Members will be pleased to hear that after reviewing information received from industry regarding reusable plastic crates HMRC have determined that they DO fall within the definition of transport packaging and are therefore exempt from Plastic Packaging Tax when imported into the UK filled with goods. This exemption applies regardless of whether they are leased or owned.
The Plastic Packaging Tax primary legislation contained in the Finance Act 2021 exempts transport packaging where it is imported into the UK filled with goods.
This exemption will also apply to pallet wrap and straps when used to import goods. However, IBCs will remain in scope of the tax when imported filled, as they are used to import a single sales unit and therefore do not meet the definition of transport packaging.
(Note, these items are not exempt from PPT when they are manufactured in the UK or imported unfilled).
PPT has been in place since 1 April 2022 and only one return has been required from liable businesses. Should you already have accounted for these transport packaging items, you can amend a previous return. You are advised to sign into your plastic packaging account and choose ‘View or amend submitted returns’. If you are due a repayment as a result, you can request a repayment.
GOV.UK guidance has been updated to reflect this position which you can now find here.
HMRC have also produced a toolkit to help you understand the steps you need to take. This can be accessed here