PeteHeat
8th December 2009, 16:31
Hi this is my first post so hope this is the right place.
I'm about 2 months away from trading (as a sole trader) online with a website selling wigs and hair extensions. These are made to order in China. Initially (for the first few months) I will get the pieces sent to myself so I can run a quality check. However the plan is to eventually have them sent direct to the customer.
What has become apparent in the last year whilst dealing with the factory is when they post items to me they do not always declare the value correctly: especially if it is a small order. If it is a single item they put 'gift of nil value' on the customs declaration which is not true. The true value is over $100. Therefore I am not always paying import VAT and the courier's handling fee.
When I am sending the items direct to the customer they will be liable for the import VAT (I will have adjusted my prices accordingly). Should I be concerned if the factory don't fill in the customs form correctly? What liability is there on my part to ensure all taxes are paid? I'm thinking specifically of a VAT inspection and being held liable for unpaid import VAT.:eek:
Thanks in advance for any help anyone can offer.
I'm about 2 months away from trading (as a sole trader) online with a website selling wigs and hair extensions. These are made to order in China. Initially (for the first few months) I will get the pieces sent to myself so I can run a quality check. However the plan is to eventually have them sent direct to the customer.
What has become apparent in the last year whilst dealing with the factory is when they post items to me they do not always declare the value correctly: especially if it is a small order. If it is a single item they put 'gift of nil value' on the customs declaration which is not true. The true value is over $100. Therefore I am not always paying import VAT and the courier's handling fee.
When I am sending the items direct to the customer they will be liable for the import VAT (I will have adjusted my prices accordingly). Should I be concerned if the factory don't fill in the customs form correctly? What liability is there on my part to ensure all taxes are paid? I'm thinking specifically of a VAT inspection and being held liable for unpaid import VAT.:eek:
Thanks in advance for any help anyone can offer.