Parcel value below gift limit (£20), but Fedex still send customs invoice for £26?

Farrella

Hi I bought a speaker for $31 US (£20) and the seller sent it as a gift from the US to UK via Fedex. It arrived in a few days and then Fedex sent me an invoice via "Control Account" for £26.09 a few weeks later.

I have parcels sent from the states all the time and I know there's no VAT or customs charges for any value below £36 (last time I checked).

Should I ignore "Control Account" who are asking me for £26.09? Are they just trying their luck? If I had bought an item with a value of say £90, I'd understand the invoice, but the speakers were £20 and sent as a gift.

Thanks in advance.

wealdroam

Farrella wrote: »

Hi I bought a speaker for $31 US (£20) and the seller sent it as a gift from the US to UK via Fedex. It arrived in a few days and then Fedex sent me an invoice via "Control Account" for £26.09 a few weeks later.

I have parcels sent from the states all the time and I know there's no VAT or customs charges for any value below £36 (last time I checked).

Should I ignore "Control Account" who are asking me for £26.09? Are they just trying their luck? If I had bought an item with a value of say £90, I'd understand the invoice, but the speakers were £20 and sent as a gift.

Thanks in advance.

I am struggling with the idea that this speaker is a gift.

In particular, can you please explain "the seller sent it as a gift"?

Was it sold to you, or was it a gift?

The 'no vat' limit is £36 for gifts, but £15 for goods that have been purchased.

This HMRC document may help you.

dj1471

You have imported an item from outside the EU and you are liable for the VAT since the value exceeds £15.

You can calculate the amount payable here, obviously FedEx charge fees on top of the VAT:
http://www.dutycalculator.com/

The fact that the seller fraudulently declared the goods as a gift does not exempt you from paying.

Control Account are a debt collection agency, so evidently you've already ignored requests for payment.

Farrella

It was marked as "gift" by the sender on the customs form, this has been done by countless people over the years. I lived in New York for 5 years and sent over 50 parcels as "gifts" to the UK (mostly used studio or music equipment, guitars, clothes). Many music stores have sent items to the UK as "gifts" if the item is not brand new.

Even if it's not a gift, the item was only £20. A £26.09 charge seems wrong? There's no explanation for why it's as high as £26.09. Had I known I would have refused the parcel for sure as the speaker is only worth £20.

ps: If the charge was less than £10 that'd be diffferent, the duty calculator says the import charge should be £7.89 if it's marked as a commercial item.

dj1471

Farrella wrote: »

Even if it's not a gift, which it was as it was clearly marked "gift", the item was only £20. A £26.09 charge seems wrong?

You know very well that it isn't a gift, as did HMRC when they inspected it. Marking something as a gift doesn't make it so. And regularly evading VAT and duty doesn't make that OK.

Most of the cost is fees levied by FedEx. They have very kindly paid the VAT you owe to HMRC on your behalf and this service doesn't come for free.

wealdroam

Farrella wrote: »

It was marked as "gift" by the sender on the customs form, this has been done by countless people over the years. I lived in New York for 5 years and sent over 50 parcels as "gifts" to the UK (mostly used studio or music equipment, guitars, clothes). Many music stores have sent items to the UK as "gifts" if the item is not brand new.

Even if it's not a gift, the item was only £20. A £26.09 charge seems wrong? There's no explanation for why it's as high as £26.09. Had I known I would have refused the parcel for sure as the speaker is only worth £20.

ps: If the charge was less than £10 that'd be diffferent, the duty calculator says the imprt charge thosuld be £7.89 if it's marked as a commercial item.

Also remember that VAT is charged on the shipping costs as well.

InquisitiveMind

There's always a handling fee to pay to the courier as well as fees you owe HMRC.

As someone who pays the proper fees when importing goods, you disgust me. Pay the fees to HMRC like everyone else. You're not that special snowflake. And no, "everyone else marks items as a gift" is not a reasonable excuse.

If you try to contest it, you will be asked a lot of questions from some very smart people and your answers will be recorded. Continue to contest it and you could find yourself in court having to prove it's a gift.

That charge on your credit card / debit card / paypal to a seller in America for the amount the goods are worth (HMRC know how much things are worth) will be enough for a court to convict you.

Hope that's what you wanted to hear!

Farrella

You guys are jumping on the "gift" issue... I send personal belongings across the pond all the time as I spend lots of time in the US, if marking used belongings as "gift" disgust you then so be it. People do it all the time, I apologise on everyone's behalf.

But £26.09 charge for a £20 speaker is not right. If the parcel was sent via USPS then it would definitely not cost this much as I have done it well over a hundred times, as have many other people. Do you not agree that Fedex have no right to charge £18 over the correct VAT/customs charge if the item's not a gift?

Like I said, duty calculator said the correct charge should be £7.89, so Fedex are charging £18 for their admin work unless there's extra charges that the duty calculator doesn't cover. I never agreed to that personally so I don't see why I should pay Fedex that £18 extra? I'm happy to pay the actual customs/VAT charges if it's correctly calculated.

Lumstorm

As others have said you have to pay VAT and the couriers admin fee. I think it cost me £12 + VAT with Fedex last time I used them to buy a 3DS from Japan. If you use ParcelForce they charge £8.

I see it all the time people buy from abroad due to the low prices and never take into account the hidden costs that HMRC will hit them with. I buy from overseas often and I know that it can sometimes cost more. My advise is don't be tempted by lower prices and just buy here unless you want something special that can't be bought in the UK.

visidigi

Farrella wrote: »

You guys are jumping on the "gift" issue... I send personal belongings across the pond all the time as I spend lots of time in the US, if marking used belongings as "gift" disgust you then so be it. People do it all the time, I apologise on everyone's behalf.

But £26.09 charge for a £20 speaker is not right. If the parcel was sent via USPS then it would definitely not cost this much as I have done it well over a hundred times, as have many other people. Do you not agree that Fedex have no right to charge £18 over the correct VAT/customs charge if the item's not a gift?

Like I said, duty calculator said the correct charge should be £7.89, so Fedex are charging £18 for their admin work unless there's extra charges that the duty calculator doesn't cover. I never agreed to that personally so I don't see why I should pay Fedex that £18 extra? I'm happy to pay the actual customs/VAT charges if it's correctly calculated.

Product cost + Shipping Cost + Applicable Taxes/Surcharges + Clearance fee = total.

The shipping cost would have been higher than the product was worth, which is why you have received a disproportionate D&T bill.
'Gift' has been abused. Customs are actually paying more attention to gift shipments than properly declared goods.

The HMRC definition of gifts:

To qualify as gifts, goods must be:

described as gifts on the customs declaration
for a birthday, anniversary or other occasion
bought and sent between individuals (not companies)
intended for personal use

If your shipment came from a company, there is a good chance the appearance of the company name has caused you to miss out on qualifying for the £36 gift allowance.

Therefore the standard £15 allowance would apply before charges.

George_Michael

Farrella wrote: »

You guys are jumping on the "gift" issue... I send personal belongings across the pond all the time as I spend lots of time in the US, if marking used belongings as "gift" disgust you then so be it. People do it all the time, I apologise on everyone's behalf.

The only reason that people "are jumping on the gift issue" is simply because what you imported wasn't a gift due to your purchasing it from the seller in America and your seller falsely declaring the purchase as a gift makes you guilty of a criminal offence as in law, you are the importer and you are responsible for the goods being properly declared.

Just because people do it all the time doesn't make it right.
Speeding on the roads in the UK goes on all the time so if caught speeding, should this be a valid defence?