US Imports Duty Paid

[Tripehound]

I'm looking to buy a new bass - specifically a Lakland Hollowbody. The price new seems to be around £1300 but it seems Musicians Friend in the US will ship me one for a grand plus fifty-odd quid for postage. Significantly they claim that this figure includes all taxes and duties. I've also noticed some vendors on eBay offering this service.

It appears very competitive - a 250 quid saving is not to be sniffed at - but it still makes me uneasy. Has anyone a tale to tell of using a service like this?

[rodma]

Yep

Their service works as long as you don't mind radio silence for a week after you order.

There is a recent thread about them on here

[iconic]

'Generally'...what you pay in dollars is the figure in pounds after duties....vat...tax etc.

[uncle psychosis]

[quote name='iconic' timestamp='1384329044' post='2275207']
'Generally'...what you pay in dollars is the figure in pounds after duties....vat...tax etc.
[/quote]

Did you read the OP?

[uncle psychosis]

[quote name='Tripehound' timestamp='1384295540' post='2275061']
I'm looking to buy a new bass - specifically a Lakland Hollowbody. The price new seems to be around £1300 but it seems Musicians Friend in the US will ship me one for a grand plus fifty-odd quid for postage. Significantly they claim that this figure includes all taxes and duties. I've also noticed some vendors on eBay offering this service.

It appears very competitive - a 250 quid saving is not to be sniffed at - but it still makes me uneasy. Has anyone a tale to tell of using a service like this?
[/quote]

Such services exist and appear to be above board.

The only issue I'd have with it is what happens if there is a problem with the instrument and you have to send it back. I would want to know what the returns process was and how much I'd be out of pocket were that to be the case.

[BigRedX]

To the OP, if that's true then it's a good deal. The figures for pre-paid import charges that I've seen on eBay always seem to be a little on the high side compared with what I've paid myself in the past. Plus there's always the slight possibility that your item will get through customs without attracting any extra charges - although that's only happened to me a handful of times in the last 15 years.

[Twigman]

[quote name='noelk27' timestamp='1384339205' post='2275375']
Local (US) taxes and duties?
[/quote]
Nope UK import taxes and VAT

I recently imported something from Musician's Friend and all UK VAT and import duty was prepaid.
I was a little concerned at their lack of comms and posted a thread about it here.
They hand the deal off to their International agents 'Borderfree' who actuallt ship it.

It works - eventually.

Edited November 13, 2013 by Twigman

[philw]

Hmmm, well I guess it's fine if it works, but duty and tax (VAT) alone on a £1k guitar import from the US would normally work out at around £243. So I've no idea how Musician's Friend manage it, or how they've done a deal with UK Customs & Excise for the duty and VAT (legally the responsibility of the importer) to be paid up-front. I wonder what the UK Lakland distributor think? "Curiouser and curiouser", said Alice….

P

[Twigman]

[quote name='noelk27' timestamp='1384341027' post='2275402']
I understand that harmonisation schemes exist, and that US resellers are increasingly offering this service. But, for the OP, I don't see where the element for UK VAT and import duties is, in the figure quoted. The item in question is priced at $1,499, which works out circa £950. Add in the postage charges and the price at checkout is circa £1,050. Where's the VAT and duties element? Add on a correct VAT and duties assessment and the OP ends up saving circa £50 over the street price here. You could negotiate £50 off of a £1,399 purchase here, in the current market.
[/quote]
I think he'll find if he adds the item to his basket and then goes to checkout and selects shipping to UK the price will increase somewhat.
It did for me but then I was happy to have the VAT and duty paid.
Although I find getting stuff delivered to work and then paying the UPS man in cash works better because UPS make the VAT invoice out to my work, which effectively makes it recoverable

[uncle psychosis]

[quote name='philw' timestamp='1384339596' post='2275387']
Hmmm, well I guess it's fine if it works, but duty and tax (VAT) alone on a £1k guitar import from the US would normally work out at around £243. So I've no idea how Musician's Friend manage it, or how they've done a deal with UK Customs & Excise for the duty and VAT (legally the responsibility of the importer) to be paid up-front.[/quote]

Lots of places now seem to be offering the same service, and there is some stuff on the HMRC website about it being possible to pay duty up front with transactions from some countries. I guess they're just trying to make international trade simpler.

