Wrongly charged Customs duty?

Trevelyan

I really am not sure where to post this, so if theres somewhere more appropriate, I would appreciate someone pointing me there

Onto the main story: I paid for a Shakira fan club membership (this is where I get laughed at ) which was $45 (US dollars). As part of the membership I got a shirt which was supposedly free. I entered my address etc at the checkout, used a code I was given to get it for free (The shirt normally is supposed to cost $45, but it is included in the fan club membership, so I entered a given code to get it for free).

I get an email saying it has been shipped a few weeks ago and then, today, I get a Royal Mail card saying that there is a package that needs me to pay £13.28.

What on earth could this monsterous product be? After looking online and phoning Royal Mail, I find out it is the shirt that attracted such a high additional price:

£8 for Royal Mail receiving it from Customs
£5.28 VAT

Now, I also found out that it was from Sweden. Sweden is in the EU and they have said (and I haven't seen whatever form is or isn't attached) that the value was $45 and had ticked some box marked "Other". However, both Royal Mail's site and HMRC site both say that within the EU you do not have to pay Customs duty.

http://www.hmrc.gov.uk/customs/post/buying.htm#2

All other goods

If you're ordering or sending purchased goods (other than alcohol and tobacco) to the UK from another EU country then it's just like shopping in the UK.
There is no Customs Duty payable.
There is no Import VAT payable, unless you're ordering or sending purchased goods from one of the EU 'Special Territories' and if the value of the goods is £18 or more.
There is no Excise Duty to pay.

In addition Royal Mail say here:

Any goods imported into the UK over the value of £18 are liable to import VAT. Gifts between private individuals over the value of £40 are also liable for VAT. Goods and gifts over these values may also be liable for customs duty. You no longer have to pay customs duty for goods up to the value of £135, however you will still be required to pay import VAT and excise duty where applicable.

Excise = alcohol, tobacco etc. VAT would simply be £5.28 so I am unsure why I would have to pay a customs charge (even if the charge was only for Royal Mail having to pay to receive it).

Now, you might suggest that because I placed the order from a US website (I paid in dollars) I should have to pay the Customs charge. However - I would argue that if it was sent from the EU, it shouldn't matter since it would essentially be the same as slapping customs on goods ordered from within the UK if the company is foreign. In addition, if the arguement is used that the goods originated in the US, charging me Customs duty would imply that when the goods entered Sweden without having had duty paid and therefore the origin would not have been Sweden (like I was told it was).

From what I can make out, Customs duty is non-refundable. However, since HMRC no longer have the package (because Royal Mail paid the Customs duty on it), I both cannot get a refund and cannot get my package until I pay for it.

So, what should I do? Pay the charge, kick up a fuss with someone at Royal Mail? Should I have to pay 50% more of the "value" of a shirt or is this wrongly charged since it was sent from within the EU?

adam.mt

From what you say it looks like the charge isn't strictly for 'customs duty' but rather 'VAT' and a 'Royal Mail Handling Charge'.

For goods from outside the EU you'd normally have to pay for all three; for goods inside, I didn't think you had to pay duty or VAT, but I could be wrong.

In fact, your quotes suggest I am -
The first quote says VAT is payable from EU 'Special Territories', I assume Sweden is one of these?
The second quote says VAT is payable but not customs duty.

Therefore, the charges would seem correct. I think you're confused due to both custom duty and VAT which are actually separate things.

(I'd agree that the £8 handling charge is extortionate, but that's what it unfortunately now is. It was bad enough at £4, but now it's doubled it means importing of DVDs and Blu-rays is no longer really viable - something I, like many others, used to do due to the better selection and features on discs.)

unholyangel

I had the same issue. I paid for a item at 50% of its RRP. They put the RRP on the package which ended up with me paying customs and RM charge. I called to query the charge and was told that if i could prove the price i paid for it (paypal receipt etc) then they would refund the charges (although funnily enough, i'm still waiting!).

If you could provide a screenshot saying the shirt is free then they should refund it. Although i imagine it would depend on the wording!

adam.mt

Good point about it being free unholyangel, I missed that! But since the sender stated the value it might be considered their fault. Worth investigating though.

unholyangel

The people i ordered from did the same. Put the full value instead of what i had actually paid.

In those cases you're still entitled to a refund of customs (providing you can prove what you paid of course) but they wont refund any expenses for you doing so - like recorded delivery, phone calls etc - where if they (HMRC) were at fault, they would refund these

It will tell you on the package how to query the charges and where (i think it needs to be done at the port where it was accepted).

el_gringo_3

adam.mt wrote: »

In fact, your quotes suggest I am -
The first quote says VAT is payable from EU 'Special Territories', I assume Sweden is one of these?

Sweden is a full EU member state.

'Special Territories' are those with their own governance within a country or Union - Isle of Man, Channel Islands, Monoco, etc etc.

PeteMc

It could be from the USA via a Swedish hub. A few of the big US DVD retailers send packages this way and although postmarked Sweden it's from the US (which is made obvious on the packet). Many years ago the Customs did nothing about this but that's changed in recent years.

adam.mt

Thanks for the clarification. Seems the second link the OP provided (http://www.royalmail.com/portal/rm/content1?catId=400044&mediaId=400362) was wrong (it links to info for goods outside the EU; I didn't check it until now!) hence why it contradicted the first from HMRC (http://www.hmrc.gov.uk/customs/post/buying.htm#2) meaning that I was unsure about EU 'special territories'.

In conclusion, goods from the EU like yours aren't liable to either customs duty or VAT so nothing should be payable, and you should challenge it based on that fact.

However, you may find that the goods were actually sent from the USA (thus outside the EU) and just routed through Sweden, hence why VAT and a handling charge is applicable. Although, as pointed out you have a case to argue that since the goods were free to you then the declared value ($45) is immaterial.

i's dotted and t's now crossed :-)

System

Surely the value of the shirt (which is what duty is calculated on) is still $45. The cost of the shirt to you was $0 because you had the discount voucher.

unholyangel

!!!!!! wrote: »

Surely the value of the shirt (which is what duty is calculated on) is still $45. The cost of the shirt to you was $0 because you had the discount voucher.

As i said in a previous post, according to HMRC, it is the price you pay. If my item had been full value then i would have been liable for charges. As it was 50% off, it was under the limit and therefore shouldnt have been charged.

System

My mistake