Royal Mail Customs Charge
Discussion
Purchased a few items from ebay USA about two weeks ago ranging from $20 right up to $80
, all arrived apart from the cheapest item
then today i get a lovely letter from Royal Mail
"£11.01 customs charge now due"
now I understand that customs charges are just another government scam to cadge money from the public for nothing
If it was an item of value I would pay it, but the item was $20 inc postage and the seller marked it GIFT (because it was a bit of a gift at $20)
but they are asking for almost the value of the item in a customs charge which is in my book taking the P
With Parcelforce I usually leave it about a week and they just redeliver it without any charge
anything I can do to avoid it?
, all arrived apart from the cheapest item
then today i get a lovely letter from Royal Mail
"£11.01 customs charge now due"
now I understand that customs charges are just another government scam to cadge money from the public for nothing
If it was an item of value I would pay it, but the item was $20 inc postage and the seller marked it GIFT (because it was a bit of a gift at $20)
but they are asking for almost the value of the item in a customs charge which is in my book taking the P
With Parcelforce I usually leave it about a week and they just redeliver it without any charge
anything I can do to avoid it?
Edited by tbc on Sunday 13th January 04:24
Your right another goverment scam to get money off you.
Why don't you try and give them a little call and see what they advise, You might be able to come to some arrangement with them explain your situation and see what they say, Make a point of you didn't need them to check your parcel, Just argue it and see what they say.
Why don't you try and give them a little call and see what they advise, You might be able to come to some arrangement with them explain your situation and see what they say, Make a point of you didn't need them to check your parcel, Just argue it and see what they say.
Bit naughty of them to charge you as it's under the duty threshold. Maybe they opened it for inspection, and believe it was under-valued?
Charging VAT and import duty is hardly a scam. All businesses have to pay it, so it's only fair that individuals do, too.
RM/Parcelforce handling charges are flat rate, so can seem a bit steep for low value items. Still not a scam, though.
Charging VAT and import duty is hardly a scam. All businesses have to pay it, so it's only fair that individuals do, too.
RM/Parcelforce handling charges are flat rate, so can seem a bit steep for low value items. Still not a scam, though.
It is not Royal Mail that creates the charge it is HMRC and RM just collect the revenue for them and charge an £8 admin fee.
The charge is VAT due on imported items over a certain value.
The charge is not negotiable and the items have to be signed for as recently a scam was operating around these items.
The charge is VAT due on imported items over a certain value.
The charge is not negotiable and the items have to be signed for as recently a scam was operating around these items.
Hi, I work for a large express logistics company, specialising in Customs Clearance across Europe.
Whilst the import vat/duty is a surprise to private importers, it's certainly not a scam. You actually pay VAT on pretty much everything you buy right now. The price of petrol is actually around 60-70% vat and duty, for example, but as it's rolled up into the total value, you accept this.
The EU actually sets the guidelines for VAT and the duty rates/thresholds are variable by import country.
Discussions over determining value can get very complicated, but the basic principles to determining what VAT and Duty you pay is:
1) Total transactional value of the goods = price of the goods + shipping + handling fees + admin charges of the seller, etc. This doesn't include an admin fee from the RM. Essentially, it's the price you paid in the online transaction via paypal or credit card, whatever.
2) Once the total transactional value is determined, there are two important value thresholds:
Below 15gbp total transactional value = vat and duty free.
Between 15 to 135gbp = Duty free but VAT charges apply.
Above 135 gbp = full vat and duty apply.
For true gifts:
Below 40gbp = duty and VAT free.
between 40 - 135gbp = duty free but VAT payable
over 135gbp = vat and duty payable.
3) Depending on the type of the goods, the duty can vary from 0% to 20%. Determining this % is done via a comprehensive list of all products in the world around 15000 different codes exist for everything imagineable, from Horse Sperm to ipads. Every commodity has a number attributed to it and with it, a duty % is decided upon by the country of import. These are often used to encourage or discourage imports of types of goods. This is known as the harmonised tariff system.
4) If exciseable, (tobacco / alcohol etc) then you also have to pay excise.
IF the goods really are gifts and you can prove it, then there are different thresholds, but if a commercial invoice exists, then most customs authorities will demand a commercial import is made.
IF you bought the goods, then you are liable to pay the import tax and duties and if you don't, then you are commiting tax evasion. The carriers themselves also share some of the responsibility of this and can be fined if they don't correctly declare the goods on your behalf, so RM are obliged to correctly import goods.
The value of your goods doesn't really stack up though. You may be fooling yourself by saying the goods were only 20USD..
Some techniques to legally avoid import charges could be:
divide the goods amongst several different shipments - so each are below the deminimis limit: 15 pounds total. The issue here of course is that shipping internationally often bumps this way over the limit anyway - AND probably costs you more to send 4xpackages rather than 1 and pay the import charges.
You should check to see if a shipping cost is mentioned on the invoice. If it's not, then there is a standard table of charges provided by the government which are added to the goods. These are often far higher than the true shipping costs, so you are always best to ask the shipper to supply the true shipping cost on the invoice - this can bring down the value to below the thresholds for vat/duty.
