asked the Minister for Finance the reason VAT on point of entry is not waived when goods are stored in bonded warehouses strictly for re-export; if he is aware that Dublin port has lost a considerable amount of business which is being transferred to UK ports; and if he will consider any necessary changes in legislation to remedy this situation and bring Dublin port into line with UK and other EC ports.
Written Answers. - VAT Relief Legislation.
50.
When VAT at point of entry was introduced generally in 1982 it was decided for Exchequer reasons that it should apply, in so far as warehousing was concerned, to goods on their entry into warehouse. Relief from the imposition of VAT at point of entry in respect of the temporary importation of goods in commercial quantities for subsequent re-export is confined to categories such as goods in transit or for transhipment. In these cases the period during which the goods in question may remain in the State is strictly limited. The storage of imported goods in bonded warehouses for re-export does not qualify for relief under these provisions.
I have no evidence that the absence of a wider relief provision in this area has been the cause of a considerable loss of business, as suggested. If such evidence should be made available, and provided that any change in this area would not be in conflict with our obligations under EC law and could be administered without putting the general VAT at point of entry system at risk, I would be prepared to give the matter due consideration.