Import duty tax

troutman

Had a bike transported back from the USA -> UK via DHL which was already used and damaged by me.
Had a call from DHL customs to say i potentially owed 200 pounds import duty, and cannot release the bike until its paid. I contested as i explained the bike insurance value was inacurate due to a crack in the carbon frame, and its value was much lower.
As requested i sent an explanation to the contact detailing my reasoning, he said 'ok leave it with me'.
Few days later the bike appeared at my door.

Few months later i received a bill through the door from DHL for 200 pounds import duty now ive thrown away all the paperwork that came on the packaging. I was told at the time they would either wave it through or not? Where do i stand here? How can DHL prove they had to pay the duty in the end?? What if they're just charging me anyway?

TIA.

Hintza

You will probably need to pay it and then reclaim from HMRC.

What value and explanation did you put on the customs declaration form when you sent it? This is probably where the problem has occurred.

InsideInsurance

Need to understand the story a little more... did you buy the bike abroad? Was it your bike that you took from here to the US and back again? Was the bike a gift?

Who completed the customs declaration form and what was put on it in terms of both value and item category?

troutman

InsideInsurance wrote: »

Need to understand the story a little more... did you buy the bike abroad? Was it your bike that you took from here to the US and back again? Was the bike a gift?

Who completed the customs declaration form and what was put on it in terms of both value and item category?

Did you buy the bike abroad? - Bought it second hand whilst abroad and damaged it, left it at bike shop flew home.

Bike shop completed customes declaration. i think $1500 and returned/repaired goods.(wasn't repaired they couldnt repair)

visidigi

returned/repairs goods only applies if the goods were imported to the US for repair.

this is nothing more than an export and as such is liable for duties/taxes.

troutman

Ok fair enough how come it was released with the subseqent charge turning up a few months later? I was told it wouldnt be released until payment was made? I think im more mistrusting about DHL here. As when i spoke to the DHL guy he said 'sure that should be ok, leave it with me'.

visidigi

DHL can prepay (your bill will show fees for doing so) - express couriers tend to deliver and bill later, I would imagine the size of the box here may have mean that holding it wasn't viable forever, mind you the other side makes me wonder if the guy you spoke to found out there was no way to avoid it and passed the issue onto someone else by pre-paying and delivering...

troutman

Thanks to all of you for your prompt attention and answers here, much appreciated.

Hintza

On the figures given £200 sounds about right ie 20% VAT plus £15 clearance. I doubt there is any duty involved and even if there was it usually isn't that much.

InsideInsurance

It sounds a very low tax bill to be honest given a declared value of $1,500 and presumably a fairly hefty shipping/ insurance charge (which you also have to pay tax on).

Ignoring the shipping the expected bill would have been £341 for VAT and Duty (which does apply to bicycles) and then DHL adds a handling fee on top of that.

As others have said, couriers will normally pay it on your behalf and then charge you the amount plus an admin fee for having sorted it for you.

How much did you actually pay for the bike?