New Import Duty/VAT Thread. Read Post #1 for Rules

stephendevlin

I used FEDEX and got 2 bills for my purchase (which was a ****tty projector from CHINA €111) got charged with 2 invoices for tax totalling €75 :eek: (wannkers). I will never use FEDEX again. They shop you out to customs so they can get money in handling fee's from you.

jor el

Just completely ignore the fact that it's the law, and as an importer you are liable to pay import duty and tax. Yeah, they're the **** :rolleyes:

If the amount you are charged is wrong, then why not question it? If the valuation was wrong, show what it cost, instead of bitching about it here.

stephendevlin

jor el wrote: »

Just completely ignore the fact that it's the law, and as an importer you are liable to pay import duty and tax. Yeah, they're the **** :rolleyes:

If the amount you are charged is wrong, then why not question it? If the valuation was wrong, show what it cost, instead of bitching about it here.

I understand how it works and its bull**** thats what im bitching about.
Including the shipping amount in the overall figure is taking the p*ss.

Last time I order something using FEDEX and of anything of value from outside EU.

End up paying about 75% on top of what I paid. :mad:

RANT OVER!

jor el

stephendevlin wrote: »

Including the shipping amount in the overall figure is taking the p*ss.

No it's not. Services attract VAT too.

RUDOLF289

stephendevlin wrote: »

I used FEDEX and got 2 bills for my purchase (which was a ****tty projector from CHINA €111) got charged with 2 invoices for tax totalling €75 :eek: (wannkers). I will never use FEDEX again. They shop you out to customs so they can get money in handling fee's from you.

Hello Stevendevlin,

Just bear in mind that FEDEX is subject to audit by customs. If they - off their own bat - let shipments through that according to the rules are subject to duty/VAT, not only will they be liable for the duty and VAT themselves, but in addition can be fined and if found to be repeat offenders lose their license, which stops them fr0m operating.

Trust, against this background, you can appreciate that it is not a matter of shopping you, it is a matter of following the rules and avoid sanctions that would seriously hamper their operations.

Why don't you post the details of the shipment, including the paypall receipt or other evidence of what you paid for the projector and what you paid to FEDEX to see if indeed everything is correctly applied? On the face of it € 75.00 costs appears high, so give us an opportunity to review and see if all is correct. If it is not, there is an appeals procedure, if not with FEDEX than with customs.

Look forward to hear from you

Cheers,
Rudolf289

rubadub

stephendevlin wrote: »

I understand how it works and its bull**** thats what im bitching about.
Including the shipping amount in the overall figure is taking the p*ss.

You will do this buying in any shop here anyway, its just hidden in the cost. e.g. where I work we import machines from China, so we have to pay duty on the goods and the shipping cost, we also need accounts to handle this processing (equivalent to the courier/an post handling fee) -we just add all these costs onto the product.

So while people think the likes of play.com are cheap, when you do the maths the likes of www.gamesnash.ie might be making far less profit while having to charge a little more. -so who is the real ripoff merchant.

Gamesnash.ie: Pat

rubadub wrote: »

You will do this buying in any shop here anyway, its just hidden in the cost. e.g. where I work we import machines from China, so we have to pay duty on the goods and the shipping cost, we also need accounts to handle this processing (equivalent to the courier/an post handling fee) -we just add all these costs onto the product.

So while people think the likes of play.com are cheap, when you do the maths the likes of www.gamesnash.ie might be making far less profit while having to charge a little more. -so who is the real ripoff merchant.

No might about it

The Bobster

Hi,
I bought two xbox controllers from ebay for €55. I thought they were coming from the uk but actually came from china. Customs is currently holding them and I will probably end up having to pay around €18 including An Post's cut. As this comes under the distance buying rule as I used buy it now and customs say that they "may" return the item to the sender would it be an option for may to just say to customs that they can just send it back and I can then get a refund on them as with the extra cost it now ends up being quite expensive. Is this an option and when they say they "may" return it what do they mean?

Pacing Mule

Unfortunately distance selling rules only apply to european transactions. You're on your own when dealing with China.

The Bobster

Pageant Messiah wrote: »

Unfortunately distance selling rules only apply to european transactions. You're on your own when dealing with China.

It was on the irish ebay and it was in sterling so does this make any difference?

jor el

The Bobster wrote: »

It was on the irish ebay and it was in sterling so does this make any difference?

None whatsoever. A lot of eBay purchases are private sales too, in which you have no right to refund.

Check whatever the sellers return policy is.

Pacing Mule

The Bobster wrote: »

It was on the irish ebay and it was in sterling so does this make any difference?

