Import Tax/Customs

Ellie

Does anyone know the rules about import tax when importing jewellery?

I purchased once before from USA and paid a fortune in import tax. Also if there is a set amount of value you are allowed to have shipped in is that wholesale or retail value?

As u can tell i sell on ebay in small quantities and would like to use a different wholesaler and it seems cheaper abroad.

Any help much appreciated!

chivvy

The general rule is you have to pay customs charges on commercial goods over the value of £18 coming into the UK or over £35 if it is a gift.

I regularly buy in CDs from abroad and ask the supplier to either keep the value on the customs label below £18 or to class as a gift and keep it below £35. They are usually OK about doing this.

soolin

chivvy wrote:

The general rule is you have to pay customs charges on commercial goods over the value of £18 coming into the UK or over £35 if it is a gift.

I regularly buy in CDs from abroad and ask the supplier to either keep the value on the customs label below £18 or to class as a gift and keep it below £35. They are usually OK about doing this.

It is of course a criminal offence subject to a custody sentence if found to be defrauding HM Customs and excise and would refer you to the 'ethics' sticky post on this MSE Ebay board.

Going back to the OP, chivvy is right in that for personal items brought into the uK you have a limit of £18 per package, however if you are importing as a business or even a registered small trader all sorts of other rules apply. You may be able to import at a lower rate, or reclaim VAT somewhere along the line depending on your sort of registration and Vat status, so an accountant may be able to help you.

Soo

Ellie

hmm still confused!

£18 value?

soolin

Ellie wrote:

hmm still confused!

£18 value?

If you buy something that costs you £17 from the US and that £17 is shown on the customs label then you will not pay import duties when it arrives. If you buy something for £19 then you might pay duty on the full amount , not just the £1 over the limit. You will also pay a handling charge that varies depending on how it is carried, but can add as much as another £4 to the charges.

However, this is not an exact science, so you would need to talk to your supplier and to your accountant if appropriate. Some parcels even with a declared cost of over £18 get through without an additional charge, as many people have reported. Some US shippers add the postage costs to the package so your £17 purchase may show as £20 and threrefore attract fees as the shipper has put the total on the customs label.

Soo

martindow

I think that the value as far as customs are concerned is the cost of the item plus the postage cost. US suppliers are usual rigorous in their paperwork but the Post Office here often don't enforce the charges especially if it is something small. There may also be import duties (tel 01702 366077 to find out commodity code and the percentage) and a handling charge that can be over £10 if they use a carrier like Fedex. Fedex and other carriers always enforce the charges. It is best to calculate assuming the worst so you know if it is worthwhile importing and regard it as a bonus if you end up paying less or nothing!

Ellie

I remember last time I bought a few bits from US and had them sent over it was about £50 odd pounds worth value and i was charged £18 in charges that I had to pay at PO sorting house. It was a cost i really hadnt bargained on!

JohalaReewi

The following thread might be useful...

http://forums.moneysavingexpert.com/showthread.html?t=163258

Towards the end, there is information of what customs include to work out the value of an item. The link to HM customs website is...

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_CL_000199&propertyType=document#P64_6943

Not the easiest of reads though

Hintza

Ellie wrote:

I remember last time I bought a few bits from US and had them sent over it was about £50 odd pounds worth value and i was charged £18 in charges that I had to pay at PO sorting house. It was a cost i really hadnt bargained on!

On your cost of £50 I would expect to pay about £12.75. A £4 clearing fee plus VAT of 17.5%.

You might also be charged VAT on the postal element so assuming that was about £10 that would be an additional £1.75. In practice I have found they seldom charge this.

You might also have to pay import duty but again in practice you seldom do. Import charges are a nightmare to work out and best top go to the C&E website to get classifications but on most items are usually about 2%-5%.

However if you use a courier expect all charges to be levied plus a very much higher clearance fee. So best to stick to insured mail.

So all in all the £18 you were charged would certainly be at the top end of what you should be charged and could be worth a letter of complaint. In my view though not worth the hassle.

In general I add 20% onto the goods I buy overseas to decide whether it is worth buying outside the UK. I most cases you will get them cheaper here.

I have also had a full blown customs and excise investigation in the past but all my paperwork etc was in order and now I have no problem. I do however not advocate going down the gift route this just leads to trouble and you could lose your goods. If items are worth more than £18 and it is possible to break up an order I will tend to that to keep the parts/items individually below £18.

Hope that helps

Ellie

Hintza wrote:

Hope that helps

Helps alot thank you!