Written question asked by Earl Howe (Conservative), in the House of Lords. It was answered by Lord Davies of Oldham (Labour) on Tuesday, 8 January 2008.

Food: Supplements

Question: asked Her Majesty's Government:Why they continue to permit value added tax exemption under the low-value consignment relief scheme for personal imports from the Channel Islands of food supplements and herbal remedies which, if placed directly on to the United Kingdom market, would be illegal by virtue either of their composition or of the claims made about them; when they next intend to review their policies on this matter; and what assessment they have made of the impact of such exemptions upon the United Kingdom health food retailers and mail order companies.

Answer: Goods imported into the United Kingdom from the Channel Islands are subject to import VAT in the same way as goods imported from any country outside the European Union. However, under European Community legislation, import VAT is not payable on commercial consignments if the total value of the goods in the consignment does not exceed £18. There is no prohibition on the importation of food supplements for personal use within the EC food supplement directive, with the exception within the UK of kava-kava containing foodstuffs. Therefore UK Customs must apply the VAT exemption rules until the policy on the import of such goods is changed. No assessment has been made on specific products imported under the import VAT accounting scheme, but the scheme is very closely monitored, taking into account the revenue consequences and the impact on the UK market.

Secondary information

Type: Written question
Reference: 1092; 697 c196-7WA
Session: 2007-08
Related items: Food: Supplements
Monday, 3 March 2008
Written questions
House of Lords
Subjects: Channel Islands Dietary supplements EU law Imports Minerals Tax allowances VAT Vitamins Herbal medicine
Link: View this Written question on www.publications.parliament.uk