[thebassist]

I just imported a Bass valued at $499 and got stung for £93 import/handling costs! I'm not sure I'd bother importing again.

Edited November 13, 2013 by thebassist

[muttley]

[quote name='philw' timestamp='1384339596' post='2275387']
Hmmm, well I guess it's fine if it works, but duty and tax (VAT) alone on a £1k guitar import from the US would normally work out at around £243. [/quote]

It would actually be more than that. Duty and VAT are calculated on the total value of the import, which means goods [i]plus[/i] shipping. An admin fee (usually between £8 and £12) is then added by the clearing agent since you pay them, not HMRC direct.

[uncle psychosis]

[quote name='thebassist' timestamp='1384342051' post='2275416']
I just imported a Bass valued at $499 and got stung for £93 import/handling costs! I'm not sure I'd bother importing again.
[/quote]

Thats pretty much what it costs. 25% off the total cost (item AND shipping) to cover the fees and duty.

Importing isn't as worthwhile as it was a few years ago when the pound was stronger against the Yen and the Dollar.

[Dingus]

[quote name='Tripehound' timestamp='1384295540' post='2275061']
I'm looking to buy a new bass - specifically a Lakland Hollowbody. The price new seems to be around £1300 but it seems Musicians Friend in the US will ship me one for a grand plus fifty-odd quid for postage. Significantly they claim that this figure includes all taxes and duties. I've also noticed some vendors on eBay offering this service.

It appears very competitive - a 250 quid saving is not to be sniffed at - but it still makes me uneasy. Has anyone a tale to tell of using a service like this?
[/quote]

This could be a very dubious saving .

You will almost certainly find that, one way or another, you will end up paying more than you had anticipated for the bass , and then you have consider that if there are any "issues" with the bass then , however helpful they might be, you are dealing with a retailer and manufacturer on another Continent. That can be a right royal pain in the arse. Buying this bass could save you a few quid, but it could also be the beginning of a load of hassle you could probably do without. If I were you , I would see what was the best deal I could get from a U.K retailer ( Guitar Guitar or The Gallery in Camden for Lakland , both decent shops to deal with , in my experience) for cash - even if they can't match this price they might throw in some strings and / or a setup ect- and then compare that to the total price of the U.S.A deal. I would be surprised if , on balance, the Musician's Friend deal was preferable overall.

Edited November 13, 2013 by Dingus

[iconic]

[quote name='uncle psychosis' timestamp='1384335561' post='2275293']


Did you read the OP?
[/quote]

yup...seemed a very good price indeed hence the 'generally'

[muttley]

[quote name='noelk27' timestamp='1384343906' post='2275438']
You don't pay the Royal Mail fee, as this is charged by Royal Mail for administering the VAT and duties schemes on behalf of HMRC.
[/quote]

I was assuming that philw's figures referred to the traditional method of personally importing.

[Dingus]

Generally speaking , to make buying basses from the U.S.A worthwhile, you are wasting your time dealing with retailers . You need too deal with individuals or companies who will sell to you directly and can offer more substantial discounts on their goods than a retailer ever would unless they were trying to shift unwanted stock . To offset the potential pitfalls you need have the added incentive that you are getting the goods at a much cheaper price and therefore able to offset the risk with an exit strategy by which you can always sell on the goods in the U.K for at least their total cost to yourself. Otherwise , it can be a false economy in many cases . The only caveat is if you are trying to buy goods unavailable in the U.K. then shopping in the States can be the only option.

Edited November 13, 2013 by Dingus

[BigRedX]

[quote name='Dingus' timestamp='1384371766' post='2275909']
The only caveat is if you are trying to buy goods unavailable in the U.K. then shopping in the States can be the only option.
[/quote]

That's what I've always done when buying from other countries. Saving a few pounds (and that's normally all it ends up being by the time you've added on shipping and import) isn't worth the hassle you'll have if things go wrong.

