Importing from Europe

[JBF]

Wondering whether anyone had imported a model from the EU recently?  If so, I know VAT will be due (and to ensure I'm not charged local VAT) but what import duty was applied?

So far as I can work out there's 0% tariff on our models as the closest category I could find to describing them is 8806-2290 'unmanned aircraft - other, for remote controlled flight only - With maximum take-off weight more than 250 g but not more than 7 kg'.  Hoping someone who's recently imported a model might be able to confirm this so I know what to expect if deciding to buy something from the EU.

[oipigface]

I’ve recently had a crash course in import/export law post-Brexit, but it wasn’t a model. It was a CNC machine, which I ordered at the beginning of January. I won’t trouble you with all the ins and outs of my experience, except to say that three and half months later I’m still waiting for part of the order. Instead I’ll try to answer your questions. No import duty is payable on goods imported from the EU, and it is usual for them to be sent free of VAT, which is payable only in the destination country. This avoids the need for a system of international refunds, which would be very, very complicated indeed. So, the goods are sent from the seller. They arrive at an air- or seaport, and at this point HMRC steps in. They want their 20%. To get it, they emulate Dick Turpin, stopping the import process with a cry of: “Your money, or your stuff goes back to where it came from!” This is where things get complicated, because what happens next depends on the terms of the contract between the seller and the carrier. I think it is true that nearly all European exporters will have a deal whereby the buyer assumes ownership of the goods as soon as they leave the seller’s premises and responsibility for any costs arising rests with the buyer, or as the jargon has it, ‘the importer of record’. That’s you. (Oddly enough, you are also responsible if the goods turn out not to be as described on the invoice. Responsible is not the same as blameworthy, of course.)

Reputable carriers will manage the customs clearance process for you, charging a fee for this service which is not included in the shipping cost that you probably will have paid to the seller. This fee shouldn’t be enormous - £40 to £60 maybe. Other carriers will not manage it, in which case you may have to hire an agent, who will charge more. I was charged £155 as a ‘clearance fee’, plus £45 for use of the agent’s deferment account, in addition to the VAT.

I have failed to keep this short. I cannot claim to know all the ins and out of this, or indeed that I’ve got everything above exactly right. Because the shipping contract is negotiated between exporter and shipper, which covers a number of issues, there is no one answer to your questions. It depends who you are dealing with. Remember you will almost certainly become the importer of record. You will be reponsible.

[oipigface]

Something I forgot to mention: Recently, it has become necessary for Declarants (that's you when you are declaring to HMRC the package that's waiting in the shipper's warehouse for you) to become 'CDS ready'. (Sorry about the language. It's not my fault!)

This means that you are registered as a declarant. You can register at Customs Declaration Service - GOV.UK (www.gov.uk). You will acquire an EORI number while you are doing it. 

One of the difficulties with this whole system is that it has not been designed for use by private individuals. 

[JBF]

Thank you.  I think the main take away from this is that there should be 0% import duty due - just VAT and associated handling fees which I've expected.  I'll be sure to arrange for use of a reputable carrier with reasonable handling fees (UPS, DHL etc).  I'll also look into this 'CDS ready' registration nonsense to be sure I'm prepared as/when the time comes.

[Phil.Taylor]

Not a whole model - but I recently got 204 Euros of Freestyler spares from Germany - no import duty but had to pay DPD couriers £41 to cover VAT & their handling charge.

Phil.

[JBF]

That's not too bad considering the 20% VAT would be around 35.

[oipigface]

16 minutes ago, JBF said:

Thank you.  I think the main take away from this is that there should be 0% import duty due - just VAT and associated handling fees which I've expected.  I'll be sure to arrange for use of a reputable carrier with reasonable handling fees (UPS, DHL etc).  I'll also look into this 'CDS ready' registration nonsense to be sure I'm prepared as/when the time comes.

The CDS registration isn’t difficult. UPS have handled the second shipment of my machine very well - I’m expecting it tomorrow. Don’t be tempted by anyone using a Danish firm called DVS.

As long as there is nothing wrong with your shipment the whole process is not very onerous. Shortly after the goods arrive in Britain, you should expect to hear from the shipper with a demand for the fees and taxes. Pay what they ask for and the goods will be allowed to enter. Any problems and you are likely to enter a world of pain.

Good luck!

 

[James Albert]

I usually fear paying 2 times higher when importing from the European countries because the tax gets implemented on the shipping. This is the reason why we get those products at cheaper rates from a manufacturing company but the e-commerce platform sells on higher prices as compared to manufacturing companies.

[JBF]

I have brought two moulded models from Europe since this post, no problems at all.  The seller did not charge me local VAT.  On both orders DHL sent me an invoice for the UK VAT as soon as the items shipped (no import tax due for UAV/RC models), I paid it immediately and customs clearance/delivery was fast without any issues.  No need to register with HMRC for CDS or whatever - perhaps that’s only for business imports etc.

I’d happily purchase directly from Europe again.

 

[oipigface]

Well done, JBF. You’re right, but only if the people you are buying from and their shipping company know what they are doing. Then it works the way you describe. If not, you can get engulfed by the kind of red tape that I mentioned in my first contribution to this thread. The CDS requirement was (I was told by a helpful person from UPS) only recently introduced, and there may be ways around it for private individuals. Clearly UPS needed me to do it before they could clear my second shipment.

[JBF]

Agreed.  Ensure the seller does not charge local VAT and properly completes the customs declaration.  Also ensure a reputable international carrier is used - DHL, UPS, FedEx etc.  DHL would never be my first choice for shipments within the U.K. but credit to them they have done a good job with my imports and the handling fee was very reasonable. 

[James Albert]

22 hours ago, James Albert said:

I usually fear paying 2 times higher when importing from the European countries because the tax gets implemented on the shipping. This is the reason why we get those products at cheaper rates from a manufacturing company but the e-commerce platform sells on higher prices as compared to manufacturing companies. So,  always giive preference to professional courier company to get the affordable rates yet quality and fast shipping.