Client: Paxman Coolers Ltd

Profile:

Paxman have been pioneering scalp cooling technology for over a quarter of a century to support patients and minimize hair loss during chemotherapy. Their clinically proven scalp cooling system helps tens of thousands of cancer patients every year, in more than 60 countries worldwide, to retain their hair during chemotherapy.

Problem:

Paxman need to send free sample systems to their export markets for pre-purchase or clinical trials. Once the trial is completed the systems will be returned to the UK so Paxman want to send the systems under the Temporary Admission procedure so their customer isn’t liable for import duty and VAT. Since Brexit this has become much more complicated for EU member states and several attempts to use an ATA Carnet failed to the point where freight forwarders refuse to do it any more. A clinical trial was scheduled to start in France at the end of 2022 and they needed to find a way to eliminate the danger of the client being hit with a huge VAT bill for what was supposed to be a free trial. A solution also needed to be found for a potential customer in Iceland (which is an EEA country but not a member of the EU) for the start of 2023.

Solution:

The Intertrade Services Groups spoke to a number of VAT experts and logistics companies to determine the simplest and most cost-effective way for Paxman to achieve their objectives. A freight forwarder with extensive experience of importing under the Temporary Admission procedure (not using a carnet) was found and due diligence completed on Paxman’s behalf. For the solution to work in France the following criteria had to be met;
The importer (in this case Paxman’s client) must be established as a legal entity in France with a French EORI and VAT number.

The importer must agree to do an official request for temporary admission directly on the French Customs Portal (called SOPRANO) to authorise the freight forwarder to complete all the customs formalities.
Goods must me be shipped back exactly in the same conditions as when they arrived within two years.
Having established that Paxman’s client was prepared to proceed on this basis, The Intertrade Services Groups set up a Zoom meeting between all the parties to discuss the details and begin the process.