[Tripehound]

I have to agree with Dingus - it all sounds great unless and until it goes wrong. I also know from umpteen spreadsheet sessions that importing normally only results in marginal savings and huge potential for increased heartache if there's something goes wrong.

However, the Musicians Friend website makes the claim that ALL duties, taxes and so on are covered and the delivery fee in this instance is £57. This means a £250 saving - that's nearly 20% - against UK price. It's enough to make me wonder whether it's worth it. Having read their return policy for international ales, it seems that you can send a product back for up to 45 days if you stand the cot of shipping. In the case of faulty goods - and I presume that's what we're talking about here - they pay.

I can't imagine the UK dealers will be too happy at this, but then prices have always been so much higher here. I remember the shock of translating the price tags in a branch of Guitar Center the first time I visited the USA. An entry-level Martin for just over 300 quid!

As for things you can't get here, it's a shame the site doesn't feature that new short-scale Lakland. $998 (that's £622).[url="http://www.youtube.com/watch?v=FA-vTrzY3PY"]http://www.youtube.com/watch?v=FA-vTrzY3PY[/url]

[solo4652]

What's the situation for exchanging (as opposed to buying) a bass from the USA? I want to do a straight swap with a shop in the States; their used bass for mine, no money changing hands. I'd pay shipping costs to get theirs to me, and they'd pay to get mine to them. I'm trying to work out how much, if any, Custom, Import and VAT duties I'd need to pay, bearing in mind that sales invoice may well show £0. I've trawled through HMRC website and tried to ring them, but neither is easy at all. Can anybody advise, please?

[xroads]

[quote name='solo4652' timestamp='1400836408' post='2457344']
What's the situation for exchanging (as opposed to buying) a bass from the USA? I want to do a straight swap with a shop in the States; their used bass for mine, no money changing hands. I'd pay shipping costs to get theirs to me, and they'd pay to get mine to them. I'm trying to work out how much, if any, Custom, Import and VAT duties I'd need to pay, bearing in mind that sales invoice may well show £0. I've trawled through HMRC website and tried to ring them, but neither is easy at all. Can anybody advise, please?
[/quote]

You will need to pay customs/taxes.

[Paul S]

Also Parcelforce charge a handling fee. i just bought a bass from Japan and the handling fee was £13.50 on top of the VAT. No import duty for some reason, though.

[muttley]

[quote name='Paul S' timestamp='1400856602' post='2457639']
Also Parcelforce charge a handling fee. i just bought a bass from Japan and the handling fee was £13.50 on top of the VAT. No import duty for some reason, though.
[/quote]

Must have been below the value threshold. If the calculated duty is less than £9 then customs don't bother collecting (just the VAT) ([url="http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_CL_000014&propertyType=document#P20_1804"]see section 2.3[/url]).

[sammybee]

[quote name='muttley' timestamp='1400863752' post='2457734']
Must have been below the value threshold. If the calculated duty is less than £9 then custom
s don't bother collecting (just the VAT) ([url="http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_CL_000014&propertyType=document#P20_1804"]see section 2.3[/url]).
[/quote]

This is definitely not true, I bought an expansion card for a drum machine from the US - $45 dollars, got charged for VAT and Import Duties & the handling fee.

[muttley]

[quote name='sammybee' timestamp='1400917102' post='2458089']
This is definitely not true, I bought an expansion card for a drum machine from the US - $45 dollars, got charged for VAT and Import Duties & the handling fee.
[/quote]

That's odd. How much duty were you charged? Were the import duty and VAT levied based on the invoice value or some other figure? Some sellers will under delcare goods in the hope that the buyer will get away with not paying any duty. However, HMRC can charge duty and VAT on what they consider is the market value of the item. See section 2.1 in the link I gave above for more info.

Disclaimer: I don't work for HMRC but I do import goods as part of my job.