Buyers beware

[Mike Halligan]

Thanks to our mods for removing a recent post. May I offer a little advice to those less aware of processes in international trade ..........

Say you're offered "duty free" trainers (i.e. from outside the EU) at US40 per pair (min 5 pair) plus US20 Shipping, then you'll face a charge at the EU frontier of
US220 x 16.9% (US33.80) plus
US253.8 x 20% (US50.76)
so your cheapo trainers have just been marked up by 50%.:eek: The carrier will frequently charge you for clearing your goods through Customs, so you face a bill of US84 plus something between GBP15 and GBP45 before you get your paws on the goods you bought.

Dig far enough into the particular web-site just removed and you find they point out Customs clearance is your problem, not theirs.:mad:

[Dilys]

Yep, I found this when buying a Garmin GPS watch from US - though even with the extra £25 customs payment, it was still half the price of the UK selling price. It did state that buyers were responsible for import duties, but it didn't indicate how much.

[Edward]

... It did state that buyers were responsible for import duties, but it didn't indicate how much.
Its the responsibility of the importer (in this case the buyer) to inform the import agent what the goods are to be used for, that dictates the Duty and VAT. The seller can't.

Remember both the EU & UK will want their cut, especially from the US.

Regards

[Dave White]

Yes, but remember that if you are buying something online it will be pretty-much always home use (or a straight forward purchase with full tax levied). Even if you are buying the item for another person it may not be possible to class it as a gift (and the value limit for gifts is low £35.99 per individual or less) because the goods are being purchased in the UK and have to be imported (thus taxed) before they are given as a gift to the ultimate consignee.

In short everyone - expect to pay VAT and Duty on anything purchased outside of the EU PLUS the surcharge previously mentioned that a courier applies (often called a dispersment or derferment fee for interacting with HMRC on your behalf and paying taxes up front). If you do buy from another of the 27 member states then goods are classed as community transit and in free circulation....this means that no further tax is payable on import.

Hope this helps....and good post Mike (Customs Officer by chance?) :)

[Drew MacIver]

Does this apply to all goods or only certain types?
the reason i ask is I recently bought a jacket and t shirt from the US, was only told it would be cost of items plus $19.99 postage. and that's all i paid, was never contacted in anyway about import stuff and was never charged any extra either, so i figure the import dues only apply to certain items? am i wrong?
Drew

[Edward]

Does this apply to all goods or only certain types?
the reason i ask is I recently bought a jacket and t shirt from the US, was only told it would be cost of items plus $19.99 postage. and that's all i paid, was never contacted in anyway about import stuff and was never charged any extra either, so i figure the import dues only apply to certain items? am i wrong?
Drew
have a read here (http://www.hmrc.gov.uk/customs/post/buying.htm#3) on HMRC's site.

Don't fall asleep.

Regards

[ChristianG]

It's an interesting point that I, but of course, look at from a camera point of view.

Here in Oz we have 10% GST, equivalent to your VAT, on pretty well everything that we purchase - except that if we directly import something, if the value is less than $Au1000 we pay nothing because, probably correctly, it is deemed that less than $Au100 is not worth recovering. So if I buy, say, two lenses from my favourite photographic supplier in "Noo Yoik" I would pay the extra courier charges for separate items both under that magic $Au1000 mark (doesn't work sometimes of course) and, entirely legitimately, import them into this country "duty free".

Not so in the UK? I believe that in your case it depends on a number of variances, including what side of the bed the assessor got out of that morning.

It's why I very rarely suggest my favourite photographic supplier in "Noo Yoik" when I (relatively regularly) get a PM on this subject despite the fact that they are, pretty well always, significantly cheaper than your UK suppliers (and, quite certainly, my Oz suppliers).

[Mike Halligan]

It's an interesting point that I, but of course, look at from a camera point of view.

Here in Oz we have 10% GST, equivalent to your VAT, on pretty well everything that we purchase - except that if we directly import something, if the value is less than $Au1000 we pay nothing because, probably correctly, it is deemed that less than $Au100 is not worth recovering. So if I buy, say, two lenses from my favourite photographic supplier in "Noo Yoik" I would pay the extra courier charges for separate items both under that magic $Au1000 mark (doesn't work sometimes of course) and, entirely legitimately, import them into this country "duty free".

Not so in the UK? I believe that in your case it depends on a number of variances, including what side of the bed the assessor got out of that morning.

It's why I very rarely suggest my favourite photographic supplier in "Noo Yoik" when I (relatively regularly) get a PM on this subject despite the fact that they are, pretty well always, significantly cheaper than your UK suppliers (and, quite certainly, my Oz suppliers).
2 differences 'twixt UK and AUS.

First, our representatives sold out on sovereignty without a single thought for our brave Commonwealth allies during 1972, remember?

Second, where Brussels applies a de-minimis concession, it is generally so miniscule as to be ineffective (hence the frequent rows between London and Brussels).

And, to answer Dave, long, long ago and 200 miles from here.
Happy days! :D :D :D

[Dave White]

Does this apply to all goods or only certain types?
the reason i ask is I recently bought a jacket and t shirt from the US, was only told it would be cost of items plus $19.99 postage. and that's all i paid, was never contacted in anyway about import stuff and was never charged any extra either, so i figure the import dues only apply to certain items? am i wrong?
Drew

Yes tax would have been due, very few exceptions in the UK, full VAT and something like 14% duty at a guess. This would be based on the value plus freight.

Christian - as Mike states we have the de-minimis threshold, your $1000 limit is the equivalent of our £18 effectively...again I would agree with Mike it is rather limiting. Predominantly used by savvy companies when sending samples which have not been mutilated.

