Import duty

[sue denim]

I know this subject has been covered before but here goes..

I have just spent over 300 euros at an American turning supplies.. all goes well until fed ex demand another 90 euros on top with no explanation. Thankfully I wasn't there to receive the order and so it is still in limbo. Is this likely to be import duty and if so why do I pay tax at the country of origin and on import ?

We have bought from this supplier before and never had a secondary charge.

Bit miffed as I cannot get what I want here in Europe.

Any one else had this problem ?

Thanks in advance

 

[Glynne]

The Fedex charge is likely to be made up of: -

Customs duty - goods coming into the EU from a 3rd country i.e. America
VAT - as bove
Fedex - shipping and handling charge.

Technically you shouldn't have to pay any American taxes but often the paperwork that goes with tax free sales isn't worth the suppliers time.

 

[sue denim]

Ok so I have already paid 65 euros for fed ex to ship it... as for the tax at the American end the paperwork is their problem not mine so why should I pay it ?

or have I got it wrong ?

 

[Harbo]

You will not have paid USA tax - the tax will be French VAT, French Duties and a handling charge.

Sometimes your'e lucky and more often now, you're not ?

Rod

 

[mseries]

tax at the US end is nowt to do with FedEx, that's to do with the seller. You maybe don't need to pay it but you'd have to make sure the seller knows this and can be arsed to do the right paperwork. FexEx don't collect this tax, the seller would.

 

[sue denim]

Suppliers response ...so that others on this forum can avoid the charges

Thank you for your email. This is most likely a duties or customs fee they are charging you. We are not affiliated with these in any way. This is not uncommon when shipping through FedEx International.



If you request that your orders be shipped by USPS International you should avoid these extra fees.

So there you go, you should avoid this charge

 

[RogerP]

If you request that your orders be shipped by USPS International you should avoid these extra fees.

Replace "should" with "may".

Goods imported from another country to a EU country (unless both are within the EU) are subject to duties and VAT.

Sometimes these taxes do not get charged, but that's just luck, the fact remains the recipient is liable not the sender.

There are various arrangements where all the tax can be paid in one go along with the purchase and shipping cost. I'm not sure how this works only that it can be done by some (usually big) companies.

 

[sue denim]

Harbo... I believe I have paid US tax... or maybe not looking into the US tax system.. there appears to be no vat in USA !!

 

[marcros]

I think most packages from the USA get caught these days. USPS saves a little because the post office fee is a bit less than the fedex one in the uk anyway.

 

[RogerP]

You are quite right - there is no VAT in USA but they have state taxes instead but these only apply to internal US sales. You will not have been charged any USA taxes at all - all taxes and duties will be those of your country - plus charges by the carrier.

 

[Harbo]

USPS used to be the way to avoid them, but not anymore - as I said, sometimes these things slip through but very rarely nowadays?

Rod

 

[sue denim]

End game...

The very nice people at this establishment have chosen (on this one occasion) to refund 50% of the import duties and will modify their website so that any future purchaser will be aware of the possible 'hidden expense' .

Hats off to this company for excellent customer service.

I think that when shopping from across the pond we need to remember that most of the US doesn't have VAT so it will get added when imported.

Happy

'Sue'

 

[marcros]

I think that you been exceptionally fortunate there. It isn't the retailers fault that you didn't add on the VAT/import duty

 

[Neil Farrer]

End game...

The very nice people at this establishment have chosen (on this one occasion) to refund 50% of the import duties and will modify their website so that any future purchaser will be aware of the possible 'hidden expense' .

Hats off to this company for excellent customer service.

I think that when shopping from across the pond we need to remember that most of the US doesn't have VAT so it will get added when imported.

Happy

'Sue'

Sue,

Sadly it is irrelevant if America have VAT or not. I am not sure about French VAT regulations, they should be the same but who knows. Regardless of what taxes you pay in the country or origin as part of the purchase price, goods are subject to VAT, and Import duty under certain circumstances. Essentially if the cost is in excess of around £18 then VAT is payable to the UK govt at the rate of 20% on the value of the whole of the goods. Stupidly you will get charged VAT on the cost of the goods plus the shipping. If the goods are in excess of £135 then you are liable firstly to Import tax. This varies, starting at 3% and I think can be as high as 9%. The variation depends on the classification of the goods. Pen Parts for example, providing the sender has properly classified the goods or if the customs have correctly interpreted the description should be charged at 3% if you are unlucky enough to get caught. The import tax is charged first, the total including the import tax is then subject to VAT, so they get you twice.

The other fees that can be legally charged by shippers is a fee to use what is called their deferment account. This is when the carrier pays the fees for you in your blissful ignorance and then charges you a packet for the privilidge, TNT in the UK charge about £40 a transaction. The Royal Mail dont have a deferment account but wont deliver it until the standard charge of £8 is paid to cover their administration costs in processing it through customs which they collect from you and pay to HMRC as opposed to pay up front and then collect from you. That £8 incidentally s on top of whatever else is due.

 

[sue denim]

I have been thinking...

Supposing my sister (who lives in Michigan) bought some items from this supplier, then forwarded them to me as second hand items, thus of a lower value ....what then ?

Just thinking outside the proverbial box

 

[marcros]

Better still if they are a wrapped gift and only of low value.

 

[duncanh]

If you ask someone to mislabel a postage item (such as second hand or as a different item/value) and you are found out then you may be charged with fraud. As the receiver it is you who are liable I believe.
If you get something sent as a gift the maximum value is still only £40 before you have to pay VAT
The limit for a standard purchase was reduced to £15 (last year I think). This amount is after postage has been added.

Full details here

 

[RogerP]

In my experience of buying stuff from around the world it rarely saves much money, if any. Of course, if the item is not normally available in the UK that's a different matter. Schemes to avoid duties and VAT are not a good idea. Whatever you do don't use Fedex and do check the absolute bottom line for all carrier charges, they can be exorbitant, even the good old PO will charge you 8 quid for collecting your duties/VAT.

 

[Harbo]

A friend has just been caught out buying a camera from HK.
The Customs have impounded it due to it's declared low value - £140 compared to actual £600!

All his potential savings have now disappeared in duties, fees, charges etc. and he still hasn't got the camera.
He has to cough up before they will realise it and deliver.

Rod

 

[marcros]

i am wary of buying abroad, and tend not to bother if the savings are small.

But if you have your eyes open, then there are some bargains to be had. Examples- small items from china/hong kong- LEDS, electronic items (eg soil ph detector), camera filters, carbide end mills for the dremel. Probably below the threshold for duty, but have never been stopped when I have ordered them from here. Most orders less than 20 quid, but equivalent over here is much more. Recent example of carbide end mills, via ebay. £7.99 for 10, free postage. Only ones I could locate in UK, £4.75 each (+ postage I think)

A favourite example of mine, DMT Sharpening stones, bought from http://www.sharpeningsupplies.com/DMT-1 ... 35C24.aspx $199. Shipping is estimated at $40, so $240 is about £160. Call import tax 10% so £16, VAT on £176 another £35 and the PO fee £8, roughly speaking the total is in the region of £220. Contrast that with axminster's price on a single stone http://www.axminster.co.uk/dmt-250mm-du ... rod823060/ and base http://www.axminster.co.uk/dmt-250mm-du ... rod823063/ you end up with the second stone for nothing.

Not everything is a bargain, particularly heavy items, but I wouldnt dismiss the idea of shopping globally completely.