Incorrect Customs Declaration

BartyBoy

Hi All

I am not sure if this is the right section for my question, but if not, please let me know.

I received a parcel from USA today, it is a purchase that I made on eBay.com just over a week ago. When the parcel arrived, I was asked to pay £31 VAT by the UK Customs via Royal Mail. I didn't expect such amount of VAT for the parcel, so I was a bit shocked.

Anyway, I paid the VAT. Then when I checked the Customs Declaration form, I discovered the person who posted me the parcel did not declare the content's value correctly. I paid US$140 for the items, but the sender has put US$188. I have no idea why and where this figure is coming from. I sent a message to this seller to report the problems, but I have no reply from the seller so far.

My question is, in such case, who can I contact to report the error on the Customs Declaration form?

Many thanks in advance...

vaio

I'm pretty sure the declared value is the goods plus postage costs.

Were the goods $144 with $44 postage?

unholyangel

HMRC cant remember the exact address but if you call them, they should be able to give you the address to post the label and invoice to them. Although if you've been charged a handling fee, you wont be able to reclaim this under any circumstances.

BartyBoy

vaio wrote: »

I'm pretty sure the declared value is the goods plus postage costs.

Were the goods $144 with $44 postage?

I was originally quoted $47.40 for shipping and $140 for the items. And now on the customs form, the seller has put total contents value $188, plus $57.40 for the actual shipping cost.

I am just confused with all these figures the seller has given...

BartyBoy

unholyangel wrote: »

HMRC cant remember the exact address but if you call them, they should be able to give you the address to post the label and invoice to them. Although if you've been charged a handling fee, you wont be able to reclaim this under any circumstances.

That sounds great, many thanks!

Hintza

Value of goods plus P+P = $188 = £115 x 20% = £23 VAT + £8 handling fee = £31.

So you have been charged the correct amount.

When buying abroad work on paying around 30% in VAT, duties and fees.

BartyBoy

Hintza wrote: »

Value of goods plus P+P = $188 = £115 x 20% = £23 VAT + £8 handling fee = £31.

So you have been charged the correct amount.

When buying abroad work on paying around 30% in VAT, duties and fees.

Thanks for the comment, and I do understand the calculation is correct.

But the sender has declared US$188 for the value of contents (alone) and US$57.40 for the shipping.

First of all, the sender should have declared US$140 for the contents and US$57.40 for the shipping.

Secondly, if the P&P is included for VAT, why the UK customs didn't charge me £30 alone for the VAT (based on the incorrect declaration: ($188 + $57.40) x 20%)

The sender has included the shipping fee into the contents' value, that is not right, is it?

Many thanks

BartyBoy

I am really sorry if I have also confused you lot here…

Here let me explain the story again.

I have paid US$140 for something on eBay US and I was quoted by the sender the shipping cost would be US$47.40. So in total I did spend US$187.40.

When the parcel arrived, I was charged £31 by the UK Customs.

I checked on the Customs Declaration form, the sender has put US$188 for the value of goods (but the goods only costs me US$140), plus US$57.40 for the shipping fee.

For whatever reason, the sender has added in US$48 to the value of goods, as a result I have been charged the wrong amount of money for VAT.

I am sorry I should have simplified my story before...

InsideInsurance

Would really need to see the form to see how its been declared but if you say the item was $140 and the postage was $47.40 then the total of $188 is correct for the purposes of VAT calculations and the £31 is correct including the handling fee.

Whilst you may not understand the form, given the amount to be paid is correct is it that much of an issue?

You pay VAT & Duty on the total cost which includes P&P and insurance which is all rated based on the contents of the package. Most carriers also charge you an admin fee for clearing the items through customs for you

BartyBoy

InsideInsurance wrote: »

You pay VAT & Duty on the total cost which includes P&P and insurance which is all rated based on the contents of the package. Most carriers also charge you an admin fee for clearing the items through customs for you

Thanks for comment.

This is what I try to understand here…

Ok, if the VAT is based on: the value of goods + P&P + Insurance

On the Customs form, it says: US$188 (value of goods) + US$57.40 (P&P) + US$0 (Insurance)

The total value is US$245.40, and the Customs charge would be £29.45 (VAT) + £8 (Royal Mail fee)

But I am charged £22.93 (VAT) + £8 (Royal Mail fee)

To get this £22.93 figure, the UK Customs seems to use the value of goods only.

InsideInsurance

without seeing the form its hard to advise. There isnt a single global form used which makes it more difficult for both people here but also for customs staff.

At the end of the day, you've been charged the right amount so the rest is fairly academic and could have been a mistake by customs and one of those rare occasions where two wrongs do make a right