Importing a bass from the US

[FDC484950]

Just for clarity (instruments only as other items may have slightly different duty rates):

Cost of goods plus shipping in source currency, converted to Sterling at the HMRC prevailing monthly exchange rate (which is usually conservative and therefore unfavourable)

- then add import duty as 3.7% of the Sterling figure above

- then add VAT at 20%
- then add any courier handling fee for collecting said charges (to my knowledge every courier does this)

 

So yes, you are paying duty on the goods and the shipping and VAT on the goods, shipping and duty! Of course the above applies whether the bass is new or used and the VAT threshold is so low you’ll always be paying it.

 

I’ve imported from the US and outside the EU many times where items aren’t available here, but because of Sterling exchange rate it’s now very unattractive.
Shipping charges have also rocketed - typically I was paying around $100 from the US for a bass in hard case, but now it’s more like $300.

The same applies to the EU now, except for places like Thomann where you’re paying a to-the-door Sterling price. Other retailers will deduct local VAT on new goods but their schemes don’t appear to be identical to the UK - for example in Germany they use a calculator that seems to deduct about 14% off the price, even though German VAT is currently 19%.

 

So the long and the short of it after all that waffle is what @BigRedX said - it’s basically not worth it.

[wateroftyne]

I miss those halcyon days, back when buying from the US was a viable option.

[bass_dinger]

On 06/08/2022 at 09:39, Cuzzie said:

Or

 

go on holiday there - take the neck off and squeeze into the suitcase on the way home

Is that not still importing an item, though?  Surely the fact that it is in bits, and hidden underneath your socks, does not remove the liability to pay tax and duty?

[neepheid]

45 minutes ago, bass_dinger said:

Is that not still importing an item, though?  Surely the fact that it is in bits, and hidden underneath your socks, does not remove the liability to pay tax and duty?

 

No, it's smuggling!

[leroydiamond]

1 hour ago, bass_dinger said:

Is that not still importing an item, though?  Surely the fact that it is in bits, and hidden underneath your socks, does not remove the liability to pay tax and duty?

I miss the pre brexit days when buying from the UK was an option

[kodiakblair]

4 hours ago, leroydiamond said:

I miss the pre brexit days when buying from the UK was an option

I miss the days when selling outside the UK was easier 👍

[Cuzzie]

21 hours ago, bass_dinger said:

Is that not still importing an item, though?  Surely the fact that it is in bits, and hidden underneath your socks, does not remove the liability to pay tax and duty?

I didn’t say anything about not paying import duty.

the amount payable is based on the total cost of the instrument and the carriage (for which being properly insured someone said will prolly be more than 140).

If you were going to pay that much, and it’s the bass for you going and bringing it back either in the case or hand luggage could work out a similar value and you get a holibob out of it

20 hours ago, neepheid said:

 

No, it's smuggling!

it then is legal smuggling, or personalised delivery!

[Dad3353]

51 minutes ago, Cuzzie said:

I didn’t say anything about not paying import duty.

the amount payable is based on the total cost of the instrument and the carriage (for which being properly insured someone said will prolly be more than 140).

If you were going to pay that much, and it’s the bass for you going and bringing it back either in the case or hand luggage could work out a similar value and you get a holibob out of it

it then is legal smuggling, or personalised delivery!

 

It's not smuggling if it's declared to Customs upon arrival, and any relevant VAT/Duty paid. The economy would be the transport cost, including its associated taxes etc.
Not declaring the acquisition would make it liable for seizure if/when caught, plus fine. The X-ray machines used these days would certainly 'see' a bass body/neck in a suitcase.

[Cuzzie]

17 minutes ago, Dad3353 said:

 

It's not smuggling if it's declared to Customs upon arrival, and any relevant VAT/Duty paid. The economy would be the transport cost, including its associated taxes etc.
Not declaring the acquisition would make it liable for seizure if/when caught, plus fine. The X-ray machines used these days would certainly 'see' a bass body/neck in a suitcase.

Exactly 

 

m the charges would be for the bass only - don’t think they would apply the cost of your ticket…..

[neepheid]

1 hour ago, Cuzzie said:

I didn’t say anything about not paying import duty.

the amount payable is based on the total cost of the instrument and the carriage (for which being properly insured someone said will prolly be more than 140).

If you were going to pay that much, and it’s the bass for you going and bringing it back either in the case or hand luggage could work out a similar value and you get a holibob out of it

it then is legal smuggling, or personalised delivery!

