Why UK E-commerce Retailers Leave Money on the Table: The Untapped Opportunity of Returned Goods Relief (RGR)

19 Jun

Introduction

International returns have become a significant challenge for UK e-commerce retailers, especially in the wake of Brexit. With added customs duties and VAT on goods re-entering the UK, many businesses are unknowingly leaving substantial sums unclaimed. This post explores how Returned Goods Relief (RGR) represents a powerful yet underutilised opportunity to recover profit.

What is Returned Goods Relief (RGR)?

RGR is a customs procedure that allows businesses to reclaim import duties and VAT on goods that are returned to the UK after being exported, provided certain conditions are met. It’s designed to prevent double taxation and support businesses managing international returns.

Why Aren’t Retailers Claiming RGR?

Despite its clear benefits, many e-commerce companies don’t claim RGR. The main barriers include:

Complexity of customs processes
Lack of awareness or understanding
Fear of compliance risks
Insufficient data management to meet HMRC requirements

The Real-World Impact

For mid-sized retailers, unclaimed duties and VAT can easily exceed £100,000 annually. Even smaller businesses often miss out on £10,000 or more each year. These are profits that could be reinvested into growth or used to offset return costs.

Are You Eligible?

To claim RGR, you typically need:

Proof of original export (export declaration, MRN)
Evidence the goods are returned in an unaltered state
Correct customs procedure codes
Documentation matching re-import and export records

How Meridian Drawback UK Helps

At Meridian Drawback UK, we specialise in managing the RGR process from start to finish. Our performance-based fee structure means we only get paid when you recover your money. We handle compliance, create audit trails, and take on the administrative burden turning customs complexity into a profit recovery channel.

Conclusion

Don’t let customs complexity cost your business. If you’re an e-commerce retailer handling international returns, RGR could be your untapped source of profit. Reach out to Meridian Drawback UK for a free initial audit and discover what you could reclaim.

Samuel Agyin Ansah