Import Tax from Japan, on a gift.. ?

Import Tax from Japan, on a gift.. ?

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Discussion

DanielJames

Original Poster:

7,543 posts

167 months

Tuesday 28th July 2015
quotequote all
Evening gents,

I recently won a competition Speedhunters were doing to win a limited edition Casio G shock by Rays wheels in Japan.

Anyway, the watch arrived today. In order for Mr UPS man to give me the parcel though I had to give him £32 for charges.

I've got a receipt, and it is clearly marked at as a gift with a value of 5000YEN (about £25).

Now, how was I charged £32 for that?

On the receipt I've got - Import VAT - £21.56. Surely if there was any VAT to pay it would be 20%, but even on a gift?

and the other charge is a "Brokerage Surcharge" of £11, which seems to be kind of an admin fee?

Has anyone had this before, as I don't think it's all that fair!

Cheers
Dan

Durzel

12,232 posts

167 months

Tuesday 28th July 2015
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The whole "gift" thing is to be honest blown out of proportion. If it were as simple as just sticking "gift" on a package to avoid import duty/VAT everyone would do it.

It's been a while since I imported anything from Japan but when I did I believe I was told that HMRC could decide upon a market value for something if they disagreed with the value on the declaration.

Courier handling charges can also add a quite a bit to the amount you pay.

RobinBanks

17,540 posts

178 months

Tuesday 28th July 2015
quotequote all
Exactly. HMRC has decided what they feel is a reasonable market value. At the end of the day, it appears that you've bought an item on eBay/wherever else on the internet and tried to avoid the tax you owe. That's just how it's done.

In plenty of countries customs people would just seize it and not bother telling you or keep it for months so you've done alright there.

Those handling/admin charges are very normal. I don't know of a courier that doesn't apply them.

ETA: there's a lot of discussion about this sort of thing (importing watches from Japan) in the watch section of this site. Most of the questions on tax are answered there quite regularly

DanielJames

Original Poster:

7,543 posts

167 months

Tuesday 28th July 2015
quotequote all
So the courier just decides to charge the end user and it's normal? nuts On the back of the receipt it states the £11 charge was for Non Routine Customs Clearance.

There isn't anything on my receipt about how they came to the conclusion of £21.56 VAT

I'm happy to have the watch, and I would happily have paid £32 for it all day, but I do feel a bit ripped off by customs.

SteveSteveson

3,209 posts

162 months

Tuesday 28th July 2015
quotequote all
The £21 comes from customs valuation of the retail price of the watch. They valued it at about £100 and charged 20% VAT. Too many people have been buying stuff from abroad and putting gift on it to avoid VAT and putting in an invoice just under the value they don't charge VAT. HMRC are now wise to this and check much more. You could probably appeal against that charge as you can show it was a prize not a purchase, but what they have done is quite correct.

The £11 is pretty standard charge. Royal Mail charge even more. That's because customs handling is a PITA for postal companies.

RobinBanks

17,540 posts

178 months

Tuesday 28th July 2015
quotequote all
It's how it is. There's nothing you can do about it apart from accept it!
Unrelated, but I find our customs service very good compared to some others I've had the misfortune of experiencing.

vikingaero

10,256 posts

168 months

Tuesday 28th July 2015
quotequote all
I bought something on Amazon UK delivered by a Japanese company. The item cost was c.£18 delivered. IIRC the VAT/import/admin fee would have been £12. Instead the Japanese company had put $500 as the item value and the parcel company wanted £75.00 in VAT/admin fee

nottyash

4,670 posts

194 months

Tuesday 28th July 2015
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Our Japanese friends sent through some clothes as a present for my sons 2nd birthday. a couple of t shirts And a jacket.
Customs wanted nearly £40 off us, so we refused and it was returned.
It is a pathetic attempt to make money . I thought kids clothes were not even supposed to be taxed Anyway.

Daston

6,074 posts

202 months

Tuesday 28th July 2015
quotequote all
I was a bit miffed last year, purchased an exhaust for the RX from the US (as it's not sold here) paid $640 and was charged £120 import tax plus £35 admin fee from DHL.

