Author Topic: Import duty on bike parts (Read 8867 times)

Clare · « **on:** 04 June, 2009, 07:06:47 pm »

What is it?

Biggsy · « **Reply #1 on:** 04 June, 2009, 07:31:08 pm »

(Importing from outside the EU through the post)

Duty is 4.7% for cycle parts according to DutyCalculator.com. No Duty is payable if the total including shipping is less than £105.

VAT @ 15% is payable if the total is £18 or more, or £36 for a gift.

Duty and VAT is payable on the shipping charge as well as the goods.

Royal Mail handling charge for collecting any tax is £8. Other couriers may charge more.

Tourist Tony · « **Reply #2 on:** 04 June, 2009, 07:41:17 pm »

Sorting it out as I type

Clare · « **Reply #3 on:** 04 June, 2009, 07:44:38 pm »

I glad you managed to find some info on duty calculator, I kept getting a 404 page $:-\$ .

Is it duty then VAT or VAT then duty?

Biggsy · « **Reply #4 on:** 04 June, 2009, 07:50:43 pm »

~~It's Duty on the goods total + VAT on the goods total. They don't charge tax on the tax.~~

~~I think the £105 limit I quoted might be wrong. I'm just checking that.~~

Clare · « **Reply #5 on:** 04 June, 2009, 07:56:25 pm »

TT has just given me a definitive answer using the age old method of calling up a work colleague and, having done the calculations, there's not much saving to be made sadly.

Thanks to TT (and his work mate) and Biggsy for their help here, it is very much appreciated.

Biggsy · « **Reply #6 on:** 04 June, 2009, 07:58:23 pm »

Correction: You do pay VAT on the Duty (!!), so it's Duty then VAT.

I'm going to try and get to the bottom of it anyway in case it's useful for anyone else too.

TimO · « **Reply #7 on:** 04 June, 2009, 08:01:22 pm »

...also remember that the Duty and VAT is payable on both the goods and the postage. Presumably this is to stop people paying $1 for the goods, with $100 P&P... $:-\$

According to Notice 143 A guide for international post users August 2007, section 2.3 says "Customs duty is waived if the amount of duty is less than £7."

If the duty rate of 4.7% is correct, then you wont have to pay duty if the value is less than £148.93.

Biggsy · « **Reply #8 on:** 04 June, 2009, 08:08:42 pm »

....That's what was confusing me (the waived bit) when testing the limit on DutyCalculator. I think £105 is correct then.

None of the VAT is waived, however.

Tourist Tony · « **Reply #9 on:** 04 June, 2009, 10:27:49 pm »

Actually, duty is charged ad valorem CIF. That means as a percentage of Cost Insurance and Freight. VAT is charged on CIF plus duty.
Duty rate for bicycle parts (including forks and frames ) is 4.7%
On complete bikes, it is 14%.

Duty/VAT on goods imported as a passenger's baggageis nil up to a value (cost only) of £340. Above that, there is a complication:
A number of articles adding up to more than £340: tax is charged on the amount over £340.
Any single item costing more than £340: tax is charged on the full amount---no allowance at all.

rogerzilla · « **Reply #10 on:** 04 June, 2009, 10:31:06 pm »

Yeah, 'cos we must protect our great British cycle industry

SpaceBadger · « **Reply #11 on:** 04 June, 2009, 10:42:38 pm »

Beware how goods are described on the packaging by the sender. I bought a helmet from the US, which should have been zero rated. It was described just as "helmet" on the customs documentation and attracted a levy and a collection fee.

I managed to get the levy back, after much argument, but Parcelforce would not even enter into correspondence about the fee as is was down to Customs' error, not theirs.

I saved nothing in the end. It actually cost me more, although I could not get the helmet I wanted in the UK or Europe.

MattH · « **Reply #12 on:** 05 June, 2009, 10:19:55 am »

Slightly off topic - it actually relates to electronic components - is there a (legal) way of avoiding the VAT collection?

I bought a some evaluation boards for my (VAT registered) business from the US recently, and may need more. The cost is only about £50, so no duty, but then I got hit by the £8 royal mail charge to collect the VAT that I can claim back anyway - so a trip to the sorting office to pay the money and lots of hassle for nobody to gain except the post office.

Not a lot of money involved, but if there is a way of flagging these things up to say "don't bother billing me because it's only grief all round and the government gets nothing anyway" - a bit like when you order software or services online and can enter your VAT number to avoid being charged and having to recaim.

Tourist Tony · « **Reply #13 on:** 06 June, 2009, 10:12:54 am »

Quote from: rogerzilla on 04 June, 2009, 10:31:06 pm

Yeah, 'cos we must protect our great British cycle industry

EU Customs Union. We don't set our rates, the Politburo in Brussels does.
Matt, I am out of touch with that side of things, so would suggest a call on the national help line or a visit to your local VAT office.

MacB · « **Reply #14 on:** 06 June, 2009, 02:13:16 pm »

I've bought many things, at varying values, from the US and have only twice been charged, once was cash on delivery and the other I got an invoice from DHL.

Another option is if you work for a corporate, or know someone that does. I've had stuff via the internal mail no problems and no shipping costs, well just the costs for the local shipping to my friend in the US.

