UPS charging import duties from EU

I just recieved email from UPS courier charging £114 import fees on £275 order (41%) of clothing bought online from scorch & Soda. Clothing appears to come from NL in first week after Brexit. How do UPS taxes come to 41% (it does not appear to be VAT) and if I don’t accept the courier  do I still have to pay duties?

I gave ordered pre Brexit without any additional costs. The Scotchandsoda.com website now says this: 

Netherlands
How do I pay the VAT?

The prices on the website are including VAT.

NOTE: At delivery, customs and import duties might be charged. Scotch & Soda is not responsible for these charges.

Why do I have to pay import duties or custom fees?

Since the United Kingdom left the European Union (01.01.2021) all shipments coming from outside the United Kingdom need to pay import duties and/or custom fees to import the goods into the United Kingdom.


What the tariff applies to

The UKGT will apply to all goods imported into the United Kingdom unless:

  • An exception applies, such as a relief or tariff suspension
  • The goods come from countries that are part of the Generalised Scheme of Preferences
  • The country you are importing from has a trade agreement with the United Kingdom

It only shows the tariffs that will be applied to goods at the border when they are imported into the United Kingdom. It does not cover:

  • Other import duties, such as VAT
  • The goods come from countries that are part of the Generalised Scheme of Preferences
  • The precise details of trade remedy measures, such as anti-dumping, countervailing and safeguards

Scotch & Soda does not charge or calculate these taxes. This is done by the UK government. 


Comments

  • I doubt the fees are calculated as 41% of the value of the goods.  It will be a combination of a percentage tax and a fixed admin fee charged by UPS.  Do you have a breakdown?

    Ultimately, I would have thought this is simply a consequence of the transition period ending.  UPS have paid the fee, so you owe them.
  • sheramber
    sheramber Posts: 21,902 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Does the £275 include shipping as that is  included in working out the charge.
    You are charged 2.5% Customs Duty on the value , including shipping costs, that  the seller has declared on the customs declaration.
    then 20% Vat on that total.
    There will be the UPS handling charge as well.
  • You’ve been charged because we are no longer pre-Brexit as you put it; this is how things are now.
    Did you not check the changes in import VAT before ordering from abroad?

    The cost seems high, but this could be due to fees and duty being added (as well as VAT being added to the postage cost). 
  • cymruchris
    cymruchris Posts: 5,558 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Have you asked for a breakdown of the fees?
  • Hi 
    I've had a similar situation and would really value some advice.
    In July I got a letter from a debt collection agency out of the blue demanding I pay £214.79. I suspected a scam but it seemed to be legit so contacted them the next working day and was told this was an unpaid charge for goods delivered in January.  I have figured out that it was an order for some mountain biking clothing and parts I ordered in mid-December costing £746.92.  I placed order when there was no clarity on charges and so was not aware of any import charges. 
    The odd thing is they delivered the items and nothing happened.  Then July I get this threatening letter from Control Account debt recovery acting on behalf of UPS. 
    The goods were delivered and most of the order was subsequently returned. 
    Any advice on what to do?
    Thanks everyone
    Bella
  • I forgot to mention fee breakdown
    £11.50 Disbursement fee 
    £52.73 Duty amount 
    £150.50 VAT
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