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Old 27-06-2006, 06:02 AM   #1
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Default Importing from China to UK - VAT and Customs

Hello,
I plan on importing Sony PSP's and Ipod Videos from a supplier in China. The courier used will be DHL. What is the likelyhood that I will be hit by Customs?
Also, if the price is NOT marked on the packaging, how will they know how much VAT to charge?
Thanks.

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Old 27-06-2006, 06:21 AM   #2
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Another thing that I forgot to mention:

I will be buying a couple of PSPs and Ipods from the supplier, but they will all remain in the supplier's warehouse in China. When I receive an order from my customer in the UK, I will tell the supplier to dispatch it (via DHL) directly to my customer in the UK. So each shipment will contain only one item. So will there be less chance of being hit by customs?

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Old 27-06-2006, 07:59 AM   #3
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In theory every single package that comes via DHL will be subject to a customs charge.

If no price is declared, one of two things will happen, it will either not be allowed on the plane, or when it gets to the UK customs will rip the package open have a good search find out whats in there and charge you the value that they think its worth so probably retail.

Doesn't matter if theres one item or 1000 items equal chance of being subject to a customs charge.

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Old 27-06-2006, 08:31 AM   #4
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Quote:
Originally Posted by DSC
In theory every single package that comes via DHL will be subject to a customs charge.

If no price is declared, one of two things will happen, it will either not be allowed on the plane, or when it gets to the UK customs will rip the package open have a good search find out whats in there and charge you the value that they think its worth so probably retail.

Doesn't matter if theres one item or 1000 items equal chance of being subject to a customs charge.
Thanks for your reply.
If I sell PSP Value Packs for ₤139.99, but mark the item as a "gift" and the price as "₤99.99" then will I pay less import tax?
Does every package through a courier get checked by customs, or do some manage to slip through?

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Old 27-06-2006, 08:39 AM   #5
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I won't comment on that as its illegal.

In theory yes every package should be subject to custom charges.

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Old 27-06-2006, 12:38 PM   #6
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As I understand it, you will not be charged customs on an item marked a a gift as long as the value of the item is less than £36. Any item over this amount will be charged customs regardless of whether it will be marked as a gift or not.

Items do get through customs without incurring tax but it is a rare occurrence. To be honest, I'm happy when the courier collects the money as long as it is close to what I had worked out. I dont like any extra surprises.

You would have to put a value on the item for customs or it would almost certainly be stopped. If you were to put a lower value on an item then customs would be worked out on this value but remember your parcel would only be insured for this amount too in case it got lost. Also as DSC points out, under valuing goods is illegal.

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Old 27-06-2006, 03:41 PM   #7
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Are there any companies (not related to the supplier) that provide import tax insurance, so that I can get a refund of the VAT if I am charged?

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Old 27-06-2006, 03:46 PM   #8
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No, because the probability of it getting charged is so close to 1 that its not worth it. Those who offer such insurance are clearly miss declaring the value of the goods as the majority of their packages will get stopped.

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