deebee

The charge certainly looks about right for your product being imported from the EU. What would be interesting is if DV247 charged VAT. If they did, then I can think of only 3 scenarios:- - they supplied the goods from within the UK (in which case you shouldn't have been charged anything by UPS, and if you say the goods were in Germany then that can't be the case) - they have a bonded warehouse facility In the EU. In this case, you would be billed from their UK office and shouldn't pay any charges to a courier (they notionally 'import' the goods from the duty-free warehouse to their UK operation, and notionally supply you from there). Again, you shouldn't have been charged anything by UPS. - they have mistakenly charged you VAT, in which case the charge from UPS is still correct (as it is over £135), and DV247 should refund the VAT they charged. I suspect the 3rd is most likely.

Whilst mistakes can happen, it is far less likely that the courier will be the cause of incorrect charging. The exporter is responsible for declaring the value of the goods, the correct commodity code, and the origin. Most courier's systems will then process this automatically depending on the country they are importing to.

They will pay both VAT and duty if the goods aren't manufactured in the UK or EU (which most stuff in this industry isnt). Budget 23%+£10 uplift on price as rough guess depending on the item and the courier.

The free trade deal is essentially meaningless for our industry as it only covers goods substantially manufactured within the UK or EU. Most goods in MI are made outside, and so rules of origin mean duty applies every time the goods cross the border. VAT from registered companies should have little tangible effect on the price: goods over the threshold should be supplied exempt, and HMRC will instead charge via the courier. Will make a big difference on used goods crossing borders though. Rough guess:- New goods crossing either way between UK and EU: now circa 3-4% more expensive + £10 courier import fees Used goods crossing either way between UK and EU: now circa 25% more expensive + £10 courier import fees

Whether the company has a UK base is only half of the problem: If the goods supplied reside across the EU border (ie. They entered the EU and crossed the duty border) then they will be then have to be imported to the UK. Duty will be applied (unless under £135). This isn't discretionary, or a matter of companies pushing paperwork in a certain way: it is absolute. If the company has a UK base it has two options to avoid their goods crossing two borders and incurring duty twice (which is happening a lot at the moment due to many manufacturer's pan-Euro distribution arrangements): - they can bring their goods from manufacturer direct to the UK and supply from a UK facility like other UK dealers (rather than just having an administration 'office'). This is expensive, but the way some big EU companies may go - they can house and supply their goods from a bonded warehouse in the EU. This specific facility, whilst physically located in the EU, is notionally before the border and so not 'imported' when they enter the warehouse in the normal way. The company can therefore choose to import them to the EU, or UK, or wherever instead when they are sold. The VAT implication is of course different, and (threshold aside), should be charged at the rate where the customer resides, and is normally applied by HMRC (via the courier) on imports. If the goods are imported over the threshold and the supplier has charged VAT, they should be able to refund this as they have exported it from the EU, and shouldn't have charged in the first place.

Just to clarify a few points:- - import duty will still apply to most goods that move from the EU to the UK. The Free Trade Agreement referred has no effect on goods manufactured majoritavely outside of the UK or EU (which applies to most goods in this industry). - shipments under a gross value of £135 (€150) are sent VAT accounted by the seller (provided they are registered for UK VAT), and with no duty. As such, the price you pay is the total price and there is nothing else to pay on delivery. - shipments over this threshold are treated as a normal import, and VAT/duty/handling fees will likely be applied by the courier.