Import Taxes - How do they work?

[bbwannabe]

I've on a few occassions had to buy outside the UK because what I'm looking for isn't available here or it works out cheaper (inc shipping). Luckily ive not been charged on import on the occassions that I do order abroad, but I'm not totally clued up as to the whys and hows of it.
With the amount of stuff shipped in and out, I suspect that not all items can be valued so sometimes its down to luck whether yours will or won't, but is there a minimum amount you can order without it being charged?.
What would happen if you do get charged?. Why do we even have import tax?.

One of the reason i'm asking is because ive ordered some rings (the gymnastic kind) and they are a lot more expensive than I have ordered on stuff before, so i'm wondering if i will get charged more, and how much and all that. (on a related note: is a debit card valid for making credit card orders?)

Its likely to be a dum question to ask, but what you don't ask you don't get.

Thanks.

*Anyone know why i get "Invalid thread specified" when trying to post this in firefox?

[Halcyon]

I think you get charged import tax if you are buying things outside of the EU and that have a value over £18.00, however I am not 100% sure of that, and it may depend on the goods being received.

This place HERE (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&columns=1&id=VATANDINTERNATIONALTRADE) might contain some useful info for you.

The following PDF on that site HERE (http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_CL_000199) seems to deal with imports and VAT tax to pay.

[eddie00001]

Here's the direct link that you'll be after:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_FAQs&propertyType=document&columns=1&id=HMCE_PROD_008654#P36_4692


And here (PDF file)
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989

[bbwannabe]

And here (PDF file)
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989

Thanks for the replies fellas. I'll look into them.
Eddie the above link doesn't work for me.

[eddie00001]

Try this, should work - just download the PDF file :D
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_PROD_009989&propertyType=document

[bbwannabe]

Thanks. Managed to figure out why it wasn't working (had a ".pdf," extension)

Now to get my head around the jargon :D

[swoop101]

Quite a few small things (DVD's etc.) have come marked as 'gift' from the states.
This seems to be a cheeky way of getting past customs.

[bbwannabe]

Yeah a fair number of sites do it.
From what i gather, you can get done if you knew that the place your ordering off does that, and its not the supplier's responsibility.

Still confused about how you would pay your custom taxes. One of my imported order has been delivered to me with a "Charge" label stuck on it. I'm half expecting a letter to pop up in the next few weeks asking for payment. But the other half of me thinks that if they've delivered it then there isn't any charges...

[Xaccers]

Yeah a fair number of sites do it.
From what i gather, you can get done if you knew that the place your ordering off does that, and its not the supplier's responsibility.

Still confused about how you would pay your custom taxes. One of my imported order has been delivered to me with a "Charge" label stuck on it. I'm half expecting a letter to pop up in the next few weeks asking for payment. But the other half of me thinks that if they've delivered it then there isn't any charges...

Chances are, you'll get a letter from the courier saying they've paid your duty, and charged you an extra £10 for doing so (nice that they're able to do this without asking you first!)

[bbwannabe]

The regular postie sent mine. Wonder where they charge the money from though...from the supplier?.

[Xaccers]

The regular postie sent mine. Wonder where they charge the money from though...from the supplier?.

You get sent a bill from HMRC with ways to pay (giro, cheque, credit/debit card)

Remember, they add the value of the postage to the value of the item when working out how much duty to pay.

So for instance, I could buy a tripod for my gun for about £20, but with postage and the risk of duty, it takes it up to potentually £60 so it's just not worth it.

Many people I know order items from HK, and there are companies there who will label the package up claiming it is worth less than it actually is, so duty paid is less, problem is, that lowers the amount you can claim on insurance if it gets lost, and customs aren't very happy if they find out the package has been under valued.

[bbwannabe]

Remember, they add the value of the postage to the value of the item when working out how much duty to pay. - they do? Isn't it just the cost of the product?

Sometimes shipping to the UK can cost more than the product itself, but so far I've not experienced it - though its normally more expensive if you go for the tracked/quicker delivery option. Though i am surprised at your example, that a £20 tripod can costs as much as £60... :S

[Xaccers]

Remember, they add the value of the postage to the value of the item when working out how much duty to pay. - they do? Isn't it just the cost of the product?

Sometimes shipping to the UK can cost more than the product itself, but so far I've not experienced it - though its normally more expensive if you go for the tracked/quicker delivery option.

It's the total value they use.
Think of it like this, one product you paid for is the actual item, another product you paid for is the transportation of that item.

Several people I know have been amazed at the apparent saving of buying from abroad, to be then seriously stung by duty taking the cost up to or even over the price they would have paid if they'd bought it in the UK, and of course they don't have the same warrenty cover etc if something goes wrong.

[Shaun]

I get my contacts from the states (there's a significant saving even with postage) and sometimes I get charged duty sometimes I don't. It's just the luck of the draw. When I've had to pay it before the package has been kept at the local delivery office and I've had to go and pay before I collect it - if you've not had to pay to collect I'd forget it mate.

If you do get a letter it'll be from Royal Mail as they pay it on your behalf (if they were the delivery company).

I personally always factor in the cost of duty and then if I don't get charged it's a bonus :)

[bbwannabe]

What would you think a good %age of the overall cost should be when factoring in customs?.. 20-25ish?

[Shaun]

I've just done a search for the thread (http://www.cableforum.co.uk/board/showthread.php?t=12187&highlight=duty+contact+lenses) when I asked about import duty

You have to work out what the TARIC code is for the item by looking here:
http://ec.europa.eu/taxation_customs/dds/cgi-bin/tarchap?Lang=EN

Next you need to put that code into the database and it’ll tell you what the tariff is for the item.

Then you need to add the fee that Royal Mail add on, then you need to add 17.5% VAT.

They don't make it easy for you mate :(

Edit - I was going to give you a figure but I just couldn't decide what category your rings would come under! :erm:

[bbwannabe]

lol indeed.

Wish these sites automatically work out the cost for ya... would make life so much easier :)

[Shaun]

I'd hazzared a guess at adding 22%?? - 17.5% VAT - 3% duty - £4 RM cost.

[Druchii]

Things like this are just way too confusing for the average person.

[luvclub]

Basically for most goods above the value of £18:
1) Duty is charged at a variable rate depending on what it is and where it is sent from. This rate is applied to the value of the goods plus shipping.
2) VAT, if applicable, is charged on the lot.
3) The courier or post office may charge an admin fee for dealing with customs for you. They might ask for the money on delivery at your doorstep or send you an invoice after delivery.

Marking the item as a gift increases the maximum exempt value from £18 to £36. It does not exempt the item from import duty and VAT.

Note, if items are just over the £36 limit they won't bother collecting duty if it is less than £7.