Import Duties....... What the Hell?

[Monitor]

As best asx I can make out, at least here in the UK, the importing party (whether courier or Royal Mail) must pay the cost of the import upfront, and they then recoup that from the recipient of the parcel. Customs won't release the parcel for import until it's paid, so that's why it works that way. The deliverer will typically charge soem sort of fee for providing this service (on top of actual cost), and that, I think, is where these things often vary.

Thanks for clearing that up, Edward! Similar case where I am, you must pay upfront otherwise the parcel won't get released (and the costs of... demurrage will pile up) but I didn't know the importing party settles the cost of the import beforehand. Though it's still crazy the courier can add up enough made-up charges to double the declared value of your parcel. Leather jackets, and clothing in general, fall under a luxury items category here, hence the 40% tax. I wish I could somehow explain it to them that it's not s luxury to me but a matter of life and death.

 

[SpeedRcrX]

In my experience, if I use a delivery company like UPS, FEDEX, DHL... I have import duties since there are the one to apply the fee, they are pay to do this hence the handling fees.
In France those imports duties are about 30% of the total price (Product+shipping cost).
If I use the national post offices like USPS, La Poste... well it's random since it's customs at the airport who decide to apply the fees or not and sometimes they have better things to control.
Outside of UE, I usually ask the company if they agree to lower the price declared on the package so I can avoid those import duties and most of the time they agree to do it without a problem.

 

[Blackadder]

The carriers took it upon themselves to declare custom likely because the buyers do not usually do that. Sellers almost always have disclaimer regarding duties and taxes imposed by the buyer's country.

 

[Carlos840]

Same here. I've got one worst then you, the seller suddenly 'got smart' and wrote USD50 while the good itself was only $20 (probably because he/she thought that in case of a missing parcel, we would get a better compensation)...... I am not against paying for the VAT, but they should consider raising the limit.

Man, this was ridiculous! So i had this parcel which had a £3 Import Duties, and a £12.50 handling fee. I call ParcelForce, asking them how they have the balls to ask me to pay so much on so little tax.
Of course, it's "company policy" and all i can do is choose to refuse the parcel and have it shipped back. According to them, since it was the 24H service the handling fees were £12.50 instead of 8.50 for the regular service.
Now this gets funny, this was on a thursday, i ask them to deliver friday, and they tell me it's an extra £10 for next day delivery! Otherwise i t would get delivered on Monday.

So, they charge you more "handling fees" because its a 24h service, but if you actually want it within 24 hours you need to pay £10 extra!

I spoke to two people and they didn't see the stupidity of this situation, all they could say was "it's company policy!"
Also, you have to love the fact that there isn't a complaint number/service available for parcel force, all you can do is send an email, that just never ever gets answered...

This is plain extortion....

 

[Capesofwrath]

In my experience, if I use a delivery company like UPS, FEDEX, DHL... I have import duties since there are the one to apply the fee, they are pay to do this hence the handling fees.
In France those imports duties are about 30% of the total price (Product+shipping cost).
If I use the national post offices like USPS, La Poste... well it's random since it's customs at the airport who decide to apply the fees or not and sometimes they have better things to control.
Outside of UE, I usually ask the company if they agree to lower the price declared on the package so I can avoid those import duties and most of the time they agree to do it without a problem.

Most of the fee will be VAT of course and if bought in the US goods would attract a local sales tax - usually much lower than VAT though - which is not payable for exported goods.

The issues of under declaring value is: One it’s a crime in most countries, and two if you have to claim on shipping insurance you will only get back the amount declared.

 

[a2jacketpatches]

I rarely buy outside of the U.S. Just a few leather working tools available only through Ebay in China. But DHL delivered quickly without import tax.

However, I do ship globally almost daily. Ever since I started using USPS First Class at about 10.00 as opposed to USPS Priority Mail at 23.95, my international sales have doubled. I am also more than willing to under declare almost ridiculously to help out my patrons abroad. I have had very few items lost over the two decades in business and the amount of sales by far exceeds any problems I've ever had. A few places I won't take the chance but most are no problem. To under declare may be illegal in most countries but I have to say some of the taxes you pay out there are criminal.

 

[Capesofwrath]

The US is one of those countries….

Chances of getting caught are slight but if you read the customs declaration form it points it out.

 

[SpeedRcrX]

The issues of under declaring value is: One it’s a crime in most countries, and two if you have to claim on shipping insurance you will only get back the amount declared.