No - the supplier has to be a registered business within the EU for distance selling regs to apply. You could buy from an Irish person on Ebay who shipped from Ireland to you and still not be covered by distance selling regs if they weren't a registered business. Sorry to be the bearer of bad news.

frantic190

Guy in the postal sorting office told me there seems to be a big crack down on this going on now, I got away without paying it a few times on items coming from Play.com but I had to pay today.

meelick

jor el wrote: »

You should have received a receipt by email when you made the Paypal payment, you can just forward that. If you've deleted that email, then a screen grab should suffice.

I've got a variation on this situation, which I'd like to see if anyone has got this particular problem sorted, or has any opinions on it. Basically I'm getting charged VAT twice on the shipping portion of an eBay item received from Hong Kong.

I bought something one eBay with Paypal for $299 (€230) including free shipping. It was quite a large item, most of that cost would have been shipping.
On import, DHL were filling out their form for customs calculations, and put in $299, they didn't know what to put in for shipping, customs told them to put in the cost of shipping seperately, which they did. By my calculations, they total amount they charged VAT on was €420 (based on €88.19 VAT @21%). This means that they entered the dollar value as the euro value, then added and extra €120 as the shipping value, added on the Duty (€7), and calculated the VAT on that.
So, I'm getting hit twice on the shipping, and also getting hit on the fact that they're calculating the vat on the dollar value rather than the euro value.
DHL say they can't change the value on the transaction now, and that they're trying to talk to cusoms to see how to proceed, but it's taking several days, and still no resolution.

Summary numbers:

Goods $299 including shipping.
Duty €7.09
VAT €88.19

By my calculations,
$299 = €231
Plus €7.10 Duty
Plus admin fee €1.90
Total = €240
21% of that is €50.40.

I know the difference is only €38, but that difference on goods that are only worth about €100 (plus the €130 shipping to make up €230 ebay price) is significant. DHL have agreed that it's wrong, are doing their best to try and sort it out, and they have sent several mails to customs on the issue.

This may seem like a standard enough mistake, but the main reason I'm posting this here is to advise people to always check the VAT invoices for goods they receive to make sure they are correct. Especially if it's a "Free Shipping" item, as customs seem to have advised couriers to always put in a number for shipping. This COULD mean that many, many people are getting charged VAT twice on the shipping portion of their purchases.

Rgds,
Dave.

RUDOLF289

meelick wrote: »

I've got a variation on this situation, which I'd like to see if anyone has got this particular problem sorted, or has any opinions on it. Basically I'm getting charged VAT twice on the shipping portion of an eBay item received from Hong Kong.

I bought something one eBay with Paypal for $299 (€230) including free shipping. It was quite a large item, most of that cost would have been shipping.
On import, DHL were filling out their form for customs calculations, and put in $299, they didn't know what to put in for shipping, customs told them to put in the cost of shipping seperately, which they did. By my calculations, they total amount they charged VAT on was €420 (based on €88.19 VAT @21%). This means that they entered the dollar value as the euro value, then added and extra €120 as the shipping value, added on the Duty (€7), and calculated the VAT on that.
So, I'm getting hit twice on the shipping, and also getting hit on the fact that they're calculating the vat on the dollar value rather than the euro value.
DHL say they can't change the value on the transaction now, and that they're trying to talk to cusoms to see how to proceed, but it's taking several days, and still no resolution.

Summary numbers:

Goods $299 including shipping.
Duty €7.09
VAT €88.19

By my calculations,
$299 = €231
Plus €7.10 Duty
Plus admin fee €1.90
Total = €240
21% of that is €50.40.

I know the difference is only €38, but that difference on goods that are only worth about €100 (plus the €130 shipping to make up €230 ebay price) is significant. DHL have agreed that it's wrong, are doing their best to try and sort it out, and they have sent several mails to customs on the issue.

This may seem like a standard enough mistake, but the main reason I'm posting this here is to advise people to always check the VAT invoices for goods they receive to make sure they are correct. Especially if it's a "Free Shipping" item, as customs seem to have advised couriers to always put in a number for shipping. This COULD mean that many, many people are getting charged VAT twice on the shipping portion of their purchases.

Rgds,
Dave.

Hello Dave,

The Customs rule is, unless the accompanying invoice or the declaration by the shipper specifically states that the price charged is CIF or DDU, the invoice is to be treated as an FOB/Ex Works invoice. In that case freight has to be added. At time of making the customs declaration, DHL can only go on what they have in terms of invoice or declaration, hence the cost of freight being added.

There is an appeals process. which obviously DHL are involved in at the moment on your behalf and unfortunately that takes some time.

If within the next 7 days you have no positive outcome, post again and I will assist you further.

Cheers,
Rudolf289

celticcc1

Hi,
I am hoping to import from Pakistan sports kits (jerseys/shorts/socks) for our under 8/10/12 teams as we simply cannot afford to pay the going rates here.

I am being quoted a price of €800 C&F plus €100 Air Freight ( i was quoted €250 DHL which is very saucy). Note that A GSP form A form will be included with the parcel.

