- Wed Nov 27, 2013 8:52 pm
#7143
The following is long-winded and boring. If you're going to read it, put some decent sounds on first.
Import Duty (if applicable) is charged as a percentage on the value of the goods plus the shipping cost. This percentage depends on what the goods are, and changes frequently and for as many reasons as you can shake a stick at. On the plus side, Import Duty in the UK is waived if this value is worked out at less than £9 - most small shipments of the sort of stuff that we'd all be buying should fall under this.
Import Tax is then charged as a percentage of the goods value plus the shipping cost plus any payable Duty amount.
And for the Royal Mail doing the entry, there's an £8 flat fee. Couriers charge a lot more.
Bored yet? There's more. I'm sorry. Gets a bit UK-specific from here as far as amounts are concerned, but the principle should be the same wherever you are.
There is also an exemption level for VAT, and this is where it can get a bit messy - normally, it's £18 maximum goods value per package but this doubles to £36 if the little "Gift" box is ticked by the shipper. Anything declared under those amounts is exempt from charges. The important bit for this is that on the CN22, and what usually gets missed in these cases the currency must be specified!!! Otherwise the country of destination tends to get picked.
What has probably happened in your case is this...
The goods have been declared on the CN22 (Customs sticker thingy) as "something", not a gift, and a value of 20 without putting a little $ in front of it - this will be read in the UK as a value of 20 quid and liable for Tax. If it's a pre-printed USPS shipping label the postage cost won't be shown but - and this is the kicker - whoever's doing the entry can guess at how much it might have cost.
So your charges breakdown (much like the one I'm having while typing all this) will be along the lines of:
Value: £20.00
Shipping $15.00 (they'll have their own exchange rate, I'm going with 1.6)
Duty: 0
VAT: £20.00 + £9.38 x 20% = £5.88
Entry Fee: £8.00
..which is a mere 5p out!