Customs Rules

[Toon]

My newly launched wholesale clothing website www.clothesforless.co.uk is doing really well since it's launch only a week ago. I have had some good orders and wish I really thought of this ages ago. Anyway onto my point. I need to keep regular items coming in so I recently made a test purchase of around £80 worth of a well known branded polo shirt which was to be imported from the US. Parcelforce turned up on my door this morning asking for around £65 in customs charges even though he put them down as samples! That's nearly as much as I paid for the goods and postage in one! I'm looking to purchase £1000's worth of jeans from the US but am scared that the customs charges are going to be sky high again. The seller advised me he'll be happy to state the jeans are worth $5 each or even remove the price tags for me.

How does customs work? How can I get around paying high customs fees etc? Does the customs fees vary and if so, how do they decide on the amount to charge?

 

[Deleted member 2816]

You might get some useful info here
http://www.usembassy.org.uk/fas/import_procedures.htm
or
http://www.taxationweb.co.uk/guides/customs_duty.php
or
http://ioe.businesseurope.com/cmn/viewdoc.jsp?cat=all&ct=ht&docid=BEL1_Doing_0000005943

Hope this helps you a bit.

 

[Toon]

Thanks Thais. The links advised what customs charges are for etc but I'm still lost is to exactly what the specific chrges are. From reading those, it looks as though I would be better off asking that the price tags were removed and that the declaration states they're worth $5 each. I guess I can only give it a try and see what happens. If I get stung then I know not to import stuff again!

 

[Deleted member 2816]

Sorry, I couldn't come up with anything that told of specific charges. I only know that when you import dry goods from the US, anything over the value of £15 is zapped with 17.5% VAT plus other customs charges, & therefore gives you a bit of a shock when you realise what price you would have to sell them at here!

:?

 

[Toon]

So I'll have to work out if I'll still receive a good profit even if I have to pay the price for the goods plus an extra 17.5% just in case?

 

[gary]

One thing you should check is whether the correct tariff classification code is being applied to your goods. When I spoke to customs about importing from the US I was told that some couriers were just slapping a standard 26% tax on everything, when in fact it may be a lot lower (as it is in my case).

You should phone the customs tariff classification line (see my links at http://www.ukbusinessforums.co.uk/viewtopic.php?t=2141) for the correct code for your goods, then make sure it is included on the parcel so that the correct tax is paid. Not sure how you actually convince Parcelforce or other couriers to use it, but perhaps the customs people can explain it to you (and then you can explain it to the rest of us!). They're very helpful, so you should get the answers you need.

 

[SillyJokes]

Toon you should operate on the assumption you will be paying VAT on those imports because you will more often than not incurr these costs.

In addition if you are successful you will need to import a lot more and pay tax on it.

It's always better to assume VAT when pricing or you will run up against problems when you start having to pay it and your customers won't like the necessary price hikes.

 

[Toon]

Thanks for your advice. I'm simply going to place an order tonight and see what happens. Even if I add 17.5% to the value of the jeans, I should still make a profit. Definately wont lose anything so it's worth a try. Shame I can't find a similar supplier in the UK though to save the hassle!

 

[Anonymous]

You could be fooled into believing America are our friends and we work closely together, nothing could be further from the truth, America pulverised our steel industry with tariffs.

and they will pulverise you pull out now whilst you are sane, because there are massive barriers.

look towards the free trade area, the common market.

by the way, have you ever heard of Gerald James? well he is a bloke who got licenses from the department of trade and industry to export arms, he was arrested, thrown in jail and denied key doccuments to defend himself.

luckily the judge saw through it all and set him and other respectable directors free.

If you deal with this filth with America, you too may be ruined and your character stained, wouldnt touch it with a bargepole.

 

[Deleted member 2816]

Toon - interested to see if you've got your order & how much you had to pay!

I've just received goods from the US to the value of around £450 & have just had to pay £93!!! £80 VAT & £13.50...'customs clearance fee' :evil:

Not good.

 

[Toon]

I ordered £1200 worth of goods and paid £200 which includes agents fees. It works out roughly the same % cost for us both.

The breakdown for me was:

Duty GBP24.41
VAT GBP74.75
Clearance GBP35.00
DTI Fee GBP 4.50
Handling GBP30.00
Add Tariff Head GBP10.00 (additional tariff headings to customs)
use of DAN GBP 5.00
Airline storage GBP14.00

 

[gary]

Interesting stuff - I've just been chatting with a manufacturer in the States and although their prices are good, the additional fees add a fair amount to the total, which makes it far less attractive than it initially appears.

 

[Ozzy]

Now compare that to the costs of exporting to the US. I cant help but feel its all a one way street.