Import Duty From Australia Help!!

[nilega]

Good morning I am new to the forum and was wondering if I could ask for some advice.

I run a business that imports good from Australia. Up until now I have just accepted that the duty calculated was correct and to be honest didn't really have time to quibble it. I have now though sat down and tried to understand it better and can see that the figures HMRC are using don't seem to tally with mine. Sometimes a bit more sometimes a bit less.

The reason I have come on here is to ask for advice on where to go to speak to someone who will be able to run through what the tariffs and charges should definitively be. My supplier sends everything via their national postal services that is the cheapest, so it lands with ParcelForce this end. They are really not very helpful and keep referring me to HMRC. HMRC keep referring me to ParcelForce. I think what I am looking for is someone who can tell me you should be using this code which will incur X% of tariff and this is how you calculate it.

Any advice gratefully received.

 

[Mike Foulds]

Hi. This is always difficult where parcels are involved. The duty rate should be calculated using the HS code, which your supplier should provide. You can check the duty rate on the HMRC website: https://www.trade-tariff.service.gov.uk/sections
However, I am guessing your suppliers invoices aren't in GBP, and HMRC use their own monthly ROE, dependant on currency, these can be found: https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2021-monthly
The other factor which makes a huge difference, is the value of your shipment. If of low value, Parcel Force can do what is known as a "Low Value Bulk Entry", LVBE, this basically clears multiple parcels as 1 shipment, and cuts the duty payable.
I would ask Parcel Force for a copy of the customs entry for your specific shipment, it can then be worked backwards using the information I've mentioned above, and your suppliers invoice, but isn't the clearest/easiest of documents to interpret.
Hope this all helps.

 

[GraemeL]

@Mike Foulds you are making some great posts with really helpful information!

 

[Mike Foulds]

Thanks Graeme. Hopefully they help make peoples lives a little easier with shipping.

 

[nilega]

Thanks @Mike Foulds . I think I have got to the bottom of it. It appears ParcelForce have decided to apply a completely different HS code to the parcel that incurs a 16% tariff. They also used an invoice amount minus the shipping which was confusing. I have now sent off a dispute with HMRC to get clarification on it all as the correct HS code should incur a 0% tariff.

@Mike Foulds can you also clarify something else for me. Should the export company be charging their countries version of VAT. One company I deal with sends invoices with Good and Services Tax (same as our VAT) and another doesn't.

 

[japancool]

Thanks @Mike Foulds . I think I have got to the bottom of it. It appears ParcelForce have decided to apply a completely different HS code to the parcel that incurs a 16% tariff. They also used an invoice amount minus the shipping which was confusing. I have now sent off a dispute with HMRC to get clarification on it all as the correct HS code should incur a 0% tariff.

Get your supplier to include the correct HS code on the invoice.

 

[Mike Foulds]

Hi, sorry for the radio silence, I was on holiday last week and just catching up with everything.

As has been mentioned above, if you get your supplier to include the HS code on the invoice, and also on any cover e-mails/instructions sent to the post office/parcelforce, to avoid confusion.

Separately, to answer your other question, if you are purchasing from an export company, and the goods are shipping outside that country, then no, you shouldn't be paying any GST/VAT, etc.

You should query this with the export company.