Custom charges/Import tax - ordering online?

Bluebells

Its never happened when Ive ordered cosmetics from strawberrynet, but its a pain in the ass when it does.

What percentage is it (customs charges or import tax) of the item your purchasing, and does it vary from whatever country your order from?

Thanks.

bluedolphin

Bluebells wrote: »

Its never happened when Ive ordered cosmetics from strawberrynet, but its a pain in the ass when it does.

Yeah, I noticed this too..but I also noticed that the post mark on the package said Geneva...so with them in the EU and all that does it make a difference? Strange, however, considering that Strawberry.net is very American...

Bluebells

Hmm, i'm not sure. I mostly buy from ebay now because I'm so put off with paying the charges. The problem is theres a chance the product will be old / fake and you miss out on good deals other websites offer.

McSween

I bought musical instruments in Germany and the website itself asked what EU state I was in and it automatically raised it to 21% tax payable instead of Germany's (unsurprisingly) lower rate.

However I did get stung for 30 euros by fedex when I bought something from cd universe, the total purchase may have been 100 dollars or something, at the time the exchange rate wouldn't have been as favourable. Now I keep the purchases under 50 euros when I buy from them. Today I got a package delivered by the post office so I am ok I am sure.

Electric

I think if you get caught you have to pay something like 30% of the stated value of the goods.

Bluebells

Is there anything you can do to try and avoid the costs (like keep the cost under a certain amount)? Is it cheaper in the EU?

m83

i heard that if its a gift you've a better chance of not getting stung with custom charges. So any time i order online if its possible i try to get a note printed on the packaging, something along the lines of 'To Mark From Santa'

it's working so far!

Creamy Goodness

McSween german companies can only charge you 21% VAT if they have a irish VAT number, it's common for a lot of europe-wide companies to do this.

as to the OP the total for customs duty and taxes comes to about 25% of the value - in euro - of the goods and the shipping.

there are ways of avoiding paying this, but they cannot be discussed here. if the company only sends items by courier you will more than likely get charged customs duty and tax.

gifts are also liable for customs duty too afaik.

Trollheart

ok, I work in Customs clearance, so here's the deal:
If the goods come from within the EU, you pay NO duty and NO VAT. Goods from within the EU do not have to be cleared into the country, and Customs do not require payment of duty or VAT. Anyone (Fedex/DHL/UPS etc) who tries to charge you in this case is trying it on, so tell them you're not liable and refuse to pay. They can't legally make you pay duties you're not supposed to pay.
The exception to this is that if the goods ORIGINATE outside the EU, as in, if they are made in Japan but bought from France, then duty and VAT may be payable. BUT this only happens if the goods, manufactured in say Japan, were imported into say France and no duty or VAT was paid. Otherwise they are what is known as "in free circulation", and no duties are payable.
If you have to pay duties, the rate varies wildly, but duty alone (which is separate to VAT) usually works out at something like 1.7% to about 10% of the value. VAT if chargeable is that figure, ie your duty, plus the value, and 21% of that.
So, if your goods are 100 Euro, and rated at a duty rate of 5%, you pay
100 x 5% = eur 5 as duty, then 100 + 5 (your duty) = 105 x 21% = EUR 22.05. So your total for duty and VAT is EUR 27.05. Some companies (DHL that I know of) also charge an additional 2% for nothing really, but you'll find it on thier invoice to you.
It is NOT correct to say that anyone who has your Irish VAT number can charge you 21% VAT. This ONLY applies as above, when VAT is required, and your VAT number is for RECLAIMING your VAT through your VAT returns, NOT for paying it.
There are some other cases, like Israel, Norway, Switzerland, where if you have a particular form you pay no duty or a reduced rate of duty, and then just the VAT.
Anyone with particular questions feel free to post, email or pm me.
Trollheart

cupcake

bluedolphin wrote: »

Yeah, I noticed this too..but I also noticed that the post mark on the package said Geneva...so with them in the EU and all that does it make a difference? Strange, however, considering that Strawberry.net is very American...

Strawberry.net is not american its a chinese company. They usually ship from Hong Kong.

