ChatterBank1 min ago
Buying From The U.s.
7 Answers
I recently purchased some lingerie from the US. Including all the packing postage duty and tax, it was still a good deal. However, on arrival in the U.K. I had to pay import duty which ended up with me being approx. £6 out of pocket. The goods in question were not available in the U.K. Is there any legal way to avoid Import Duty.
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.You have to pay unless:
(a) there's no tax or duty payable on the type of goods you've purchase (e.g. books); or
(b) your package is worth less than £15. (For example, if ordering CDs from a non-EU country, always purchase them separately rather than ordering several together).
The system is fully explained in my post here:
http:// www.the answerb ank.co. uk/Shop ping/Qu estion1 340557. html#an swer-89 71108
You should note that you'll pay more tax on cotton-based imports from the USA than from any other country. The normal rate is 12% for all non-EU countries but, because the USA breaches World Trade Organisation rules (by subsidising US cotton farmers) a further 15% tax is imposed as an economic sanction against the USA.
(a) there's no tax or duty payable on the type of goods you've purchase (e.g. books); or
(b) your package is worth less than £15. (For example, if ordering CDs from a non-EU country, always purchase them separately rather than ordering several together).
The system is fully explained in my post here:
http://
You should note that you'll pay more tax on cotton-based imports from the USA than from any other country. The normal rate is 12% for all non-EU countries but, because the USA breaches World Trade Organisation rules (by subsidising US cotton farmers) a further 15% tax is imposed as an economic sanction against the USA.
Importing goods worth over £15 attracts VAT (not import duty) at 20% of the goods value PLUS the shipping cost. Declaring item as "gift" raises this threshold to £36 - but it does NOT negate the VAT/Duty liability. Import duty (at varying rates) MAY be levied on goods valued over £105 (if applicable) but will not be collected unless it is over a certain value.
Of course whoever clears the item through UK Customs (ParcelForce or a courier like DHL/UPS/Fedex etc.) will also levy their own charge (plus VAT - it's a service) for doing so.
No legal way to avoid this - also, if HMRC don't believe it is a genuine gift or has been deliberately under-declared (i.e. it is a purchase from a trader, as is obvious from the shipping documents) then they will use their own assessed value to determine the VAT & Duty liability.
Of course whoever clears the item through UK Customs (ParcelForce or a courier like DHL/UPS/Fedex etc.) will also levy their own charge (plus VAT - it's a service) for doing so.
No legal way to avoid this - also, if HMRC don't believe it is a genuine gift or has been deliberately under-declared (i.e. it is a purchase from a trader, as is obvious from the shipping documents) then they will use their own assessed value to determine the VAT & Duty liability.
>>>Some people would ask the seller to tick the 'gift' box on the Customs declaration but I am not sure if its 'Legal' nor what law you would be breaking or who would be prosecuted
To qualify as a 'gift', the value of the item must be less than £36. It must be sent from, and, to, a private individual. There must have been no payment made for the item, directly or indirectly, by any person within the UK. The gift must be of an 'occasional' nature only, such as for a birthday or Christmas present. A CN22 customs declaration form must be correctly completed.
Any item received without a CN22 declaration, or one that declares an item to be a gift when it clearly isn't, is liable to be seized and the person commissioning the import (e.g. by ordering it from abroad) can be prosecuted using anti-smuggling legislation.
To qualify as a 'gift', the value of the item must be less than £36. It must be sent from, and, to, a private individual. There must have been no payment made for the item, directly or indirectly, by any person within the UK. The gift must be of an 'occasional' nature only, such as for a birthday or Christmas present. A CN22 customs declaration form must be correctly completed.
Any item received without a CN22 declaration, or one that declares an item to be a gift when it clearly isn't, is liable to be seized and the person commissioning the import (e.g. by ordering it from abroad) can be prosecuted using anti-smuggling legislation.
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