Quizzes & Puzzles1 min ago
calculating import tax from usa
3 Answers
hi
how do I find out how much you pay on importing goods from the USA
Cheers!
how do I find out how much you pay on importing goods from the USA
Cheers!
Answers
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(2-part post):
Here's a summary of the rules:
If the goods are exempt from import duty and VAT, you won't pay anything. (There are very few items which fall into that category but, for example, most books do).
If the value of the goods is less than �18 you won't pay anything. (The only exception is when excise duty applies, which basically means alcohol and tobacco).
As soon as the value of the goods reaches �18, here's how things are worked out:
Here's a summary of the rules:
If the goods are exempt from import duty and VAT, you won't pay anything. (There are very few items which fall into that category but, for example, most books do).
If the value of the goods is less than �18 you won't pay anything. (The only exception is when excise duty applies, which basically means alcohol and tobacco).
As soon as the value of the goods reaches �18, here's how things are worked out:
1. The first consideration is Customs Duty (also known as Import Duty). This is calculated as a percentage of the value of the goods. The actual figure varies according to the type of goods. For example, radios and computers are rated at 0% whereas a CD player is rated at 9.5% (without a radio) or 12% (with a radio). Clothing is theoretically rated at 12%. However, the UK currently has sanctions in place because the USA is in breach of World Trade Organisation rules on subsidies to cotton farmers. That means that cotton-based clothing from the USA currently attracts 27% duty.
2. If the duty, calculated as above, comes to less than �7 it's disregarded. (i.e. if the theoretical figure is only �6.99, you pay nothing).
3. VAT is calculated. For most goods this is 17.5%. This is charged on the value of the goods, the carriage charges and on the duty. (Yes, that's a tax on a tax!).
4. A customs examination fee is added on to what you have to pay. Unless you're importing very high value consignments, this will be �8.
Here's a 'worked example', assuming that you import cotton-based clothing that costs you �100, plus �20 carriage:
Customs duty = �27
VAT = 17.5% of (�100 + �20 + �27) = �25.73
Examination fee = �8
Total to pay = �60.73
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_page Label=pageTravel_ShowContent&propertyType=docu ment&resetCT=true&id=HMCE_CL_001454
Chris
2. If the duty, calculated as above, comes to less than �7 it's disregarded. (i.e. if the theoretical figure is only �6.99, you pay nothing).
3. VAT is calculated. For most goods this is 17.5%. This is charged on the value of the goods, the carriage charges and on the duty. (Yes, that's a tax on a tax!).
4. A customs examination fee is added on to what you have to pay. Unless you're importing very high value consignments, this will be �8.
Here's a 'worked example', assuming that you import cotton-based clothing that costs you �100, plus �20 carriage:
Customs duty = �27
VAT = 17.5% of (�100 + �20 + �27) = �25.73
Examination fee = �8
Total to pay = �60.73
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_page Label=pageTravel_ShowContent&propertyType=docu ment&resetCT=true&id=HMCE_CL_001454
Chris
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