Could somebody please talk me through the process of picking up the goods at the airport.
My questions are as follows:

1. Who alerts me that the goods are ready for pickup, is it the freight forwarder or customs?
2. Will i know before hand how much is owed to customs upon pickup?
3. My calcs on the amount owed are 12% customs (minus relief for GSP A form) on (cost of goods + air freight + insurance). Am i correct in assuming that these goods as VAT free seeing as kids clothing is VAT exempt in Ireland.
4. What method of payment to customs is acceptable in practice as i read elsewhere that a bank draft is required but what happens in the event of a difference inbetween the amount owed to customs and the amount on the bank draft. Is a cheque or cash acceptable if we need to pay customs extra? And what happens if the bank draft value is less than the amount owed to customs, how will we be refunded?

I would really appreciate any help on this.

Thanks in advance.

RUDOLF289

Hello Celticccc1.

Just a word of caution. Pakistan is one of the more challenging countries to do business with. Some of my clients have experienced delays before the goods left. If you ship by air then it should be relatively straight forward, transit times ex Karachi / Islamabad / Sialkot / Rawalpindi are between 4 and 7 days.

In response to your specific questions ;

1) Appoint an agent/customs broker in Ireland to handle the Customs process for you. You need to be registered for EORI. See attached document (page 6) for further details on same. In relation to monitoring the shipment, ask your supplier for the flight details, e.g. Master Airwaybill number and the flights. With the MAWB nr your agent can check where the goods are and when they are likely to arrive at Dublin, Shannon or Cork.
2) Your agent should be able to calculate the Duty for you. He would need to have the suppliers invoice and an indication if a form A will be with the shipment. On that basis he checks the customs rate of exchange and confirms the amount of duty (childrens clothing do not attract any VAT)
If you provide the weights and dimensions of the shipment he can also give you the cost for the handling and delivery.
3) Looks like you have done a good bit of homework already. Indeed for childrens clothing under the age of 12 there is no VAT charged.
4) I would suggest that you would transfer the amount of duty to Customs by bank transfer. The Customs accont details are as follows ;
COLLECTOR CUSTOMS AND EXCISE
Beneficiary Address Line 1: CUSTOMS HOUSE
Beneficiary Address Line 2: DUBLIN 1
Beneficiary Bank Code: 932086
Beneficiary Account Number: 93763267
Beneficiary Bank Name: ALLIED IRISH BANKS, P.L.C.
Beneficiary Bank Address Line 1: 7/12 DAME STREET
Beneficiary Bank Address Line 2: DUBLIN 2
Beneficiary Country Code: IE



NB : Please ensure you show as reference the TAN account of the customs broker and his name so that the money is correctly allocated by customs.


Hope this helps. Feel free to post again or PM me if you need any further assistance

Cheers,
Rudolf289

celticcc1

Thanks Rudolf.
Is there any way of clearing the items myself without involving a clearing agent or registering for EORI?
I can pick the goods up myself.

freeze4real

must you pay immedately at the door. And you could request the goods to be delivered back if you cant afford to pay it.

RUDOLF289

celticcc1 wrote: »

Thanks Rudolf.
Is there any way of clearing the items myself without involving a clearing agent or registering for EORI?
I can pick the goods up myself.

Hello Celticcc1,

In principle it is possible to clear the goods yourself. You have to go to customs yourself and fill in an import SAD, pay the duty and VAT directly to customs. Depending on which port/airport the goods arrive in you will have to visit two customs offices. One office to pay and the other to clear. An agent would do the entry electronically and it is a very easy process.

I don't see how you can avoid registering for EORI. Best people to ask is the EORI section at the contact details provided.

Cheers,
Rudolf289

Kylo Ren

Lads I got an order delivered about a week ago. then today I got a bill for import duty from FedEx.

The order was $202.49 and the duty is €75.61. WTF!

jor el

Keno 92 wrote: »

The order was $202.49 and the duty is €75.61. WTF!

You're going to have to see the breakdown of the bill to know what's what. With Duty, VAT and handling fee though, that does sound about right, though maybe a little high. Generally speaking, it comes to about one third of the total order cost. The cost of shipping has to be included in the calculations too.

rubadub

jor el wrote: »

You're going to have to see the breakdown of the bill to know what's what. With Duty, VAT and handling fee though,

Yep, $202 is showing as €147 on xe.com they will use a more realistic rate and so probably be above the €150 limit and so liable for duty as well as VAT. If you did not include the shipping on that $202 then it would definitely be over, and you are charged VAT on the shipping costs too.

Kylo Ren

The order was $157.54 and freight was $44.95 to a total of $202.49.

So is there a figure that I can order up to without gettin this again?

rubadub

Keno 92 wrote: »

The order was $157.54 and freight was $44.95 to a total of $202.49.

So is there a figure that I can order up to without gettin this again?

