
3. 
DE MINIMUS LIMITS 
Where the customs duty on any consignment amounts to less than €10 it should not be 
collected.  Similarly, VAT liability  amounting to less than or equal to €6 should not be 
collected. No de minimus rule applies in the case of excise duty which should always 
be collected if the goods are liable to excise duty.  
4. CONSIGNMENTS 
CONTAINING 
ITEMS OF NEGLIGIBLE VALUE 
Consignments of item(s) not exceeding an intrinsic value of €150 may be imported 
without payment of Customs Duty.  Consignments of item(s) not exceeding a total  
intrinsic value of €22 may be imported without payment of VAT. The practical effect 
of the different monetary limits is that consignments where the intrinsic value is 
between €22.01 and €150 will qualify for relief from Customs Duty but VAT will still  
be chargeable. However, it should be noted in particular that there is no relief (from 
Customs Duty, VAT or excise duty) under this negligible value provision for 
importations of tobacco products , alcohol  products, perfumes or toilet waters  
irrespective of their value.  
 
While this exemption is not confined to private importations, care should be 
taken to ensure that relief is not granted in respect of single parcels which form part of a 
larger consignment exceeding the monetary limits. 
5. GIFTS 
5.1 General 
Relief from payment of Customs Duty and VAT is allowed on gifts consigned to an 
individual living in Ireland, from outside of the EC, provided the Customs value of the 
goods does not exceed €45. (In the case of tobacco products, alcohol products, 
perfumes or toilet waters the relief is confined to Customs Duty only and only provided 
a quantitative limit is not exceeded – see paragraph 5.3).  
5.2   Conditions   
In all cases, gift relief is subject to the following conditions being met: 
(a) The Customs value of the gift does not exceed €45 (and for tobacco products, 
alcohol products, perfumes or toilet waters the item is within the quantitative limits set 
out in paragraph 5.3). 
(b) The gift is correctly declared (see paragraphs 6 and 7). 
(c) It has been sent from a private individual abroad to a private individual within the 
EC. 
  
4 
 
(d) The gift is for the personal or family use of a private individual within the EC. 
(e) There is no commercial or trade element i.e. the goods have not been paid for. 
(f) The gift is of an occasional nature  only, such as a present for a birthday or 
anniversary. 
5.3   Gift relief – quantitative restriction on gifts of tobacco 
products, alcohol, perfume and toilet waters.  
Relief from Customs Duty only (i.e. no excise duty relief and no VAT relief) is allowed 
on gifts comprising tobacco products, alcohol, perfumes or toilet waters, provided the 
value of the gift does not exceed €45. However, the relief is only available for the 
quantities set out in the table below and is subject to the conditions in paragraph 5.2 
being fulfilled.   Anything in excess of the quantities specified in the table is liable to 
Customs Duty.  
 
Type of Goods 
Quantity allowed under the Gift relief provision 
Tobacco Products  50 cigarettes; or 
 
25 cigarillos (cigars with a maximum individual weight of 
3 gms); or  
10 cigars; or 
50 gms of tobacco; or 
A proportional assortment of the different products. 
Alcohol 
1 litre of distilled beverages and spirits over 22% volume ; 
or 
1 litre of fortified or sparkling wine , and some liqueurs of 
22% volume or less; and 
2 litres of still wines. 
Perfume and toilet  50 gms of perfume; or 
waters 
0.25 litres of toilet water. 
 
Reminder: It is important to remember that there is no relief from VAT or Excise 
duty on the above products, irrespective of their value.  
 
