Anyone know about import duty?

[iain85]

Hi, I'm expecting my kit from Bms soon and wandered if anyone knew the rough amount of Import duty I should expect?
The total order including shipping was $659.

Many thanks,

Iain

 

[Old_Dave]

It depends on the value stated on the paperwork attached to the box...

You will almost certainly get charged, but I think you may well be pleasantly surprised


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[iain85]

I hope so!

 

[Old_Dave]

Just to add that depending on the courier it may be a couple of weeks after delivery before you get the bill for the duty, vat & handling charge for collecting your money. But at least when it arrives you will be able to calculate the amount


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[iain85]

Cheers, fingers crossed they don't sting me too much

 

[Jeremy]

The drop shipper that BMS use normally declares a goods value that's less than you paid (AFAICS, BMS and GBK use exactly the same warehouse/dropshipper and so both do the same thing).

The shipping co will charge duty on the declared value of the goods (not normally much, just a few percent depending on category), VAT on the total of the goods declared value and the shipping cost, plus a handling fee that's usually around £10 or thereabouts (it varies from one company to another).

One thing to watch for is that BMS and GBKs dropshipper (they are effectively one and the same company as far as the source of the goods - both send identical invoices from exactly the same Chinese drop shipper) sometimes seem to make up a fictitious bike company name on the paperwork. This caused me a serious problem, as I didn't receive the FedEx duty/VAT bill at my home address (it was sent to the non-existent bike company by FedEx) and I found myself with bailiffs at the door from a debt recovery agency who had traced the parcel delivery address. The bill was only for around £40, but it seems that, at least in my case, FedEx will chase debts even this small.

It took me several months to get this resolved and make sure that it had no impact on my credit rating. FedEx refused to accept any responsibility and I was left to do all the legwork, so I'd very strongly suggest giving the shipping co a call if you've not had a bill within a couple of weeks, especially if there is a funny address on the package suggesting you may be a bike company.

 

[jerrysimon]

Interesting Jeremy. I have to say that would put me off from shopping with them

Jerry

 

[iain85]

Thanks Jeremy. I'll be sure to keep an eye out for that

 

[Jeremy]

Interesting Jeremy. I have to say that would put me off from shopping with them

Jerry

I think it's OK to shop with them, as long as you know that there is a small chance of a problem like this.

In my case I had two separate orders, one from BMS then one a few weeks later from GBK. They were for different parts, but both had absolutely identical paperwork (barring a different rubber stamp in one corner). The parcels were delivered to my home address, as they had two address labels on the boxes, one listing my home address, the other listing a made-up bike company address (that included my house name within the company name). Both BMS and GBK used the same made-up bike company name on the identical paperwork that was sent to FedEx.

I didn't receive an invoice for duty/VAT from FedEx for either shipment, so assumed I'd got lucky and avoided being caught, as sometimes happens. Two months later the debt recovery company called, demanding money or goods.................

 

[amigafan2003]

Everytime I get goods delivered from Fedex and they get caught by customs I only play the VAT - I withold the "handling charge" as imo that's unsolicited goods or services.

I get a couple of irate letters stating I haven't paid in full but I reply to quoting the Unsolicited Goods and Services Act 1971 and they drop it soon after.

You can't do the same with Royal Mail/Parcel Force as they hold the items hostage until you make the payment.

 

[morphix]

Hi, I'm expecting my kit from Bms soon and wandered if anyone knew the rough amount of Import duty I should expect?
The total order including shipping was $659.

Many thanks,

Iain

Normally BMS will undervalue your order so the Duty and VAT will be much less than the real purchase value. Duty is around 3-4% (it's not always charged on personal purchases) and VAT will be 20% on top of Duty and shipping. I would expect you'll pay around £7-£15 in import tax if the order is undervalued to a nominal amount... and there will be the unusual £10 "handling fee" from the courier..(which you can ignore).

 

[iain85]

Thanks for the replies. Cheeky gits taking £10 in the first place. So I should just send them a letter stating the unsolicited goods act and a cheque for the fee minus the admin fee?

 

[BAH48]

Be aware that the charges are probably legitimate.

I read this opinion - for what it's worth.

"Yes it is legal because they are providing a service.

I.e when goods enter the UK from outside the EU they are presented to the UK Border Agency by the carrier for Customs clearance. The import Customs charges are raised by the UK Border Agency staff and the goods are then passed back to the carrier for the import Customs charges to be paid by the carrier on behalf of their customer. The carrier then arranges for delivery the goods, which in some cases is only done when the import Customs charges and fees have been paid to them by the customer. Some carriers will deliver the goods and invoice later"

So there is the possibility of legal action, but as others have observed it seems unlikely.

 

[Jeremy]

You are perfectly entitled to pay the duty and VAT direct to UKBA, though. You are under no obligation to use the "service" provided by the courier to do this, especially as you haven't specifically agreed to them providing this service to you.

The law is pretty clear and falls within normal contract law. In England and Wales (it's slightly different in Scotland, I believe) a contract can only be valid when there is an offer (in this case by the courier to you) the acceptance of that offer (verbally, in writing or implicit within the offer) and the exchange of a consideration (their service to you, your payment to them).

In this case they have not made you an offer and consequently you have not accepted it. You are therefore not obliged to exchange any consideration.

 

[BAH48]

Fair enough, what you say makes sense, but is there a mechanism in place to to be made aware of the appropriate payments, so that the goods can be released? It may be deemed that the courier is giving an essential service that ensures the swift delivery of these goods.

 

[Jeremy]

Fair enough, what you say makes sense, but is there a mechanism in place to to be made aware of the appropriate payments, so that the goods can be released? It may be deemed that the courier is giving an essential service that ensures the swift delivery of these goods.

The Royal Mail (Parcelforce) hold parcels until you pay the duty and VAT, so in their specific case they are making you a conditional offer and by paying them you are accepting that offer and exchanging a consideration. Companies like FedEx and others raise the charge after they've made the delivery and provide no indication that you will be charged by them until the invoice is sent, usually a week or two after delivery.

 

[BAH48]

So, parcelforce delay your parcel and are entitled to their fee, Fedex bring your parcel sooner and aren't entitled to a fee. I see the legal argument, but it doesn't seem fair to me.

 

[Old_Dave]

When you put it like that, it's a very good point


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[Jeremy]

So, parcelforce delay your parcel and are entitled to their fee, Fedex bring your parcel sooner and aren't entitled to a fee. I see the legal argument, but it doesn't seem fair to me.

I think that's the dilemma that the couriers who pride themselves on fast delivery face. Parcelforce stick to the rigid letter of the law and add a delay to delivery, to ensure that they get paid their fee for handling your VAT and duty, the others speed up the delivery by taking the risk that some recipients will refuse to pay the handling fee on the legal basis that it's an unsolicited service.

If you wanted to be fair, then you could use the tracking information available to try and pay the duty and VAT directly as soon as the parcel gets tracked into customs clearance. However, you'd have to be quick, because my recent experience of tracking an incoming hub motor showed that it only took an hour or so to clear customs.

My main gripe over the handling fee is that it excessive. The true cost to the courier of clearing your parcel and paying the VAT and duty is tiny, almost certainly less than £1. It has to be, or else their operating costs at import ports would be tens of millions a year. If they only charged the true cost of clearance then I'd be more comfortable about paying it, but they choose to mark up that cost by a thousand percent or so.

 

[BAH48]

OK, that seems to be fairly definitive, couriers who deliver first have no legal entitlement to a fee, but a moral entitlement to a small fee. I noticed on another forum that most businesses tend to pay the fees and consider them reasonable.