Importing from china - calculate the charges?

Linkex · 8 Feb 2013 at 11:52

Am considering importing one of these. Apart from the obvious risk that it'll be cheap Chinese crap that doesn't work, what do I need to consider? It works out to £42 shipped, which compared to a proper Koso is a bargain - but its less of a bargain if I get hit with a ton of import charges. I've also heard storys of shipping companies paying import duty, then charging the recipient a fee on top of the duty. Assuming the fee is £20, that's basically double the purchase price. Just to note, I do realise it uses magnetic sensors rather than the bikes built in speedo gear.

So, questions - what's the right way of figuring out the duty etc on this, and assuming I go ahead, can I sort out to pay it in advance, rather than getting hit with bonus charges from the shipping company?

Amleto · 8 Feb 2013 at 13:03

(value + postage) * 1.2 = cost plus VAT

Now add import duty if there is any - 0~5% is common afaik.

Now add £15 for parcel force handling fee.

Or just use an online calculator...

MooMoo444 · 8 Feb 2013 at 13:09

Cant you bypass some charges if you get them to label it as a gift or is that a myth?

Werewolf · 8 Feb 2013 at 13:18

MooMoo444 said:
Cant you bypass some charges if you get them to label it as a gift or is that a myth?

It's a myth unless it's under £15 before shipping, and doesn't apply at all if it's something you've bought (it can legally only be declared a gift if it's a gift from one individual to another).

mistercrabb · 8 Feb 2013 at 13:19

MooMoo444 said:
Cant you bypass some charges if you get them to label it as a gift or is that a myth?

You mean by comitting fraud?
Yes, that's a possibility

Although HMRC don't take too kindly to it I hear..

Linkex · 8 Feb 2013 at 13:23

Cheers guys. Is there no way to pay the charges up front and avoid the couriers fees? I would rather not hand them £15 for the pleasure of dealing with customs on my behalf.

Pudney · 8 Feb 2013 at 13:58

Amleto said:
(value + postage) * 1.2 = cost plus VAT

Now add import duty if there is any - 0~5% is common afaik.

Now add £15 for parcel force handling fee.

Or just use an online calculator...

It's duty then VAT. Which means you pay VAT on the duty.

Amleto · 8 Feb 2013 at 16:24

Pudney said:
It's duty then VAT. Which means you pay VAT on the duty.

There's no difference. multiplication is commutative

memyselfandi · 8 Feb 2013 at 16:43

As of Jan 2013 HMRC say the following for packages imported into the UK from outside the EU:

£0-£15 - No customs duty or vat
£15.01-£135 - No customs duty. Vat is due at the applicable rate
>£135 - Customs duty is due but waived if value of duty is <£9. Vat is due at the applicable rate

From 1st Jan 2013 the above £15 limit is raised to £36 for Gifts, which must be sent from an individual to an individual and not be part of a commercial trade.

(source (sections 2.3 and 2.4))

Charges are calculated on the value including all shipping costs (but not for gifts except those sent by EMS according to 3.1 of the above linked source)

On top of this will be the handling charges for the company handling te import for you (RM, PF, Fedex etc). These start at £8 for RM and go up from there.

Lopéz · 8 Feb 2013 at 20:55

Linkex said:
Cheers guys. Is there no way to pay the charges up front and avoid the couriers fees? I would rather not hand them £15 for the pleasure of dealing with customs on my behalf.

Who's going to move it through customs if the courier doesn't do it?

Linkex · 8 Feb 2013 at 21:21

The fee they charge isn't for physically carrying it through customs, its for paying the import tax/duty/vat on your behalf and then claiming it back from you. Surely, if they can charge such a ridiculous fee, there must be an alternative option?

Lopéz · 8 Feb 2013 at 21:49

Linkex said:
The fee they charge isn't for physically carrying it through customs, its for paying the import tax/duty/vat on your behalf and then claiming it back from you. Surely, if they can charge such a ridiculous fee, there must be an alternative option?

I'm well aware of what the charge is for

El_Watcher · 8 Feb 2013 at 22:26

Linkex said:
The fee they charge isn't for physically carrying it through customs, its for paying the import tax/duty/vat on your behalf and then claiming it back from you. Surely, if they can charge such a ridiculous fee, there must be an alternative option?

Yes, if you contact HMRC and arrange a deferment number for yourself, you can get the seller to put the VAT charges directly onto your account, bypassing the courier's charge.
I fear you may not qualify for this though with just one small transaction.

Diagro · 8 Feb 2013 at 22:49

order it and hope for the best

I used to order a crap load of iPhone parts from china, 80% of the time it flew through customs with 0 charges, but the other times they caught it and charged me.

Thankfully it was the smaller orders i got bills for and the part orders worth over £800 came through with no customers bill at all.