Working Out Customs Duties From The US

[Big Tav]

Hi guys, can anyone help me figure out how much it costs to bring stuff in from the US to the UK.

I know if it's new you have to add on 20% VAT. What about if it is used? Same thing? How do they work out the value if it's used?

Say you were buying a $200 new part for a car and the shipping was $50US so total of $250. Is the 20% added to the $200 or the $250?

What if you buy something worth $500 new but it is used and you bought it for $200 who works out what the duty would be? I want to work it out so I don't end up paying more and it doesn't seem to be such a bargain anymore.

If customs hold it and demand more VAT than the 20% do you have a leg to stand on?

Thanks!

[Nickyboy]

The shipper will or at least should put the value that you paid for it plus shipping on the invoice. This is what the duties are based on.

$250 works out at about £150 so £30 Vat + duty of normally 3-5%

[carl_w]

There is import duty as well as VAT from outside the EU. The import duty varies according to the category of goods.

https://www.gov.uk/trade-tariff/sections seems to be the definitive source, but it's pretty impenetrable.

Also bear in mind that if it ends up in the hands of Royal Mail/Parcelforce they will charge a ludicrous fee for collection of the duty. Probably why they're worth >£3bn.

Edited by carl_w on Saturday 28th September 23:59

[Fox-]

The import duty is added to the price of the item. Shipping is then on top. VAT is added to the total amount - ie, the item, the duty and the shipping.

[Big Tav]

Hi, thanks for the replies. Do businesses or distributors in the UK pay less than the private customer like myself?

For example I tried to order off a US site and it directed me to an EU site. Would an EU or UK dealer get any discounts on any of the costs so it could be cheaper to buy that way? At least I wouldn't get any Royal mail/parcelforce fees.

[sunoco69]

carl_w said:

There is import duty as well as VAT from outside the EU. The import duty varies according to the category of goods.

https://www.gov.uk/trade-tariff/sections seems to be the definitive source, but it's pretty impenetrable.

Also bear in mind that if it ends up in the hands of Royal Mail/Parcelforce they will charge a ludicrous fee for collection of the duty. Probably why they're worth >£3bn.

Edited by carl_w on Saturday 28th September 23:59

This!

I import fuel and oil from the US and all items have a Classification code. I use the above link daily to work it out. What is it your bringing in?

[Crafty_]

Big Tav said:

Hi, thanks for the replies. Do businesses or distributors in the UK pay less than the private customer like myself?

For example I tried to order off a US site and it directed me to an EU site. Would an EU or UK dealer get any discounts on any of the costs so it could be cheaper to buy that way? At least I wouldn't get any Royal mail/parcelforce fees.

If the item is shipped to you by the US Company from the US you will have to pay the duty/VAT.
If the item is dispatched from a UK location they should have already paid the duty/VAT when they imported it.

The later posts are correct, price of item + shipping + 5% + 20% VAT.
So:
item = $200
shipping $50
= $250
+ 5%
= $262.5
+ 20%
= $315

Divide by 1.5 (a rough exchange rate) = £210.

It usually works out that whatever price you see in dollars is what you'll end up paying in GBP.
Note that some (most?) couriers/carriage companies will charge you a fee (Usually £8-10) for clearing the item through customs.

Note that the rate of duty you pay varies depending no what the item is, pretty sure parts are 5%.