Overseas sellers under declaring goods value

[japancool]

This is my personal bugbear. Many overseas sellers (particularly on ebay) will under declare the value of the goods when they send those goods to personal buyers in the UK, thus enabling the buyers to avoid paying VAT.

I don't suppose HMRC will take an interest in this, will they?

 

[Deleted member 142733]

Hi,

Check this thread:

http://www.ukbusinessforums.co.uk/threads/chinese-ebay-sellers-with-uk-based-stock.329408/

 

[japancool]

Hi,

Check this thread:

http://www.ukbusinessforums.co.uk/threads/chinese-ebay-sellers-with-uk-based-stock.329408/

This is not the same situation, and hence a different thread. I'm talking about sellers based overseas, with stock overseas, under declaring the value on the customs label when the item is posted to the UK, so that the BUYER does not pay VAT.

 

[BartJr]

Look on eBay, Chinese sellers registered in China etc. dispatching from London, sounds very legit

 

[japancool]

For the last time, I am NOT talking about overseas sellers dispatching from warehouses within the UK!

I am talking about overseas sellers dispatching from OUTSIDE the UK to a UK customer and under declaring the value of the goods.

 

[BartJr]

I bought few items from China, I was surprised I didn't pay any tax probably because item was marked as a 'Gift'. If I took it to HMRC and explained the whole situation, then I'm sure they would take an action

 

[BartJr]

Maybe this will help you

 

[japancool]

Well, I'd like to hear from someone who is doing a little more than guessing.

 

[adamo]

This is actually quite common practice. Not only on standard airmail (where customs will likely be more lenient, sometimes not even checking package values), but also with couriers like DHL/FedEx etc., where more higher-value packages will be sent.

With the major couriers, customs will usually receive electronic copies of the commercial invoices before the plane has landed. This means that, in most cases, packages will be cleared before even landing in the UK (providing they pass the usual security checks on arrival). So there's very little manual checking. Additionally, couriers are working to deadlines, so can't leave packages backlogging for days waiting to be cleared.

With the volume of incoming non-EU mail the UK receives, I doubt there's the resources to do checks on standard airmail packages, unless sent by more expensive methods. There are simply more important matters.

 

[wayzgoose]

Is it just sales to personal buyers that bothers you or also those to businesses?

 

[japancool]

Is it just sales to personal buyers that bothers you or also those to businesses?

Sales to personal buyers.

Ultimately, any business doing it risks falling foul of HMRC, and if the UK business is VAT registered, they wouldn't do it as it makes no difference to them anyway.

 

[8420PR]

If an overseas seller makes a false declaration (usually on form CN22) when sending to the UK, the worst that can happen is the goods a seized by UK customs. There is no mechanism to punish/fine the overseas company that made the false declaration.

 

[wayzgoose]

So if your latest delivery of models is held by say, Parcelforce - you pay the required VAT and charges, parcel arrives at your door and you notice the VAT is underpaid - you do what?

 

[japancool]

So if your latest delivery of models is held by say, Parcelforce - you pay the required VAT and charges, parcel arrives at your door and you notice the VAT is underpaid - you do what?

Certain sellers make it a point that they will deliberately under declare the value for you, to help you avoid charges. Some will do it if requested.

The buyer is not an innocent bystander here.

 

[japancool]

If an overseas seller makes a false declaration (usually on form CN22) when sending to the UK, the worst that can happen is the goods a seized by UK customs. There is no mechanism to punish/fine the overseas company that made the false declaration.

Sure. But how will they know that the declaration is false?

 

[14Steve14]

I received a small parcel today from China. It was only 30 servo motors so came in a small parcel type jiffy envelope. Total cost of contents paid for through eBay was just under 40 pounds. I look at the declaration and it was declared to be 12 quid, but what was worse was that it was declared to be a gift. It was bought using my business account on eBay and PayPal.

I don't think its my fault as I have no control over what the seller does his end and we are only talking small amounts, but when I received something correctly from the USA it was all declared correctly and taxes had to be paid to RM before they would deliver.

So from what I know it appears that some sellers in China dont care whilst other do. saying that the same seller on eBay also has another account in a different name.

 

[japancool]

The situation I'm talking about though isn't where the seller has under-declared without the buyer's knowledge. They're actively promoting the fact that they will under declare in order to help you avoid customs. Some sellers will also do it but only when the customer asks them to.

 

[8420PR]

Not correct: For imports outside the EU the customer needs to pay VAT (on gifts worth more than £36, or other goods worth more than £15) and customs duty (depending on the product) on goods/gifts worth more than £135.

 

[japancool]

I would like to make it clear that China is the country who manage all the Taxes. You don't need to pay any tax regarding to your products.

"Manage" the taxes is often used as a euphemism for, effectively, committing tax fraud.

 

[JPMiddleton]

I would like to make it clear that China is the country who manage all the Taxes. You don't need to pay any tax regarding to your products.

That's the funniest thing I've read on this forum in a long time and is completely and untterly false. China (and no other country for that matter) had the right to do this, period.

All import and duty must be paid according to the receding countries laws. For example in Australia buyers only pay for items valued at £1000 or over I believe, whereas here in the UK it's much lower as mentioned above.

From my personal experience HMRC don't seem to care- they are aware of the issue but I don't think they have the man power so it's not practical to be more rigorous with the checks. That being said if you have specific examples and proof it can't do any harm- why not order from one of these sellers and see for yourself if you haven't already, then you have the paper proof to provide to HMRC. Surely then they must at least do something.