Advice needed, Customs import VAT too expensive

tonytaater

Could anyone help me with this.

I bought a video game system from USA which came to £72. I paid £33 for shipping so total £105

Yesterday I got a letter from parcel force stating i need to pay £154.87 import VAT which I cannot afford to pay and i refuse to pay it.
The value of the video game system is about £100 so why do I have to pay 150% of the value in Import VAT?

If I don't pay the charges the parcel will be returned to the sender.
Would I have to pay shipping charges for this or should the seller be insured?

I have no idea what my rights are, somebody please help

lovinituk

Unfortunately with Parcel Force they will not release the item until the charges are paid, unlike other couriers who will deliver and then invoice you for the charges afterwards. There is probably a wrong entry on the customs declaration that has led to the miscalculation. You can pay the charges to get your item and then put a claim in with UK Border Agency for a refund for the difference but that can take months.

If it goes back to the sender then they may refund you for the item price but I doubt very much that they will refund for the shipping cost and possibly charge you for any return costs.

JAG

Using http://www.dutycalculator.com/ then you should be paying Import VAT of £21 plus Parcel Force handling fee (Royal Mail charge £8).

The customs declaration is either been marked incorrectly or misread.

You will need to pay the fees and then claim them back off the Border Agency. Call them (details below) and they will advise you.

Excise and Customs Helpline

For Excise Duties and customs telephone enquiries Opening hours 8.00 am to 6.00 pm, Monday to Friday
Closed weekends and bank holidays
0845 010 9000

tonytaater

So Who should I contact first? Do I ask parcel force if they have miscalculated and see if they send me a new invoice or pay the full price?
How would I claim the money back? is there an online form?

lovinituk

tonytaater wrote: »

So Who should I contact first? Do I ask parcel force if they have miscalculated and see if they send me a new invoice or pay the full price?

Parcel Force are only interested in you paying and nothing else. The charge has come from customs and effectively paid by Parcel Force on your behalf. If you want the package, you have to pay PF the full amount - there is no room for negotiation there.

tonytaater wrote: »

How would I claim the money back? is there an online form?

Phone the number given by JAG above and they will help you. You have to pay PF for it first and then you will need to send in the customs declaration, the sticker detailing the charges that will attached to the package, and proof of what you actaully paid. Then wait for a while! One I claimed for recently took 3 months to pay out!

tonytaater

Ok. What would happen if the seller had put the value at $1250. This would give the correct import duty price calculation. would this affect my rights to claim?

Hammyman

If the seller has put the incorrect COMMODITY CODE on, it will be billed at the rate based on the declared value for that commodity code. It could be they've put the incorrect code on.

lovinituk

tonytaater wrote: »

Ok. What would happen if the seller had put the value at $1250. This would give the correct import duty price calculation. would this affect my rights to claim?

Thats probably what has happened. It could be as simple as there is a very faint decimal point and the customs person processing it has misread the amount. I had that once and got overcharged a lot more than you have.

As long as you can prove what you actaully paid, they ususally refund you. Its a good idea to enclose a bank or credit card statement showing the actual amount paid to back up the invoice you should also send in.

I've claimed a couple of times in the past and they have all paid out... eventually.

tonytaater

Excellent thank you all

bunberry

tonytaater wrote: »

Ok. What would happen if the seller had put the value at $1250. This would give the correct import duty price calculation. would this affect my rights to claim?

If the seller incorrectly declared the package, you'll have to provide evidence (receipt) to have the charges adjusted.

Edit: doh! Need to type faster

lovinituk

Hammyman wrote: »

If the seller has put the incorrect COMMODITY CODE on, it will be billed at the rate based on the declared value for that commodity code. It could be they've put the incorrect code on.

I doubt any incorrect commodity codes would make the calculation incorrect by that much! I don't of any commodity codes that would make the import duty in excess of 100%!