Confused about import duty

TheDonMan

First of all I apologise if this is in the wrong section, I wasn't sure where to put it.

I'm going to America in a couple of weeks and was planning on getting a ps3 while I was there due to the weakness of dollar. I was thinking of buying a ps3 on the way back, at the airport, tax free. Now I'm flying from California into Heathrow and my question is will they charge me import duty even though I bought it at the airport and do not live in the UK?

I'm not really brining it into the country, only the airport and then I'm flying out to Cork again. Would they also not make me pay import duty because I had bought it in the airport on the way back?

I know I won't have to pay import duty bring it back into Ireland because of the EU. Could someone please clear this up for me? It may seem like a stupid question but it has me confused.

If you need any further information I can give it to you.

seamus

I'm not entirely sure.

I would imagine that the import duty is payable when the item enters the EU.

Failing that, the fact that you are bringing the item into this country means that you *are* importing it. You're only exempt from paying import duty from another EU country if the import duty has already been paid in that EU country.

If you are challenged at customs you would need to show that
A) You bought the PS3 in another EU country
You paid the import duty in another EU country

I'm open to correction though.

TheDonMan

seamus wrote: »

I'm not entirely sure.

I would imagine that the import duty is payable when the item enters the EU.

Failing that, the fact that you are bringing the item into this country means that you *are* importing it. You're only exempt from paying import duty from another EU country if the import duty has already been paid in that EU country.

If you are challenged at customs you would need to show that
A) You bought the PS3 in another EU country
You paid the import duty in another EU country

I'm open to correction though.

Thanks for the reply. So it doesn't make a difference if I bought it "tax free" at the airport in California, I would still have to pay the import duty when bringing it into the airport in the UK?

FredsWebHead

Hi all,
As far as I know you can bring in €80 worth of goods into this country from any where tax free. The way I see it your going to open it up while your over there and the box is going to get tatty, play a few games so its going to look used. Then of course the TAS are going to go through your bag to see what electronic stuff is in there on the way back home. Then your going to declare it and it will hardly be worth €150 cause it'll be 2nd hand. The customs officer will tell you to go home an stop wasting his time.
Corn beef.
Fred.

cgarvey

TheDonMan wrote: »

Thanks for the reply. So it doesn't make a difference if I bought it "tax free" at the airport in California, I would still have to pay the import duty when bringing it into the airport in the UK?

Correct! You're only buying it free of sales tax (5-9% or whatever) over there. That doesn't relieve you of your Irish & EU taxation, just their local tax. Similarly, if you bought something in Dublin airport tax free (21%VAT), and brought it "home" to the US, you'd be liable for import duty there too.

Whether you pay in the UK or in Cork depends on your transfer type. If you are not on a point-point flight and stay in the restricted transfer area, then you you are not likely to be asked to declare anything; just go through security checks (as against customs checks). HM Customs might stop you and might insist you pay import/VAT if they are suspicious, but you can reclaim that on exit again if you want (now you wouldn't want to because they have a lower VAT rate).

I'm thinking for that to happen you'd have to have a 4 wheelie carts of visible PS3 boxes, per hand! Import duty is due at the port of entry, just the hassle of it means they pass the book to the final port.

Whether or not you get stopped in Cork is anyone's guess, though I'd imagine it'd be easy enough to go undetected.

BTW: VAT @21% is due plus import duty (don't know what the percentage is for this category of goods, but around 5% is probably close)

witnessmenow

I brought home a ps3 from america via london too, you wont be charged customs in london if your on a connecting flight. and the chances of you being charged customs in Ireland are slim.

Your warranty is no use to you over here so dump the box to be on the safe side, how are they to know you bought it there?

EDIT: throw away the american plug too

BTW they weigh a ton, my back was almost broken by the time i was home!! I did have my laptop, ps3 and various other electronic devices in the same bag though

mcaul

I don't think there is duty on game consoles, but there would be VAT.

