Important information about the introduction of GST in Jersey

From 1st May 2008, the majority of goods and services supplied in Jersey will be subject to a Goods and Services Tax (GST) that is equivalent to 3% of the value of the product or service being supplied. This tax is being introduced by the States of Jersey, the Island's government.

It is important to note that our freight and onward delivery charges are zero rated within the GST law and the cost of transportation via our service will therefore not be affected. GST may become applicable to subsequent on-Island services that fall outside of the initial movement, but these will be advised at the point of quotation for any specialist requirements.

GST will affect imports to the Island, as all imported goods with a value of more than £400 will be subject to the tax. The total Cost, Insurance and Freight (CIF) is subjected to GST and it is this full combination of the three that will determine the ultimate import value. This tax is to be paid by the importer, however, there are actions which can be taken by both importers and UK exporters that will enable a smoother transition of goods through the port at St Helier.

I would be grateful if you could read the guidelines below with a view to adopting them into your own procedures:

Guidelines for individuals and companies sending goods to Jersey:

It is important to remember that GST does not affect exporters from a financial point of view, however, by providing the following information on the delivery note for the exported goods, you will be assisting their clearance through Customs. Ultimately this will help maintain your clients' satisfaction.

-   Invoice value
-   Name
-   Address
-   Phone number

These items of information form a minimum set of values that Jersey Customs requires to automatically process imports and will assist, in many cases, with immediate release notifications being available to us. A fully completed consignment note is the best way of providing this information, copies of which are available on our website (www.huelin-renouf.com) or by contacting any of our offices.

Guidelines for individuals and companies importing goods to Jersey:

It is the consignee's responsibility to ensure that the appropriate provisions are in place for the payment of GST on imported goods with a CIF value of over £400. If you are importing goods on behalf of a customer, it is in your interests to follow these guidelines.

-   If you are a regular importer of goods to the Island, it will be worthwhile seeking 'approved trader' status. Please note that this is not the same as registering your business for GST. Approved trader status is given to companies and individuals that import goods on a regular basis and means that your goods will automatically be cleared through customs. You will be required to pay GST at a later date. Please visit this Customs website to apply for approved trader status: www.customs.gov.je.

-   If you do not regularly import goods into Jersey and therefore are not an approved trader, you will need to pay GST on items with a CIF value of £400 or more before they are released by customs. You will be able to make the payment online, directly to www.customs.gst.gov.je and this can also be done prior to the goods arrival, therefore enabling immediate clearance. Huelin Renouf Shipping will be happy to act as a clearing agent and make payments on your behalf, by prior arrangement, so that goods can then be automatically released upon their arrival.

It is important to take these simple steps in order to avoid having your goods detained by Customs upon arrival in the Island. If you have any questions, please do not hesitate to contact me on 01534 825611 or email me: michael.lefeuvre@huelin-renouf.com.

This simplified explanation of GST is not, of course, able to reflect the GST law or actions of the revenue collection officers in its entirety and contact should be made with the GST team at http://www.gov.je/TreasuryResources/IncomeTax/GST/default.htm for information relating to the full effect of GST on your specific business.

It is important to remember that GST is not being introduced in Guernsey, so there will be no change to any services supplied to Guernsey.