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Custom's fees/duty and VAT





standready
I recently had an inquiry from a Frihost member about possibly becoming a distributor of my Stand Ready (tm) Inverted Bottle Holders in the UK. At the the bottom of any quote I make outside of the US I note: "Customer responsible for any custom's fees/duty and Value Added Tax, etc.".

You can't imagine my shock when I read the member's reply:
Quote:
Hi,
Your prices are definitely around the mark I would expect UK consumers to pay, having asked a few friends as well.

Then I read the tax disclaimer at the bottom of your message and did some research with Gov.uk Trade Tarrif which advises a 26.5% tax charge on the value of the goods. This increases the unit price unfortunately.

I have grown up in a world of European Union free trade between the 27 countries and completely forgot the import/VAT taxes applicable to the rest of the world.
The 26.5% taxes are pretty damaging to non EU trade in my opinion, and draws me to thinking that unless the GBP£ rises a bit more against the USD$ or we are assured of shifting many thousands then it might be a little while before I buy a box off you.

According to what I read on the link above, Not only would the product be taxed but the shipping cost are taxed as well. That absolutely ridiculous amount of tax just killed our deal.

So what is the amount of any 'import' tax for the country you live in? At what value does it start? I am curious. Kindly provide links as well.
deanhills
I can't work it out as I don't think there is a category for the product, but you can check it here Stand:
http://www.dutycalculator.com/help_center/Import-duty-taxes-when-importing-into-United-Arab-Emirates/

There is a customs free zone in the UAE where you can trade your products. Not sure how it works, but I think people trade their products there, and then the person they sell the products to imports it into the UAE, or to another country in the Middle East. You can read the details here:
http://www.dubaicustoms.gov.ae/en/Procedures/CustomsDeclaration/Pages/FreeZones.aspx

What I'd do is to check your product with those TV Channels who sell products in the Middle East. Check whether there is a Shopping Channel from the United States that is marketing products in the Middle East.

Here's an example of one - I think this one is originally from Canada:
http://www.thanetv.com/xpress_shop.php?lang=english
standready
Thanks Dean!

info on imoprting into the US
http://www.dutycalculator.com/

exporting from the US
http://export.gov/logistics/eg_main_018130.asp
coolclay
Just mark the importation certificate as a gift and you are fine. I've been buying and selling globally for many years, and almost all sellers check the item as a gift so that there are no taxes or other problems.

Maybe it is slightly immoral, but so is are the insane tariffs and taxes!
deanhills
coolclay wrote:
Maybe it is slightly immoral, but so is are the insane tariffs and taxes!
I'd say it is moral immoral. GREAT idea! Particularly for a practical product like Stand's. Fits the gift mold perfectly.
RosenCruz
My country (Turkey) has terrible trade tariffs for anything. Besides doing commercial business, even individual customers has to pay a lot of fees when buying stuff online.

I hope World Trade Union can do sth about all this mess Rolling Eyes
standready
coolclay wrote:
Just mark the importation certificate as a gift and you are fine.

That could work on a small order (sometimes) but the huge order that we would have had - no way it would have slipped through.

RosenCruz wrote:
I hope World Trade Union can do sth about all this mess Rolling Eyes

I personally think a country should tax imports exactly the same as the exporting country taxes it's imports. i.e. US should charge a 26.5% tax on all products/parts coming from the UK and other EU countries.
RosenCruz
Cosmetics, electronics and pharmaeuticals are banned in our customs. We can shop through amazon, ebay and get what we want even though we have the money Crying or Very sad
nickfyoung
Here in Australia you can import stuff up to the value of $1000Aust. before you have to pay duty. Not sure what the duty is after that but I once brought $2000 worth of jewellery back from the Philippines and paid that much in duty and tax and customs fees. So with our retail business we just make sure our overseas orders are under $1000 and there is no problem. I had an order go pretty close once and customs queried it because I had bought stuff end of season on sale. I just had to produce my receipts and they let it through.
standready
nickfyoung wrote:
Here in Australia you can import stuff up to the value of $1000Aust. before you have to pay duty. Not sure what the duty is after that but I once brought $2000 worth of jewellery back from the Philippines and paid that much in duty and tax and customs fees. So with our retail business we just make sure our overseas orders are under $1000 and there is no problem. I had an order go pretty close once and customs queried it because I had bought stuff end of season on sale. I just had to produce my receipts and they let it through.

Thanks Nick. I have had many individual orders from AU. Many order 10-20 then use for gifts.
bukaida
In India also, they are charging anything between 5% to 12% as VAT for domestic products. We are already paying the income tax to the government. So our rest of the income after deduction should be tax free. Then again we are paying the indirect tax on every product through VAT. So basically we are being charged twice. The import duty in some cases ( like cars, bikes) is almost near 200% (3 times the original).
deanhills
bukaida wrote:
In India also, they are charging anything between 5% to 12% as VAT for domestic products. We are already paying the income tax to the government. So our rest of the income after deduction should be tax free. Then again we are paying the indirect tax on every product through VAT. So basically we are being charged twice. The import duty in some cases ( like cars, bikes) is almost near 200% (3 times the original).
I found that in Canada too. When I was on holiday I had to get used to the price that a product is being sold for always increasing at the till with sales tax added to it. I find that daylight robbery!
vpnvpnvpn
The tax is always annoying Good luck man
standready
Working out large order quotes for Australia and New Zealand today. Australia seems OK under $1000 but New Zealand appears to be another UK. Minimum fee appears to be 15% of total including shipping. I don't under charging tax on shipping for no other reason than more revenue.
deanhills
standready wrote:
Working out large order quotes for Australia and New Zealand today. Australia seems OK under $1000 but New Zealand appears to be another UK. Minimum fee appears to be 15% of total including shipping. I don't under charging tax on shipping for no other reason than more revenue.
Great stuff Stand. And agreed New Zealand is pretty bureaucratic. I thought Australia was too. But they're probably be a little less so than new Zealand.
standready
Today was a small order for Denmark. Gift or not fees doubled the cost. I lost that order.
zimmer
VAT that depends in local law. However, in Philippines - it sucks!
coolclay
Quote:
Today was a small order for Denmark. Gift or not fees doubled the cost. I lost that order.


Wow, there's gotta be some way around it. I just sent a giant order of 20 Force fins to Germany instead of listing it as a gift like I usually do I just included a packing slip with a significantly lower price on it.
standready
coolclay wrote:
Quote:
Today was a small order for Denmark. Gift or not fees doubled the cost. I lost that order.
Wow, there's gotta be some way around it.

If there is a way around the fees, I don't know it especially as a business.
chasbeen
They can ask what they like.
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