 

To be fair, no you didn't.  I think it's just that every other time I've seen this postulated, it's been as a way around paying any tax at all, not as a way to save a little money by the carriage cost effectively being free

 

[Cuzzie]

Also - I should have prolly explained a little further from my side - usual punctuated messages between doing stuff can get lost in translation

[yorks5stringer]

On 05/08/2022 at 23:39, jazzyvee said:

I made the mistake of overlooking that and mistakenly thinking it only applied to new instruments. I bought a guitar from a shop in Texas about 13years ago and when it arrived at customs in Stanstead airport I got a call from Customs & excise with a huge bill for duty and vat. Not something i'd budgeted for. This was around the time the MP's were getting caught being creative with their expenses so it made paying it more frustrating.

If you don't pay the taxes and duty it gets sent back to the sender. Thankfully the guy on the phone was really down to earth and a good chap. But paying it still hurt.

 

 

Good job it was not a Duck Island then....

[Reggaebass]

Quick question, if you buy a used bass from the US does the vat still apply 

[Beedster]

6 minutes ago, Reggaebass said:

Quick question, if you buy a used bass from the US does the vat still apply 

Yes

[Reggaebass]

Just now, Beedster said:

Yes

Thanks mr B 👍

[dyerseve]

On 06/08/2022 at 02:42, kodiakblair said:

@ReeV0

 

Like the lads have said it's VAT on the bass/shipping/insurance + import duty.

 

Then there's 2 other things to consider.

 

Admin fee for collecting VAT/Duty. About £10

 

Exchange rates. XE currency converter is showing £1 = $1.20.

 

Sadly there's little chance you'll get that.

 

RBS, Halifax and Natwest rates are £1 = $1.16; Halifax have a £9.50 handling fee.

Rate with PayPal is just $1.15 + £3 handling fee.

 

Credit cards fare slightly better , around $1.17, but most carry a % handling fee 

To ensure you receive the best rates for all international transfers, use a service such as Wise.com (formerly TransferWise).

They give you the actual market rates for the currencies in question and their fees are incredibly reasonable.

I have used them countless times without any issue.

[warwickhunt]

10 minutes ago, dyerseve said:

To ensure you receive the best rates for all international transfers, use a service such as Wise.com (formerly TransferWise).

They give you the actual market rates for the currencies in question and their fees are incredibly reasonable.

I have used them countless times without any issue.

 

Very good point and you are right re. charges, they are cheaper than PP or the bank.  Only issue can be some folk think it is a scam and refuse to use the service!  

[dyerseve]

25 minutes ago, warwickhunt said:

 

Very good point and you are right re. charges, they are cheaper than PP or the bank.  Only issue can be some folk think it is a scam and refuse to use the service!  

For me it's the best of both worlds, best rates and lowest fees.

Yeah I can understand re. Scams- but it's really only if they are sending you money that they need to "use" Wise.com and create an account etc. With a little Googleing though it should be easy for anyone to see it is a legit site.

Otherwise you just use your Wise.com account and send them the money directly to their bank account - exactly like any international bank transfer.

[Downunderwonder]

I use XE.com. Sod paypal.

[dyerseve]

3 hours ago, Downunderwonder said:

I use XE.com. Sod paypal.

Here is why I use Wise.com instead of XE.com:

 

[greentext]

I got heavily stung by this when I ordered a bass direct from Musicman in the US, the delivery dude turned up at my door with a card machine saying I owed 600 quid, after I paid it, I immediately sold the bass as I couldn't warrant it. I actually sold it including the import duty as anyone buying it would of paid the same. 

[leroydiamond]

1 hour ago, greentext said:

I got heavily stung by this when I ordered a bass direct from Musicman in the US, the delivery dude turned up at my door with a card machine saying I owed 600 quid, after I paid it, I immediately sold the bass as I couldn't warrant it. I actually sold it including the import duty as anyone buying it would of paid the same. 

Was £600 more than you anticipated paying in import charges?

[greentext]

8 minutes ago, leroydiamond said:

Was £600 more than you anticipated paying in import charges?

Being honest I don't know, the bass was £1700 so the 20% would be £340 so getting the £600 was pretty shocking and led to the selling. I was actually at work at the time of delivery and my gf's mum just paid it no questions asked (bless her paid it back when i got home) but I never followed it up to work out if it was correct, I was just so turned off owning the instrument after a 1/3ish increase in price I flipped it. No regrets.

[neepheid]

Just now, greentext said:

Being honest I don't know, the bass was £1700 so the 20% would be £340 so getting the £600 was pretty shocking and led to the selling. I was actually at work at the time of delivery and my gf's mum just paid it no questions asked (bless her paid it back when i got home) but I never followed it up to work out if it was correct, I was just so turned off owning the instrument after a 1/3ish increase in price I flipped it. No regrets.

 

Did you forget about Customs Duty?

[greentext]

Like I said I was pretty naive to all elements regarding importing a bass, I didn't do any research before I just bought it as it was a limited run bass only available for the month I bought it, and just worked it out as I went along, wont be making that mistake again haha