Hobby King Import Charges

[Tony Smith 7]

It's possible for companies outside the EU to ship goods with VAT and duty prepaid.

[Biggles' Elder Brother - Moderator]

No. Because VAT is collected by the retailer on behalf of HM Customs and Revenue. Unless an overseas supplier registered for VAT (unlikely that they could - even if they wanted to!) they can't charge it - or deliver it to HMCR.

 

BEB

[Tony Smith 7]

I've certainly received goods pre-paid from the Channel Islands.   Here's I think the relevant bit from HMRC guidance doc ....

 

3.4 Prepayment of import VAT on goods purchased over the Internet

UK Customs has special arrangements that allow some overseas traders to charge, collect and pay over to us the import VAT for goods purchased on the Internet that would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding (MoU) signed with certain overseas customs and postal authorities. The countries that have an MoU with HMRC are: Channel Islands, Hong Kong, Singapore and New Zealand. Overseas traders wanting to use this procedure must be authorised to do so by their authorities.

Once authorised, foreign businesses are issued with a unique authorisation number, which they must show on the customs declaration or packaging. Also they will include the statement 'Import VAT Prepaid'.

Where these arrangements are used you will not be charged a Royal Mail handling fee when you receive your package.

If you are a VAT registered business and purchase goods for use in your business you should keep the outer wrapper and invoice from the supplier to support your claim to input tax.

Edited By Tony Smith 7 on 15/01/2011 21:49:38

Edited By Tony Smith 7 on 15/01/2011 21:51:29

[Steve Hargreaves - Moderator]

Aren't Norway a sort of "Approved Partner" to the EU? I know they are not actually IN the EU but I thought they were a "favoured trading partner" or something..... like Switzerland. If you buy goodes from the EU VAT paid in their country of origin then there is no VAT or import duty to pay.....free movement of goods & services & all that.....maybe its the same for Norway...

 

I think I'm right in saying that quite a few large companies do use different locations to ship goods from depending on the applicable rate of VAT...many of my Amazon CDs/DVDs come from Jersey because as I understand it they have a lower rate of applicable VAT....2.5% less I think than the UK.....2.5% of Amazons turnover on CDs/DVDs would be worth saving after all!!!

[Kevin J Lloyd]

Never had a problem with Hobby King, everything I've ordered has been as a gift showing as hobby parts on the Customs declaration with a low value, if you want to pay duty on the items you have ordered then try this website http://www.dutycalculator.com/ which will work out exactly how much you have to pay.

 

[Erfolg]

Kevin

 

The link could be useful. Although I keep my orders within the £18 and soon to be £15 exemption limit, I have from time to time been been tempted to buy a kit or some such expensive (relative) items.

 

My own dealings with customs, via website and telephone have been less than useful. When trying to establish if kits, or toys, made from wood products or plastics were exempt from import duty, I was informed, our aim is to obtain the appropriate duties and taxes, not to aid those who would categorise an item to minimise taxes and duties. In short there was no help, just an underlying suggestion, that items were categorised to obtain tax, if the importer did not know that there was an alternative, duty free category.

 

So a duty calculator could be most useful.

[Erfolg]

Just used the site

 

It appears that most items we purchase can be classed as toys at 0% duty and 20% vat.

 

The site is really good.

 

It a pity that the import code is not given, if it is necessary to argue the point with the customs. Although you can never win. An example is the Volcanic dust cloud, the MET office model, being at odds with actual measurements, still grounded. Although knowledge is always useful.

[BB]

Never been charged import duty when ordering from HK. Always add 10 per/cent & use EMS. Never had a problem. Though I never back order out of stock items, you can end up waiting months. In stock items have never arrived later than 10 days.

[Frank Skilbeck]

I think its the size and value of the package, I've made several orders for lipos, motors and ESCs from Hong Kong with no problems, but I usually keep within the cheapest shipping for each order. A fellow flier made his first order with HK recently and went a bit overboard and ordered loads of stuff, he got caught for VAT.

[Ben B]

I ordered about £150 of lipos, receivers etc from HK a few weeks back. I can't remember which boxes I ticked for tax. I think 10% and gift (to myself). Came through unscathed. I think it depends on who is carrying it as well. DHL seem to always go for the tax, particularly when importing from the US.

[Erfolg]

BB, what is EMS?

 

Under-declaring can get things through from hear say, I personally much prefer to stay within the law. I also suspect that it provides the authorities with excuse of much more restrictive practices and limits as both shop keepers (who consider personal imports unfair competition) and Customs whose duty it is to recover duties that are due,push for ever greater restrictions (which would bring in more money and keep more of them employed).

 

[Michael Hickman]

Erfolg

 

Worlwide Express Mail Service ?

 

or

 

European Mathematical Society?

 

or

 

European Meteorological Society?

