Crosswords1 min ago
Customs law
8 Answers
Hello, I want to buy some clothes from a US based web site. Can someone please explain the tax & duty charge for me so i know what to expect .
Customs law requires that all applicable Duties and Taxes must be paid for shipments entering the UK. By placing an order with DrJays.com, you agree to pay the duties and taxes charged by Customs at the time of delivery. Customs duty and Value-Added Tax (VAT) will be payable, as follows:
Customs duty � Typically 12-20% of product price (based on product characteristics)
Tax � Typically 17.5% of total order cost (including shipping cost)
Advancement Fees � FedEx fee for processing of duties/fees (currently $8.00 USD)
Customs law requires that all applicable Duties and Taxes must be paid for shipments entering the UK. By placing an order with DrJays.com, you agree to pay the duties and taxes charged by Customs at the time of delivery. Customs duty and Value-Added Tax (VAT) will be payable, as follows:
Customs duty � Typically 12-20% of product price (based on product characteristics)
Tax � Typically 17.5% of total order cost (including shipping cost)
Advancement Fees � FedEx fee for processing of duties/fees (currently $8.00 USD)
Answers
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I think Ethel's estimate of 40% add-on is too low.
Let's start with her figure of �100 for the purchase price and add a tenner on for the carriage costs.
The first thing HMRC will do is to calculate the Duty payable. On most clothing this is normally 12%. However, because the USA is currently breaching World Trade Organisation rules on subsidies to their cotton farmers, the UK is currently applying a trade sanction by adding on a further 15% 'ad valorem' tax. So the duty will be �27.
The next thing to add on is VAT. VAT is charged on the cost of the goods, on the carriage and on the duty. (Yes, that does mean you have to pay tax on a tax!). So thats 17.5% of �137 to be paid. That comes to roughly �24.
There's also a fee to be paid for the examination of your goods. This is a flat fee of �8.
As stated in your post, FedEx charge roughly �4 for doing the paperwork.
So, your total bill, upon delivery, will be approximately �63.
Chris
Let's start with her figure of �100 for the purchase price and add a tenner on for the carriage costs.
The first thing HMRC will do is to calculate the Duty payable. On most clothing this is normally 12%. However, because the USA is currently breaching World Trade Organisation rules on subsidies to their cotton farmers, the UK is currently applying a trade sanction by adding on a further 15% 'ad valorem' tax. So the duty will be �27.
The next thing to add on is VAT. VAT is charged on the cost of the goods, on the carriage and on the duty. (Yes, that does mean you have to pay tax on a tax!). So thats 17.5% of �137 to be paid. That comes to roughly �24.
There's also a fee to be paid for the examination of your goods. This is a flat fee of �8.
As stated in your post, FedEx charge roughly �4 for doing the paperwork.
So, your total bill, upon delivery, will be approximately �63.
Chris
Perhaps the price of the shoes was low enough to avoid tax and duty?
If the value of your purchases is less than �18, the duty is waived.
If the VAT comes to less than �6, it's waived.
If there's no duty or VAT to pay, the inspection fee is waived.
In practice this means that you can import goods (except items such as tobacco or alcohol, which attract excise duty) with a value of less than �18, from non-EU countries, without paying any charges.
Chris
If the value of your purchases is less than �18, the duty is waived.
If the VAT comes to less than �6, it's waived.
If there's no duty or VAT to pay, the inspection fee is waived.
In practice this means that you can import goods (except items such as tobacco or alcohol, which attract excise duty) with a value of less than �18, from non-EU countries, without paying any charges.
Chris
marking the package CLEARLY as a gift package (ie you've had them bought for you as a pressie) you will avoid the customs duty
A popular myth this, but 'taint necessarily so. Gifts are still liable to duties and taxes - the only thing that may be different is the threshold at which they start charging, so they are more likely to slip through the net.
A popular myth this, but 'taint necessarily so. Gifts are still liable to duties and taxes - the only thing that may be different is the threshold at which they start charging, so they are more likely to slip through the net.
My sons girlfriend asked me to order her some 'fancy dress' items from a US websit - real cheap 'tat' that only cost about �30.
A courier (UPS) delivered them and I was out (thankfully) and they left the parcel with a neighbour. (It stated on the parcel that the charges should have been paid COD). I got an invoice in the post for over �40. charges!!!!! I didn't pay and when they chased me, I asked them for a detailed breakdown of what the charges were for, otherwise they could 'whistle' for it!! Well, they never provided a breakdown and I've not heard from them since and that was about 2 years ago (although it could come back to haunt me at a later date :-)
A courier (UPS) delivered them and I was out (thankfully) and they left the parcel with a neighbour. (It stated on the parcel that the charges should have been paid COD). I got an invoice in the post for over �40. charges!!!!! I didn't pay and when they chased me, I asked them for a detailed breakdown of what the charges were for, otherwise they could 'whistle' for it!! Well, they never provided a breakdown and I've not heard from them since and that was about 2 years ago (although it could come back to haunt me at a later date :-)
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