5.4  More than one item in a “gift” consignment 
Where a “gift” in a single consignment consists of two or more items with a combined 
customs value of greater than €45, relief should be given for as many of those items as 
add up to a value not exceeding the €45 limit. However, the value of an individual 
item  cannot be “ split up” in order to arrive  precisely at the €45 cut off limit. The table 
below provides a number of illustrative examples demonstrating how this works in 
practice : 
 
  
5 
 
 
Example 
Number and Value of Items 
Position regarding import 
number 
charges 
1 
One item valued at €45 
Relief granted on total 
amount. 
2 
One item valued at €55 
Gift relief not applicable. 
However, negligible value 
relief applies in relation to the
Customs Duty. VAT payable 
on total amount. 
3 
Five items valued at €10 each 
Four items relieved in full. 
One item subject to Customs 
Duty (normal rate or 2.5% 
flat rate) 
and VAT on its full value (in 
this case, €10). The importer 
may opt to declare the items 
as an import of negligible 
value and avail of the duty 
relief afforded.   However, in 
such circumstances, VAT 
would be payable on the full 
amount. 
4 
One item valued at €710 
Customs Duty and VAT 
payable on full amount at the 
normal rate of duty. 
 
 
5.5  Flat rate of Customs Duty for gifts 
Where the intrinsic value of a consignment of gifts does not exceed €700, a flat rate of 
2.5% Customs Duty may be applied rather  than the rates of Customs Duty normally 
applicable to the individual items. (Note: This flat rate applies to Customs Duty only, 
not to VAT or to excise duty). In calculating whether or not the €700 limit is exceeded 
the following should be excluded 
•  the value of any individual item(s) which qualify under the €45 gift relief and 
•  the value of any items where the rate of duty applicable to the item is “free” or 
zero . 
Where the €700 limit is exceeded the “normal” rates of Customs Duty apply to the 
individual items in the consignment (subject to exclusion of any items qualifying under 
the €45 gift relief provision). 
 
5.6  Conditions applicable to the flat-rate of duty for gifts 
•  The flat rate of duty is only applicable where the importations are not of a 
commercial nature.  
  
6 
 
•  When assessing a consignment of goods, a flat rate assessment should not be 
applied to goods for which the rate of duty is “free” or zero, and such goods 
must be excluded when calculating whether the €700 limit has been exceeded.    
•  The importer may opt to have the goods charged at the relevant tariff rate(s) 
applicable to the individual items ( although  in practice this is unlikely to arise , 
as the 2.5% rate will normally be more  beneficial to the importer).   
 
6. 
PROCEDURE AT IMPORTATION 
 
6.1  De minimus limits. 
No special arrangements apply. If a quick calculation shows the amounts payable to be 
below the de minimus limits the goods should be released without charge . 
 
6.2  Consignments of Negligible Value 
The Customs Declaration form on the relative parcel, if sent by post, should be marked 
“Negligible Value” or state the value of the goods in question, in addition to giving  the 
details normally required . If imported using a SAD, the goods should be declared as a 
consignment of negligible value.   Please see paragraph 7 regarding Entry on the AEP 
System. 
 
6.3   Gifts 
The Customs Declaration form on the relative parcel, if sent by post, should be marked 
“Gift” or “present” in addition to giving the details normally required.  
If imported other than by post, the goods should be declared as a gift at importation on 
the Customs Entry (SAD).  Please see paragraph 7 regarding Entry on the AEP System. 
7. 
ENTRY ON THE AEP SYSTEM 
 
7.1  De minimus limits 
 
No special claim  is needed. AEP is programmed not to collect the charges where the 
de minimus amounts are not exceeded.  
 
7.2  Consignments of Negligible Value 
In cases where an exemption from duties is claimed for goods of negligible 
value, the following codes should be inserted in Box 37b: 
 
 
-  
C07 - Customs duty exemption and VAT exemption 
 
7.3 Gifts 
In cases where an exemption from duties is claimed for Gift consignments, the value in 
box 46 must be less than or equal to €45. The following codes should be inserted in 
Box 37b: 
  
7 
 
- 
C08 – Customs Duty exemption and VAT exemption 
 
7.4  Gifts – flat rate of duty 
In cases where the flat rate of duty is claimed, the dutiable value of the consignment 
must be less than or equal to €700 in value.  The following codes should be inserted in 
box 37b: 
 