Mike - thought so :)

[Fred]

Christian some of us live in a country where cameras are duty free :D :D :D

[ChristianG]

Christian some of us live in a country where cameras are duty free :D :D :D
I do wish you hadn't reminded me of that. :rolleyes: ;)

[Drew MacIver]

Thanks Edward for the link after trolling through it i found the reason i did not get charged anything


"All other goods

If you order or send purchased goods other than alcohol, tobacco, perfume and toilet water from a country outside the EU then you:

* don't have to pay Excise Duty
* may have to pay Customs Duty on goods with a value that exceeds £135
* will have to pay Import VAT on goods with a value that exceeds £18

Note that on all goods from outside the EU, Customs Duty is waived if the amount of duty calculated is £9 or under.

That explains it, worth knowing that.
Cheers
Drew

[SUNDODGER]

Christian some of us live in a country where cameras are duty free :D :D :D


Crikey - you're having a laugh!! When did you walk down main Street last?

Duty Free? I don't think so. Most of the stuff is cheaper in Spain and/or the UK - fuel (Morrison's), booze and fags excepted.

[Dave White]

Thanks Edward for the link after trolling through it i found the reason i did not get charged anything


"All other goods

If you order or send purchased goods other than alcohol, tobacco, perfume and toilet water from a country outside the EU then you:

* don't have to pay Excise Duty
* may have to pay Customs Duty on goods with a value that exceeds £135
* will have to pay Import VAT on goods with a value that exceeds £18

Note that on all goods from outside the EU, Customs Duty is waived if the amount of duty calculated is £9 or under.

That explains it, worth knowing that.
Cheers
Drew

WILL have to pay import VAT on goods with a value that exceeds £18...this confirms that tax was due. The reason you might not have had to pay taxes is likely one of the following.....
The shipper declared a different value for customs purposes
The shipper declared the goods were a gift or sample
The goods travelled via the postal service rather than a courier*

* that last one is the main reason that we get goods sent to us without tax and I think that Royal Mail in particular are exempt due to the fact the letters and packages are private property. A sales agreement which goes through a commercial carrier differs and is treated the same as luggage taken through an airport - it has to clear at the port of arrival prior to circulation.

[Fred]

Crikey - you're having a laugh!! When did you walk down main Street last?

Duty Free? I don't think so. Most of the stuff is cheaper in Spain and/or the UK - fuel (Morrison's), booze and fags excepted.

Sorry SUNDODGER but cameras are duty free , fuel, booze and fags are not.

However that does not stop the extortionate mark ups most shops apply.

Mainly to cover the ridiculous rents and service charges on their shops plus a bit of profiteering :rolleyes:

Personally I import from whoever has the best deals inclusive of postage

[PeteM]

The goods travelled via the postal service rather than a courier*

* that last one is the main reason that we get goods sent to us without tax and I think that Royal Mail in particular are exempt due to the fact the letters and packages are private property. A sales agreement which goes through a commercial carrier differs and is treated the same as luggage taken through an airport - it has to clear at the port of arrival prior to circulation.

I've had to pay VAT on deliveries via Parcel Force.

Really annoying as it was a replacement control unit for a motorbike intercom, sent it to Germany to be fixed under warranty, they decided it could not be fixed so sent me a replacement from the States. I appealed to HMRC and they said as it was a new import VAT was due but that they would wave it in this instance and give me a refund

[Dave White]

I had never heard of that happening before Pete....even more unusual as the goods were sent from another EU member and you would have generally paid tax to Germany too (unlesss it was replaced for free under warranty).

Interesting one, glad you got your refund (also very rare).

[PeteM]

I had never heard of that happening before Pete....even more unusual as the goods were sent from another EU member and you would have generally paid tax to Germany too (unlesss it was replaced for free under warranty).

Interesting one, glad you got your refund (also very rare).

No the goods were sent from the USA - fault product was returned to Germany.

Parcel Force has a whole department dedicated to collecting VAT and Duty, based in Mount Pleasant post office I believe

[Dave White]

Ahhh....used to be the only freebie route, now also covered, are letters/ personal mail still exempt does anyone know?

Not planning any smuggling....just curiosity :)

[PeteM]

Ahhh....used to be the only freebie route, now also covered, are letters/ personal mail still exempt does anyone know?

Not planning any smuggling....just curiosity :)

Nope.

And the VAT unit has been there for a fair while, at least ten years - they used to to very poor at collecting though...

[Mike Halligan]

Ahhh....used to be the only freebie route, now also covered, are letters/ personal mail still exempt does anyone know?

Not planning any smuggling....just curiosity :)
All goods crossing the EU frontier (i.e. arriving into the gang of 27 member states from elsewhere) are liable to the common customs tariff, set in Brussels. Some articles are relieved of duty under that tariff, most often because they are not grown or manufactured within the 27 states (e.g. cameras). The EU applies a de-minimis waiver to the customs duty charge, so member states don't charge it and member states may also waive their VAT if they so wish. What a member state may charge in Excise Duties or VAT is more or less up to its government (so long as commerce will tolerate it), thus booze, baccy and camera prices vary dramatically across the EU.

It matters not whether Mail, Parcel, Courier or Frieght services are used to bring goods across the EU frontier. The only exception is when the importer carts it across in his/her personal baggage, where a different set of allowances and concessions apply.

In 1972, our then government and the 2 opposition parties conspired to rat on the Commonwealth and get their snouts into the EU trough - a non-manifesto carve-up we've been paying for ever since. :confused:

[Mike Halligan]

Nope.

And the VAT unit has been there for a fair while, at least ten years - they used to to very poor at collecting though...
"They were there" in my day, 35 years ago. It was then for the PO (RM and Parcel Force) to collect the money from the importer after they'd paid the charges themselves, in order to release the item for delivery. ;)