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IMPORT DUTY

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Graham Slee View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Graham Slee Quote  Post ReplyReply Direct Link To This Post Topic: IMPORT DUTY
    Posted: 16 Jun 2017 at 1:41pm
When I did the new e-commerce website late in 2015 I did my absolute best to ensure our great export customers (outside the EU that is) were warned that local taxes might apply on delivery.

Every shopping cart panel states:

Prices Include 20% VAT
Basket removes VAT on non-UK/EU purchases, but on delivery local taxes may apply!

It's there right at the top. It's not hidden out of sight.

So let's make it plain: we take off from our advertised UK (and EU) prices 20%. The price you pay (excl. shipping) is 20% less than shown.

Why? OK, concentrate . . . On everything we sell on the home market and throughout the EU countries, we have to charge 20% of its value and every three months we pay all those 20%'s to the UK tax authority. It isn't ours to keep - it belongs to the tax authority of the EU country, and the UK is one of them. (for the time being . . .) It's part of what's called "the free movement of goods".

So . . . if we're sending outside the UK or other EU country we cannot give that 20% to the UK tax authority because any tax owed belongs to the tax authority of the country where it is going to.

So let's take the USA as an example . . .

When the order lands the US customs check it against the US customs tariff. They should find it's 2.5%, but they may interpret it as 5%. We have no control over that.

So let's take the worst case - they apply 5% - that's 5p in the pound, or 5c in the dollar if you'd prefer it in dollars.

Then they'll look up what state it's going into. Some states are tax free (wow!), but a lot aren't. From what I've been told, GST as it's called in the States is 10%. So that gets added too.

So each dollar is first subject to a 5c charge, making it $1.05. Then that is subject to a 10% charge making it $1.155 which may be rounded up, or rounded down. Let's assume up, so that makes it $1.16 or 16%.

So, in this example, the USA, the customer is charged 16%. Equivalent to our VAT being 16% (if only . . .)

It's still cheaper than the advertised price on our site.

But if you're a member here, you also have your discount as well!

Why don't we pick up the duty? Well, with so many different duties to look up we would have to employ somebody to look them all up full time, which would lead to price increases to cover the extra salary . . .

. . . but also we'd have to cover places where the import duty is 45% !!! Yes, places like Vietnam. And that would mean a terrific price increase to insure us against such a hike.

So I think we're doing it in the fairest way possible?

Please share with us your experiences in receiving good from us in non-EU countries - we'd like to know.

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jwatson View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jwatson Quote  Post ReplyReply Direct Link To This Post Posted: 16 Jun 2017 at 6:28pm
Hello Graham,

I've ordered my Majestic and Solo UL from the site, two separate orders.  On both occasions the payment terms are very clear on the website and I understood when placing the order that I would be liable for any import taxes at my end.  This is the same arrangement as everything I've bought while overseas.  The forum discount wasn't deducted but as I didn't pay any import duty here felt that things balanced out (I was offered a cable at a hefty discount to compensate for the missing forum discount but I'm happy with my cabling).

Just one point, you say that "The price you pay (excl. shipping) is 20% less than shown." This is not quite true, the correct amount is actually deducted. The revised total is (1 / 1.2) or 83.333% of the stated price.

Kind regards

James
"I bought some more old vinyl today 'cos old vinyl won't ever let you down"
Majestic DAC -> Solo UL -> HD650
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Graham Slee View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Graham Slee Quote  Post ReplyReply Direct Link To This Post Posted: 16 Jun 2017 at 6:50pm
OK, you got me on the wording there James Wink

But that's the sort of thing I encourage because it helps others understand (and me!).
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itsmanhattan View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote itsmanhattan Quote  Post ReplyReply Direct Link To This Post Posted: 16 Jun 2017 at 11:27pm
I was impressed with how duties were handed in the US. 

I received 2 emails from UPS: 1) stating that there was an exception to delivery 2) stating that I had to pay import duties and taxes

I followed the link on the second email, put in my credit card details for a < $50 charge, reached a success page and was done.

I checked the first message a few hours later and clicked the tracking number to show that duties had been paid/received and that the package had been released and was en route as I type this.

Very straight forward and simple indeed.


Manhattan
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Aussie Mick View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Aussie Mick Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jun 2017 at 2:33am
Hi Graham,
    Our system in Australia is due for change July 1. For the longest time we've only paid import duty on items worth AU$1,000 or more. However, the application seems a bit random, as I've had quite a few over the value come through uncharged. It's like they're understaffed or something, so don't catch it all.

From July 1 that limit is dropping to AU$500, I think.

We pay 10% GST.
MICK.
Rega RP8/Ortofon 2M Black - Reflex M - C.E.C. TL5 CD Transport - MacBook Pro/JRiver - Majestic DAC - Proprius - PMC Twenty5.22
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