UPS import duties after 9 months

Jimmygg7

Around March 2021 I've made an order from the EU, and was told from UPS that the import tax is around £80. I paid for it.

In May, I am told that the import amount is actually around £250. I emailed them back 3 times asking what's the discrepancy about, and never got an answer back.

Today, in Jan, I was contacted by ControlAccount, saying that I owe this amount. They said that the £80 was just an estimate for import charges, for which the initial invoice was about, and then Customs re-did the calculation and the actual amount was £330, so I owe £250. I never received any correspondence for that amount, or any other correspondence whatsoever.

I told them that I don't recognize that debt, since, as far as I'm concerned the import charges were paid. I also told them that the estimate cannot be 4 times lower than the actual price; it would make sense to be +/- 10% or so. Finally, I said that it's cheeky from their side to claim the amount in this grotesque way 9 months after they asked me for an import task of £80.

I am going to consult Consumer's advice and CAB, but in the mean time I'd like to check people's thoughts on this.

user1977

Have you made your own calculation of what the amount due actually ought to be?

Thrugelmir

UPS act as collection agents for the HMRC. Either settle the debt now or expect UPS to enforce collection. Which will result in you being liable for additional charges. 

Flight3287462

Have you calculated yourself how much you should be paying based on what you paid and double checked with what amount was declared in the export form?  That should be the first thing you do, before picking a fight.

Assuming no or negligible import duty you will have a handling charge of £20-£30 + VAT at 20%.  Did your item cost around £1,500-£1,600?  If so it sounds correct.

visidigi

what was it. what was it worth and was it inspected

pinkshoes

They have 6 years to chase the debt...

If you are importing you need to do your own import tax calculation. If the £80 was correct then fight it. If the £330 was correct then pay it. 

As you haven't said what you imported or how much it was then we cannot help any further at present.

visidigi

Initial duties are based on a prediction factoring in the declaration on the paperwork.
If UPS have then been instructed to present the goods for inspection the duties can be reassessed by HMRC leading to higher charges if they feel they have been mis-declared.

It will all depend what it was you imported, what it was on the paperwork etc.

Just because you think the first figure is paid and debt settled doesn't make a difference. 

Jimmygg7

I imported several bottles of 40% alcohol (24 if I remember well), totaling 240 Euro.

When I tried to find out how much each good would cost at the duty free, UPS gave me a PDF book of about 1000 pages and asked me to find out myself. Needless to say that I tried to calculate it and I failed...

MattMattMattUK

Jimmygg7 said:

I imported several bottles of 40% alcohol (24 if I remember well), totaling 240 Euro.

When I tried to find out how much each good would cost at the duty free, UPS gave me a PDF book of about 1000 pages and asked me to find out myself. Needless to say that I tried to calculate it and I failed...

Assuming 70cl bottles and a freight cost of £80
Alcohol duty £193.13
VAT £98.62
Handling fee £12-36

The amounts could change depending on exactly on the values declared, as well as on the exact % of the spirits (it is based on the total amount of pure alcohol, so 43% costs more than 40%) and the handling fees.

The duty rates are published on the HMRC website, duty is applicable based on the strength, VAT is then charged based on the total value of the goods, freight and duty combined.

MarvinDay

From the info you've given, the requested amount of £330 could be about right.
I'm doing the calculations taking the 24 bottles to be 0.7 litre each and it's as follows.

24 bottles = 16.8 litres of spirit and as they contained 40% alcohol, the total alcohol content will be 6.72 litres.

The excise duty on spirits is £28.74 per litre of pure alcohol and as the 24 bottles contained a total of 6.72 L of alcohol, this equates to an excise charge of £193.13

Then there is VAT at 20% to consider. This is charged on the price paid + the shipping costs + the excise duty so you would be paying VAT on £330 (cost) + £193.18 (excise duty) + shipping.
As I don't know the shipping cost, I will have to ignore it here.

VAT will be 20% of £523.13 which is £104.63

So, you will owe a total of £297.76 (£193.18 excise duty and £104.68 VAT) plus whatever handling fee is charged by UPS.

Charges found here:
https://www.gov.uk/tax-on-shopping/alcohol-tobacco#:~:text=Made-wine is any alcoholic,on alcohol and tobacco products.
&
https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users#:~:text=Import VAT is charged at,postage, packing and insurance

visidigi

Jimmygg7 said:

I imported several bottles of 40% alcohol (24 if I remember well), totaling 240 Euro.

When I tried to find out how much each good would cost at the duty free, UPS gave me a PDF book of about 1000 pages and asked me to find out myself. Needless to say that I tried to calculate it and I failed...

If only you said alcohol at the outset...no way would the duties be £80...