The amount of duty to pay varies from 0% for some mobile phones
to almost 15% for a plastic-covered handbag. Music players such as
iPods attract a customs duty of 2%.
HMRC is increasing the point at which customs duty on online
purchases coming from outside the European Union (EU) becomes
payable from £18 to £105. Purchases within the EU attract no import
duty.
VAT must still be paid on all online purchases costing £18 or
more, though. The rate of VAT is fixed at 17.5%.
"If you're buying goods from countries outside the EU, it's in
your interests to know what the rules are," said Doug Tweddle,
director of customs and international for HMRC. "For example, some
websites don't always make clear there is duty or VAT to pay, while
others may misrepresent or undervalue your goods to try and avoid
paying charges. But if goods are found to be wrongly declared, they
may be seized and the customer penalised."
The change to the point at which customs duty is charged will
happen on 1st December.
The change will change the amount to be paid for goods that cost
more that £18 but less than £105.
A number of online retailers have established themselves in
Jersey and Guernsey in recent years to take advantage of an EU law
that allows for the VAT-less import of goods into the EU if they
cost less than £18. This is because it was seen as inefficient to
engage in costly VAT administration for goods costing just a few
pounds.
The Channel Islands are technically outside of the EU, though
their defence and diplomacy is conducted by the UK on their
behalf.
The amount of duty that is to be paid on goods depends on what
they are. Goods are categorised into one of thousands of codes,
each of which has a particular duty rate. For some it is zero and
can go over 10%.
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