 

Mike

[John Privett]

Posted by Ben B on 26/05/2011 14:31:05:

I ordered about £150 of lipos, receivers etc from HK a few weeks back. I can't remember which boxes I ticked for tax. I think 10% and gift (to myself).

 

 

I'm not sure I'd be admitting to smuggling on a public forum Ben...

However, in my (fairly limited) experience with HobbyKing, what appears on the customs label seems to bear little resemblance to what I put on the order!

 

[BB]

Posted by Michael Hickman on 26/05/2011 15:24:41:

Erfolg

 

Worlwide Express Mail Service ?

 

or

 

European Mathematical Society?

 

or

 

European Meteorological Society?

 

Mike

Correct on No 1 Michael

Edited By Basildon Biggles on 27/05/2011 00:21:36

[Ultymate]

I've just had a 30% kit +50cc petrol engine +full exhaust system + carbon spinner all in one enormous coffin sized box direct from China and never got taxed or charged whatsoever, must have been shear luck I suppose, but it does appear that size and cost is not necessarily a factor. Another comment this time outside modeling, I've bought quite a bit of photographic gear lately some in the UK and some from the far east, many of the HK companies now trade on the principle of if you get caught for import duty/VAT that on proof of your payment they will reimburse you.

[Tim Mackey]

Another thing to bear in mind is that if you elect to declare a very low value on the shipping label, and the parcel gets "lost" - your insurance claim will be limited to the declared value

[Phil 9]

Posted by Ultymate on 27/05/2011 06:57:51:
I've just had a 30% kit +50cc petrol engine +full exhaust system + carbon spinner all in one enormous coffin sized box direct from China and never got taxed or charged whatsoever, must have been shear luck I suppose, but it does appear that size and cost is not necessarily a factor. Another comment this time outside modeling, I've bought quite a bit of photographic gear lately some in the UK and some from the far east, many of the HK companies now trade on the principle of if you get caught for import duty/VAT that on proof of your payment they will reimburse you.

what model did you buy. was it the big Yak?

[Ultymate]

It was this Phil from Peak models, I had an Edge from them previously and traded it for a big Ultimate last summer. I didn't really want to but at the time I didn't have enough in my slush fund to do the deal for straight cash and ever since I've missed having a fifty cc model in the stable so I've just done the deal for this Sbach which is sitting here waiting for it's maiden if the weather ever relents.

[Ben B]

In all seriousness though, what is the 5%, 10%, 20% thing? The "gift", "replacement part" thing etc is pretty obvious but what about the %age? I've always done 10% because that seems to be the default but what is it?

[Phil 9]

very nice Ulty

 

Ben B the % refers to the scale ie 1/2 scale = 50%

1/4 scale = 25% ect

[Pete B]

Not the model size, Phil - Ben means the customs declaration from HK. The percentage relates to the declared value HK print on the customs label, ie if you elect for them to declare 30% on $100 worth, they'll put $30 on the label. Customs are likely to be less interested in a lower value, so you take your chance on making a declaration other than the true 100% value.

Pete

[Rob Thomson - Slopeside]

I ran though an extensive review on this matter with HMRC as the issue has a negative impact on shops importing products (technically shops should pay duty of face the consequenses)

 

General line from HMRC was that they do not have the resource to check every parcel. Doing so would cause huge disruption - and is not viable)

 

I take that to read as - you will probably never get checked! And if you do.. how do they know the true value?

 

Rob

[Phil 9]

Posted by Pete B on 27/05/2011 09:30:22:

Not the model size, Phil - Ben means the customs declaration from HK. The percentage relates to the declared value HK print on the customs label, ie if you elect for them to declare 30% on $100 worth, they'll put $30 on the label. Customs are likely to be less interested in a lower value, so you take your chance on making a declaration other than the true 100% value.

Pete

silly me

[Phil 9]

Posted by Rob Thomson on 27/05/2011 09:32:22:

I ran though an extensive review on this matter with HMRC as the issue has a negative impact on shops importing products (technically shops should pay duty of face the consequenses)

 

General line from HMRC was that they do not have the resource to check every parcel. Doing so would cause huge disruption - and is not viable)

 

I take that to read as - you will probably never get checked! And if you do.. how do they know the true value?

 

Rob

 

 

 

 

It has aready been mentioned that there is more chance of getting a bill if a courier and that has been my experiance to. The couriers I belive have a vested interest as they also charge an admin fee on top of any tax charges. on some of my deliveries the admin fee has been greater than the VAT due

[Tony Smith 7]

Posted by Pete B on 27/05/2011 09:30:22:

Not the model size, Phil - Ben means the customs declaration from HK. The percentage relates to the declared value HK print on the customs label, ie if you elect for them to declare 30% on $100 worth, they'll put $30 on the label. Customs are likely to be less interested in a lower value, so you take your chance on making a declaration other than the true 100% value.

Pete

That sounds completely illegal, although I'm not sure whether it would be the customer or Hobby King that's the perpetrator.