Parcelforce customs fee

YoelD

Apologies if this is the wrong area (it relates to a gift rather than a purchase), but a Google search brought me here and related threads are all in this subforum, and some of the members seem quite knowledgeable. I know a fair bit about import duties and VAT, but not how individual delivery companies practice.

A friend of mine in Michigan has sent a present for my son's birthday. This is going to be delivered here by Parcelforce. I've been told by some that they charge a £12 fee for declarations, but in all the cases I've found online this is only where duty or VAT is paid.
As this gift won't qualify for either, are Parcelforce likely to still apply the clearance fee or waive it?

soolin

YoelD wrote: »

Apologies if this is the wrong area (it relates to a gift rather than a purchase), but a Google search brought me here and related threads are all in this subforum, and some of the members seem quite knowledgeable. I know a fair bit about import duties and VAT, but not how individual delivery companies practice.

A friend of mine in Michigan has sent a present for my son's birthday. This is going to be delivered here by Parcelforce. I've been told by some that they charge a £12 fee for declarations, but in all the cases I've found online this is only where duty or VAT is paid.
As this gift won't qualify for either, are Parcelforce likely to still apply the clearance fee or waive it?

What is the value declared for the gift as there may well be some duty payable, gifts are not entirely free of restrictions.

YoelD

It's under the value for duty and VAT, $29.99 (roughly £23). The item is a plastic toy, so there are no other taxes such as for alcohol or perfumes, etc.

RFW

soolin wrote: »

What is the value declared for the gift as there may well be some duty payable, gifts are not entirely free of restrictions.

True. My in-laws in the US often send gifts that they misdeclare the value of (by increasing it!) and we've been charged. I've nearly trained them out of it.

For the OP's question though Parcelforce only charge when there is a customs charge, they don't charge if there isn't one.

YoelD

Thank you, RFW. I wasn't sure as the information on their website states there is a £12 fee for goods under £873 in value, and I wasn't sure if this was all goods or only those where taxes are charged.

martindow

YoelD wrote: »

It's under the value for duty and VAT, $29.99 (roughly £23). The item is a plastic toy, so there are no other taxes such as for alcohol or perfumes, etc.

As it is over 15 Pounds won't it be liable for VAT? This is charged on the declared value plus the carriage charge and there will be a clearance fee to pay.


Assuming the postage is 10 Pounds, there would be a VAT charge of 6.60 (20% of 23+10) plus the clearance fee and possibly a few per cent duty.



Items just over the limit suffer the most in percentage terms as the clearance fee is fixed regardless of value.


Sometimes items come through without the proper charges but don't bank on this happening.

YoelD

Not in this case, as it's not a purchase but a gift so the limit is £39 (assuming it's not an item which carries special duty such as tobacco, etc).

Beenie

I received an unsolicited gift of a handmade quilt from friends in America. It was made from scraps and had no commercial value except that the basic insurance that comes with postage from the US is $200. Our friends innocently took the free insurance in case the quilt went mssing, but it meant that it was valued on arrival in the UK as $200 so I had to pay VAT and handling charges, £47 in total.

YoelD

Blimey!
What did they wrote on the C88?
Insurance is covered in the flat-rate charge for International Priority mail, but always advise anyone sending from outside the EU NOT to use the Express sercice. For some reason HMRC include the postage cost when express delivery is used for calculating VAT.

dj1471

YoelD wrote: »

Blimey!
For some reason HMRC include the postage cost when express delivery is used for calculating VAT.

Postage is always included in the VAT, irrespective of the service used. You pay VAT on delivery charges when buying in the UK, it's the same principle when buying from outside the EU.

YoelD

Not according the HMRC:

"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."