I know that's why I ask if the company or the seller won't mind doing it. For the shipping insurance I'm mostly do it with no breakable goods.

I never have a problem so far and hope it stay that way.

 

[Ralph_Phillips]

I rarely buy outside of the U.S. Just a few leather working tools available only through Ebay in China. But DHL delivered quickly without import tax.

However, I do ship globally almost daily. Ever since I started using USPS First Class at about 10.00 as opposed to USPS Priority Mail at 23.95, my international sales have doubled. I am also more than willing to under declare almost ridiculously to help out my patrons abroad. I have had very few items lost over the two decades in business and the amount of sales by far exceeds any problems I've ever had. A few places I won't take the chance but most are no problem. To under declare may be illegal in most countries but I have to say some of the taxes you pay out there are criminal.

In some places, every incoming package is opened and checked and they leave a note or a flyer inside the box saying they opened it. Australia is one of those countries. Under declaring or mislabeling the contents can be expensive if the customs inspector knows what the item is. One occasion that cost me a $427 customs convenience fee on about $50 worth of items. They were on the AQIS "not really prohibited but sort of prohibited so tax it to death before forwarding it to the buyer" list.

 

[a2jacketpatches]

Guess I have the luxury of "jacket patches" being my description. Hasn't raised a red flag yet.

 

[AdeeC]

In some places, every incoming package is opened and checked and they leave a note or a flyer inside the box saying they opened it. Australia is one of those countries. Under declaring or mislabeling the contents can be expensive if the customs inspector knows what the item is. One occasion that cost me a $427 customs convenience fee on about $50 worth of items. They were on the AQIS "not really prohibited but sort of prohibited so tax it to death before forwarding it to the buyer" list.

I have to disagree with that. For over two years I have been importing my favourite brand of Chinese cigarettes from China every month. Customs have only detected about 50% of the packages over that period. During busy times most get through undetected. Very few are opened when detected. X-ray evidence suffices. When detected they send me a duties bill which I pay over the phone.

The only customs dispute I had was when I bought a used camera from OS for about $700 and the seller put declared value at $1000. I won my case as I was able to produce my Ebay and PayPal receipt. Wasted a lot of time though. Customs do most of their checking with Xrays and only open parcels containing things like DVD's, organic matter, or suspicious items that Xrays cannot identify properly. Items from suspect countries receive more scrutiny. Every under declared item I have purchased has gotten through safely including a $4000 samurai suit that arrived as a "gift". Things like expensive leathers jackets are easy to sneak through because very few if any customs officers would know the difference between a $100 jacket and a $1000 jacket.

I would add though, Australian customs were much tougher a few decades ago and more as you say then.

 

[Smithy]

Here they seem to sting you for anything which, I can only describe as non-educational. I've bought books galore and no customs fees whatsoever, but clothing, leather jackets, thank you very much says Mr Taxman.

I seriously believe that many governments around the western world are starting to think that they're losing a lot of potential tax revenue through all this online buying marlarkey and hence why there seems to be more custom fees, etc coming around.

I remember those halcyon days of buying stuff online with no bother. Sadly boys and girls I think that the grey men in charge are starting to catch on.

Nothing more to say than, bugger! It was fun whilst it lasted.

 

[stratcat]

Man, this was ridiculous! So i had this parcel which had a £3 Import Duties, and a £12.50 handling fee. I call ParcelForce, asking them how they have the balls to ask me to pay so much on so little tax.
Of course, it's "company policy" and all i can do is choose to refuse the parcel and have it shipped back. According to them, since it was the 24H service the handling fees were £12.50 instead of 8.50 for the regular service.
Now this gets funny, this was on a thursday, i ask them to deliver friday, and they tell me it's an extra £10 for next day delivery! Otherwise i t would get delivered on Monday.

So, they charge you more "handling fees" because its a 24h service, but if you actually want it within 24 hours you need to pay £10 extra!

I spoke to two people and they didn't see the stupidity of this situation, all they could say was "it's company policy!"
Also, you have to love the fact that there isn't a complaint number/service available for parcel force, all you can do is send an email, that just never ever gets answered...

This is plain extortion....

This makes my blood boil too. I did look into it once and there is a way around it, but it is more hassle than it's worth (for the sake of £12). RM know it so it's money for nothing.
Just another example of rip-off-Britain, IMHO

 

[Ralph_Phillips]

I have to disagree with that. For over two years I have been importing my favourite brand of Chinese cigarettes from China every month. Customs have only detected about 50% of the packages over that period. During busy times most get through undetected. Very few are opened when detected. X-ray evidence suffices. When detected they send me a duties bill which I pay over the phone.

