Jokes0 min ago
USA shipping tax - help!
7 Answers
hi! i really want to order a dress from the USA. including postage and packing it costs $130ish. how much tax would i pay for it to come into the country? do they charge you when it reaches a certain amount or just charge you in any amount?
thanks in advance
thanks in advance
Answers
1 to 7 of 7
Best Answer
No best answer has yet been selected by lumination. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
In general, you have to pay import charges (for internet purchases from non-EU countries) if the value of the goods exceed £18.
The following is based upon $130 being roughly £80, and estimating carriage costs at £10.
Step 1:
Calculate the Import Duty.
For clothing that's normally 12% but the USA is in breach of World Trade Organisations through providing state subsidies to the US cotton industry (giving that industry an unfair advantage), so the UK imposes an additional 15% surcharge on cotton-based clothing from the USA. So the duty is 27% of £80 = £21.60
Step 2:
Calculate the VAT.
That's charged on the value of the dress, on the carriage charges, and on the Import Duty. (Yes, that really is a tax on a tax!). So you've got to pay 20% of (£80 + £10 + £21.60) = 20% of £111.60 = £22.32
Step 3:
Include the examination fee.
To add insult to injury, Parcelforce Worldwide (who carry out routine customs examinations on behalf of HMRC) are allowed to charge you £8 for the 'privilege' of having them calculate your bill.
Step 4:
Add it all up:
£21.60 + £22.32 + £8 = approx £52.
So, in total, your dress would cost you £80 + (say) £10 carriage + (an estimated) £52 in charges = approx £142.
Chris
The following is based upon $130 being roughly £80, and estimating carriage costs at £10.
Step 1:
Calculate the Import Duty.
For clothing that's normally 12% but the USA is in breach of World Trade Organisations through providing state subsidies to the US cotton industry (giving that industry an unfair advantage), so the UK imposes an additional 15% surcharge on cotton-based clothing from the USA. So the duty is 27% of £80 = £21.60
Step 2:
Calculate the VAT.
That's charged on the value of the dress, on the carriage charges, and on the Import Duty. (Yes, that really is a tax on a tax!). So you've got to pay 20% of (£80 + £10 + £21.60) = 20% of £111.60 = £22.32
Step 3:
Include the examination fee.
To add insult to injury, Parcelforce Worldwide (who carry out routine customs examinations on behalf of HMRC) are allowed to charge you £8 for the 'privilege' of having them calculate your bill.
Step 4:
Add it all up:
£21.60 + £22.32 + £8 = approx £52.
So, in total, your dress would cost you £80 + (say) £10 carriage + (an estimated) £52 in charges = approx £142.
Chris
Bednobs:
The description on the CN22 form (which must be attached to the package) has to be accurate but it could probably simply say 'clothing' to comply with that requirement. However Parcelforce Worldwide staff routinely open nearly all packages from non-EU countries, to examine the contents and to assess the correct rate of duty to be charged.
The description on the CN22 form (which must be attached to the package) has to be accurate but it could probably simply say 'clothing' to comply with that requirement. However Parcelforce Worldwide staff routinely open nearly all packages from non-EU countries, to examine the contents and to assess the correct rate of duty to be charged.
1 to 7 of 7
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.