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sam christie
United Kingdom
3101 Posts |
 Posted - 21/02/2013 : 12:39:33
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I recently bought an original part for a J2 from an MG owner in the USA and paid something on the higher end of the price range for the same item in the UK. It was £200. I winced at the extra £27 for postage but item arrived safely and was as described.
Then a couple of weeks later a bill arrived from FedEx for a little more than £76 for VAT and import duty. Needless to say the purchase would never have happened if I had known the actual cost of my '£200' item was really over £300.
Is it correct that duty and VAT are payable on old parts – especially ones coming back to their country of origin where duty would already have been paid when the car was new? Have I any grounds to appeal to HMRC about what I see as absolutely prohibitive charges?
Sam |
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paul55
Luxembourg
731 Posts |
Posted - 21/02/2013 : 12:57:05
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You might have a battle here Sam, I suppose that you would have to prove that the car or parts were exported without any taxes being paid. Doubt that the HMRC have any records that go back so far, then was the part that you bought originally part of a car or a spare shipped after? But you have a good general point here, one well known MMM dealer always charges VAT on his second hand parts, and I have always wondered it this is correct. After all if I buy a second hand car there is no VAT on this, so why the difference? Anyone know?
Paul. |
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Nick Feakes
USA
3376 Posts |
Posted - 21/02/2013 : 13:01:20
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Sam
Was the item stated as being second hand on the customs declaration? I do not know the precise law but I do not think second hand anything is subject to VAT?
I would definitely make a claim for a refund, at worst they can simply reject it.
Nick |
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Oz34
United Kingdom
2543 Posts |
Posted - 21/02/2013 : 14:11:02
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Whatever the legal rights or wrongs of this, the whole idea is typical of the immoral money grabbing attitude of our lords & masters.
I hope you won't have to remove this Nick!
Dave |
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Simon Johnston
United Kingdom
6140 Posts |
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LewPalmer
USA
3244 Posts |
Posted - 21/02/2013 : 14:51:37
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I have had several bad experiences on parts (new and used) coming from the UK to the US via UPS. They seem to make up customs fees as they go along. I once was charged duty on a water manifold where the basis of the duty was the part number rather than the quantity. It did no good to complain. Since that time, I always request the item be shipped via Royal Mail. The item arrives quickly and has never attracted duty.
Lew Palmer
PA1169, PB0560 |
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sam christie
United Kingdom
3101 Posts |
Posted - 21/02/2013 : 19:25:36
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Thanks for these contributions.
By bringing up this subject I have inadvertently offended the seller who is absolutely blameless.He recognised the details of the transaction and thought this thread was partly directed against him. This is no reflection at all on the seller.
On the 'Commercial Invoice ' which FedEx have posted to me there is a heading 'Description of Goods' and below is written '1933 MG USED CAR PART' followed by 'Country of Origin' - -'ENGLAND' ...'Unit Value' -'$300'.
The words 'CAR PART' have a circle round them as though this has especially drawn the attention of the customs officer.
The HMRC leaflet is not much fun to read but perhaps there is a glimmer of hope in this-
3.2 Is duty charged on used goods?
Used goods are still liable to the same duty and VAT charges as if they were new. However, this may vary depending on their age and condition.
I will compose an email appealing to HMRC for special consideration (which must go via FedEx) quoting the above but sadly I think this is going to end up going down to experience.
Sam |
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kimber
United Kingdom
1529 Posts |
Posted - 21/02/2013 : 19:40:21
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Here's something I posted on the VSCC website some time ago which might be of some help to you:-
I have recently had a pair of Houdaille shockers repaired. The only people I could find to do them were in USA. It was not a cheap repair.
A friend of mine happened to be travelling to the States a few months ago and kindly took the knackered shocks in his hand luggage and arranged local delivery to the repairer.
The repairer returned them via DHL.
I have just received a note saying that my parcel is at the local depot awaiting collection, but not before I have made the following payments:-
Customs Duty £19
Import VAT £135
Clearance Fee £8
(I did speak with HM Customs & Excise who are 'reconsidering' after hearing my explanation. I did ask what would have happened if instead it had been my friend's camera which broke when he was on holiday and was repaired/returned in similar fashion. The response was that the same charges would apply).
2 months later....
Pleased (relatively) to report that the final bill was about £40. In fact, the Revenue were actually quite understanding in the end. The fact that it was a 'repaired vintage car part' seemed to make the difference. |
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sam christie
United Kingdom
3101 Posts |
Posted - 21/02/2013 : 19:47:16
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Thanks Andrew, 'repaired vintage car part' will be a line I will use. Is there a charge for quoting you?
