Royal Mail Unfair Custom Charge

bluesclue

Hi there!

I would really like some help and advice on a custom charge I received. I'm used to custom charges and normally always mentally assume when getting slightly more expensive items from America, like clothes or makeup, that it will probably more than likely have a customs charge.

However the one I received today confuses me greatly. I make pins (like badges) as a small business and I have a few friends in America who do the same thing. I decided to trade pins with a few of them (we literally just both send each other a pin free of charge as a gift) I've received four over the course of this month, half of which come from the US (all around the same area). Today I received a notice for a custom charge for £14.31 and it was a tiny envelope with a pin inside. I'm just really confused as to why this has a customs to pay? Is there anyway I can argue this? The pins value is roughly £7. I thought customs only really happened on much bigger and more expensive items.

Thankyou!

molerat

What was the value of the item declared on the package ?

DoaM

Does the £14.31 includes RM's £8 (I think) handling charge?

bluesclue

It doesn't say x

bluesclue

Yeah it does x

agrinnall

bluesclue wrote: »

Yeah it does x

So I take it that means you now understand what's happened and are no longer seeking any help from the forum.

dj1471

What you describe does not meet the definition of a gift:
https://www.gov.uk/goods-sent-from-abroad/gifts

Kim_13

Was the value correctly declared as £7? Goods under £15 should not attract a charge whether they are gifts or not (pins and America are not cases where the exemption would not apply.)

z1a

"Normally always"?????

unholyangel

Kim_13 wrote: »

Was the value correctly declared as £7? Goods under £15 should not attract a charge whether they are gifts or not (pins and America are not cases where the exemption would not apply.)

Keep in mind that tax/duty would be due on the total value - of goods, shipping & any insurance. Not just the goods themselves.

OP if its still below the limit keeping in mind the above, contact HMRC and ask them what to do. Normally (if you had paid for the item) I would have advised sending your invoice along with the packaging the item arrived in to HMRC @ mount pleasant - which should take care of the taxes due (but not necessarily the handling fee).

wealdroam

unholyangel wrote: »

Keep in mind that tax/duty would be due on the total value - of goods, shipping & any insurance. Not just the goods themselves.

Whilst I too believe that to be true, it is my understanding that the test of whether or not duty or vat is payable is based on the value of the shipped goods alone. it is only when it has been decided that duty/vat is payable, that the shipping, insurance, etc are taken into account.

Ah... I see that Shaun has explained it far more eloquently than me on another thread:

shaun_from_Africa wrote: »

As with the £15 personal import allowance, shipping charges are only included for VAT if the intrinsic value of the goods themselves goes over the limit.
If goods are valued at £15 (or a gift is valued at £39) then the shipping charges are not added to the value.
However, if the goods are £15.01 or above and £39.01 or above for gifts then the shipping charges are added to the value for VAT charges.