Hit With Big Customs Duty & Import Vat Charges

[Premium Stuff]

Hi everyone

I would be grateful for some advice please before contacting the seller.

I purchased a rare item on eBay and have been waiting for it to arrive from the US.

Today I got a letter from Parcelforce specifying a total of £166.62 customs and import VAT charges

I spoke to them and they told me the seller had declared the total value of the item and also ticked 'gift' on the customs declaration.

I was told that the ticking of 'gift' itself would have been enough for customs to pick up on this (they said it was actually worse than ticking merchandise/commercial/business item). I have no opportunity to negotiate on charges now that this has been ticked as 'gift' - if another option had been ticked I may have.

I am planning to contact the seller asking them to take the item back and then to re-ship it (at their own cost) with a value of around USD $10 and ticked as 'gift' or 'merchandise'.

I hope they agree.

Any tips on how to deal with this please and/on what exactly I should say and ask them to put on the parcel?

I think the 'gift' limit is GBP £40 and for commercial items it is GBP £18.

First time this has happened with a record from the US in over 30 years of collecting

Cheers

Richard

[Mrtag]

Hi everyone

I would be grateful for some advice please before contacting the seller.

I purchased a rare item on eBay and have been waiting for it to arrive from the US.

Today I got a letter from Parcelforce specifying a total of £166.62 customs and import VAT charges

I spoke to them and they told me the seller had declared the total value of the item and also ticked 'gift' on the customs declaration.

I was told that the ticking of 'gift' itself would have been enough for customs to pick up on this (they said it was actually worse than ticking merchandise/commercial/business item). I have no opportunity to negotiate on charges now that this has been ticked as 'gift' - if another option had been ticked I may have.

I am planning to contact the seller asking them to take the item back and then to re-ship it (at their own cost) with a value of around USD $10 and ticked as 'gift' or 'merchandise'.

I hope they agree.

Any tips on how to deal with this please and/on what exactly I should say and ask them to put on the parcel?

I think the 'gift' limit is GBP £40 and for commercial items it is GBP £18.

First time this has happened with a record from the US in over 30 years of collecting

Cheers

Richard

Hi Richard, It's best to talk to the seller first and explain what you are going to do and make sure they will re-ship then do as you say and tell Parcelforce to return to sender. Atb John.

Edited September 8, 2011 by mrtag

[Paul Shirley]

join the club ...only the one ? ...if thats the case you havnt done that bad compared me and i presume many others, if you think your hard done mate i was just one penny over the higher rate and only because the exchange rates changed and so i had to pay a small fortune the record wasnt worth mutch more than the charges

[Premium Stuff]

Thanks for the advice guys.

Have emailed the seller asking if he will accept it back and re-ship it with a value of USD $10 or less.

Fingers crossed.

Cheers

Richard

[paultp]

The thing is, if you get it shipped with a low value it can't be insured. I'd rather have the record than have it lost in the post after I've paid for it. You have no proof it was sent and the seller has no proof it was delivered.

Also, from the seller's point of view sending an expensive record without it being tracked leaves him open to people claiming it hasn't arrived (and people do).

Mind you my Troy Dodds demo was allegedly tracked and it still got stolen lost on the way, it left the US but never appeared in the UK, apparently. I got (most) of my money back but I'd rather have had the record.

[Guest Awake 502]

The seller is probably just covering himself. If the record is insured he will have to declare the full value just in case it goes missing or gets damaged.

If he declares $10 value and it arrives damaged would you put a PayPal claim in for $10 for an expensive record ?

[Pete S]

He can still send it so that he gets a signature but doesn't insure it for loads of money. he knows it'll have to be signed for and the buyer takes the risk that it's not insured for the full amount

[Margo]

Thanks for the advice guys.

Have emailed the seller asking if he will accept it back and re-ship it with a value of USD $10 or less.

Fingers crossed.

Cheers

Richard

hi,

this happen to me aswell a few years back. i told parcel force to send it back to sender and they sent it back the cheapest way by sea, and it took over 2 months to get there .

[Premium Stuff]

Thanks for the advice/comments guys.

What I don't understand is why the seller - if he was playing it by the book - put it down as a 'gift' on the customs declaration.

It was not a gift, it was merchandise from an eBay auction.

I guessed he had done that because he thought it would not then attract charges - can't see any other reason.

Whatever the situation, he incorrectly described the item being purchased/shipped - which seems a bit unusual - and it was the 'gift' tag which seemed to get customs onto it.

I'm waiting to hear back - fingers crossed - its USD $270 after all for f***s sake

Cheers

Richard

[Guest sharmo 1]

we get this all the time mate parcel force and Fedex ect activly pay the import duty and v.a.t ect and charge a tenner for doing it nice little "add on" for the greedy batards .If you can stand the buggering around send it back and get him to re send it I did this once and got a bill because the Americans charged me some sort of import duty.regards Simon.

[boba]

sort of related based on people talking about insurance, one thing some US sellers are doing recently is sending first class air with USPS, declaring a low value, but using a 3rd party service (e.g. endicia, which they might already use for their mailings) to insure the package. Probably easier to make a claim than USPS and USPS doesn't have to have any idea about the value.