Biggsy · « **Reply #15 on:** 06 June, 2009, 02:48:36 pm »

I'm charged every time (when the amount declared on the customs form is over the limit). They didn't even let a £20 item through - just £2 over the VAT limit. On this sort of value, the VAT is no big deal, it's the £8 handling charge that's the killer.

TimO · « **Reply #16 on:** 07 June, 2009, 06:41:53 am »

I've got progressively charged more and more often in recent years. I think they are getting better at noticing.

With stuff coming through the Royal Mail, you always know when you're going to get charged, since they send it through Mount Pleasant sorting office (at least for London mail), and it takes 1-2 weeks longer, which is a bit useless.

slope · « **Reply #17 on:** 15 January, 2022, 07:36:19 pm »

Took delivery today of a Lupine Rotlicht rear light from www.bikeinn.com cos it was the best price I could find.

It wasn't until I received a tracking reference, that I realised it was coming from Spain. The price was quoted in £Sterling and the shipping via Royal Mail.

Oops I thought! Import duty? VAT? Royal Mail handling fee?

Nope

Despite the tracking showing it travelled from Spain via the Netherlands, the Postmark on the box was Greenford, UK

markcjagar · « **Reply #18 on:** 16 January, 2022, 10:07:00 am »

From what I can tell, UK customs is barely checking imports.

EU nations, however, are being rather thorough on checking imports from the UK - though this varies from country to country.

Hot Flatus · « **Reply #19 on:** 16 January, 2022, 10:44:56 am »

So are people managing to buy from cheaper European retailers and not get clobbered with import charges??

Paul H · « **Reply #20 on:** 16 January, 2022, 10:45:22 am »

Quote from: slope on 15 January, 2022, 07:36:19 pm

Oops I thought! Import duty? VAT? Royal Mail handling fee?

Nope

Despite the tracking showing it travelled from Spain via the Netherlands, the Postmark on the box was Greenford, UK

Under £135? If so the VAT has to be collected by the retailer at the point of sale before export.
Over £135 and the VAT and any duty should* be collected after import, either the consumer gets the bill and handling charge, or the retailer ships it to themselves (Or an agent) on a business to business basis, before sending it on. Bikeinn (Other ***inns are available) are among the retailers I know of doing the latter, whatever the value, the VAT has been included in the website price.

* I'm sure there are packages that slip through unchecked, there always have been.

quixoticgeek · « **Reply #21 on:** 16 January, 2022, 11:44:53 am »

Quote from: markcjagar on 16 January, 2022, 10:07:00 am

From what I can tell, UK customs is barely checking imports.

EU nations, however, are being rather thorough on checking imports from the UK - though this varies from country to country.

Not helped by the fact some UK companies do not understand what the bloody CN22 is for.

I had one company I ordered from who thought it was the insurance value of the package, and just wrote £250 on each package, so it would always be adequately covered. I did not appreciate paying vat on a 250 quid purchase for an item that had cost me just 80. When I eventually got through to someone with clue at the place I ordered from, they apologised profusely, and refunded me the difference.

A lot of UK based companies really *REALLY* do not understand exports.

J

slope · « **Reply #22 on:** 16 January, 2022, 01:59:41 pm »

Quote from: Paul H on 16 January, 2022, 10:45:22 am

Quote from: slope on 15 January, 2022, 07:36:19 pm
Oops I thought! Import duty? VAT? Royal Mail handling fee?

Nope

Despite the tracking showing it travelled from Spain via the Netherlands, the Postmark on the box was Greenford, UK
Under £135? If so the VAT has to be collected by the retailer at the point of sale before export.
Over £135 and the VAT and any duty should* be collected after import, either the consumer gets the bill and handling charge, or the retailer ships it to themselves (Or an agent) on a business to business basis, before sending it on. Bikeinn (Other ***inns are available) are among the retailers I know of doing the latter, whatever the value, the VAT has been included in the website price.

* I'm sure there are packages that slip through unchecked, there always have been.

Yes, £74.98 inc postage.

And yes, this appears to be the case. Tracking showed it went from Spain via the Netherlands and onto Greenford UK. As there were no foreign shipping labels, I assume the box was put into a new bag by an agent or a Bikeinn representative near Heathrow and a Royal Mail adress label then applied.

Pleasantly relieved

(and bonzer light with the slow pulse I was after + an allegedly replaceable LiPo battery?)

Adam · « **Reply #23 on:** 16 January, 2022, 09:29:49 pm »

Bikeinn, Bikester and possibly a few other EU places have a UK VAT number so no import duty to worry about on larger orders. I placed some large orders with Bikester in 2020 for Shimano stuff which was completely out of stock from Madison, at a far cheaper price.

I suspect they simply have a UK mailing address, so any orders we in the UK place get processed by the head office and then sent to that UK address for onward delivery.

andrew_s · « **Reply #24 on:** 16 January, 2022, 09:31:38 pm »

Some EU retailers are registered for UK VAT, in which case VAT will be shown and included when you put the order in, and there will be no extra charges.
I've ordered from Bikester (>£135) and HollandBikeShop (<£135) with no separate import charges. In both cases actual delivery didn't involve any UK address.