Customs & Import duty on parts

PostPost by: silverlink » Tue May 05, 2020 9:25 am

Does anyone know the law regarding the importing of car parts from another country, I'm sure I saw recently that if they are for a car of 25 years or older tax is not payable. I think there is also rules on 'Vintage' cars that avoids paying tax.
My Sprint is classed as a 'Vintage car of Historical interest' on my V5 so does that mean any parts for it would avoid Customs and Tax duty?
Any comments would be appreciated.
Thanks
Ian
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PostPost by: 512BB » Tue May 05, 2020 9:43 am

About 5 years ago I bought some pistons from Bean in the USA. He sent them USPS, not the same as UPS. When they arrived in the UK, I received a notice from Royal Mail saying that I owed 20% VAT payable to HMRC and a ridiculous handling fee for RM, which I think was about £20. Fee to be payable before release of goods.

I wont do that again!

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PostPost by: alanr » Tue May 05, 2020 10:47 am

As Leslie says if you will normally pay UK VAT on parts purchased from outside of the UK when they arrive and also a handling fee to the carrier, FedeX , DHL or whoever.
There is also another gotcha if you send faulty parts back abroad under warranty, particularly to the US, when if the paperwork of the sender when it comes back to the UK does not mark it correctly and value as zero you will end up paying VAT and handling charge again on the same part!...I have had first hand hand experience of this and not been happy!

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PostPost by: HCA » Tue May 05, 2020 10:53 am

silverlink wrote:Does anyone know the law regarding the importing of car parts from another country, I'm sure I saw recently that if they are for a car of 25 years or older tax is not payable. I think there is also rules on 'Vintage' cars that avoids paying tax.
My Sprint is classed as a 'Vintage car of Historical interest' on my V5 so does that mean any parts for it would avoid Customs and Tax duty?
Any comments would be appreciated.
Thanks
Ian


Much the same comments as above (good point re return parts).

Duty free only applies to complete cars and not to car parts where full duty is due.

Now, if the car part you are importing was originally made in the EU, then in theory, no duty is payable. Good luck on fighting this one though!

Duty is the least of your worries. 20%VAT is far greater than the actual duty which is less than 5%.

The big killer is the handling charge as outlined above. The carriers act as agents for HMRC to collect the duty and VAT and are allowed to charge. And boy, can they charge! Their charges are backed by HMRC so no arguing. If you do not like it, the parcel is shipped back and you are charged the shipping cost. Many carriers will get a court order to pay this, as it is easy money - fill out one form, submit to court, end of.

Technically you are allowed goods to be brought in duty free under £135 (for the UK) that includes shipping cost. Good luck in fighting this one too!

Sometimes the system will surprise you and the parts come in without question. I once had two cams and all the valve gear for a Cadillac Eldorado arrive on my doorstep without question, other times a set of brake pads have ended up in a major inquisition.

But Bojo and his blonde mate say they are going to sort it all out for you :D :D
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PostPost by: silverlink » Tue May 05, 2020 1:05 pm

Thanks for your replies guys,
You're dead right with Royal Mail ! Its akin to a licence to print money, I've fallen foul of this with guitar parts from the US and, has been said, sometimes something will arrive with no Vat or customs and the next thing you order gets clobbered with everything. I now work on adding 25% to the total cost which isn't far wrong. Royal Mail charges are for administration so why do they add different amounts to the bill ! I've had to pay £8 and the next thing I get its £20.
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PostPost by: USA64 » Tue May 05, 2020 4:09 pm

I'm in the USA, so I'm just commenting generally. I believe it matters if the import is for -personal use not for resale- also if it is a gift. I have heard that the USPS is easier than UPS or FedEx because the government does not audit them. It might pay to read the regulations and instruct the shipper accordingly. Each country is different and some items are surprising e.g. no pictures of women to Saudi Arabia, no beet seeds to UK; at least the last time I looked..
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PostPost by: The Cyclist » Tue May 05, 2020 6:01 pm

I am sorry to say that leaving the EU may well result in these sorts of shenanigans and costs for every imported item, so if you are getting parts from Europe this year is the time to buy. Ohh and of course we also have time to fit them :)
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PostPost by: Frogelan » Tue May 05, 2020 10:17 pm

Bringing in parts from the US attracts duties within the EU (including GB which is sort of half in, half out).

Indeed the current duties are less of an worry than the time needed for the HMRC paper trail.

It is safe to assume that costs will go up as the WTO duties (extra 20%) will add onto the VAT and handling costs described above at the end of 2020. Some people even think that this is a a good idea.

My suggestion is that in some cases it may be worth travelling to the US with just a toothbrush before returning with some intriguing souvenirs for your nearest and dearest.
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PostPost by: Davidb » Wed May 06, 2020 5:03 pm

USA64 wrote:I'm in the USA, so I'm just commenting generally. I believe it matters if the import is for -personal use not for resale- also if it is a gift. I have heard that the USPS is easier than UPS or FedEx because the government does not audit them. It might pay to read the regulations and instruct the shipper accordingly. Each country is different and some items are surprising e.g. no pictures of women to Saudi Arabia, no beet seeds to UK; at least the last time I looked..


This seems to apply in Canada to a certain extent-but we steer clear of UPS! Gougers and crooks.
The Canadian government does not seem to monitor its own postal service so if things arrive from overseas in the mail, generally there is no tax or duty. Courier companies are obligated to collect both and they do!
Since I live in Canada but only one mile from the US border I have parts from either the US or UK shipped to a holding station at the border and I drive down and import them directly-usually at no charge unless it is an expensive item.
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PostPost by: silverlink » Mon Jun 08, 2020 6:38 pm

Hi All,
Thought you'd be interested in this.
I ordered some CV Driveshafts from Col Croucher in Australia (ElanTrikbits) and have had super service from Col with good communications all round.
They've taken just over two weeks to get here and will be delivered tomorrow 9th June but before been delivered I've had to pay the dreaded tax which is as follows.
Customs Duty £27-78
Import VAT £129-03
Clearance Fee £12-00 (to Royal Mail)
Total £168-81

Thanks guys
Ian
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PostPost by: alan.barker » Fri Jun 12, 2020 6:04 am

Yes but you didn't pay the Aussie VAT because they were export did you.
Or Col didn't charge Aussie VAT or you claimed back the Aussie VAT.
The VAT not paid in Aussie equals the VAT in UK or am i missing something
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PostPost by: Mazzini » Fri Jun 12, 2020 6:36 am

I don't think Colin is VAT registered in Australia, but I could be mistaken, the point is that VAT or purchase tax is not charged at source, if the country is outside the EU, but it is charged upon entry to the UK and then the shipping company adds on stupid 'handling fees'.
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PostPost by: HCA » Fri Jun 12, 2020 6:39 am

Not sure you need to be registered - simply exporting a product is enough to waive the Australian tax. Someone from Australia can correct me..

I looked at Col's offering earlier and reckoned I would be paying a tad more extra than Ian paid. I am not sure though if the extra work Col puts into the shafts over Kelvendon - in my case - would justify the price though. I will say though that Col was a real gent and much better to talk with than another Australian manufacturer whose sour grapes attitude was not good :evil:
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PostPost by: alan.barker » Fri Jun 12, 2020 7:04 am

Well it seems with all these Taxes and Charges we end up with a much bigger Bill :shock:
For someone with an early Elan i suppose the offering in USA look good. Which include the stronger Diff Output Shafts.
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PostPost by: Mazzini » Fri Jun 12, 2020 7:09 am

My S3 came with US JAE driveshafts and my Sprint came with Col's driveshafts. When driving the cars, I can't tell the difference.
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