Soccerchipie

Trollheart wrote: »

ok, I work in Customs clearance, so here's the deal:
If the goods come from within the EU, you pay NO duty and NO VAT. Goods from within the EU do not have to be cleared into the country, and Customs do not require payment of duty or VAT. Anyone (Fedex/DHL/UPS etc) who tries to charge you in this case is trying it on, so tell them you're not liable and refuse to pay. They can't legally make you pay duties you're not supposed to pay.
The exception to this is that if the goods ORIGINATE outside the EU, as in, if they are made in Japan but bought from France, then duty and VAT may be payable. BUT this only happens if the goods, manufactured in say Japan, were imported into say France and no duty or VAT was paid. Otherwise they are what is known as "in free circulation", and no duties are payable.
If you have to pay duties, the rate varies wildly, but duty alone (which is separate to VAT) usually works out at something like 1.7% to about 10% of the value. VAT if chargeable is that figure, ie your duty, plus the value, and 21% of that.
So, if your goods are 100 Euro, and rated at a duty rate of 5%, you pay
100 x 5% = eur 5 as duty, then 100 + 5 (your duty) = 105 x 21% = EUR 22.05. So your total for duty and VAT is EUR 27.05. Some companies (DHL that I know of) also charge an additional 2% for nothing really, but you'll find it on thier invoice to you.
It is NOT correct to say that anyone who has your Irish VAT number can charge you 21% VAT. This ONLY applies as above, when VAT is required, and your VAT number is for RECLAIMING your VAT through your VAT returns, NOT for paying it.
There are some other cases, like Israel, Norway, Switzerland, where if you have a particular form you pay no duty or a reduced rate of duty, and then just the VAT.
Anyone with particular questions feel free to post, email or pm me.
Trollheart

Hi... excellent info... just wondering if you can help me with a particular customs issue. I bought a power kite on ebay from US.. the Kite cost €495 inc. postage.. but the seller marked it as a gift and put the value of it as $100 on the front label.
I had no idea there would be customs charges... but Customs are looking for €202 .... could you give me an idea how this charge is calculated... and if there is any way to get it reduced.
Thanks in advance

tinkerbell

If you're ordering anything from the US, you can get charged between 30% and 40% of the value of the order (i.e. price of goods + shipping).

Soccerchipie

tinkerbell wrote: »

If you're ordering anything from the US, you can get charged between 30% and 40% of the value of the order (i.e. price of goods + shipping).

There's a big difference between 30% and 40%... how is it calculated... and if the seller states a lower value than the item actually cost... what happens then?
The Kite cost €495 inc. p&p... seller only put a value of $100 on the shipping invoice (not sure why) .... 40% = approx €200... but why... Import duty = 21%.... ??? Im confused!!
Please Help

Pythia

Soccerchipie wrote: »

Hi... excellent info... just wondering if you can help me with a particular customs issue. I bought a power kite on ebay from US.. the Kite cost €495 inc. postage.. but the seller marked it as a gift and put the value of it as $100 on the front label.
I had no idea there would be customs charges... but Customs are looking for €202 .... could you give me an idea how this charge is calculated... and if there is any way to get it reduced.
Thanks in advance

Sounds like you got charged correctly. The seller shouldn't have put such a low value on the kite.

RUDOLF289

Soccerchipie wrote: »

Hi... excellent info... just wondering if you can help me with a particular customs issue. I bought a power kite on ebay from US.. the Kite cost €495 inc. postage.. but the seller marked it as a gift and put the value of it as $100 on the front label.
I had no idea there would be customs charges... but Customs are looking for €202 .... could you give me an idea how this charge is calculated... and if there is any way to get it reduced.
Thanks in advance

Hello Soccerchipie,

I can probably assist. First of all, ask for a breakdown of the charges. It may well be that they have assumed a different value since the value was clearly under declared. At this risk of sounding moralistic, customs have ways and means of establishing values.

Secondly, ask them what customs tariff number has been used.

There is an appeals process, so get all the documentation together and I will guide you through that.

Best regards,
Rudolf289

chocgirl

The last time I ordered through Strawberrynet I had to pay up on delivery. Can't remember exactly but I paid around 20 euro and the order cost about 60, definitely outweighed any savings I made. I didn't look into it all though, just figured I was unlucky.

nicola80

hey Soccerchipie, great question. I am not sure how a power kite is classified as Custom code and what duty rate is applied. I will make some research on this.

In general, you can find how to compute Import duty and import VAT here:
http://www.dutycalculator.com for how to compute http://www.dutycalculator.com/faq

In the faq section, you find a whole explanation on how gifts are treated. Actually, no duty is payable if the value of the gift is lower than £120 (or equivalent). So that might work. Despite the fact that this is not a gift, right?

