UK Border Agency and import charges - please read!!

[Stacker]

For those of us who occasionally import from abroad, we all know that we're going to get stung by Import Duty and VAT and we just get on with it and accept what we see on the sticker on the side of the shipping carton and pay it.

However, earlier this year I imported two basses from Ishibashi and was amazed at the amount I had to pay HMRC. I had a gut feeling there was something wrong with these figures so I pursued it with HMRC. After a lengthy, heated discussion with a stroppy civil servant I found out there should be a [u][b]commodity code[/b][/u] visible on the sticker applied by the hub at Coventry. This code is ascertained by the description of the item on the shipping/customs form filled out at point of origin. No such code usually appears on the red lettered sticker, so how does Coventry decide what your charges are?

Now knowing what the 'commodity code' for electric guitars actually is ([b]9207901000[/b]), I wrote to them and, after getting my MP involved, finally got a response from the UK Border Agency at Coventry, who are responsible for determining charges. Surprise, surprise - they had got it WRONG!!! Their final letter set out the revised charges and I am to receive some £30 back in duty and VAT on one bass; the other case I have yet to hear back on.

All that said, I guess few of us will be importing gear after the recent VAT hike but for those of us who will, please make sure that you ask for a breakdown of charges [i]first[/i], [i]then[/i] ask what code they used. The idea is to catch UKBA out and to [i][b]make sure they have applied the charges correctly![/b][/i] Remember: at the end of the day, it's better that the money is in your pocket than theirs!

Stacker.

[ahpook]

aaah commodity codes...that brings back some memories from when i used to work in imports.

if the commodity is unclear, you're charged a high blanket rate iirc.

[Kiwi]

Thats just plain wrong. They should ascertain the facts before charging.

[cheddatom]

They've held shipments for me for work before if the codes aren't supplied on the paperwork - they call up and demand the correct codes. I didn't know they could just make an arbitrary judgment.

[sprocketflup]

[quote name='Crazykiwi' post='880643' date='Jun 29 2010, 09:12 AM']Thats just plain wrong. They should ascertain the facts before charging.[/quote]

lmao welcome to the world Crazykiwi, theres so much to see

[Ou7shined]

Thanks for this.
I'm expecting a bass to be released from customs today - the bastard charges will be in the region of £200.

[ahpook]

[quote name='Crazykiwi' post='880643' date='Jun 29 2010, 09:12 AM']Thats just plain wrong. They should ascertain the facts before charging.[/quote]

iirc customs regard it as the consignee's responsibiltiy to obtain the correct commodity code

Edited June 29, 2010 by ahpook

[xilddx]

[quote name='sprocketflup' post='880689' date='Jun 29 2010, 10:00 AM']lmao welcome to the world Crazykiwi, theres so much to see [/quote]
spot on.

[Stacker]

[quote name='ahpook' post='880698' date='Jun 29 2010, 10:08 AM']iirc customs regard it as the consignee's responsibiltiy to obtain the correct commodity code[/quote]

In all my years of importing, this information has never been imparted to me by neither the supplier, Parcelforce nor HMRC. But I know it now and will be wary of this ever happening again.

Edited June 29, 2010 by Stacker

[Kiwi]

[quote name='sprocketflup' post='880689' date='Jun 29 2010, 09:00 AM']lmao welcome to the world Crazykiwi, theres so much to see [/quote]
Yeah, I guess I've only imported into 4 different countries in my life.

[keeponehandloose]

Import a string instument over 50 years old and VAT is about 3 or 4%.Similar with Duty.

[tayste_2000]

[quote name='Crazykiwi' post='880736' date='Jun 29 2010, 10:38 AM']Yeah, I guess I've only imported into 4 different countries in my life.[/quote]

But you we're importing yourself, Human Trafficing is exempt from these codes

[BottomEndian]

[quote name='keeponehandloose' post='880879' date='Jun 29 2010, 12:52 PM']Import a string instument over 50 years old and VAT is about 3 or 4%.[/quote]
Really? How? I'm genuinely interested.

