Wrong customs charge

ANNOYED1

My parcel is being held by parcel force for me to pay a customs charge and handling fee.
The value on the parcel is marked at $25.50 and postage $62.95.
The parcel is a gift from my partner and has been marked as gift on declaration.

What customs have done is add the postage and value together and charged me VAT when it should be exempt.
The value of items is true value and customs havent adjusted the value otherwise the VAT would be more.

The only way i can get my parcel is to pay but i shouldnt be charged in the first place.
I think parcel force handed my parcel to customs without reading the declaration. When i rang parcel force they said the parcel isnt marked as gift, when i no it is. I have a copy of the customs declaration given to me by my partner.

It was not sent by EMS so the postage is exempt.
I am so angry because my partner wants to send more presents but is now wary because of this.
All presents are under the £36 gift exemption.

wealdroam

ANNOYED1 wrote: »

My parcel is being held by parcel force for me to pay a customs charge and handling fee.
The value on the parcel is marked at $25.50 and postage $62.95.
The parcel is a gift from my partner and has been marked as gift on declaration.

What customs have done is add the postage and value together and charged me VAT when it should be exempt.
The value of items is true value and customs havent adjusted the value otherwise the VAT would be more.

The only way i can get my parcel is to pay but i shouldnt be charged in the first place.
I think parcel force handed my parcel to customs without reading the declaration. When i rang parcel force they said the parcel isnt marked as gift, when i no it is. I have a copy of the customs declaration given to me by my partner.

It was not sent by EMS so the postage is exempt.
I am so angry because my partner wants to send more presents but is now wary because of this.
All presents are under the £36 gift exemption.

Assuming US dollars?

$25.50 = £16.50 approx.

It looks like they have either ignored, overlooked or decided against the gift declaration.

If it wasn't a gift, then the limit is £15, so you parcel should be charged vat. Vat is charged on the total of value plus shipping, so the calculation is correct.

From the HMRC website:

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

Looks like you may need to argue your case with HMRC.
This form may help.

Nodding_Donkey

I thought they always added the postage cost in when assessing VAT.

twinmom04

You will have to pay the charge and dispute it with HMRC, it all depends on what information has been placed on the customs decleration form by the sender. 03002003700 is HMRC telephone number. if it is a royal mail card you have recieved, HMRC will also refund the clearance fee charged £8. This is due to it being HMRC error.

keyser666

Nodding_Donkey wrote: »

I thought they always added the postage cost in when assessing VAT.

Yes they do as Wealdroam highlighted this morning

ANNOYED1

thanks for the replys

it is a gift and has been marked as a gift. not fraudulently marked.
its a present from my partner.
they dont add postage to calculations if gift under £36 its in the document on the gov.uk website (the website says they do add postage but thats wrong because it under certain conditions)

i cant post links as new user so here is the relevant extract
extract from notice 143: section 3.1
"As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service."

it was standard mail used.

i have rang customs and finally got through to customs who are going to look at the label again and get back to me.

ANNOYED1

thanks twinmom04 its parcel force who have the fee
i have read people get the fee back from royal mail but parcel force dont.
i know i can claim the money back from VAT by supplying the forms but i dont want the hassle dealing with parcel force.

peachyprice

ANNOYED1 wrote: »

"As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service."

it was standard mail used.

$62 seems an awful lot for standard airmail.

wealdroam

ANNOYED1 wrote: »

thanks for the replys

it is a gift and has been marked as a gift. not fraudulently marked.
its a present from my partner.
they dont add postage to calculations if gift under £36 its in the document on the gov.uk website (the website says they do add postage but thats wrong because it under certain conditions)

i cant post links as new user so here is the relevant extract
extract from notice 143: section 3.1
"As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service."

it was standard mail used.

i have rang customs and finally got through to customs who are going to look at the label again and get back to me.

I didn't suggest that VAT was charged on the postage element on gifts valued under £36.
The only paragraph where I mention VAT starts "If it wasn't a gift..."

unholyangel

ANNOYED1 wrote: »

thanks for the replys

it is a gift and has been marked as a gift. not fraudulently marked.
its a present from my partner.
they dont add postage to calculations if gift under £36 its in the document on the gov.uk website (the website says they do add postage but thats wrong because it under certain conditions)

i cant post links as new user so here is the relevant extract
extract from notice 143: section 3.1
"As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service."

it was standard mail used.

i have rang customs and finally got through to customs who are going to look at the label again and get back to me.

Was the gift for an occasion? Or just a gift?

The gov site below says this:

To qualify as a gift:

the customs declaration must be completed correctly
the gift must be sent from a private person outside the EU to a private person(s) in this country
there is no commercial or trade element and the gift has not been paid for either directly or indirectly by anyone in the UK
the gift is of an occasional nature only, for example, for a birthday or anniversary

To me that implies that it has to be for an occasion. Possibly to stop people claiming its a gift when its not.

It may also be affected by the type of gift.

This is the page that I've quoted from:
https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users

custardy

peachyprice wrote: »

$62 seems an awful lot for standard airmail.

If it came by Parcelforce it isnt standard mail.