Charged customs tax on full value of goods but purchased them on a 40% discount!!

Destinyscheeks

I purchased several wigs from an online website based in NY, US. They had a 40% discount across the website: my total order was just under $350 but the actual price I paid (after the 40% discount) was $164.64 (£125)

I sent it to a family member who lives in the states as it was free shipping within the US, then they sent it to me as I assumed this would work out cheaper.... How wrong was I...

Ive received a letter from ParcelForce with the following charges:

Customs Duty: £4.68
Import VAT: £56.01
Clearance Fee: £11.25
TOTAL: £71.94

I suspected I have been over charged so Ive used several free online import duty calculators and it turns out that the above charges are on the total value of the goods (circa $350) & not on the actual price I paid ($164/£125), and Im just wondering if this is correct? Surely I should only be paying customs duty/vat on the price I actually paid for the items no?

:mad:

Keep_pedalling

Sounds like the sender declared the higher value on the paperwork.

Destinyscheeks

Keep_pedalling wrote: »

Sounds like the sender declared the higher value on the paperwork.

I just asked my family member to send me a copy of the declarations form and they put down a value of $300 so you are spot on!!

What options do I have now? How can I go about getting a partial refund as Ive clearly overpaid...

agrinnall

This is the first thread that popped up in a search (from 2010), which links to an earlier thread which is stated to have been successful.

https://forums.moneysavingexpert.com/discussion/2560611

Destinyscheeks

Brill, thanks for the link @agrinnall!

I just found the form online but as Im a new user on MSE, I am restricted to posting urls...

For future reference (and anyone who comes across this thread), Google 'Report incorrect Customs Duty or VAT on items imported by post (BOR286)', the form is on the gov (dot) uk website

I will also give them a call to confirm that I should be charged for the actual value I paid for the goods and not on the retail value.

UK Border Agency
02476 212860

Many thanks again, this site is fantastic!!

Destinyscheeks

I have one last Q:

As I shipped it to another address in the US the shipping was free but my family member paid to ship it to me. As I didnt pay for any shipping myself, would the UK Border Agency charge me on the shipping cost that my family member paid or do they only tax you on shipping when you has paid for the shipping yourself?

laticsforlife

I'm surprised you're paying anything at all, just because it was noted as worth $300 - it came from your family member, you could easily say that they purchased it and sent it to you, hence there'd be no import duty to pay as it's a transaction between family.

soolin

laticsforlife wrote: »

I'm surprised you're paying anything at all, just because it was noted as worth $300 - it came from your family member, you could easily say that they purchased it and sent it to you, hence there'd be no import duty to pay as it's a transaction between family.

That Is incorrect, some duty is still payable even on a gift, but this wasn't a gift anyway so does not apply.

Also making a false declaration to HMRC is a very serious offence.

OP- the duty and tax, plus handling is due on the declared value plus postage, so the fact that your relative paid to ship it will have increased your bill.

laticsforlife

What I was saying was as it came from a family member and not a business, I was surprised it got picked up, perhaps the value got a closer inspection.

Theoretically when the family member buys it and then sends it, it's now 2nd hand which could have made a difference one supposes.

Anyhow it's all moot as it did get (unlucky) picked on.

sheramber

You pay import duty on gifts over £39. It also must be stated on the customs declaration that it is a gift.

soolin

laticsforlife wrote: »

What I was saying was as it came from a family member and not a business, I was surprised it got picked up, perhaps the value got a closer inspection.

Theoretically when the family member buys it and then sends it, it's now 2nd hand which could have made a difference one supposes.

Anyhow it's all moot as it did get (unlucky) picked on.

Just redirecting something via a family member does not turn it from a purchase into a gift, seriously, defrauding HMRC is a very serious matter.

I'm not sure you quite follow the rules on import duty, tax and handling, even second hand items have to be declared and charged.