In any case, you will probably have to pay VAT (Ireland import duty is at 21%). Moreover, sometimes the shipping provider adds handling fees.

Hope this helps, let me know, and thanks for the kite heads up!

N

Soccerchipie

Thanks for the super fast replies and offers of help. I called to the post office.. but I was afraid to pay the extra charge incase I could not appeal it... but I managed to get the information from the customs label thanks to my friendly Post master.
Just another question.. Are the charges based on what I paid for the item or what the item is actually worth?? (item was bought on ebay.. I have paypal reciept)
Breakdown of charges:
Duty: €21.82
Vat: €174.26
P.O. Clearance: €6
I didn't notice a code to indicate what level of duty had been applied.... or what value it had been applied to.. purchase price or actual value.

Thanks again

Soccerchipie

nicola80 wrote: »

hey Soccerchipie, great question. I am not sure how a power kite is classified as Custom code and what duty rate is applied. I will make some research on this.

In general, you can find how to compute Import duty and import VAT here:
http://www.dutycalculator.com for how to compute http://www.dutycalculator.com/faq

In the faq section, you find a whole explanation on how gifts are treated. Actually, no duty is payable if the value of the gift is lower than £120 (or equivalent). So that might work. Despite the fact that this is not a gift, right?

In any case, you will probably have to pay VAT (Ireland import duty is at 21%). Moreover, sometimes the shipping provider adds handling fees.

Hope this helps, let me know, and thanks for the kite heads up!

N

Thanks Nicola, Just found this site http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm
It allows you to specify the exact item and country of origin. The closest match to a power kite was in Toys games and sports section XX chapter 95.
The final duty rate came in at 2.7%
Im still confused ... as the final customs charge should be 2.7% duty + 21% VAT + €6 P.O Charge
= €495 (Kite +p&P) + €13.37 + € 106.75 + €6
= €126... still alot more than I expected to pay..... but alot less than the €202 charge at present.
Thanks again

Soccerchipie

Pythia wrote: »

Sounds like you got charged correctly. The seller shouldn't have put such a low value on the kite.

Hi Pithia... Just wondering why you think the charge is correct.. based on what?? Vat rate 21% ??? Item cost price inc. p&p €495 ... do the maths!
I didn't ask the seller to specify a lower value on the shipping invoice...
If the charge is correct.... then fine.... I wont be odering anything from outside the EU again.... but I would like to know how the charge has been calculated and that the charge is in fact correct.... before paying it!!
I wonder how many people just accepct these charges and if indeed mistakes are made??

nicola80

Hi Soccerchipie, glad I could help.

Thanks for the question. So how it works:
EUR 495 + shipping cost xxx + insurance cost = Customs value

Customs value x % duty rate = Total import duty

(EUR 495 + shipping cost xxx + insurance cost + total duty) x 21% VAT = Import VAT

You find some examples in the FAQ section of the Duty Calculator.

Hope this helps,

N

RUDOLF289

Soccerchipie wrote: »

Thanks Nicola, Just found this site http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm
It allows you to specify the exact item and country of origin. The closest match to a power kite was in Toys games and sports section XX chapter 95.
The final duty rate came in at 2.7%
Im still confused ... as the final customs charge should be 2.7% duty + 21% VAT + €6 P.O Charge
= €495 (Kite +p&P) + €13.37 + € 106.75 + €6
= €126... still alot more than I expected to pay..... but alot less than the €202 charge at present.
Thanks again

Hello Soccerchipie,

I did some research on your item and came to the conclusion that the rate of duty is 0%. I checked the BTI's (Binding Tariff Information). There is a UK importer that received a BTI for : POWER KITE MADE FROM TEXTILE MATERIAL WITH NO FRAME. THE KITE SELF INFLATES WITH THE WIND. THE POWER KITE CAN BE USED TO PULL BUGGIES AND MOUNTAIN BOARDS. If you believe that your power kite is similar than you should be able to make a case that the tariff nr should be 9503 00 99 90. In that case the rate of duty is 0%.

Also refer to my PM.

Best regards,
Rudolf289

nicola80

Hey, I did some research too and I confirm RUDOLF289:

Kite has HS code 9503009990 and 0% for import duty

However, if you are importing a 'landboard' as well, the HS code is 9506999000 and the import duty rate is 2.7%.

