Engagement Ring Insurance - bought in USA

-Vita-

I have a friend who is not internet savvy so am making some enquiries on his behalf. He plans purchase an engagement ring in New York (USA) and then bring it back to the UK. I've called HMRC for him to enquire if it needs to be declared at Customs in case of Import VAT, Customs Excise and Customs Duty. The person was very friendly and put across the advice that if she is wearing the ring then it can be classified as a 'personal effects' (up to 10,000 Euros) and it is not for Customs to question where the item was bought etc - so no worries there.


However, one helpful piece of advice the person stated was if the ring was to be insured and then a claim made, the insurers will request to see proof of purchase and if abroad, they will look to see that the item was declared in order for the claim to be valid. This would mean paying around 22.5% on the value of an expensive ring at the airport (cannot be declared retrospectively).


I've read through the full wording of a TH March (insurers) policy and cannot see any mention of declaring the ring, Customs, etc.


Before I call other insurers to query this I was hoping you may be able to impart some advice for my friend?


Much appreciated - thank you.

FlameCloud

It was as a result of a decision made in a court case - Geismar vs Sun Alliance. Short version - jewellery purchased abroad and not declared to customs, jewellery lost, claim repudiated and upheld in court.

The decision was made because you cannot insure something that is against public policy. The insurers argued (successfully) that by failing to disclose to customs and avoiding lawful import duty the insured had no lawful insurable interest in the item.

Recently, the FOS opinion on it is that insurers should only use this if they insured would reasonably know that the issues surrounding the customs / duty issue.

As an aside, I dont think the phone helpline are correct. Personal Gifts are still subject to the personal allowance limits-

http://www.hmrc.gov.uk/customs/arriving/arrivingnoneu.htm