Skydiving Container Import

[Skithepowder]

I asked a question on here last week about importing a skydiving container (the "backpack" that you wear that holds your parachutes when you jump) from Jersey. I've now been offered a good deal from a gear dealer in America.... does anyone know where I can find out about whether I'd have to pay VAT and import tax on such a purchase when it enters the UK?

Also, how does it actually work when it enters the UK? Does it have a document attached that tells the people processing the package entering the UK that the taxes need paying or what? Is there any way around paying them? I don't mind paying income tax, road tax and all of that kind of stuff, because I'm actually getting something out of it, but buying something abroad has nothing to do with our government... I don't see how they have the right to claim nearly 20% for having nothing absolutely nothing to do with it. Is it illegal for the people sending the package to not attach such a document (if thats how its done) so it slips through? Do they actually open the packages or what?

[Skithepowder]

To add....

What if I could get a friend visiting America to pick it up... I could get it without VAT or import then right?

And also what if it went through a VAT registered company, is that possible with imports... how much VAT would I be able to get back then... would it affect the import duty?

[Buenchico]

Stage 1: Phone the Tariff Classification Service on 01702 366077. Describe the item which you plan to import and get them to provide you with the relevant 10-digit commodity code.

Stage 2: Phone the HMRC National Advice Service on 0845 010 9000 and quote the code you've been given. They will tell you the amount of duty & VAT to be paid.

Stage 3: Order your goods, ensuring that the sender attaches a Customs Declaration Form. Without an accurately-completed CDF the goods are liable to seizure (so don't try to beat the system).

Stage 4: Wait for something to turn up. This will either be the item you ordered or another declaration form. If it's the form, you need to complete it and send it back before your package can be delivered. When your package finally arrives, it won't be handed over until you've paid the duty & VAT plus (to add insult to injury) a handling fee for customs examination.

See here for more information:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channels PortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel _ShowContent&propertyType=document&resetCT=true& amp;id=HMCE_CL_001454

Chris

[Buenchico]

Further answers to your questions:
Q1: "Do they actually open the packages or what?"
A1: Over 50% of all packages I've ever received from the US have arrived opened and then re-sealed by customs.

Q2: "What if I could get a friend visiting America to pick it up... I could get it without VAT or import then right?"
A2: Wrong. Low-value gifts may be imported by personal travellers without incurring customs charges but certainly not the item which you're proposing to import.

Q3: "And also what if it went through a VAT registered company, is that possible with imports... how much VAT would I be able to get back then... would it affect the import duty?"
A3: You can only reclaim VAT on an item if VAT has previously been paid on the item in an EU member state. So this is not relevant here.

Chris

[Skithepowder]

So if a friend were to pick it up for me, and say that he took it to America when he went there? How could they dispute that?

So basically you HAVE to pay VAT on stuff from America even if you are a VAT registered company? Cos surely VAT will get paid within an EU member state once the item enters the country and you have to pay it.... in England? Don't you then qualify to reclaim it?

[Trotbot]

A UK VAT registered company has the opportunity to reclaim UK import VAT if it is imported in their name. They will receive a certificate of the VAT at month end that is used as evidence of input tax. However, whether they are correct to claim it is another issue, as it would have to be VAT incurred in the course of their business, not paid to help out a mate. Penalties may apply (it's been a long time since I looked at the VAT penalty regime thankfully).

As a postscript to Chris' s excellent reply, each time an item passes through Customs it becomes liable to duty. Therefore if you carried your backpack to the US and back multiple times in theory each time is a dutiable event. In practice most Customs officials will allow low value items (but which are more than the limit for personal allowance) that are used to be imported duty free. However, that is a concession, and to avoid that charge a duty relief scheme (e.g. ATA Carnet, Returned Goods Relief) should apply. The point to this blathering is that brand new goods do not get this concession!

[Skithepowder]

How do they know its brand new.... it doesn't come with a big sticker saying I'm brand new.... if could be 2 years old for all they know?

[kempie]

You would have found the information you were seeking from the link I supplied to your previous question.

http://www.theanswerbank.co.uk/Money_and_Finance/Question161984.html

[Buenchico]

If an item appears to be new, HMRC have the right to assume it's new. If, for example, you were to take an expensive item on holiday with you to the US, when you return HMRC have the right to charge duty & VAT on the item unless you can produce a receipt showing either that the item was puchased in the UK or that duty and VAT were paid when you imported the item on a previous occasion. It's up to the person importing the item to show that duty and tax should not be charged. (HMRC don't have to prove that it should be). Without committing fraud, you will not be able to provide the required documentation.

Chris

[Skithepowder]

I mean I don't know what customs is like these days, when travelling outside of Europe. But inside Europe you're very unlucky if you get checked, and don't they have those 2 queues.... anything to declare etc... surely the chances of them checking through all of your luggage to check if you have bought a new item are pretty miniscule.... it would take forever to check everyone.

[Buenchico]

Of course it might be possible to break the law and get away with it. It just depends upon how much you enjoy a gamble. If you try to bring your skydiving container through customs without declaring it you might well get away with it and, by so doing, save yourself a couple of hundred quid. On the other hand, if you get caught you can expect to spend several hours being interrogated, forced to strip naked and having a customs officer insert his hand into your rectum. (Once you've been identified as a smuggler, you'll certainly be given the 'full treatment'). Additionally, your skydiving container will definitely be seized and you could face prosecution.

The nature of the item you wish to import suggests that you enjoy jumping out of aircraft. Additionally, your screen-name suggests that you possibly enjoy skiing off-piste. Both of these activities involve an assessment of risk. It's up to you to consider the risks involved in smuggling.

Chris