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Avoiding Duty and Taxes on Imports

Discussion in 'Import & Export' started by ShippingDude, May 11, 2009.

  1. glodrop

    glodrop

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    Does anyone know what the highest value of an item can be for the US + the UK without it attracting duty tax?
  2. Import Expert

    Import Expert

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    Hi Glodrop. Not sure about the US but in the UK:

    If you order or send purchased goods other than alcohol, tobacco, perfume and toilet water from a country outside the EU then you:

    • don't have to pay Excise Duty
    • may have to pay Customs Duty on goods with a value that exceeds £135
    • will have to pay Import VAT on goods with a value that exceeds £18
    Note that on all goods from outside the EU, Customs Duty is waived if the amount of duty calculated is £9 or under.
  3. glodrop

    glodrop

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    Thanks for the helpful information i think the US has a wider margin, but this is very useful, thanks
  4. jam

    jam

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    Dec 26, 2010
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    Very good post guys, i see many of you are worried about Chinese putting down gift.. LOL
    Please remember, gifts are allowed, so bending it this way maybe twice a year is fine, and also remember when paying for goods, there,s lots of ways to do this, i not saying you should, but we all bend the rules from time to time.
    For those that are set up with a LTD company, you and i both know, were still allowed a private bank account, and while most of the Chinese supply companys like money to be wired, well i think you get my point.

    I have been in China now for coming on 10 months, and i can tell you right now... no one down here gives a toss about following the rules.
    The truth is, its the western Country,s that are hell bend on following the book to the letter T. But unless UK customs would like to get on a plane and start haunting near 40 million companys for sending gifts, I say good luck to them.

    Dont break it bend it, customs are there to take, but they are also aware that some charges on items are also to high, unless you want to be real greedy and order 200 pc tablets, and have them put down at a cost of 20 rmb, then you deserve to be necked.
  5. Jerrysourcing

    Jerrysourcing

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    Oct 30, 2011
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    There is one way you can avoid import duty, and that way is by importing from a developing country such as Ethiopia. This is applicable because of trade agreements signed between the Uk and Ethiopia, its called EBA (Everything but Arms). Meaning you can import anything form that country and you wont be charged import taxes.:)
  6. Import Expert

    Import Expert

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    Another good country to start sourcing from is South Korea - which now has a free trade agreement with the UK, so essentially everything Is Duty Free provided the documentation is marked correctly.
    MSFB likes this.
  7. MSFB

    MSFB

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    Is that definitely correct? The duty calculator shows there are still duty fees.
  8. Import Expert

    Import Expert

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    Hi MSFB,

    Yes definately correct. The Duty Calculator I doubt would show it as you have to make a preference declaration when entering the goods with HMRC as well as stating the origin country. A bit more info below:


    Tariff Preference: New EU-South Korea Free Trade Agreement

    The European Union has concluded a major new reciprocal preferential trade agreement with South Korea, the provisions of which apply to eligible products which are released to free circulation in the EU or South Korea on or after 1 July 2011 and are covered by a proof of preferential origin issued in the EU or South Korea on or after that date.

    With a few exceptions, the vast majority of eligible products originating in South Korea will attract from the date of provisional entry into force of the agreement a nil preferential rate of duty upon their importation into the European Union provided the origin criteria is met. This also applies for exports from the European Union to South Korea.

    More details information can be viewed on the HMRC website:

    http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD1_031327


    Kind regards,
    Darren.
    bizmanny and MSFB like this.
  9. Power Forwarding

    Power Forwarding

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    Yea Darren is right, most goods are duty free as long as you have a certificate of origin showing goods originated in South Korea.
    MSFB likes this.
  10. sim_0102

    sim_0102

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    Jan 19, 2012
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    It maybe useful to inquire whether you can obtain a 'GSP form a' certificate. With this, alot fo goods from certain countries have 0% duty or at least lower %.
    MSFB likes this.
  11. MSFB

    MSFB

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    great tip - my duty rate goes down from 12% to 9.5% with a GSP form a.

    Not that I'm planning to start using it as my good are still marked at about 1 tenth their real value and don't want to attract any more attention to them :S
  12. Amyzhang

    Amyzhang

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    Small quantity can avoid tax I think!
  13. JasonG

    JasonG

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    As long as it doesn't exceed £15
  14. Amyzhang

    Amyzhang

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    If send via DHL, EMS, declare lower value in the invoice, it works. Some of my customers never pay tax in US. But maybe it's different in UK
  15. Import Expert

    Import Expert

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    I think it is important to point out that although I'm sure everyone bends the rules now and again with regards to values being lowered or goods being declared as gifts, this is still essentially illegal. HMRC will tend to audit importers of goods every three years or so and they have access to import transaction records and your own financial accounts, so it is often not hard for them to spot irregularities.

    In saying that the result of an audit can very much depend on the particular officer or officers carrying it out. I have come across many over the years, some which are happy to dish out a verbal slap on the wrist should they find anything that appears to be incorrect or fraudulant, others will possibly go over the top and can be a bit power hungry and will try and throw the book at you for the most minor of offences.

    As a general rule if HMRC find any underpayment of Duty/VAT they will charge you what is owed. This can go back over three years of trading so it can add up. They also can potentially issue you with a substantial fine on top of this, although this is usually reserved for more obvious 'fraudulant' activities rather than errors and ommisions.

    The golden rule here is that if you own up to any errors before HMRC discover them, you will generally avoid a fine.

    Don't forget big brother is always watching........

    Should any of you be informed that you are due to be audited, part of our Customs consultation service covers this area so for a small fee we can take a look first before HMRC come through the door so you are then aware of any issues they might highlight and have time to take any necessary action with HMRC to resolve before the audit.
    bizmanny likes this.
  16. Import Expert

    Import Expert

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  17. Nick Robinson

    Nick Robinson

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    I'm also really interested in hearing more about duties and taxes, as I might be starting to import Thai fashion into the states. What do you think? What is the average cos of import taxes into the US? Also is there a minimum quantity that you would suggest buying?
  18. love-clothes

    love-clothes

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    anyone know if the following countries are tax free -
    Pakistan
    Bangladesh
    India

    The items i'm looking to import are low value clothing. max cost of each piece will be upto around £5
  19. JermaineR8

    JermaineR8

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    I am wondering the same thing having read this below,

    Why is there 0% duties for Bangladesh?

  20. love-clothes

    love-clothes

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    3rd world country or something along those lines. just wondering if its still active or are they now charging tax
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