Loom watches import duty

MUHAMID

Hi all,
I purchased some loom Watches from Hongkong. The supplier sent the watches with UPS.
The item arrived in the UK but UPS is asking £508.33 custom Duty (commodity code: 9101210000) for 1920 pieces of watches.
I did not expect to be charged the duty per piece. Also the amount they are asking is more than HMRC's guideline. (Importing from outside the EU is subject to a third country duty of 4.50 % MIN 0.30 EUR / Number of items MAX 0.80 EUR / Number of items.)

Any advise please.
Thanks in advance

noh

Don't forget VAT at 20% of total order value including shipping and a UPS fee are probably included in that total.

MUHAMID

noh wrote: »

Don't forget VAT at 20% of total order value including shipping and a UPS fee are probably included in that total.

Yes
VAT amount is £281.29 which i will have to pay. Shipping was free.
All i want to know is can i ask UPS to apply any other commodity code? if yes which one?
There are few things coming in my mind:
-Can we consider them as Kids toys? or
-Because Its not a compete watch, can we consider as watch parts?

The Problem is i have 5000 more watches coming with UPS and if they will use the same commodity code i will be in big trouble:sad:

agrinnall

By my calculation the amount they are asking for is towards the bottom of HMRCs range:

£508 at an exchange rate of 1.25 = 635 Euros = 0.33 Euro per piece.

If you can't absorb 26p per watch in your selling price then I think you need to reconsider your business model.

MUHAMID

agrinnall wrote: »

By my calculation the amount they are asking for is towards the bottom of HMRCs range:

£508 at an exchange rate of 1.25 = 635 Euros = 0.33 Euro per piece.

If you can't absorb 26p per watch in your selling price then I think you need to reconsider your business model.

I know its only 26p per watch but £0.26 x 7000 = £1820

I quoted the price with tiny profit margin and because of my miscalculation all profit has gone towards custom Duty.:(

nomoneytoday

Have you also built in a $ provision for returns and DoA watches?

stuartroberts

It is possible as you have declared the shipping value as zero, then there will be a default shipping value made as per the courier and hmrc guidlines. Shipping cannot usually be classed as zero for imported shipments.

Fees(duty & Vat)will then be due on the estimated shipping charge ( which is usually much higher than your rate), which could be the reason for the difference in fee.

This shipping cost is not made up it is allocated by hmrc i believe.

I would check with UPS, if they have applied an average shipping fee as the import freight invoice states zero. As for a breakdown and i am sure they will happily give you it.

MUHAMID

stuartroberts wrote: »

It is possible as you have declared the shipping value as zero, then there will be a default shipping value made as per the courier and hmrc guidlines. Shipping cannot usually be classed as zero for imported shipments.

Fees(duty & Vat)will then be due on the estimated shipping charge ( which is usually much higher than your rate), which could be the reason for the difference in fee.

you are right as shipping value was zero because Free shipping was offered from the supplier and they did not charge anything extra for it.

The problem is i did not expect that they will use 9101210000 (commodity code) but expected them to use 9105110000 which is only 4.7%.

The reason i am writing here is the watches are not fully assembled and not ready as a watch. I am not happy with the commodity code they have applied so if anyone can advise me of any other CC which is more suitable for the goods i have imported, i can speak to UPS.

MUHAMID

nomoneytoday wrote: »

Have you also built in a $ provision for returns and DoA watches?

Yes i have.:o

custardy

MUHAMID wrote: »

Yes
VAT amount is £281.29 which i will have to pay. Shipping was free.
All i want to know is can i ask UPS to apply any other commodity code? if yes which one?
There are few things coming in my mind:
-Can we consider them as Kids toys? or
-Because Its not a compete watch, can we consider as watch parts?

The Problem is i have 5000 more watches coming with UPS and if they will use the same commodity code i will be in big trouble:sad:

You werent charged for shipping.
UPS didnt do it out of the goodness of their hearts. So the cost is added

nikki1520

Why would you expect them to use 9105110000 which is the code for an alarm clock? What they actually used is for watches, and seems about right.

If you found a supplier who makes them in a GSP (Generalised System of Preferences) country, such as Thailand or Vietnam, they would be free of any Customs Duty (although VAT would still be due)

They must be originating in that GSP country though, and not just routed through there from China