1) I would have purchased the item if was for sale in the UK
2) What tax calculator did they use? The parcel clearly stated the amount I had paid.

Nickyboy

6,700 posts

233 months

Tuesday 28th July 2015
quotequote all
The VAT is charged on the value of the item as well as the shipping charge regardless of whether you paid the sender shipping or not. It also won't show on most packing lists etc. So whereas the "gift" maybe only have a value of £25, add shipping charges and whatever value was declared on the customs paperwork UPS received from the shipper you get a more likely taxable value.

The gift allowance is also only applicable on gifts from/to private individuals, companies sending "gifts" will be charged normal rates.

HorneyMX5

5,306 posts

149 months

Tuesday 28th July 2015
quotequote all
I really wanted that watch, well done on your win.

Nickyboy

6,700 posts

233 months

Tuesday 28th July 2015
quotequote all
nottyash said:
Our Japanese friends sent through some clothes as a present for my sons 2nd birthday. a couple of t shirts And a jacket.
Customs wanted nearly £40 off us, so we refused and it was returned.
It is a pathetic attempt to make money . I thought kids clothes were not even supposed to be taxed Anyway.
Kids clothes aren't dutiable but will be charged VAT

RobinBanks

17,540 posts

178 months

Tuesday 28th July 2015
quotequote all
Daston said:
I was a bit miffed last year, purchased an exhaust for the RX from the US (as it's not sold here) paid $640 and was charged £120 import tax plus £35 admin fee from DHL.

1) I would have purchased the item if was for sale in the UK
2) What tax calculator did they use? The parcel clearly stated the amount I had paid.
Is the UK government supposed to offer it for sale in the UK? You can't really put the first one on HMRC.
The procedure is probably to apply to have the US 'Sales tax' or whatever it's called refunded and pay HMRC their rate.

DanielJames

Original Poster:

7,543 posts

167 months

Wednesday 29th July 2015
quotequote all
HorneyMX5 said:
I really wanted that watch, well done on your win.
It's excellent pal.

DSC_0224.jpg by DanielJames., on Flickr

DanielJames

Original Poster:

7,543 posts

167 months

Wednesday 29th July 2015
quotequote all
Thanks for the replies everyone.

I really don't understand this "that's the way it is and you must accept it" stance some of you have hinted.

HMRC are "wise" to people importing things without giving them monies, so they decide to guess the value of my watch, fking about my courier at the same time. I get it now.

ging84

8,824 posts

145 months

Wednesday 29th July 2015
quotequote all
It's a prize not a gift, so does not qualify for an exemption

Matt p

1,036 posts

207 months

Thursday 30th July 2015
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Jammy bugger on winning the watch. I've been trying to hunt another one down but sadly the other one in the UK is £1500 on evilbay frown

essayer

9,008 posts

193 months

Thursday 30th July 2015
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UPS Express for a watch sized box 1kg from Japan to UK £74 retail
Watch valuation JPY5000 = £25

Total £99
VAT is £19.80, but scaled up slightly to reflect the VAT Adjust Amount (google it)

All the couriers will charge you an amount for prepaying this fee and doing all the clearances in advance of delivery. This is the trade off to get your parcel in 2 days instead of having to wait to receive a letter, paying HMRC directly then waiting for delivery..

If the only other one is £1500 then you have been lucky with VAT and duty and shouldn't be complaining smile

Neil H

15,323 posts

250 months

Thursday 30th July 2015
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I think essayer is right, you have to pay VAT on the cost of the shipping, so if they used a particularly expensive method that could explain the charge. Did you get an invoice with a breakdown of the charges?

kazste

5,663 posts

197 months

Friday 31st July 2015
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I have a property in japan and have sent myself something through the post to my house in england and they still charged me the fee despite me trying to point out it was sent from me (return address in my name) to me (delivery address in my name) and not a gift just something i owned and didnt want to take with me on plane as i travel normally with just a rucksack as i have everything i need where im going.