Importing from India

[Arun Balodi]

Hello all,

I am about to start a small business of imitation jewellery and currently looking to import products from India. I would please like to know all the associated cost related to import. For example

1. What Tax or custom duty do we need to pay?
2. What is the vat percentage? can we claim this back even if we are not registered for VAT? Will EORI number will be more than enough to claim this back.
3. How do we actually pay the above ?
4. Do we need to take any third party services for import or we can do this ourselves?

Any advice on the above will be highly appreciated.

thanks in advance

regards
Arun Balodi

 

[paulears]

VAT will be charged at 17.5% and import duty usually at 2.5% onto the declared invoice total at the point of entry - if it's delivered by TNT Royal Mail or any of the carriers, they will settle this on your behalf, and then charge you a handling fee for doing it - usually £10-15 Some invoice you around 30 days after delivery, some, like RM will want it prior to delivery.

If the amount is large, then a shipping agent is best, but for modest packages, they can arrange a normal courier for when it arrives here. Payment wise, they'll probably want you to pay direct into their account - using Swift or Iban. Your bank can easily process this (sometimes with a fee too!)

If you are not VAT registered, the VAT is lost - you cannot claim anything back.

 

[Arun Balodi]

thanks for your response.

Can we simply consider Royal mail or TNT for 15kg (1000 units approx.)?

regards
Arun

 

[paulears]

Seems sensible - although I've found the actual UK delivery end seems to vary - TNT and Fedex seem most common for me for this kind of package, but occasionally Parcelforce or UPS turn up. We don't really mind - the expense is about the same and they all seem very quick, once the goods arrive here.

 

[MOIC]

VAT should be 20%.

Import Duty will vary, depending on the material of the jewelery (plastic, metal, wood etc etc)

Make sure you have the shipment checked before paying.

 

[paulears]

Considering I spent ages prepping for my own VAT return today, I feel a bit silly about the 17.5% - why I got this wrong, I really don't know - sorry!

You also have a moral problem too, because the price on the invoice may actually be less than you paid, and the VAT and duty is levied on this amount - that I leave with you.

 

[Arun Balodi]

thank you guys.

I appreciate your help