Customs United Kingom Customs - arranging to pay in advance

If you intend to import something and don't want to play the customs & excise duty lottery apparently you CAN arrange payment in advance. I contacted HMRC and this is the reply I got.
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Dear Lyddia

Your enquiry asks for information about paying any due import taxes directly to
HM Revenue and Customs.

I hope the following information answers you query. If it does not, please do not hesistate to contact us again.

When goods are imported into the United Kingdom the form that needs to be completed is a C88A. This must be used when declaring your goods to us.

To obtain one you would need to contact our National Advice Service on 0845 0109000. You will the be sent a copy to complete and return. Another form, C87 ‘Notice of Arrival of Goods by Post’ also accompanies the SAD. This advises you that the goods have arrived in the UK but cannot be delivered until you complete and return the SAD form. It also gives a Customs reference number associated with your package. Please quote this number if you need to speak to us about your package.

To find out if your goods will be liable to Customs Duty and or VAT you will need to have a commodity code.

These can be obtained from the Tariff Classification service on
01702 366077 (National Call Rates apply)

Their opening hours are 09.00 - 17.00 Monday - Thursday,
09.00 - 16.30 on Fridays (excluding Bank Holidays).

Other websites that may be of assistance in classifying your goods are

http://www.uktradeinfo.com/index.cfm?task=intraicn
http://ec.europa.eu/taxation_customs/dds/cgi-bin/tarchap?Lang=EN

Also, within the section shopping on the Internet there is a part called
Common Internet Goods, this can also be used to assist in the calculation of duty rates.

When you have the commodity code, an overview of how the Customs Duty and or VAT is worked out is as follows
The value of the goods is converted to UK Sterling using the rates of Exchange available from the HMRC website.
This is then multiplied by the duty rate if applicable from the commodity code already obtained.
The duty rate is then added to the sterling value of the goods and this is multiplied by the appropriate rate of VAT.
This will then give you the Duty/VAT payable.

Please note that your freight charges may also be liable to VAT.

Further information that may assist you can be found on our website under
Notice 144 Trade imports by post: how to complete customs documents
Classifying your Goods
Tariff Classification Service
Shopping on the Internet

After completion the C88A will need to be sent to the National Clearance Hub (NCH).

NCH responsibilities include the processing of:
all import and export entries selected for further checks
the inputting of manual import and export entries

Contact with the NCH is by:
Fax 0800 4960699
Telephone 0845 001 0085

Email [email protected], [email protected]

FREEPOST RRBK-CGRL-RUCA
HM Revenue & Customs
National Clearance Hub
Custom House
Furness Quay
Salford
M50 3ZZ

You may also wish to contact your supplier and courier/shipper to let them know you are completing your own paperwork.

I must emphasize that the advice given is based on the information you have supplied. If the nature of the transaction changes in technical detail, or the relevant details provided were incomplete or incorrect, we will not be bound by this ruling.

If you have any further queries please contact our National Advice Service on 0845 0109000 or at www.hmrc.gov.uk

Yours sincerely

M Vining (Mrs)
Officer, HM Revenue & Customs
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One thing of note is that they do not say whether you would still be subject to a clearance fee charged by the postal service. If customs duty and vat is paid in advance or at the time of purchase
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After reading through this I decided to send a reply along with further questions and comments.
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Dear Sir/Madam.

Thank you for the information you have supplied. However your answer does not mention whether or not once a customs VAT & duty payment is made in advance of receipt of the goods using your C88A form is: 1. how the exporter/seller is to mark their packages in order that they are treated as prepaid and 2. what effect this has on postal courier clearance fee's. One gripe with many internet shoppers is having to pay an additional (and some would say extortionate) fee to the postal courier, simply because the package passed through HMRC's hands. Even though postage has already been paid. It's purely an administrative fee, as I do believe that companies like Parcelforce share the same international hub as HMRC Coventry. Please correct me if I am wrong on this.

If a clearance fee is still incurred due to HMRC dealing with a 'prepaid' item then I see no incentive for private importers/internet buyers to be honest and declare. In fact it makes more sense for buyers to play the 'customs lottery' as many have come to call it and wait to see whether customs picks out the package for consideration or not.

