Parcel Delivery subject to Charges from HM Revenue & Customs

united4ever

A relative sent a parcel from the far east last week. Got a letter from Parcelforce saying delivery is subject to £27.87 charge (14.37 VAT and £13.50 Parcelforce Clearence fee).

It asks that any disputes are diected at HM Revenues and Customs after receipt of the parcel.

I've often received such parcels in the past but never had this charge. The contents were clothing and some Japanese heat pads which you stick to your body to ease aches and pains.

I've paid this because I want to get the parcel but don't understand the high cost. Does this cost sound excessive and is it worth me pursuing a refund?

Forris

It depends how the items were listed on the customs documents and what there declared value was. If they are listed as a gift or as 'used personal posessions' they will usually get through unscathed. In my opinion, as you have had a few parcels previously and the amount is relatively low, I would just suck it up.

united4ever

Think I will just have to bite the bullet this time. In future though, If it's made clear on the parcel that it's a gift then it should not be liable for these charges - is that correct?

The_Pedant

On any goods imported there are potentially two charges payable, duty, and vat. The duty varies depending on the type of item & the vat is fixed at 15%. These are subject to a 'minimum value' under which the goods are allowed through without duty as typically it would simply not be cost effective to collect duty on low value items. The minimum value allowances are different for if the goods were marked as merchandise, or as a gift. In addition to these, the carrier is allowed to charge for the service of collecting the duty on HMRC's behalf

I believe these currently are £18 for merchandise, or £36 for gifts (subject to some other exceptions). Of course, with the amount of goods coming into the country, there are often cases where you can slip through the net.

More information can be found on the HMRC website: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_CL_000014&propertyType=document

I think section 2.3 and some of the other points there will help guide you.

Once they've made the determination to charge you, unless you think you have been charged a vastly different amount, then I don't think there is much you can really do.

Newly_retired

We had a parcel a couple of months ago, something DH had ordered from USA. It was delivered, no problem, then a few days later he had a letter from HMRC requesting customs payment, VAT etc.
Have heard nothing more since.