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Customs fee and Royal Mail handling fee

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  • Import duty is not the same as VAT.

    Customs duty is charged on gifts worth over £35. if the items were worht less than £35 and marked as such, then no you would not have a charge.

    A charge of £12 suggests the items were marked at being worth around £60.

    I think that the cost of postage needs to be included for import duty and VAT.
  • sheramber
    sheramber Posts: 22,589 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Import duty is not the same as VAT.

    Customs duty is charged on gifts worth over £35. if the items were worht less than £35 and marked as such, then no you would not have a charge.

    A charge of £12 suggests the items were marked at being worth around £60.

    Import VAT is charged on gifts over £39

    Customs Duty is not charged on anting under £135

    https://www.gov.uk/goods-sent-from-abroad/tax-and-duty
  • Thanks for the clarification on terminology. I could never get my head round the differing charges!
  • Thanks for the comments. I suppose my real question is
    When HMRC refunded the £12.36 vat charge surely it means that the charge should not have been applied in the first place.
    If they hadn't charged the fee then Royal Mail wouldn't have charged the £8 handling fee.
    That to me, is how it should work, but does it?
  • Sorry, I should mention that the Xmas parcel contained gifts for 2 people, and the customs declaration showed that the value of the gifts per person was less than £39. That's why the HMRC fee was refunded.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    j7brw wrote: »
    Thanks for the comments. I suppose my real question is
    When HMRC refunded the £12.36 vat charge surely it means that the charge should not have been applied in the first place.
    If they hadn't charged the fee then Royal Mail wouldn't have charged the £8 handling fee.
    Yes, but Royal Mail did end up having to handle it, so are entitled to charge for doing so. Maybe you can try recovering the £8 from HMRC, but I wouldn't hold my breath.
  • sheramber
    sheramber Posts: 22,589 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    As the declaration was correct then there was no need for Royal Mail to handle it more than to deliver it.

    I would contact Royal Mail and ask for a refund.
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