[Guest julesp1905]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

[Pete S]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

People like you really make me sick. Were you the tell-tale at school?

[Guest julesp1905]

People like you really make me sick. Were you the tell-tale at school?

No, were you the school bully?

Edited September 8, 2011 by julesp1905

[Swifty]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

Bloody hell mate , get a grip , If you were supposed to pay tax/import duty the record can't have been more that a dollar or two originally and was probably originally sold & local tax paid on it.

Have a nice day

Swifty

[NEV]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

Well if your gona be so judgemental,you come across as someone who rhythms with banker !

[Guest julesp1905]

Bloody hell mate , get a grip , If you were supposed to pay tax/import duty the record can't have been more that a dollar or two originally and was probably originally sold & local tax paid on it.

Have a nice day

Swifty

It's original Price at point of sale has nothing to do with it, it's the price the importer paid, so don't really see your point. It's attracted duty.

[Guest julesp1905]

Well if your gona be so judgemental,you come across as someone who rhythms with banker !

that's a well educated response

[Steve G]

I'd also not risk letting parcel farce send it back to the seller, could take months, get lost etc. Swallow hard, pay the duty, write it up to experience etc.Premium Stuff

[Swifty]

It's original Price at point of sale has nothing to do with it, it's the price the importer paid, so don't really see your point. It's attracted duty.

Aaaah ! your'e the Soul Taxman !

It's not quite the same as claiming a mortgage for a second house though , is it ?

Each to their own mate

Swifty

[Guest sharmo 1]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

Sir my book's are open and my accountants are Dains a reputable company who have practice's all over the U.K. we have to pay our import/vat duty befor we have the goods delivered or collected we normally collect from parcel force's depot at Nottingham or delivered by Fedex all of our records have a copie invoice that would match all card/paypal or money transfer details .The inland revenue are more than happy with our anual returns and all further taxation liabilty's in addition to our import costs are up to date , I can assure that at no time have we ever attempted to defraud the inland revenue in any way shape or form in addition to this statement we are members of the market traders association and probably the only record dealers at any venue with public liability insurace to cover any problems regarding our customers welfare .Regards Simon.

Edited September 8, 2011 by sharmo 1

[Guest julesp1905]

And for the record Tax Evasion is a crime, so ask yourselves if it should be a topic of discussion?

[Pete S]

No, were you the school bully?

No but I hope you enjoy your new role as the most unpopular member of Soul Source.

[Swifty]

Sir my book's are open and my accountants are Dains a reputable company who have practice's all over the U.K. we have to pay our import/vat duty befor we have the goods delivered or collected we normally collect from parcel force's depot at Nottingham or delivered by Fedex all of our records have a copie invoice that would match all card/paypal or money transfer details .The inland revenue are more than happy with our anual returns and all further taxation liabilty's in addition to our import costs are up to date , I can assure that at no time have we ever attempted to defraud the inland revenue in any way shape or form in addition to this statement we are members of the market traders association and probably the only record dealers at any venue with public liability insurace to cover any problems regarding our customers welfare .Regards Simon.

[Swifty]

And for the record Tax Evasion is a crime, so ask yourselves if it should be a topic of discussion?

C'mon mate , lighten up . What's your'e favourite tune at the moment :g:

[Steve G]

whether we like it or not julesp is technically correct. Duty is payable on the value of goods imported as declared by the seller. It's a real minefield and very hit and miss. Most of the time we don't get charged, occasionally we get stung big time. Seems that's what's happened here.

Bout time import duties were relaxed I say. They go back to the days of trade barriers and all that...

Edited September 8, 2011 by Steve G

[Guest julesp1905]

No but I hope you enjoy your new role as the most unpopular member of Soul Source.

Oh, i'll have to go and slash my wrists then, this news has left me heart broken!

just a straight observation, why do people moan about paying import duty, then seek ways of avoiding it.

If people had to pay on everything that got caught, they'd stop buying records, We don't so just get on and pay it.

[Guest ScooterNik]

Got to agree with Julesp on this. If you can afford a reasonably high priced single, don't complain when you're asked to pay the tax it should attract. If you can get away with it, fine, but if you get caught then pay up - you'll be a long way ahead overall.

[Pete S]

you'll be a long way ahead overall.

Oh right, you run a business selling records do you?

So when they make me pay £15 tax and that's the only profit I would have made - seeing as not every record sells for 100, 200, 300 quid - and then I have to pay tax on it again when I finally sell it, at a loss - that's alright is it?

[Soulcarp]

Oh, i'll have to go and slash my wrists then, this news has left me heart broken!

just a straight observation, why do people moan about paying import duty, then seek ways of avoiding it.

If people had to pay on everything that got caught, they'd stop buying records, We don't so just get on and pay it.

sad little man

[Billywhizz]

sad little man

could be a woman never no lol billy

[soulsalmon]

Done your wrists yet,do get a move on

[Guest giant]

And here's me thinking soul source was a forum full of moral standing people, i think the best solution if you want to avoid paying import duties is to stay clear of records that might attract it.