3. The current importation limit is 'FAR TOO LOW'. £18 is an awfully low amount before having to pay customs charges. In many other countries the limit is MUCH higher. In places like Australia it is several hundred dollars. Also some items do not fall into the same category as other countries. Ball jointed dolls for instance are exempt from custom charges when imported into America whilst in the UK you classify them as a 'toy' and throw the full 4.7% duty charge plus VAT on them.

UK customs seems hell bent on A. discouraging UK shoppers from shopping outside the EU and B. Making pariah's of UK shoppers who cannot obtain the same goods within the EU.

So to reiterate on the above.

How are exporters to mark their packages on prepaid items?
Will paying customs on imported items in advance still incur a clearance fee from postal couriers?
Will their be an increase to the amount we are allowed on imported goods before customs charges are due in the foreseeable future and if so 'WHEN' and for how much?

Kind regards.
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Yes I noted the typo or two after sending but I think the message is still clear.

 

Second reply.

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Dear Lyddia

As I previously mentioned your enquiry was sent to an area of HM Revenue and Customs who specialise in this field in order to give you an appropriate answer.

Therefore I hope the following information answers you questions from your email dated
1st August 2008.

One part of your email relates to the de minimis limit which applies before customs duty and import VAT (Value Added Tax) becomes payable.

All goods imported into the United Kingdom (UK) from outside the European Union are subject to customs duty and import VAT at the rates applicable.

However customs duty is waived if the amount of duty is £7 or less and import VAT is not payable on commercial consignments, for example, goods purchased over the internet, if the total value of the goods in the consignment does not exceed £18.This limit a raised to £36 for gifts between private individuals.

European Legislation allows goods with a value of less than €10 euros (£7), to be imported free of customs charges, but it also says that this limit may be raised to a maximum of €22 euros (£18) at the Member States discretion. The UK chose to implement the higher limit of £18. These de minimis limits apply to all Member States.

Whilst the UK Government does not have the legal vires to raise the VAT de minimis limit, it has to balance the impact of the relief against the international trading patterns on UK based businesses and the effect of allowing goods to be imported without the payment of VAT may have on UK traders.

However, with effect from 1 December 2008, the deminimus limit before customs duty is applied is being raised to €150 euros (£105).
The handling fee applied by Royal Mail / Parcelforce is a charge made by them for carrying out the customs procedures on your behalf, which includes paying the import charges which allows the goods to be released from customs control.

All couriers and fast parcel operators make a charge for their services and HMRC do not have jurisdiction over the commercial charges they make.

If however, you choose to complete the customs formalities yourself, there will be no handling fee to pay. The following is further information on the process for making your own customs declarations:

Every item that is imported into the UK – even by post, is subject to customs import procedures.

Whilst importers can carry out their own customs procedures, it does require them notify the carrier in advance that they wish to declare the item to customs themselves, and the sender should clearly state on the package that the importer will make their own declaration.

The importer is then required to complete a legal import declaration (C88) which would have to be posted to the Central Processing Hub in Salford where the import charges can be calculated (please note they cannot be ‘prepaid&#8217.

They would then write and advise the importer of their tax liability. When this has been paid and the funds cleared, the Hub would clear the documentation and inform the Customs unit at the Royal Mail Office of Exchange that the goods may be released for delivery.

This process would have to be carried out manually and as there are many, many millions of postal packages imported into the UK each year would cause severe delays in customers receiving their goods.

I must emphasize that the advice given is based on the information you have supplied. If the nature of the transaction changes in technical detail, or the relevant details provided were incomplete or incorrect, we will not be bound by this ruling.

If you have any further queries please contact our National Advice Service on 0845 0109000 or at www.hmrc.gov.uk

Yours sincerely




M Vining (Mrs)
Officer
HM Revenue & Customs
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So from December the new import limit will be £105. Yaaaay! OK not that great but better than the measly £18 (or £36 as a gift) it is right now.

Hope UK folks find this useful info

 

VAT is still payable on items over £18

http://www.theregister.co.uk/2008/11/17/customs_duty_threshold_raised/