UK Import Fees, Excise Taxes

I recently sold two coins to someone in the UK (I live in the US) for $115 total. I sent them first class and listed the value of the coins on the US customs form. The coins arrived in about a week.

He wrote back to me saying that he had to pay an additional $40 in customs fees and excise taxes, and he wondered if I needed to include the value of the coins on the customs form, saying this was the first time he'd had to pay this much.

So I have several questions:
1) Does this sound correct? Is this 35% add-on typical or a recent change in rates?
2) Is there a way to find out in advance what the fees and taxes will be so that I can warn future overseas customers?
3) According to my client, the fees kick in on any shipment with a declared value over $50. I need to include a value on the customs forms, but I suppose I could write any amount. I'm torn about undervaluing the shipment, though. Yes, I realize that in the US the prevailing theory is that only chumps pay taxes, but I'd still prefer to say "if you really want this coin, keep in mind that the final delivered price will be X dollars with shipping, fees and taxes." It may cost me some sales, but writing a value that I know is wrong seems unethical. What are your thoughts?

 

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I believe on the customs form there are several boxes that can be checked. Memory fuzzy its been ten years but it is how you are declaring, I think, I am sure someone will know more.

 

1* I put tokens as description on the form and always put a value of around $20 on it.

2* Theres a minimum customfee to make it worthwile for customs to print out the form.

3* paying fees over ancient coins is ridiculous imho.

 

Wholeheartedly agreed with @Andres2

Even in commerce, sending samples, prototypes, etc. were always valued as a token cost. Because the item becomes virtually worthless when it is shipped.

Ergo, I try NOT to sting the receiver in anything that I ship across any borders.

Random Ram:

TROAS Neandria AR Obol 4thC BCE 0.56g 8mm Laur hd Apollo r - NEA N Ram stdng right within incuse sq SNG Cop 446

 

Those charges sound a little steep.

I got a friend to buy me something in the US as the seller would not ship to the UK, It only cost $9 and I told her to put a nominal fee of $2 on the customs form.
Unfortunately she wrote it as $2.00 and the decimal point or period was not visible on the copy form when it arrived so UK customs read it as $200
I was charged £14 (18.74) to receive my package.

 

I check ed "Merchandise" box.

I write "stamped metal" to discourage the interest of potential thieves.

 

That's still a lot less than $40 on a $115 purchase.

 

I used to sell farm parts to upper canada and greenland a lot. It seemed to me the folks in greenland knew there would be fee's and we would work out something before shipment. But then again I always put Misc Farm parts down instead of electronics. Did you see a recpt? That they actually paid fee's?

 

I am thinking about buying an ancient coin from a dealer in Canada. Are there any regulations I need to comply with or know about as a US resident?

 

I suspect your customer had to pay the VAT tax on their imports. Paying taxes is a pain but worse is legal trouble.

A chain of craft stores in the US imported antiquities (clay bullae, cuneiform tablets and cylinder seals) with shipping labels that misleadingly described their contents as “ceramic tiles” or “clay tiles (sample).

The craft store had to forfeit all 5,548 artifacts which they had purchased for $1.6 million and they had to pay a $3 million fine.

It is a good idea to accurately label the country of origin (for example TR for Turkish Republic) and put the full purchase price on the shipping label. You don't want to get your customers into legal trouble.)

 

they have been charging vat on imports for quite a few years now and the rate is 20% so your buyer would be expected to pay the equivalent of $23 dollars tax .

 

There is a customs charge, VAT is applied at 20% and then there is a handling charge that is applied by the post office to handle the payment. The figures quoted sound correct for when they are applied.

 

Yes, good point.

 

Part of the problem is interpretation. It is ultimately up to the specific individual at the receiving end as to what they will do with a package (if it is indeed even inspected, most are not), how they interpret their own countries laws, codes, etc. I once sent a coin to Canada which was taxed as a 'button'. In most cases there usually wont be a tax, but often there is. There isnt anything you can do about it besides accurately describe what is in the package and the value. For those who live in high tax countries they are likely aware that they will be paying a tax or duty of some sort. That will be their responsibility.

 

I am in Canada and I rarely get taxed on imports. It does happen but in my experience it is not common. However if Fedex or another brokerage is used there will be fees, taxes, and customs duties.

 

I live in Thailand and I haven't yet had to pay any taxes or fees on ebay purchases and sales. I read an article in the Bangkok Post last week about possible taxes on internet sales and purchases beginning next year, something like 15%. That will likely put a damper on my activity if it does come to pass and I can not figure some way to dodge it. I generally do not approve of most taxes.

 

You should be aware that for customs purposes, the "value" is NOT the amount paid by the buyer -- it's YOUR value. In fact, if the coins you sold for $115 only cost you, say, $40, then it's perfectly legitimate to list the "value for customs purposes" as $40.

 

If I import a coin I expect the declared value to be the price and buyers fee but not postage or credit card fees. I believe this is the requirement. See https://help.cbp.gov/app/answers/de...value-on-commercial-invoices-for-cbp-purposes

 

I stand corrected. I haven't shipped anything overseas for many years, so maybe my information was from years ago and requirements have changed.

 

This is the situation when buying anything from abroad and importing it to the UK.

"Receiving mail from countries outside the UK
All mail that enters the UK may be examined by Customs. Normally letters, postcards and parcels containing only documents or similar forms of correspondence are excluded.
If you are receiving a parcel from a country outside the EU it may incur Customs charges. Any parcel assessed as being liable for Customs charges will also incur a Royal Mail handling fee of £8.
Any goods imported into the UK over the value of £15 are liable to import VAT. Gifts between private individuals over the value of £39 are also liable for VAT. Goods and gifts over these values may also be liable for customs duty. You no longer have to pay Customs duty for goods up to the value of £135, however you will still be required to pay import VAT and excise duty where applicable."

Customs duty is normally an additional %2.5.

So if you buy a US $40 (Approx. £30 at current exchange rates) coin and bring it in to the UK then you can expect to pay £6 in VAT and an additional £8 in handling fees from the Royal Mail. This adds £14 to a £30 coin.

Martin