Therefore, if you are importing a kit, there is nothing much that you can do. It is 2.7%.

However, if you import a kite and a landboard as single distinct items, you can bundle up the two and get 0% on the kite and 2.7% on the landboard. Check Bundle Box if you need an estimate on the shipping cost of the 2 separate items bundled in a single shipment. http://www.bundlebox.com/shipping_estimate/

Last but not least, thanks guys! We added a new category called 'power kites' under 'sports & leisure' on the duty calculator. Hope you guys can check out and share your feedback with me.

Moreover, I am going to probably post this on the blog http://www.dutycalculator.com/blog. Soccerchipie, can I interview you? I think your story is interesting, like why you are buying a kite in the USA, how long you have been kiting, where do you kite, your friends - what they say about your skills , ... would be great to also have a picture of you in action. Let me know what you think - Besides I am a surfer and I wanted to try kiting, perhaps you can help me too

Rudolf289 do you want to say something as well? You are really good at duty rates, why don't we have a chat?

Best! N

Soccerchipie

nicola80 wrote: »

Hey, I did some research too and I confirm RUDOLF289:

Kite has HS code 9503009990 and 0% for import duty

However, if you are importing a 'landboard' as well, the HS code is 9506999000 and the import duty rate is 2.7%.

Therefore, if you are importing a kit, there is nothing much that you can do. It is 2.7%.

However, if you import a kite and a landboard as single distinct items, you can bundle up the two and get 0% on the kite and 2.7% on the landboard. Check Bundle Box if you need an estimate on the shipping cost of the 2 separate items bundled in a single shipment.
http://www.bundlebox.com/shipping_estimate/

Last but not least, thanks guys! We added a new category called 'power kites' under 'sports & leisure' on the duty calculator. Hope you guys can check out and share your feedback with me.

Moreover, I am going to probably post this on the blog http://www.dutycalculator.com/blog. Soccerchipie, can I interview you? I think your story is interesting, like why you are buying a kite in the USA, how long you have been kiting, where do you kite, your friends - what they say about your skills , ... would be great to also have a picture of you in action. Let me know what you think - Besides I am a surfer and I wanted to try kiting, perhaps you can help me too

Rudolf289 do you want to say something as well? You are really good at duty rates, why don't we have a chat?

Best! N

Hi Nicola/ Rudolf, Sent back the parcel for reassessment today including a cover letter and paypal reciept.... also got a call from customs in response to an email I sent.... It would appear that the package was valued at $1000 .... based on the shipping invoice... which had a stated value of $100.00.. I think the customs official mis-read the documents...:( ahh well... hopefully I will only have to pay €100 now instead of €200..
Thanks to you both for your help and advice... I'll let you know the outcome:)
In relation to an interview... no prob... I,ve only just started kiting/landboarding and my first kite is alredy too small... a little 3.1m foil.
Kites are good value from the US... but I didnt realise there would be customs charges... so I'm not so sure now. I've since bought another kite (5m Hq Beamer) from UK and I'm awaiting delivery... so im still making do with the baby kite
Most of the guys I kite with are kitesurfers and find the landboarding great in the colder weather... and not as much wind required. I do most of my kiting at the Curragh http://www.curraghkiting.com/
Ya can get lessons.... well worth it and highly recommended.. great instructor Luby!!:)
I hope to get out on the water during the summer and give kitesurfing a go.... prob in kite school Dungarvan.
Talk to ya soon

nicola80

$1.000!!! I am sorry to hear this.

try to understand what the official means - he might also have opened the box and check it out by himself (unlikely, but still...)

Yeah, you are right: your problem is on the import VAT now (duty on kite = nil, you can provide the HS code).
(you calculate the import vat value like this: (item value + shipping value + duty value which is nil in this case ) x import VAT tax rate.

good luck!

wanna send a picture of you in action for our blog? and I ll let you know as soon as I post it. you look awesome, I am sure
Mod Edit: PM for email info.

Dungarvan - seen pictures on google, amazing spot! catch you there, dude!

N

Soccerchipie

Hi all... good news, got the kite back from customs... very quick turnaround:eek:... no duty charge:) just VAT and PO charge... €110... much easier to swallow than the original €208.
Looks like the shiping label was misred... kite was valued by customs as $1000 instead of what was printed on the shipping lable $100.
Thanks to alll for your advice and for taking the time to research and share your expertiese....
Really appreciated... particularly Nicola and Rudolf:)