Shipping a watch from the states

Shipping a watch from the states

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Discussion

bermyandy

Original Poster:

2,050 posts

225 months

Monday 23rd April 2007
quotequote all
Whats the duty i would pay if shipping a watch in from the states? Am i just paying the VAT, or is there more (or less) to it? Also, how do i found out the price limits?

I think (but dont know) thats its 4.5% duty, and 17.5% VAT. Is the VAT charged on the base price, or the price uplifted by the duty?

Thanks


Edited by bermyandy on Monday 23 April 11:38

kiwisr

9,335 posts

214 months

Monday 23rd April 2007
quotequote all
Pretty sure once all duties have been applied, VAT gets added at the end on the total.

Lurking Lawyer

4,535 posts

232 months

Monday 23rd April 2007
quotequote all
I think, from memory of importing car bits from the US, that duty at 4.5% and VAT at 17.5% is levied on the invoice price or, if HMRC think it has been deliberately marked down to avoid duty, at a price which they consider to be reasonable.

Rather irritatingly, they also levy VAT on the shipping cost too, I think.

(The rate of duty may differ from 4.5% - it varies according to what type of goods you're talking about. It used to be on the HMC&E website, so I'm guessing that there's an equivalent section on the HMR&C site)

justayellowbadge

37,057 posts

249 months

Monday 23rd April 2007
quotequote all
Shouldn't this be in the shiny new watch forum?

L1OFF

3,418 posts

263 months

Monday 23rd April 2007
quotequote all
I bought my Omega from the states, the nice man at Customs & Excise told me the duty on a watch is a complicated formula, however it has an upper limit of 50p! VAT was payable on the Watch + duty.

Horza

491 posts

214 months

Monday 23rd April 2007
quotequote all
But if the package is marked 'Gift' you don't pay either.

Just don't get caught...

maxf

8,426 posts

248 months

Monday 23rd April 2007
quotequote all
Horza said:
But if the package is marked 'Gift' you don't pay either.

Just don't get caught...


Yes you do! A 'gift' just has a slightly higher duty free threashold (about £10 higher from memory).

CivPilot

6,240 posts

247 months

Tuesday 24th April 2007
quotequote all
I recently bought a watch from Florida and the total declared cost was $800. The total customs charge on said delivery was £28.90 from memory. However, last watch I bought from tokyoflash.com cost me about £65 and had a customs charge applied of £22.

In my experiance it is very hit and miss. The post office dont help either as sometimes they like to add thier own "administration charge" mad

ErnestM

11,621 posts

274 months

Tuesday 24th April 2007
quotequote all
Couldn't you just make a quick trip to the States, buy the watch and wear it back? With some watches that would probably be cheaper.

ErnestM

bermyandy

Original Poster:

2,050 posts

225 months

Tuesday 24th April 2007
quotequote all
to be honest, its kind of what im thinking right now

sparkyhx

4,193 posts

211 months

Tuesday 24th April 2007
quotequote all
what kind of saving are you talking about buying from US? From what I have seen manuafacturers appear to fix the price so that they are roughly the same on new ones wherever you buy.

An alternative is to go direct to switzerland (cheaper flight) and claim the tax back as you leave the country - big savings to be had doing this.

bermyandy

Original Poster:

2,050 posts

225 months

Wednesday 25th April 2007
quotequote all
£5k for a panerai, that retails at $6k in the states. SO all in, at todays rates, basically £2k.

Probably not worth it to go the US solely for that, but was thinking of visiting friends, so in the round, not too bad

benyeats

11,859 posts

237 months

Wednesday 25th April 2007
quotequote all
bermyandy said:
£5k for a panerai, that retails at $6k in the states. SO all in, at todays rates, basically £2k.

Probably not worth it to go the US solely for that, but was thinking of visiting friends, so in the round, not too bad


Well worth going to the states for £2k I would have thought, two of you could have a cracking weekend in NY for that and still trouser a grand

Ben

hutchingsp

55,114 posts

217 months

Wednesday 25th April 2007
quotequote all
bermyandy said:
£5k for a panerai, that retails at $6k in the states. SO all in, at todays rates, basically £2k.