DUTY % varies depending on the type of goods. It can be a very difficult thing to attribute the correct harmonised tariff code to a product, so many mistakes can be made here. Check to see what duty rate was used. You may be able to prove that the goods belong to a different tariff regime. EG, Is a smart phone a computer, a phone, an MP4 player, or an electronic storage unit!?
VAT can be claimed back in your tax assessments if the goods are for commercial usage.
Personal Effects - goods which actually belong to you which have been left abroad and are being returned to you, can be imported vat/duty free, but a 'C3' form must be used and you generally have to explain how the goods were left there. If the goods are in unused condition, customs may question this.
In my professional experience, the post is usually less strictly regulated than express carriers, regardless of legisaltion. So i am surprised that you were caught out.
In summary, if the total transactional value is above the thresholds, you are going to be charged. Getting out of these import charges is not easy, unless there really are extreme circumstances such as lost luggage, parts to be used on international shipping vessels, etc.
If you've got any more questions, let me know, but i would advise you to check the total value used to calculate the vat/duty and compare it to the thresholds i gave you above.
Cheers
Chris
Whilst the import vat/duty is a surprise to private importers, it's certainly not a scam. You actually pay VAT on pretty much everything you buy right now. The price of petrol is actually around 60-70% vat and duty, for example, but as it's rolled up into the total value, you accept this.
The EU actually sets the guidelines for VAT and the duty rates/thresholds are variable by import country.
Discussions over determining value can get very complicated, but the basic principles to determining what VAT and Duty you pay is:
1) Total transactional value of the goods = price of the goods + shipping + handling fees + admin charges of the seller, etc. This doesn't include an admin fee from the RM. Essentially, it's the price you paid in the online transaction via paypal or credit card, whatever.
2) Once the total transactional value is determined, there are two important value thresholds:
Below 15gbp total transactional value = vat and duty free.
Between 15 to 135gbp = Duty free but VAT charges apply.
Above 135 gbp = full vat and duty apply.
For true gifts:
Below 40gbp = duty and VAT free.
between 40 - 135gbp = duty free but VAT payable
over 135gbp = vat and duty payable.
3) Depending on the type of the goods, the duty can vary from 0% to 20%. Determining this % is done via a comprehensive list of all products in the world around 15000 different codes exist for everything imagineable, from Horse Sperm to ipads. Every commodity has a number attributed to it and with it, a duty % is decided upon by the country of import. These are often used to encourage or discourage imports of types of goods. This is known as the harmonised tariff system.
4) If exciseable, (tobacco / alcohol etc) then you also have to pay excise.
IF the goods really are gifts and you can prove it, then there are different thresholds, but if a commercial invoice exists, then most customs authorities will demand a commercial import is made.
IF you bought the goods, then you are liable to pay the import tax and duties and if you don't, then you are commiting tax evasion. The carriers themselves also share some of the responsibility of this and can be fined if they don't correctly declare the goods on your behalf, so RM are obliged to correctly import goods.
The value of your goods doesn't really stack up though. You may be fooling yourself by saying the goods were only 20USD..
Some techniques to legally avoid import charges could be:
divide the goods amongst several different shipments - so each are below the deminimis limit: 15 pounds total. The issue here of course is that shipping internationally often bumps this way over the limit anyway - AND probably costs you more to send 4xpackages rather than 1 and pay the import charges.
You should check to see if a shipping cost is mentioned on the invoice. If it's not, then there is a standard table of charges provided by the government which are added to the goods. These are often far higher than the true shipping costs, so you are always best to ask the shipper to supply the true shipping cost on the invoice - this can bring down the value to below the thresholds for vat/duty.
DUTY % varies depending on the type of goods. It can be a very difficult thing to attribute the correct harmonised tariff code to a product, so many mistakes can be made here. Check to see what duty rate was used. You may be able to prove that the goods belong to a different tariff regime. EG, Is a smart phone a computer, a phone, an MP4 player, or an electronic storage unit!?
VAT can be claimed back in your tax assessments if the goods are for commercial usage.
Personal Effects - goods which actually belong to you which have been left abroad and are being returned to you, can be imported vat/duty free, but a 'C3' form must be used and you generally have to explain how the goods were left there. If the goods are in unused condition, customs may question this.
In my professional experience, the post is usually less strictly regulated than express carriers, regardless of legisaltion. So i am surprised that you were caught out.
In summary, if the total transactional value is above the thresholds, you are going to be charged. Getting out of these import charges is not easy, unless there really are extreme circumstances such as lost luggage, parts to be used on international shipping vessels, etc.
If you've got any more questions, let me know, but i would advise you to check the total value used to calculate the vat/duty and compare it to the thresholds i gave you above.
Cheers
Chris
Edited by XplusYplusZ on Sunday 13th January 08:15
Go to the sorting office and make sure that they actually have the parcel before handing over any cash.
I didn't do this once (they just delivered the form, I put the requisite no. of stamps on it and returned it) only to find that in the meantime they had shipped the parcel back to the USA. Thieving s
ts.
