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Customs duties and VAT ( taxes / tariffs / levies ) on clothing
imports into the UK from non-EU countries.
When shopping on USA based, Asian or African internet clothes sites
it can be very easy to get carried away by cheap prices. When your
clothes arrive, and a bill for extra customs duties and VAT unexpectedly
arrives as well, it can be enough to put many people off online
shopping completely.
We
have researched the current situation with regards to import duties
and taxes. We asked Customs and Excise on their 'Tariff helpline'
- phone # 01702 366077.
On clothing from US or Canadian suppliers this is what you will
pay extra on clothes bought online. ( Some third-world African,
Asian and South American countries have trade deals in place for
less tariff on clothing and footwear, but these are the approximate
duty rates and VAT will apply on all imports from Non-EU countries.
)
CLOTHING
IMPORT DUTIES
NOTE 1: - Clothing and Footwear orders under £18 are VAT free.
NOTE 2:- Custom Duty only applies [a] if the initial purchase price
of the goods is over £135
and
[b] if the "duty amount" due is over £9
1) Customs Duty. - Customs duty is calculated by Customs on the
TOTAL cost of the clothing. They add together the purchase price,
+ any insurance, + freight costs. This gives the TOTAL. They then
look at the material the clothing is made from. On the TOTAL figure
they charge Customs duties of 12% for "fabric" clothing
made from cotton, silk, nylon, polyester etc.. If the clothes are
leather the duty charge is 4%
2) V.A.T. - After adding the customs duty to the total cost of the
clothing, they then add V.A.T.@ 17 1/2% on
the after Customs duty figure.
SHOE
BOOT and FOOTWEAR IMPORT DUTIES
1) Customs Duty. - Again Customs duty is calculated by Customs on
the TOTAL cost of the footwear. They add together the purchase price,
+ any insurance, + freight costs. This gives the TOTAL. They then
look at the material the footwear is made from. On the TOTAL figure
they charge Customs duties of 17% for footwear made from "fabric"
or plastic. If the shoes or boots are leather the duty charge is
8%
2) V.A.T. - After adding the customs duty to the total cost of the clothing,
they then add V.A.T.@ 21% on the after Customs
duty figure.
Examples of how this might work out: - A Ball Gown costs $150 from
Sydney's Closet. You choose insurance at $15 and there is a $35 airmail
freight charge. Total cost for Customs Duties purposes is $200.
Customs duty will be $24 ie 12% of cost, making $224.
V.A.T. is now charged by Customs on the $224 @ 21% = $47.04.
The extra charges in total are $24 + $47.04 = $71.04, which is then
changed to Pounds at the central exchange rate of the day. In many cases
the delivery company used will ask for payment of the customs duties
before releasing the clothing to you.
For footwear we will take as an example a pair of fashion extra-wide
calf, man-made material, boots bought from DesignerShoes.com for $65. You choose
USPS delivery and there is a $35 airmail freight charge. Total cost
for Customs Duties purposes is $100. Customs duty will NOT APPLY ( see
NOTE 2 )
V.A.T. is now
charged by Customs on the $100 @ 21 % = $21
The extra charges in total are $21, which is then changed to Pounds
at the central exchange rate of the day.
If the boots had been leather, rather than man-made material, any potential
duty would have been less.
FREIGHT
COMPANY ' BROKERAGE FEE ' (for collecting customs duties)
Some freight companies like FED EX. and DHL charge
a brokerage fee for collecting customs duties. This can be as high
as £4+. If the US retailer uses USPS ( United States Postal
Service ) the deliveries do not have these extra charges
Further
information can be had by contacting : - Customs and Excise - Newcastle
1 Contact Centre, National Advice Service
Written Enquiries
H M Revenue & Customs
Dobson House, Regent Centre, Gosforth
Newcastle upon Tyne NE3 3PF
Tel: 0845 010 9000 , Fax: 0191 201 1742
Textphone: 0845 000 0200 , E-mail: enquiries.yhne@hmrc.gsi.gov.uk
©
PlusSizeClothing.co.uk 2004
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Customs
duties and VAT ( taxes / tariffs / levies ) on clothing imports
into the UK from non-EU countries
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