- 
1C1 – flat rate of duty 
 
8. 
HOW VARIOUS TYPES OF DUTY, CHARGEABLE AT 
IMPORTATION, ARE CALCULATED 
 
The rate and type of duty charged will depend on the type of goods being 
imported and will include one or more of the following: 
 
Type of Duty 
Description  
Customs Duty 
This is normally charged as a percentage of the customs 
value.  The percentage varies depending on the type of 
goods and their country of origin .  Duty is charged on the 
price paid for the goods plus insurance and freight (which 
includes postage) costs.   Further information on rates of 
duty can be obtained from TARIC or by e-mailing 
[email protected] 
Excise Duty
This is charged on alcohol and tobacco products and is in 
addition to Customs Duty.  Excise Duty on wines and 
spirits depends on the volume of alcohol and whether wine
is still or sparkling.  In the case of cigarettes the Excise 
Duty is based on a percentage of the recommended retail 
price combined with a quantity charge while that on other 
tobacco products is based on the net weight. Information 
on the current rates of Excise Duty is available in the 
Schedule of Excise duties. 
Value Added Tax 
VAT at the point of importation is charged at the same  
rate that applies to similar goods sold in the State.  The 
value of the goods for the  purpose of calculating the 
amount of VAT payable at import is their value for 
customs purposes, described above, increased by the 
amount of any duty or other tax (but not including VAT) 
payable. 
 
9. REFUND 
CLAIMS 
Refund claims in respect of postal packets, which are subsequently 
claimed to be gifts, should be dealt with locally under standing instructions set out in 
Section 11 of the Customs Import Procedures Manual. 
  
8 
 
10. 
CASES OF DOUBT OR DIFFICULTY 
Any cases of doubt or difficulty which cannot be resolved locally should be referred to 
Customs Procedures Branch, Customs Division VPN 63234 or 63235 or 63229 or 
[email protected] 
 
  
9 
 

Document Outline

• CONTENTS
• 1. INTRODUCTION
  • Definitions
• 2.  LAW
  • 2.1 Customs Duty: 
  • 2.2 VAT:  
  • 2.3  Flat rate of duty:
• Point D1 of Annex I, Part One, Section II of Commission Regulation (EC) No. 1214/2007 amending Annex I to Council Regulation (EEC) No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff as amended by Council Regulation (EC) No. 275/2008.
• 3. DE MINIMUS LIMITS
• 4. CONSIGNMENTS CONTAINING ITEMS OF NEGLIGIBLE VALUE
• 5. GIFTS
  • 5.1 General
  • 5.2 Conditions  
  • 5.3  Gift relief – quantitative restriction on gifts of tobacco products, alcohol, perfume and toilet waters. 
  • 5.4 More than one item in a “gift” consignment
    • Where a “gift” in a single consignment consists of two or more items with a combined customs value of greater than €45, relief should be given for as many of those items as add up to a value not exceeding the €45 limit. However, the value of an individual item cannot be “split up” in order to arrive precisely at the €45 cut off limit. The table below provides a number of illustrative examples demonstrating how this works in practice:
  • 5.5 Flat rate of Customs Duty for gifts
  • 5.6 Conditions applicable to the flat-rate of duty for gifts
• 6. PROCEDURE AT IMPORTATION
  • 6.1 De minimus limits.
  • 6.2 Consignments of Negligible Value
  • 6.3  Gifts
• 7. ENTRY ON THE AEP SYSTEM
  • 7.1 De minimus limits
  • 7.2 Consignments of Negligible Value
  • 7.3 Gifts
  • 7.4 Gifts – flat rate of duty
• 8. HOW VARIOUS TYPES OF DUTY, CHARGEABLE AT IMPORTATION, ARE CALCULATED
• 9. REFUND CLAIMS
• 10. CASES OF DOUBT OR DIFFICULTY