Import duties and VAT on imports from China/Hong Kong

[Willieb83]

Hi there, can anyone who has had a prototype and/or run of watches made in either Hong Kong or China please advise me on the costs of importing. I assume I will have to pay import duties on the shipment but will there be VAT too? For example if I order 300 pieces at $500 and 300 pieces at $100, what can I expect to be charged to receive these goods? Anyone's advice who has experience of this would be greatly appreciated. Thx Willie

 

[ShippoUK]

Hi, we have many years experience in importing and exporting. Feel free to PM us or call us on 01737 652 284.

 

[mtools]

yes you will be charged VAT AND duty on the total value of the shipment, i.e. cost of watches PLUS cost of shipping. VAT is obviously 20% whilst duty on watches from China is 16% (though depends on type of watch i.e. precious metal, digital display etc.), so total charges of 36%, though if you're VAT registered you'll obviously be able to claim the VAT back.

So you're looking at $180,000 of watches, at rate of 1.6 $ to £ that's £112,500, VAT would be £22,500, duty would be £18,000, making total buy price of £153,000, though these figures are calculated on not incurring any shipping costs

 

[Willieb83]

Hi mobilitytools, many thanks for the response. It all starts to work out very expensive doesn't it! My other option would be to get my supplier to export the watches to Switzerland and then for Switzerland to ship on to me. Do you know what/if there would be import charges in Swizerland from Hong Kong/China and if so what they are? I assume that Swizerland being in the EU would not incur me any import duties, just VAT? Also, you mentioned the import duties being aroun 16% from China, is this the same for Hong Kong? Thx

 

[mtools]

it looks like it is 0% from Hong Kong. Not sure what VAT and Duty is in Switzerland but you'd have to pay something to get the goods "in free circulation" i.e. into the EU with all fees paid for. so you would have fees from hong kong/china to Switzerland (duty & VAT) then the only fees from switzerland to UK would be shipping costs. You have to assess whether any savings going via Switzerland would be worth the extra cost of shipping to 2 places.

 

[Willieb83]

where did you see the 0% import tax from Hong Kong please? I cant seem to find that on the net. Thx

 

[mtools]

where did you see the 0% import tax from Hong Kong please? I cant seem to find that on the net. Thx

http://www.dutycalculator.com/popular-import-items/import-duty-and-taxes-for-watch/

 

[Willieb83]

thx

 

[Helmut]

Switzerland isn't in the EU.

 

[Willieb83]

That's a very valid point helmut, do you happen to know what import/export duties they charge? Thx

 

[mtools]

Switzerland is part of EFTA. from the hmrc website:

All goods moved within the EU have a customs status of either Community or non-Community.

Community transit (CT) is a customs procedure used to facilitate the movement of non-Community status goods between 2 points in the customs territory of the EU. Common transit extends CT to include the EFTA countries of Switzerland (and Liechtenstein), Norway and Iceland. Turkey, although not an EFTA country, also uses the Common transit procedure. Customs duties and other charges are suspended on non-Community status goods whilst they are under a customs transit procedure (T1 Status). Movements of Community status goods to the EFTA countries travel under Common transit (T2 Status).

so looks like you'd have to pay import fees in switzerland only as previously stated

 

[MOIC]

it looks like it is 0% from Hong Kong. Not sure what VAT and Duty is in Switzerland but you'd have to pay something to get the goods "in free circulation" i.e. into the EU with all fees paid for. so you would have fees from hong kong/china to Switzerland (duty & VAT) then the only fees from switzerland to UK would be shipping costs. You have to assess whether any savings going via Switzerland would be worth the extra cost of shipping to 2 places.

I think you may have misread the link you posted in your later post.

These are import duties TO each country, not FROM each country to UK.

The Import Duty rate for watches (automatic with textile or metal strap) imported into the UK is 4.5%

There are different categories of watches which may attract a different rate.

 

[Willieb83]

my office, do you know if the import duty of 4.5% is the same for leather strap watches of non precious metal too?

also, do you have experience of shipping from China/Hong Kong? thx

 

[mtools]

I think you may have misread the link you posted in your later post.

These are import duties TO each country, not FROM each country to UK.

The Import Duty rate for watches (automatic with textile or metal strap) imported into the UK is 4.5%

There are different categories of watches which may attract a different rate.

whoops looks like you're right!

 

[MOIC]

my office, do you know if the import duty of 4.5% is the same for leather strap watches of non precious metal too?

also, do you have experience of shipping from China/Hong Kong? thx

Hi Willie

Yes, I have 30 years experience of working in China.

Feel free to email me directly at [email protected]

I now run my operation from our head office in Guangzhou, heart of the watch industry.

I look forward to helping you.

Regards

Ron