Import Duty & VAT For Non EU Imports

[Cyclezee]

Sorry if this is a bit boring, but it may be of intrest to some.

I believe some clarification is required about the cost of importing electric bikes and parts from non EU countries.
This free calculator is very simple to operate Calculate your import duty in a few quick steps for free | The DutyCalculator and can used for any goods.

Using electric bikes as an example, simply type electric bike into the product description, then select sports and leisure for product category, next choose bikes and scooters. The rest is straight forward and logical.
e.g. an electric bike from China which cost say £500 will attract 20% VAT + 6% Import Duty adding £136.
Then there are additional costs related to importing, insurance, handling, administration fees, shipping and delivery within the UK.

Of course many people who import on an individual basis don't pay any VAT or Import Duty because goods are deliberately undervalued by the exporter and or the parcel company does not check if goods are liable.
HMRC are wise to this and fewer items are slipping through their net.

 

[flecc]

And how lucky we e-bikers are, the duty rate on ordinary bicycles from there is 62.5%. No wonder cyclists hate us!

Where your £500 e-bike totals to £636 John, a £500 ordinary bike totals to £975:

Total customs value: £500.00

Duty: £312.50

VAT: £162.50

Total import duty & taxes due: £475.00

Total landed cost: £975.00

 

[Oxygen Bicycles]

And how lucky we e-bikers are, the duty rate on ordinary bicycles from there is 62.5%. No wonder cyclists hate us!

Hi Tony,

I thought normal bikes from China have an anti dumping duty rate set at 48.5%. Maybe it has gone up now from the 2012

all the best

Andrew

 

[flecc]

I took the 62.5% from the calculator that John posted, so I assumed the 48.5 % must have increased. I've seen no announcement about that though.

The parameters I used in the box sequence were bicycle//sports & leisure//bikes and scooters//bikes,bicycles

These were the only suitable ones listed in the dropdown menus.

I showed zero transport and insurance costs. Maybe that site is wrong, but even at 48.5% for normal bikes, our position is far better.
.

 

[flecc]

I've explored this online Andrew, and the result is that the calculator on that site seems wrong. I've read through the definitive document from an EU meeting and resolution of 3rd October 2011 when it was ruled that the anti dumping duty on normal bicycles will remain at 48.5% for a further five years.

I've advised BundleTech of the error.
.

 

[Cyclezee]

Perhaps the answer for cyclists is to import a £500 electric bike, throw away the electrics, result two piles of useless rubbish

First New Years resolution, no more sarcasam.............and replace it with cycnacism

 

[banbury frank]

Hi the anti dumping tax is on imports from to china and Vietnam so the bike company's set up in Cambodia just across the border from Vietnam

also bikes in parts are assembled in Czech republic and other country's no anti dumping tax on parts

http://www.bike-eu.com/news/after-dumping-duty-drop-a-j-group-re-opens-vietnam-factory-4203.html

look at this link prices are including vat and duty delivery about £80

e-Basic 36V - 4f

They just assemble Chines parts

there standard bikes are good value

Frank

 

[morphix]

Clearance Fees

I just wanted to add something to this which may be of interest to personal buyers..

No doubt many of you are aware of the high fees charged by Royal Mail and other carriers for "clearance" through Customs..usually ranging from £9 up to £15. On small value imports that go over the £18 limit (which I believe is due to be lowered soon to £15) the "clearance charge" can often exceed the VAT/Duty being collected.

I recently got hit with a charge from FedEx on my BMS battery purchase.. I can't remember exactly but I think the VAT came to something like £16 and FedEx wanted an additional £9 for clearance. They sent me a separate itemised invoice after the goods had been delivered and the £9 charge really ticked me off, so I decided to challenge it.

I paid (by bank transfer) the VAT portion of the bill and ignored their charge. About 2 weeks later I got a reminder invoice for the entire bill again. I wrote it on," paid by bank transfer" and wrote the date I paid on it and posted it back.

The next month I got a "final reminder" letter (requesting the full amount again - perhaps their system can't cope with "part payments"!?). So this time I e-mailed them at the address provided on the letter. I told them: I've paid your invoice, the part I'm liable for, the VAT. Since I didn't ask you to clear it for me, or agree to pay that charge, and there is no contract between us, I haven't paid the clearance fee because I'm not liable to.

I haven't heard anything since and it's been a couple of months now! I've concluded they've dropped it.

I think this tactic can work and others should try the same approach. At the very least, just don't pay it and drag it out as long as possible. The more hassle and paperwork it creates for them, the less likely they will be to charge extortionate fees in future.

If they had put a reasonable and fair charge on the invoice, i.e. something like £3.50, I would've paid it without giving it a second thought. But it seems to me these carriers are using this charge to exploit people and make considerable profits, much like banks do with their charges.

I actually contacted HMRC about this and asked them whether they could confirm if people are liable to pay the clearance fee to carriers. They replied saying its no longer anything to do with them and to contact Border Agency as they now collect import taxes and duty.

So I contacted Border Agency (which was not easy) and got a standard reply asking for my name and address. I replied to them putting the same question as I did to HMRC, but they haven't got back to me and its been over a month.

 

[flecc]

My calculator entry was for China to Britain (EU) Frank, so the calculator is definitely wrong for this item.

 

[flecc]

To Morphix: That won't always work since some demand the payment in advance before delivery of the item. The Post Office do that for example.

 

[morphix]

To Morphix: That won't always work since some demand the payment in advance before delivery of the item. The Post Office do that for example.

That's true I've noticed that with Royal Mail and Parcel Farce, but I've never yet had it happen to me with a private carrier.. Maybe they will follow the same approach though perhaps.

 

[morphix]

No idea why Border Agency needed my name and address before they would answer a question about clearance fees. Perhaps they wanna check if I'm an illegal immigrant first

 

[flecc]

No idea why Border Agency needed my name and address before they would answer a question about clearance fees. Perhaps they wanna check if I'm an illegal immigrant first

Or add you to their list of trouble makers!

 

[morphix]

*grin*

 

[flecc]

I've now had a response to my message sent to BundleTech, confirming that the 62.5% duty I reported which their calculator produced is correct. Here's the email copy:

Hi Tony -

The 62.5% rate, showing in the results on the calculator, is an aggregate
duty reflecting 15% ad valorum duty + 48.5% anti dumping duty.

Bestest
Andre

 

[Kudoscycles]

Flecc....I heard a rumour today that Sarkozy,on the 18 th January is to announce an import duty on all products not made in France....I don't think he can do that to EU countries?....would that not require a treaty change?...also Merkel would be annoyed about a duty on every Audi,BMW,Mercedes and Kalkhoff sold into France....if he did it to the chinese they could dump the Euro and wipe all the PIGS off the map!
We sell a lot to the French,they hate buying from the british, but they can't get the products elsewhere so they would have to lump the duty....my opinion,not going to happen.
Anybody else heard this rumour?
Dave
KudosCycles

 

[banbury frank]

Hi The French will buy a french product if it is available at any price The Chines tried selling in France it stood on the dock side rotting for months if not years I just wish our government was as protective off UK company's and UK jobs

Frank

 

[flecc]

I haven't heard that rumour Dave, and as you say, Sarkosy cannot unilaterally impose one.

But it's election year for him and his prospects are looking very poor, so he may have released this false story "back door" as a sop to voters to curry favour. There's a lot of this sort of thing going on at the moment internationally with four presidential elections and a London Mayoral election in the offing.