How would I pay Import duty on products from Dubai if they are couriered?

[Stan512473]

Hello!

After a few permutations in planning, I am starting an ecommerce business in the UK importing products from Dubai, Morocco, and China. China via Alibaba so that seems simple enough as they are set up as exporters but for the initial stock from Dubai, it seems they simply courier as a gift (nearly) seems like the supplier doesn't export as a business perhaps, I haven't got it in writing but it seems a bit 'transfer money I will send cargo' as a direct parcel to me but not a business as such.

What needs to be the process and how should this be tackled?

I'd like to be able to declare the costs formally too, so that I can account for it as a valid expense. I am worried if it comes to declaring X cost vs Y income, X cost may be questioned 'have you got receipts, did you pay customs' etc, or is there leeway for a brand new business?

Thanks i advance!

 

[Customs Geek]

Hi

I am assuming you are UK based and not yet VAT registered.
If so and the shipment is below £135 then the import duty is waived but the supplier should be registered for UK VAT and charge you the UK VAT as part of the price you pay.

Anything over £135 and import duty and import VAT will be charged. How much duty will depend on what type of goods. You need to check the supplier terms and conditions carefully about UK charges.

The courier will usually make the required UK import customs declaration and ask for any duties due before delivery. You will get their invoice.

Also if you intend to sell the goods make sure they are compliant with UK requirements. Some goods require test certificates etc.

in Customs terms A gift is only something of very low value (less than £39) sent between two private individuals and there is no commercial aspect. Therefore be very careful using businesses that are prepared to make false customs declarations. If you are named as the importer then you are legally responsible even if the courier completes the declaration Based on the false information.

 

[Stan512473]

Hi

I am assuming you are UK based and not yet VAT registered.
If so and the shipment is below £135 then the import duty is waived but the supplier should be registered for UK VAT and charge you the UK VAT as part of the price you pay.

Anything over £135 and import duty and import VAT will be charged. How much duty will depend on what type of goods. You need to check the supplier terms and conditions carefully about UK charges.

The courier will usually make the required UK import customs declaration and ask for any duties due before delivery. You will get their invoice.

Also if you intend to sell the goods make sure they are compliant with UK requirements. Some goods require test certificates etc.

in Customs terms A gift is only something of very low value (less than £39) sent between two private individuals and there is no commercial aspect. Therefore be very careful using businesses that are prepared to make false customs declarations. If you are named as the importer then you are legally responsible even if the courier completes the declaration Based on the false information.

Thank you - appreciate the response! Say each shipment is worth about £3k so I suppose I am fully liable to declare properly. Could I not declare this entirely from my side regardless of the sender?

Also, for clothing, would I need any other paperwork/certificates? Thanks

 

[Customs Geek]

Thank you - appreciate the response! Say each shipment is worth about £3k so I suppose I am fully liable to declare properly. Could I not declare this entirely from my side regardless of the sender?

it depends on what terms you agree with the supplier, however the UK rules make it very difficult for a non UK company to import in their own name.
It is also very difficult for a business to self file a customs declaration. Partly because it’s complex and partly because you need access to declaration software. I believe that chambers of commerce have a service for customers to self file though.

If the consignments are coming in by courier then they will almost certainly complete the customs declaration on your behalf as this is their business model.For this size of shipment they may ask you for clearance instructions. They may want your EORI number ( importer registration number) the hs/ commodity codes of the goods , value etc.

If the goods are coming airfreight ( or sea freight) then ‘normal‘ import procedures start to apply. Again this depends on what have agreed with the supplier . If the terms do not cover UK clearance then you would would be expected to find a customs clearance agent to make the declaration for you. They will charge for this so factor that into the costs.

look on the .gov website and search import-goods-into-uk . Sorry I am prevented from uploading the link.

Also, for clothing, would I need any other paperwork/certificates? Thanks

if they are babies/ childrens then yes - There is another thread running on this subject.
There are also labelling requirements for clothing.

So you don’t waste your money make sure you fully understand what you need to do to get goods into the UK and then sell them . Find this out independently as the suppliers on Alibaba and the like don’t care what happens once they have sold the goods. There are lots of threads on here with people who have hit problems.