Its not too highly valued to get too much attention form customs - they are far more concerend with drugs than someone bring ina game console.

One problem you may find is that due to its weight, you may not be able to bring it on board unless you have no other hand luggage and so excess charges may apply.

Another option is to check the price in London on the way out and see if the price difference is worth it with sterling at .79 to € you may find little difference between UK airport price (VAT free) and US price and warranty would be valid and there would be no problems with customs.

jor el

TheDonMan wrote: »

Thanks for the reply. So it doesn't make a difference if I bought it "tax free" at the airport in California, I would still have to pay the import duty when bringing it into the airport in the UK?

Don't buy it at the airport. If you do, you'll end up bringing it back in it's box, which will make you stand out when going through the customs channel. Buy it in a shop over there (it won't be any cheaper at the airport), take it out of the box and pack it in your check-in luggage, or a carry-on bag.

They do weigh a ton though, so that could be an issue with weight allowance. Also, I don't think I'd trust the baggage handlers with my shiny new PS3. Put it in a backpack and carry onboard.

Then your going to declare it and it will hardly be worth €150 cause it'll be 2nd hand. The customs officer will tell you to go home an stop wasting his time.

That's simply not true. 2nd hand makes no difference, they'll value it for themselves and charge accordingly. They won't tell you to stop wasting their time, as their paid to do this.

Keep the receipt too. If you get inspected, and you can't prove how much you paid, then customs will value it at the local retail price and charge VAT on that. If you can show how much you actually paid, then you pay VAT on that amount. Just keep the receipt in your wallet.

TheDonMan

Thanks to everyone for replying, you really cleared alot up for me. I think I will just buy it in America and throw away the box and pack it in my hand luggage and take my chance with Heathrow customs.

I have two more slightly off-topic question though:

-Does anyone know how much a ps3 is tax free in the UK?

-Has anyone ever had any troubles bringing a games console with them in hand luggage or will they just treat it like a laptop or something?

mcaul

This was posted on another forum site

Prices are HMV in Stanstead airport - don't ask me what gta etc mean - I a pac-man & Space Invaders type!:D


PS3+GTA4 £255 (€335 / $520 approx )
PS3+GTA4+ 1 game of your choice £263 (€350 / $540 approx )
PS3+GUITAR HERO (GUITAR AND GAME) +GTA4 + Singstar £292 (€380 / $620 approx)

cgarvey

mcaul wrote: »

don't ask me what gta etc mean - I a pac-man & Space Invaders type!:D

That's surely worthy of Post of the Month nomination!

The_Conductor

The other thing to remember is that the PS3 does implement region codings- you may be stuck on R1 for Bluray and DVDs with it (games are not region coded normally).

S.

TheDonMan

mcaul wrote: »

This was posted on another forum site

Prices are HMV in Stanstead airport - don't ask me what gta etc mean - I a pac-man & Space Invaders type!:D


PS3+GTA4 £255 (€335 / $520 approx )
PS3+GTA4+ 1 game of your choice £263 (€350 / $540 approx )
PS3+GUITAR HERO (GUITAR AND GAME) +GTA4 + Singstar £292 (€380 / $620 approx)

Thanks, those prices are actually surprisingly good..

GTA means Grand Theft Auto by the way

smccarrick wrote: »

The other thing to remember is that the PS3 does implement region codings- you may be stuck on R1 for Bluray and DVDs with it (games are not region coded normally).

S.

Yeah, I'm aware that I won't be able to play R2 Blu-rays but that's ok for me as I plan to you it solely to play ps3 games.

mcaul

cgarvey wrote: »

That's surely worthy of Post of the Month nomination!

We're not all under 25 - I started on a Commodore 64!!!

The_Conductor

mcaul wrote: »

We're not all under 25 - I started on a Commodore 64!!!

