Import duty/tax on item from USA - is it best to 'prepay'?

dezza

I'm buying an electronic medical device from the USA, costing $151.99 plus $43.46 shipping from an online store.

I notice there's an option to prepay the customs charges, which adds an extra $52.04 onto the total price.

Based on the value of the item and the postage, I was wondering if it's worth doing this, or just paying as necessary when it arrives in the UK? Also, if the tax is prepaid, does that absolutely guarantee that no further charges will be applied when it arrives here?

Having never done this before, or ordered anything of value from overseas, any advice on this would be appreciated.

Thanks in advance

Naf

As I understand it, only certain companies, in certain places have agreements with UK customs to be able to prepay the charges. I'd be wary of this charge myself...

dezza

It's through a system called 'International Checkout' - which I've never heard of - but from looking round other US sites, it seems to be a service offered by a lot of sites over there.

sham63

Here's an example of an item from the US with the 'international checkout' facility - I'm also curious to know if anyone's used this method?

http://www.ebay.co.uk/itm/BIGSBY-USA-B7-VIBRATO-TAILPIECE-AND-VIBRAMATE-V7-COMBINATION-KIT-ALUMINUM-/130922841000?pt=Guitar_Accessories&hash=item1e7b9c03a8

Naf

Looks like its an eBay thing, so must be arranged by the couriers they use.
http://pages.ebay.co.uk/help/buy/shipping-globally.html
Seems legit.

shaun_from_Africa

It might be worth contacting HMCE to see if there are VAT exemptions for the goods in question.
Some medical items are zero rated for VAT and if the item you are purchasing is one of them, you might be able to save a few £s.

custardy

Naf wrote: »

As I understand it, only certain companies, in certain places have agreements with UK customs to be able to prepay the charges. I'd be wary of this charge myself...

not really. Thy will be using a courier who offers the service

nikki1520

A lot of medical devices carry no duty, and some have a VAT exemption too - you can look at the online trade tariff here - https://www.gov.uk/trade-tariff/chapters/90

I've gone to chapter 90 as that's were a lot of medical stuff is. You can then work out if the pre paid option is a good deal - obviously if the item is not subject to VAT and is also at a nil duty rate, then pre paying is a bit of a waste of money

dezza

Thanks for your replies everyone - from looking it's definitely duty exempt, but it's unclear about whether or not it's VAT exempt. Seems to quote rates of 0%, 5% and standard rates on the same page so will have to double check with them to find out.

Vernier

dezza wrote: »

I notice there's an option to prepay the customs charges

I don't think paying the "import charges" upfront is optional on these listings - you buy the item, you pay whatever they decide you have to pay when you go through the checkout.

The "Global Postage Programme" seems to be some kind of eBay sponsored money-making scam. The items I'm interested in are not liable to duty, only 5% VAT, yet the import charges quoted in the listings are normally about 25% of the current bid plus postage.

I've managed to avoid buying anything with the 'benefit' of this service so far!

dezza

It's not eBay I'm looking to purchase from - on the website I'm looking at, there's an option to pay the charges upfront, or choose not to.

I did have a look at some of the ones on eBay and even on the low value listings, the upfront charges seemed rather high, compared to paying the taxes on landing - so I'd definitely agree that at least on eBay, this is some form of a rip off charge!