Probably not worth it to go the US solely for that, but was thinking of visiting friends, so in the round, not too bad


That doesn't sound right tbh? Especially on a new model. There is a difference, but nothing like that much of a difference going off all the price lists I've seen.

bermyandy

Original Poster:

2,050 posts

225 months

Wednesday 25th April 2007
quotequote all
hutchingsp said:
bermyandy said:
£5k for a panerai, that retails at $6k in the states. SO all in, at todays rates, basically £2k.

Probably not worth it to go the US solely for that, but was thinking of visiting friends, so in the round, not too bad


That doesn't sound right tbh? Especially on a new model. There is a difference, but nothing like that much of a difference going off all the price lists I've seen.


Well, all i have to go on is the panerai luminor automatic i saw in watches of switzerland at the bottom of switzerland that was £5k. It was maybe a month ago, and cant remember if it had the titanium bits, so not too sure but pretty sure it was just plain steel.

The US price I got from phoning either bernie robbins of goldtinker in NY, and they quoted me $6k for the luminor marina automatic on a steel bracelet.

hutchingsp

55,114 posts

217 months

Wednesday 25th April 2007
quotequote all
bermyandy said:

The US price I got from phoning either bernie robbins of goldtinker in NY, and they quoted me $6k for the luminor marina automatic on a steel bracelet.



Have a look here and see if which one it is.

www.paneristi.com/reference/pricelists/prices2006.html

As you'll see there are price differences but nothing like £2-3k on that level of watch.

AFAIK customs will charge VAT and Duty on the total shipped price.

A small point but bear in mind that if you're considering mail order it will probably not avoid HMCE as you will want it couriered with insurance, and (I'm guessing) I would expect them to check out a parcel that has been sent UPS/Fedex with insurance upto $10k but has a label on it stating it's a "Gift" worth $30

bermyandy

Original Poster:

2,050 posts

225 months

Wednesday 25th April 2007
quotequote all
hutchingsp said:
bermyandy said:

The US price I got from phoning either bernie robbins of goldtinker in NY, and they quoted me $6k for the luminor marina automatic on a steel bracelet.



Have a look here and see if which one it is.

www.paneristi.com/reference/pricelists/prices2006.html

As you'll see there are price differences but nothing like £2-3k on that level of watch.

AFAIK customs will charge VAT and Duty on the total shipped price.

A small point but bear in mind that if you're considering mail order it will probably not avoid HMCE as you will want it couriered with insurance, and (I'm guessing) I would expect them to check out a parcel that has been sent UPS/Fedex with insurance upto $10k but has a label on it stating it's a "Gift" worth $30


Moral of the story from that link - its quite clear the price in watches of switzerland was about £1k over!

Roley130

104 posts

218 months

Wednesday 25th April 2007
quotequote all
The sticky subject really is what 'value' is the VAT and Duty calculated on ?
Is it the list price of the item, the sell price or the 'notional' and usually bare minimum you can get away with price submitted by the seller/shipper. If you can buy from someone who can declare it as a gift and put a pitifully small value on the item wiuthout arousing suspicion you should be okay. I recently bought a camera from the States in this way.

sparkyhx

4,193 posts

211 months

Wednesday 25th April 2007
quotequote all
bermyandy said:
£5k for a panerai, that retails at $6k in the states. SO all in, at todays rates, basically £2k.

Probably not worth it to go the US solely for that, but was thinking of visiting friends, so in the round, not too bad


TBH I had not looked at Panerai - Zenith, TAG, Omega, Rolex all appear to be roughly the same, but the last time I looked exchange rate was about 1.70 not 2 so maybe there are some savings to be had at the moment.

re Switzerland

1. In the store

Your total purchase in a shop must amount to CHF 400 including VAT of 7,6 % (net rate is
7,06 %). You must be a resident outside Switzerland. Goods must be exported within 30 days.

2. Through Customs

When leaving Switzerland make sure that your Tax-free Shopping Cheques are stamped by Swiss customs authorities after showing the goods to them.

3. Collect your refund

You have several choices: immediate cash at a nearby Cash Refund Office, direct credit to a chosen credit card or a Swiss bank account, a bank check to your home address and even, for certain countries, a cash refund when you return home - what could be more convenient?

maxf

8,426 posts

248 months

Wednesday 25th April 2007
quotequote all
Is there any duty to pay when you come back to the UK though?