AFAIK, the UK has three rates of VAT: 17.5%, 5% and 0%. Some clearly-defined items incur only 5% VAT, but I don't see how a string instrument over 50 years old fits into any of those categories of goods. Antiques are rated at 5% VAT, but they have to be at least [b]100[/b] years old. And (again, AFAIK, with the exception of things under the value threshold on import) the rates of VAT applied to an item should be the same regardless of whether they're being imported or being sold within the UK.

[keeponehandloose]

I imported a double bass about 4 years ago and the import duty /vat was round about that,I cant remember exactly but I think all the details were on the Customs and Excise website.I suppose things may have changed since then

[XB26354]

I used to work in shipping, and the Intrastat Book with all the harmonised commodity codes is freely available from the HMRC website.
I happen to know that the HMRC are well aware of the commodity codes for electric guitars and basses and as there is a specific code for them (that they have searchable online access to), its pure incompetence. Mind you, I imported a Chapman Stick into the UK once and they actually rang me up because they didn't know if it was an instrument or an ornament - turned out it was the latter

[BB2000]

About 3-4 years ago I bought 4 basses from Ishibashi. They shipped them in their original triangular shipping cartons, 4 boxes in all. On each of them there was an invoice for all 4 basses, so of course I was charged VAT and duty on the cost of 16 basses instead of 4. Which was rather a lot of money.

Parcelforce wouldn't release the parcels until I'd paid the tax, or even let me see the parcel or the attached invoice, so I paid up and wrote off to customs to explain what had happened.

To give them their dues they didn't take long to issue a refund to me.

If they had been shipped with UPS or Fedex I'm pretty sure I'd have been able to sort things out with the courier.

[Stacker]

[quote name='XB26354' post='881355' date='Jun 29 2010, 09:00 PM']I used to work in shipping, and the Intrastat Book with all the harmonised commodity codes is freely available from the HMRC website.
I happen to know that the HMRC are well aware of the commodity codes for electric guitars and basses and as there is a specific code for them (that they have searchable online access to), its pure incompetence. Mind you, I imported a Chapman Stick into the UK once and they actually rang me up because they didn't know if it was an instrument or an ornament - turned out it was the latter [/quote]


That's very, very interesting. BiChrist I'll be on their case if it happens again. Which, of course, I will let them do then bawl them out for it.

[Ou7shined]

Here's one.
What if you think the item's value was way off on the declaration slip?
I paid the duty, then queried the seller about it and he agrees that he put the wrong figure down.

[Stacker]

I'd hazard a guess that UKBA/HMRC would say 'tough cheese!' But hold on a minute: they themselves would be on you like a dog on a rabbit if you set down any inconsistencies on [i]any[/i] paperwork you served them, so it should wok both ways! It might be a lengthy process but it would probably involve your guy at the other end acquiring admissible evidence of the actual value. I'd be tempted to go for it but, knowing what government departments are like, I'm sure there would be a lot of stonewalling.

[Doctor J]

Over here we pay VAT @ 21% plus import duty of 4.3% for instruments and our currency is almost as worthless as rupees. You have it easy over there, stop whinging!

[Stacker]

It's the fact that they don't do their job right, is what I'm whingeing about. Check post #15 and think about the number of people they've ripped off because of laziness and incompetence. And our VAT is now at 20%.

Edited July 3, 2010 by Stacker

[BottomEndian]

[quote name='Stacker' post='884564' date='Jul 3 2010, 08:56 AM']And our VAT is now at 20%.[/quote]
Not for another six months. Unless they're doing things differently up there.

[4000]

[quote name='Ou7shined' post='880691' date='Jun 29 2010, 10:00 AM']Thanks for this.
I'm expecting a bass to be released from customs today - the bastard charges will be in the region of £200. [/quote]

If only mine were going to be that low. Try tripling it.....

BTW, thanks for the info Stacker, it could come in really handy in the next week or so. Very nicely timed.

Edited July 3, 2010 by 4000

[Kohpnyn]

I'm considering buying a LM2/3 off the TalkBass forums. I guess I'd have to pay the 17.5% VAT and that's it? Or would it be more because it's electronics?

[Stacker]

[quote name='BottomEndian' post='884597' date='Jul 3 2010, 09:55 AM']Not for another six months. Unless they're doing things differently up there.[/quote]

Sorry. SHows how much I'm paying attention, eh? Cheers.