I started on the PET- 4 years before the Commodore 64 was out......
I feel old........:(

Ps- I've been collecting computer chips as a hobby for years- I've everything from an 088 chip the size of two credit cards, all the way up to engineering samples for the 423 P4 and wafers for the P3 Its an unusual collection!

rubadub

You are going to need another PSU or step down transformer, and it must match the power usage.

Unless they are 220/110V PSUs they come with.

TheDonMan

rubadub wrote: »

You are going to need another PSU or step down transformer, and it must match the power usage.

Unless they are 220/110V PSUs they come with.

The PS3 has a built in transformer (part of the reason why it's so big ) so all I think you need is a 3 amp computer lead.

I have decided to get one in Heathrow though as it's just less complicated and I get to keep my warranty etc.. but I have one last question for you good people, if I buy it in Heathrow on the way out (you have to fly international to get tax free?) could they charge me custom duty when I arrive in San Fransisco International Airport?

cgarvey

TheDonMan wrote: »

if I buy it in Heathrow on the way out (you have to fly international to get tax free?) could they charge me custom duty when I arrive in San Fransisco International Airport?

They could. If they don't believe you when you say you're bringing it back with you, they have the right to charge (no idea on rates). It is EXTREMELY unlikely that they wouldn't believe you (say you're bringing it for evening entertainment when you're too knackered to go out.. or something.). If they do charge you, you're entitled to a full refund on your way back out anyway, it's just hassle.

Dixons Tax Free (the Dixons shops in the airports) have a facility where you can buy on your way out and collect it on your return leg. I don't know if Dixons sell PS3s (I'd imagine they would, but maybe not), nor do I know if HMV offer a similar facility.

If I were you, and I'm not (nor am I a solicitor or tax consultant/accountant!), I'd just buy it in the states (if you're OK on the region thing).

jor el

smccarrick wrote: »

I started on the PET- 4 years before the Commodore 64 was out......

mcaul's such a young'un, I had a Dragon 32, in fact, I still have it. Loved Invaders Revenge, brilliant game. To the retro forum with us...

TheDonMan wrote:

I have decided to get one in Heathrow though as it's just less complicated and I get to keep my warranty etc.. but I have one last question for you good people, if I buy it in Heathrow on the way out (you have to fly international to get tax free?) could they charge me custom duty when I arrive in San Fransisco International Airport?

I'm not so sure you'll get a very good price at the airport in Heathrow, regardless of the VAT. It's unlikely you'll have any tax issue on entry to the US, and even if there is, the taxes over there are less than here. If you're going to get one during the holiday, then get it in the States. The PS3's transformer is 110/220V, so no problem there.

TheDonMan

cgarvey wrote: »

Dixons Tax Free (the Dixons shops in the airports) have a facility where you can buy on your way out and collect it on your return leg. I don't know if Dixons sell PS3s (I'd imagine they would, but maybe not), nor do I know if HMV offer a similar facility.

Yes, I think they do this in HMV as well but the only thing is I think they only do it if you're flying within the EU and not internationaly.

jor el wrote: »

I'm not so sure you'll get a very good price at the airport in Heathrow, regardless of the VAT. It's unlikely you'll have any tax issue on entry to the US, and even if there is, the taxes over there are less than here. If you're going to get one during the holiday, then get it in the States. The PS3's transformer is 110/220V, so no problem there.

Well, I know how much they are in the States so I will compare that with the price at the airport and see if it's worth it.

The only thing which worries me about buying it in the States is that I loose my warranty and if it breaks then I'm screwed. I know the PS3 is pretty reliable but it still worries me.

mcaul

The "tax free" pricing at the airport is promotional pricing to get you to shop there. Basically its a 15% reduction in price, funded by the operator of the store.

Most people can buy at heathrow & collect on the way back, only problem is there is a different gate area for Irish flights which does not go through the main shopping area.

When departing ireland, you will also arrive in ths area, so check the 2 stores in this area to see if they have the ps3 - if so no problems. If not, you will have to be certain that you can collect the PS3 in the irish departing area upon return.