There should be no duty on that so, just VAT, when they figure the €150 limit for duty it excludes postage costs. Standard limit for VAT (and subsequent handling charge) is anything €22 including postage (in theory). I have often gotten stuff over this limit with no charge, anecdotally it seems ordering from some places gives a better chance of being caught, e.g. from well known sites like play.com -I expect they have customs men getting bags full of stuff in from play and being able to easily process it as they all look the same and have info easily readable (just my own theory).

RUDOLF289

rubadub wrote: »

There should be no duty on that so, just VAT, when they figure the €150 limit for duty it excludes postage costs. Standard limit for VAT (and subsequent handling charge) is anything €22 including postage (in theory). I have often gotten stuff over this limit with no charge, anecdotally it seems ordering from some places gives a better chance of being caught, e.g. from well known sites like play.com -I expect they have customs men getting bags full of stuff in from play and being able to easily process it as they all look the same and have info easily readable (just my own theory).

Hello Rubadub;

herewith some excerpts from the public notice on parcel imports ;

Examination of postal parcels/packets
All non-Community mails on arrival at the depot are to be subjected to either an external examination or an internal examination of the goods and documents. As a check on the accuracy of the declared contents assessed, one parcel/packet in twenty is to be examined. This proportion may be reduced having regard to the volume of work and risk involved but where done, selection for internal examination should be carried out on parcels/packets considered to present the greatest risk.
Officers in postal depots should become familiar with flows of parcel/packet traffic. From experience, Officers should build up criteria for profiling e.g. countries of origin, specific traders and specific commodities. Results of profiling give Officers a detailed picture of imports and enables them to detect trends that can be used in further risk analysis for profiling.

So, yes, you are spot on wth your "theory"

Cheers,
Rudolf289

RUDOLF289

rubadub wrote: »

Yep, $202 is showing as €147 on xe.com they will use a more realistic rate and so probably be above the €150 limit and so liable for duty as well as VAT. If you did not include the shipping on that $202 then it would definitely be over, and you are charged VAT on the shipping costs too.

Hello Rubadub,

for the month of february the rate of exchange between Us$ and Euro is 1.3506 which would for € 202.00 comes to € 149.56

From the public notice on parcel imports ;

Goods of negligible value
Packages, other than those containing tobacco or tobacco products, alcoholic products, perfumes or toilet waters, up to a value of €22 regardless of their status (private or commercial) are admitted free of Customs duty and VAT under the scheme commonly known as “small packages” or “de minimis” relief 3

10 Waiver of small amounts of Customs duty
Para 8.5 provides that where the Customs duty in any one consignment amounts to less than €10, the duty is to be waived. No such waiver exists in relation to excise duty.

11 Waiver of small amounts of VAT
An administrative arrangement allows for the waiving of VAT where the total tax calculated on a consignment does not exceed €6.

In my view this suggests that anything over € 22.00 is subject to Duty and VAT subject to a minimum of € 10.00 on Duty and € 6.00 on VAT.

Cheers,
Rudolf289

RUDOLF289

Keno 92 wrote: »

Lads I got an order delivered about a week ago. then today I got a bill for import duty from FedEx.

The order was $202.49 and the duty is €75.61. WTF!

As Jor El suggests you need to have a look at the breakdown of the bill you received. On the basis of the value indicated you are looking at 50%, which does not seem right (even allowing for an administrative charge levied by FEDEX themselves).

There is an appeals process, if not with FEDEX then with customs directly. Get all the facts and paperwork and in the 1st instance talk to FEDEX. You may need the paypall or credit card receipt to proof you only paid $ 202.49 including delivery/postage.

Cheers,
Rudolf289

freeze4real

if your are shipping from the states always use usps.

very reliable and fast plus some of them no import tax. got sn iphone 4 today no import tax. this is the 4th time.

leaveiton

I'm considering ordering a dress from the USA online. I've been reading up on what I'll need to pay in duty and VAT. The order will be below €150, so I know that I won't need to pay duty, just VAT at 21%. However, I do have a question about something that the Revenue site says:

The Customs Declaration Form on the relative parcel, if sent by post, should be marked "Negligible Value" and state the value of the goods in question, in addition to giving the details normally required.
If imported using a SAD or on the AEP System, the goods should be declared as a consignment of negligible value. Code C07 should be entered in box 37 (b) of the SAD or on the AEP System in order to avail of the relief from Customs Duty and VAT that applies to consignments of neglibible value.

Does this mean that the seller must mark the parcel as Negligible Value for that to take effect, or will I not be charged at customs regardless, as it will be marked as less than €150 on the parcel? I just want to check that I won't be caught out by them saying that if it wasn't marked, then I still have to pay duty.

Also, in terms of the handling fee, is there any logic to what you have to pay, or will they just charge you anything between €5 and €15?