Sam |
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kimber
United Kingdom
1529 Posts |
Posted - 21/02/2013 : 20:42:09
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quote:
Originally posted by sam christie
Thanks Andrew, 'repaired vintage car part' will be a line I will use. Is there a charge for quoting you?
Sam
In my case, I already owned it when it went to USA. You may need to weave a plausible tale  |
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Nick Feakes
USA
3376 Posts |
Posted - 21/02/2013 : 20:58:36
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Hi Dave
Far from deleting your post, I am pleased to see someone with such a realistic view of their dictators!
Nick
Webmaster |
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kimber
United Kingdom
1529 Posts |
Posted - 21/02/2013 : 21:09:41
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quote:
Originally posted by sam christie
Thanks Andrew, 'repaired vintage car part' will be a line I will use. Is there a charge for quoting you?
Sam
In my case, I already owned it when it went to USA. You may need to weave a plausible tale |
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Oz34
United Kingdom
2543 Posts |
Posted - 21/02/2013 : 23:37:20
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Thanks Nick. I think you will agree that those who took over the reins from us became cynical far more quickly than we did; they must have had good role models!
ATB,
Dave |
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Pat Widdup
New Zealand
399 Posts |
Posted - 22/02/2013 : 03:44:16
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Hi there fellow MG ers. This has made me think about the boot stays i am makeing for fellow owners. I think i will label them for shipment purposes as a GIFT . This then should stop any Duty. .
Cheers Pat W |
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sam christie
United Kingdom
3101 Posts |
Posted - 22/02/2013 : 10:22:25
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Pat, I have been reading parts of Her Majesty's Revenue and Customs leaflet and section 2.7 relates to gifts -
2.7 Do multi-gift packages containing more than one gift qualify for the £40 customs duty waiver and import VAT relief?
Where a package contains gifts that are clearly intended for several people, for example, members of the same family, the £40* VAT relief applies to each individual person provided the goods are:
individually wrapped, and
specifically addressed to them, and
declared separately on the customs declaration
within the allowances specified
If more than one individual package is addressed to a particular person the value of the goods will be added together. If the total value exceeds £40* import VAT will be charged, and if the value exceeds £135 customs duty may also be due.
If a package contains a number of different types of goods intended for more than one person, and these are separately described and given a value on the customs declaration, the waiver of customs duty will apply to each item. For import VAT, only as many items that add up to the value of the import VAT threshold (£40*) will be granted relief; for example, if a package contains six items each with a value of £8, only five items will be entitled to relief (5 × £8 = £40*) with charges payable on the sixth item.
When one item is sent to two people and its value exceeds £40*, it is not possible to aggregate each person's gift relief, and the value of an individual item itself cannot be divided; for example one item with a value of £50 sent to two individuals cannot benefit from the gift relief.
An illustration of this is shown below:
Goods sent as gifts
Relief given
One item valued at £40* or below
Free of customs duty and import VAT.
One item valued at £44
Import VAT is chargeable on the full value.
Six of the same items valued at £8 each
Five items are relieved of import VAT leaving import VAT chargeable on the remaining one item.
Five different items valued at £120 each
Import VAT is chargeable on the full value.
One item valued at £300
Customs duty is charged (but will not be collected if the amount of duty is less than £9). Import VAT is chargeable on the full value.
*Please note: this limit will reduce to £36 with effect from 1 January 2013. Therefore, if a package contains a number of different types of goods intended for one person, for example, a package contains five items each with a value of £8, only four items will be entitled to relief with charges payable on the fifth item (4 × £8 = £32).
I think this means that even as gifts the value declared needs to be below the threshold and it is better to send items in a number of packages rather than all at one time in one large package.Within the package each item needs to be individually wrapped and addressed. But I would welcome a second opinion.
Sam |
Edited by - sam christie on 22/02/2013 10:28:13 |
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george
United Kingdom
862 Posts |
Posted - 22/02/2013 : 10:52:22
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| I came back from Germany with an N engine in the back of the car.At customs I was asked what it was and I told them it was a pre war British car engine.The very brief conversation that followed seemed to indicate that as it was British and made/ exported before VAT was invented nothing was payable.Maybe I was lucky with the bloke on the day[certainly VAT/duty on that would make me weep].Geoff |
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