I didn't do this once (they just delivered the form, I put the requisite no. of stamps on it and returned it) only to find that in the meantime they had shipped the parcel back to the USA. Thieving s
ts.You do know that sometimes you can't do you?
I would be very interested right now if you can find me a UK supplier of these
http://www.spectrumaudio.com/line-6-50-04-181.html
I would be very interested right now if you can find me a UK supplier of these
http://www.spectrumaudio.com/line-6-50-04-181.html
1.4 Aren’t postal charges exempt from VAT?
Postal services provided by the Post Office are exempt from VAT, but this exemption does not extend to similar services provided by other suppliers, even where this might be seen as being in direct competition with the Post Office. However, if any delivery charge you make to your own customers includes the cost of stamps you buy from the Post Office you may have to charge VAT on the whole amount including the cost of those stamps.
Fair competition?
I had household goods (including a bicycle and fishing rods) in storage for many years in SA and eventually shipped them over. I was still stung by a few hundred quid by HMRC.
I stumped up, even though replacing the lot new would have probably been cheaper than the shipping and duties I paid.
I stumped up, even though replacing the lot new would have probably been cheaper than the shipping and duties I paid.
londonbabe said:
You do know that sometimes you can't do you?
I would be very interested right now if you can find me a UK supplier of these
http://www.spectrumaudio.com/line-6-50-04-181.html
It's because it's not available that you want it!I would be very interested right now if you can find me a UK supplier of these
http://www.spectrumaudio.com/line-6-50-04-181.html
Don't want it a d it'll become available in the UK.
i bought some bicycle wheels from a USA bike shop.
unfortunately they were shipping two items to the UK and the put the wrong value on mine, they wrote $800 dollars when it should have been $300. the bike shop were absolutely no help. it was either pay the extra large duty or let them go back to USA to the shop that already had my money.
unfortunately they were shipping two items to the UK and the put the wrong value on mine, they wrote $800 dollars when it should have been $300. the bike shop were absolutely no help. it was either pay the extra large duty or let them go back to USA to the shop that already had my money.
My dad ordered some SACDs from CDJapan. They come directly from Japan as you cant really get SACDs over here, and certainly not at the same price, even if they are available.
Think he ended up paying about £30-£40 in taxes. Its odd, because they never used to charge.... have laws changed?
Think he ended up paying about £30-£40 in taxes. Its odd, because they never used to charge.... have laws changed?
Pesty said:
I had a bill of something like £18. there was a £11 post office handling fee for sorting the customs charge.
I was going to take a pic of the bill and have a rant on here but couldn't be arsed at the time.
I hate the post office and parcel force.
You should direct your anger towards HMRC if anybody,RM collect on their behalf and have to charge a fee to administer this,the same as any other business would.I was going to take a pic of the bill and have a rant on here but couldn't be arsed at the time.
I hate the post office and parcel force.
Pesty said:
I had a bill of something like £18. there was a £11 post office handling fee for sorting the customs charge.
I was going to take a pic of the bill and have a rant on here but couldn't be arsed at the time.
I hate the post office and parcel force.
Most express carriers don't charge for the customs clearance. Though the shipping can be more pricey, i can imagine this could pay off occassionally..I was going to take a pic of the bill and have a rant on here but couldn't be arsed at the time.
I hate the post office and parcel force.
Pints said:
I had household goods (including a bicycle and fishing rods) in storage for many years in SA and eventually shipped them over. I was still stung by a few hundred quid by HMRC.
I stumped up, even though replacing the lot new would have probably been cheaper than the shipping and duties I paid.
You shouldn't have had to pay this. Any self respecting carrier should have entered these as personal effects. Depending on how long ago this was, you can ask them to complete a post clearance modification. They'll try to charge you for this but you can tell them that they made the mistake and have made an incorrect declaration, therefore they need to rectify the issue. Should be valid for a few years after the incident.I stumped up, even though replacing the lot new would have probably been cheaper than the shipping and duties I paid.
XplusYplusZ said:
Most express carriers don't charge for the customs clearance. Though the shipping can be more pricey, i can imagine this could pay off occassionally..
I only recall paying a fee for this a few times with other carriers. And then it was a fiver or something small.It was something from ebay so they chose the carrier.
To pay more in a handling fee than I did for the fee itself sticks in the craw somewhat.
lestershaw said:
i bought some bicycle wheels from a USA bike shop.
unfortunately they were shipping two items to the UK and the put the wrong value on mine, they wrote $800 dollars when it should have been $300. the bike shop were absolutely no help. it was either pay the extra large duty or let them go back to USA to the shop that already had my money.
You can ask for a post clearance modification and get your money back. All you need is the tracking number and call the customer service at whichever carrier brought the goods into the country incorrectly.unfortunately they were shipping two items to the UK and the put the wrong value on mine, they wrote $800 dollars when it should have been $300. the bike shop were absolutely no help. it was either pay the extra large duty or let them go back to USA to the shop that already had my money.
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