The only customs dispute I had was when I bought a used camera from OS for about $700 and the seller put declared value at $1000. I won my case as I was able to produce my Ebay and PayPal receipt. Wasted a lot of time though. Customs do most of their checking with Xrays and only open parcels containing things like DVD's, organic matter, or suspicious items that Xrays cannot identify properly. Items from suspect countries receive more scrutiny. Every under declared item I have purchased has gotten through safely including a $4000 samurai suit that arrived as a "gift". Things like expensive leathers jackets are easy to sneak through because very few if any customs officers would know the difference between a $100 jacket and a $1000 jacket.

I would add though, Australian customs were much tougher a few decades ago and more as you say then.

The last package I received in Oz was in 2013. Customs must have gotten a bit slack since I was living there or I got unlucky... out of about 30 packages I had sent to me from outside of Oz, even things that arrived at Christmas time, there was only one package that didn't have the AQIS flyer inside stating contents checked with a partial list of what can and cannot be mailed into Australia. The three shipments I got that had the convenience fee tacked on were all tobacco products for a total of approximately AUD $1070.

Also not sure what city you're in, but some shops in the Vietnamese neighborhoods in Sydney and Melb have the Chinese cigarettes hidden in the back room.

 

[wdw]

I get hit most times in the UK now. The worst was a charge of £293 for a £250 package. It was clearly wrong, but my only option was to pay it and claim the difference back. It took nearly three months for the refund to come.

 

[AdeeC]

The last package I received in Oz was in 2013. Customs must have gotten a bit slack since I was living there or I got unlucky... out of about 30 packages I had sent to me from outside of Oz, even things that arrived at Christmas time, there was only one package that didn't have the AQIS flyer inside stating contents checked with a partial list of what can and cannot be mailed into Australia. The three shipments I got that had the convenience fee tacked on were all tobacco products for a total of approximately AUD $1070.

Also not sure what city you're in, but some shops in the Vietnamese neighborhoods in Sydney and Melb have the Chinese cigarettes hidden in the back room.

You must have been very unlucky. The opened parcels have only been an occasional experience for me. I live in Richmond which is a prime Asian area. I did often buy those smuggled cigarettes before I found my trusted Chinese supplier. Problem is many are counterfeit brands and poor quality. I still manage to get a far better deal with my new supplier. I only have two cartons shipped per parcel a week apart every month. I can also manage to stockpile the surplus and now have about 8 extra cartons stashed away.

 

[Graemsay]

@AdeeC I live in your neighbourhood.

Australian customs are only imposed for an item with a value of more than $1000. In the UK the limit is much lower, somewhere around £15 or £20. So the chances are that you'll dodge them on most parcels coming into the country, assuming you're not importing dodgy cigarettes from China!

There's talk of removing this limit because it makes it hard for local companies to compete due to GST being levied. The reason it exists is that it's not cost effective to charge duties on cheap imports. I think that the Australian government's suggested solution is for overseas traders to collect tax on their behalf. Can't see that happening.

 

[Ralph_Phillips]

@AdeeC I live in your neighbourhood.

Australian customs are only imposed for an item with a value of more than $1000. In the UK the limit is much lower, somewhere around £15 or £20. So the chances are that you'll dodge them on most parcels coming into the country, assuming you're not importing dodgy cigarettes from China!

There's talk of removing this limit because it makes it hard for local companies to compete due to GST being levied. The reason it exists is that it's not cost effective to charge duties on cheap imports. I think that the Australian government's suggested solution is for overseas traders to collect tax on their behalf. Can't see that happening.

Tobacco is an exception to the $1,000 rule either at customs via mail or at customs on entry. My $420 hit was on "one kilogram" and most of that weight was the packaging itself, and not the actual product.

Edited out a line explaining the tobacco tax... because I initially saw the word "London" and thought you were from the UK.

 

[Ralph_Phillips]

I am not certain of this, but I believe that DHL, Fed Ex, UPS, and other companies in the fast shipping business try to do their own customs checks for each country. If they didn't get approval to do that, they wouldn't be able to guarantee delivery times.

 

[Graemsay]

Edited out a line explaining the tobacco tax... because I initially saw the word "London" and thought you were from the UK.

I'm not an Aussie, but an import. (I came in under $1000, so didn't have to pay any duties. ) I just haven't got around to updating my location tag yet.