Do I need to pay import duty, I already have the item.

SebSJ

I bought some rugs in Tunisia and posted them home to England. It wasn't a very big-ticket item, only £140 for a few rugs.
They arrived at my home already, and a couple of weeks later I have just received a letter from DHL saying they fronted £80 on my behalf to get it past customs and now want me to pay them.
I was a bit cautious if this is a scam letter, however they do have some of my details and the dates do line up. However I'm just a bit confused as to how £80 is charged as tax on items of this value.

If I didn't pay, what would happen? Would they sue me and the price eventually rise? Would this affect my credit score? They do obviously know where I live.

Thank you for your advice

Caz3121

you can calculate the vat and customs duty that is due here https://www.gov.uk/goods-sent-from-abroad/tax-and-duty it will be calculated on the cost of the goods plus postage costs
DHL will have paid this on your behalf and will also have their own fee to do the work

They also provide information on their site - https://mydhl.express.dhl/gb/en/help-and-support/customs-clearance-advice/duties-and-taxes.html#/receiving_shipments

I suspect if you do not pay them they will start a debt process which could involve further fees

Sandtree

SebSJ said:

If I didn't pay, what would happen? Would they sue me and the price eventually rise? Would this affect my credit score? 

It will be sent to debt collectors (there's a thread on a case from yesterday in the consumer rights section) and they will decide if its worth going to court (you pay the fees) and then getting a CCJ against you.

"Credit score" is a myth but yes the CCJ would go on your credit history if you didn't settle and that would impact your ability to get credit, hold certain jobs etc.

Mistakes are made occasionally on customs calculations so its worth double checking the amount but it should break down into duty, VAT and handling fee.

SebSJ

Thank you both so much for the helpful information! I'll give it a double-check and get it paid today

martindow

That sounds a lot for £140.  What did you pay to get them sent? 

VAT at 20% would be charged on the iterm value plus the carriage cost.  There may be a small amount of duty payable as well and a customs clearance fee, probably 12 -15 Pounds.  The DHL letter should breakdown the total cost and as has been said, it is worth checking for accuracy as mistakes are sometimes made.

prowla

martindow said:

That sounds a lot for £140.  What did you pay to get them sent? 

VAT at 20% would be charged on the iterm value plus the carriage cost.  There may be a small amount of duty payable as well and a customs clearance fee, probably 12 -15 Pounds.  The DHL letter should breakdown the total cost and as has been said, it is worth checking for accuracy as mistakes are sometimes made.

VAT.

...plus import duty.

......plus DHL's service charge.

(........and DHL's fee is subject to VAT too.)

Sandtree

Technically you add the duty first because the VAT is paid on the total of the item value, shipping and duty  so £50 duty adds another £10 VAT

pogofish

When did import charges become a holiday issue?

Its not like we don't have ample info in the appropriate forums here already!

And why didn't you do your own import paperwork - that's the Moneysaving way and would have limited any amount payable to the actual duty and avoided any extra charges.

martindow

pogofish said:

When did import charges become a holiday issue?

I can see why it is here as the issue arose after something was bought while on holiday abroad. 

I'm not sure how clear it is to find a suitable forum - the Ebay one has a fair number of threads on this subject and occasionally the Small business forum does too.  Neither of those seem particularly obvious choices for the OP.

pogofish

martindow said:

pogofish said:

When did import charges become a holiday issue?

I can see why it is here as the issue arose after something was bought while on holiday abroad. 

I'm not sure how clear it is to find a suitable forum -

I can’t - the duty and service charge would have been incurred in the U.K., which is not abroad and the OP was given and confirmed having understood all the info to help them find an appropriate forum as part of their signup.

martindow

pogofish said:

martindow said:

pogofish said:

When did import charges become a holiday issue?

I can see why it is here as the issue arose after something was bought while on holiday abroad. 

I'm not sure how clear it is to find a suitable forum -

I can’t - the duty and service charge would have been incurred in the U.K., which is not abroad and the OP was given and confirmed having understood all the info to help them find an appropriate forum as part of their signup.

Looking at the list of forums nowhere seems an obvious place for the OP to ask the question.  The Ebay board has occasional posts about importation costs, but as it is under the heading 'Reduce Debt and Boost Income' unless you were a regular there why choose that?

Which forum would you suggest as an appropriate one?