The Wholesale Forums

[PowerMyself]

Hi

I've recently started importing sports supplements from the US.

According to HMRC and a shipping company, I have to pay the supplements import duty of 12.8% not only on the value of my goods, but also on the cost of shipping.
Does anyone know if this is definately the case, why am I paying an import duty on the cost of shipping goods, especially as I've already paid VAT on the shipping as well?!

If this is the case it seems bizzare. Tried finding a supplier in europe but i guess it still works out cheaper from the US.

Would really appreciate help on this. Thanks!

[D M]

It is definitely the case. I suppose it's to stop cheap products but expensive shipping skewing the market.

[hardwareheroes]

Ditto - it is the government managing to screw yet more pennies out of the people who can afford to I'm afraid!

[consultant]

you pay duty based on the landed costs, and VAT on everything. Yes it sucks, but everyone else has to, so you are not disadvantaged!

[Pete]

consultant hit the nail on the head.

Look up "Landed Costs". In fact, from an accounting standpoint that also includes duties, brokerage, storage and drayage, etc. What it actually cost to put the stock on your shelf.

This is also the price per unit you should use when figuring markup.
.

[PowerMyself]

Thanks a lot.

Luckily most supplements havent got VAT attached but still, value added tax and an import tariff on a service like shipping, just makes it harder and harder to make any kind of profit, especially as my margins are already tight.

Cheers for the quick replies