UK borders agency, HMRC and Post Office collaborate in Import VAT rate hike.

[Jonnie Goodboy]

I speak from experience, since I have just concluded a fiasco with these people over a 25-year old Used item imported from the US> Value £~60. They held it up in Customs offices for a month whilst they decided what it was worth 'doing me for', and came to the conclusion of a 33% of Total Initial Value. = £20 Sterling, thanks buddies. Meanwhile all imports from the EU/EMA area are exempt from all duties and taxes
.. Oooh How convenient ... once again.

But here' s the flipside. With the Threshold for being charged Import VAT, dropping from £40 down to £18 a lot more small time eBay deals from those big US warehouses will go under. But the Buggers at the Borders Agency are interested in breaking up ANGLO-US Trade. Think about it. The Greenback is being devalued. Fewer exports from the US will mean higher inflation inferred from less international trade. That's the agenda. And our HMRC is going to help. Fewer people will buy from outside the EU if we have a import VAT slapped on.

I am exempt all import VAT from within the EU. You will find that when the Dollar is replaced with the Amero (Yes the world reserve currency $ is to go) within the next few years, that US traders will no doubt be exempt taxes on items from Canada and Mexico, to mirror the rig-up in the EU-zone.

There are 3 organisations taking a cut from these duties, who cleverly spread the numbers so that making a claim on items returned in disgust ('I'm not happy with the tax, so I'm sending it back') is now much more laborious than previously when the HMRC were the only body involved. Now each partner takes a cut. Just as a foresaw, the break is £12 to BA (Borders Agency,) & HMRC and £8 to the Post Office for their dreadfully hard work of partly opening, or pretending to have opened the package, holding it up for 3½ weeks and slapping the £20 tax demand on it, before going back to informing the Police on what I did today ...

Now, that's a Conspiracy, or might as well be ...

[Jonnie Goodboy]

Official hand composed collect email sent Friday, from HMRC to explain the rules and changes ...

Further to your e-mail enquiry regarding the liability for Import Charges on used goods and our telephone conversation this afternoon, the following criteria is used for Import Charges on goods coming into the UK.

If the Intrinsic Value of the goods is £18 or over, then the goods will be liable to Import VAT.

Individuals who buy goods over the internet or by mail order from outside the EU will now only be charged customs duty if the value of the package is above £135, and the actual amount of duty is over £9.

If a package is received as a gift, VAT will only be charged if its value exceeds £40 and it meets the criteria set out for gifts in HMR&C Notice 143 ¿ A guide for international post users.

If the above criteria is not met when the goods are imported then charges would apply whether the goods are new or second hand or if the goods are being imported by a  business or by a private person.

As I explained over the telephone The Royal Mail service dealing with your import would have paid the Import Charges to the UKBI on your behalf before the goods would be released to them.  The Royal Mail would then claim this charge from you together with their administration fee.

If you refuse to pay the charges then The Royal Mail will return the goods to the sender at some point.  You would need to speak to The Royal Mail about any payment issues there may be as they took possession of the Import debt when they paid the UKBA any Charges due.

Whether or not the goods would attract any charges if they were returned to the USA would be a matter for the US Customs Agency.  Again, any issues that would arise from this would be a matter for you to resolve with your supplier.

The notice contains guidance for Postal Imports/Exports to the UK and also gives links to the EU legislation used. A link for Notice 143¿ is shown below:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000014&propertyType=document.

Alternatively, if you type 'Customs Notice 143' in the Search Box at the top of the website Home Page at www.hmrc.gov.uk. you will be linked to the relevant page.

I must emphasise that the advice given is based on the information you supplied. If the nature of the transaction changes in technical detail, or the relevant details provided were incomplete or incorrect, we will not be bound by this ruling.

Yours sincerely

....