You lot sound like a bunch of petty criminals discussing ways of avoiding paying tax. no better than bent MP's and filthy bankers

you sound as though someone who works for the government or the customs, bit hash calling everyone petty criminals.

[Pete S]

This is what I don't get.

Say 2 copies of a record go on ebay.

One sells for $5 because no one spots it.

The other is seen by everyone and goes for $500.

They both get sent to the Uk, one gets through as it's only worth $5, the other gets done for £100 tax.

However, it's the same identical record.

How does that work then?

[Upthejunction]

Done your wrists yet,do get a move on

:g:

[mrs soul]

yes have you not read the thread about sniping ect

[Guest giant]

No but I hope you enjoy your new role as the most unpopular member of Soul Source.

well said pete ,this guy is a stinker

[Pete S]

yes have you not read the thread about sniping ect

Tell it to Jules...

[Mike]

ask tone down the ott posts

[NEV]

that's a well educated response

Ok then if you want some educated answer...I'm a bricklayer who pays his taxes every week..isn't a burden on society..but by my own admission ,not someone who is placed in a position of trust by the society i serve.

Yet the people who this country elects to make sure the country is run properly ,the people who we put our trust in to make our decisions,the people who set the rules..the same people who bend the rules to rip us all off by falsifying their expenses .

Please don't refer to soulsourcers as petty criminals ,for we are only playing by the same rules as our peers.

IT'S ok to avoid expenses ...just don't get caught!

[KevH]

And for the record Tax Evasion is a crime, so ask yourselves if it should be a topic of discussion?

You brought up the subject.I'm sure if the duty was reasonable on this item,Richard wouldn't have posted.Pete S is right.Records can be signed for,not insured though,but its peace of mind for both parties... if it arrives.

[Mrtag]

Done your wrists yet,do get a move on

:lol: pmsl

[AlanB]

Import VAT is set at same rate as UK VAT, which in principle prevents UK business sellers who have to charge VAT on equivalent items being disadvantaged.

I appreciate it is annoying to have to pay import tax, but the safest thing to prevent a shock is to ask the seller in advance if they will declare a nominal value on the package.

If sending an £800+ item on a 1,000 mile return trip to avoid tax, it would be even more annoying if it got lost in the mail.

Alan

[Premium Stuff]

Sorry - didn't mean to stir up a hornets nest of controversy

Thanks for the positive comments guys.

Now I have a dilemma. The seller has agreed to take the item back and re-post it - but uninsured.

The warnings about the item going missing or taking ages are scary.

Think I might ask them to do a 3rd party insurer like Bob suggested.

For those interested the customs fees were in excess of 25% of the price I paid.

Cheers

Richard

[Steve G]

Thanks for posting that AlanB hadn't thought about the tax being there to protect the uk sellers from being unfairly disadvantaged. Thing is some of these records aren't available from uk dealers, well not at the same time ayway, so it's a bit of a minefield. And of course not all dealers charge VAT either. In fact I've never bought a record to be told there's VAT on top, however I guess those dealers that are registered have to take it as a net hit on their sales?.....but I still think Premium Stuff should pay it as a one off rather than trying to send the record back.

[Pete S]

but I still think Premium Stuff should pay it as a one off rather than trying to send the record back.

why would he want to pay 150 quid more than the record is worth?

[Pete S]

but I still think Premium Stuff should pay it as a one off rather than trying to send the record back.

why would he want to pay 150 quid more than the record is worth?

Sorry - didn't mean to stir up a hornets nest of controversy

Thanks for the positive comments guys.

Now I have a dilemma. The seller has agreed to take the item back and re-post it - but uninsured.

The warnings about the item going missing or taking ages are scary.

Think I might ask them to do a 3rd party insurer like Bob suggested.

For those interested the customs fees were in excess of 25% of the price I paid.

Cheers

Richard

Richard, just get it sent to a trusted soul source member in the States and then sort out what you're going to do with them...

[Steve G]

why Pete because if you tell parcel farce to send it back (PS does not have the record and I bet they won't release it to him without PS paying em), they'll probably do it as cheap as possible, slow, might well get lost in a warehouse. He cannot redirect it to a trusted soul source member, his options are pay up, or return to sender, uninsured and trusting parcelfarce. Steve

[Steve G]

why Pete because if you tell parcel farce to send it back (PS does not have the record and I bet they won't release it to him without PS paying em), they'll probably do it as cheap as possible, slow, might well get lost in a warehouse. He cannot redirect it to a trusted soul source member, his options are pay up, or return to sender, uninsured and trusting parcelfarce. Steve

why would he want to pay 150 quid more than the record is worth?

In fairness I don't think thast's what PS has said?

Edited September 8, 2011 by Steve G

[boba]

I agree with Steve at this point, it's worth eating the 150 pounds to ensure you get the record, rather than gambling that it will get back ok, paying shipping again, etc.

Also, Julesp1905, welcome to the soul source unpopular members club, we have meetings every tuesday night from 7-8PM.