Customs Importation Codes

[SilverTanner]

The whole thing is very frustrating, I am expecting some auction lots from the US which will have two codes on as it is a mixture of gold and silver/copper/bronze so we will see how that goes!?

Being charged 20℅ to then claim the vast majority back is going to be a serious problem as >80℅ of the value should be at 0℅?

ST

[Pete]

5 minutes ago, SilverTanner said:

The whole thing is very frustrating, I am expecting some auction lots from the US which will have two codes on as it is a mixture of gold and silver/copper/bronze so we will see how that goes!?

Being charged 20℅ to then claim the vast majority back is going to be a serious problem as >80℅ of the value should be at 0℅?

ST

You need to insist there is a commercial invoice attached itemising the contents and values.
The shipper should split the values into the 2 categories - nil VAT and Vatable so if the contents declared were say $1000 total then the customs form would state $800 code XYZ 0% VAT and $200 code XYZ 20% VAT. Provided this is done and you can show the detailed invoice it will definitely help reclaiming. Without that you stand little to no chance and it will become frustrating.

[sovereignsteve]

5 hours ago, sixgun said:

The rules are 

VAT

You pay VAT on goods sent from non-European Union (EU) countries and EUspecial territories (eg the Canary Islands) if they’re:

• gifts worth more than £39
• https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

If the item is declared as a gift, it is worth more than £39 and it is sent from outside the EU you are telling them to charge VAT.

yes.

 

[SilverTanner]

13 hours ago, Pete said:

You need to insist there is a commercial invoice attached itemising the contents and values.
The shipper should split the values into the 2 categories - nil VAT and Vatable so if the contents declared were say $1000 total then the customs form would state $800 code XYZ 0% VAT and $200 code XYZ 20% VAT. Provided this is done and you can show the detailed invoice it will definitely help reclaiming. Without that you stand little to no chance and it will become frustrating.

Pete,

That is what I have suggested - I may drop them an e-mail just to check!

I have all the invoices should it come to that.

Many thanks

ST

[sovereignsteve]

Even if they put the correct codes on, I think it is unlikely they will charge you correctly.

If you do have some chargeable items, you will have to pay the handling fee regardless so you shouldn't lose out.

It should be straightforward reclaiming the excess if you have a detailed invoice.

[sovereignsteve]

What's the thought on using the 5% VAT code but having to label with "numismatic" items or coins? Would it increase the chances of loss/theft?

I'm thinking of using this code on some items from Aus and the seller says he usually labels as "metal samples" because this is what the Perth Mint recommended to reduce chances of theft.

I'm thinking that using the code will definitely attract vat at whatever level they decide, but I will be able to claim any excess back. Or just use "metal samples" and hope it gets through un-noticed?

[HelpingHands]

It might depend on the parcel size.

Metal discs worked in the past

[sixgun]

i recently received a package with the first ever VAT for medallions forcibly taken from me.

i did the sums and will not be making an application for any of my money back. 

It sounds sensible to put the correct numismatic code and then a description like 'sample metal discs'. It does not draw attention from a Tea Leaf and is a recommend format from a State mint. 

 

[SilverTanner]

On 26/01/2017 at 09:05, sovereignsteve said:

Even if they put the correct codes on, I think it is unlikely they will charge you correctly.

If you do have some chargeable items, you will have to pay the handling fee regardless so you shouldn't lose out.

It should be straightforward reclaiming the excess if you have a detailed invoice.

First package arrived today - labelled 'numismatic items' and everything done correctly, no 20℅ to then have to claim back?

I just hope all the rest are that simple!

ST

[sovereignsteve]

Received this reply back from the Perth MInt regarding the 5% vat HS code;

The HS code 7118.90.20 which we use for all silver numismatic legal tender coins is correct and it appears that the broker in the UK has made different classification to minimise VAT but we can’t really do anything about it from our end.

9705 is the correct classification if the coins are of numismatic interest (i.e. for a collector) but please note the below exceptions from the HS explanatory notes…

Additional Notes.

1.-        (a)        Coins which are legal tender in the country of issue, including such coins in presentation cases, are not covered by 9705.00.00.

            (b)        Coins are not covered by 9705.00.00 as collections and collectors' pieces of numismatic interest unless presented as collections or as separate pieces clearly intended for a particular collection.

[sixgun]

54 minutes ago, sovereignsteve said:

Received this reply back from the Perth MInt regarding the 5% vat HS code;

The HS code 7118.90.20 which we use for all silver numismatic legal tender coins is correct and it appears that the broker in the UK has made different classification to minimise VAT but we can’t really do anything about it from our end.

9705 is the correct classification if the coins are of numismatic interest (i.e. for a collector) but please note the below exceptions from the HS explanatory notes…

Additional Notes.

1.-        (a)        Coins which are legal tender in the country of issue, including such coins in presentation cases, are not covered by 9705.00.00.

            (b)        Coins are not covered by 9705.00.00 as collections and collectors' pieces of numismatic interest unless presented as collections or as separate pieces clearly intended for a particular collection.

ALL coins other than say pre-Euro and pre-decimal UK coins etc etc are legal tender. The definition of a coin is that it is or at least was legal tender at one time or other. If it is not legal tender it is a round or medallion. Even the likes of a gold sovereign is legal tender, it is a £1 coin.

What is this 'HS explanatory notes'? Where can i find them? What is being put here excludes everything other than pre-decimal and pre-Euro etc and then old coins that form part of a collection. A William VI gold Sovereign would not be covered b/c it is not part of a 'particular collection'. What is their definition of a collection anyway? It would exclude ALL sovereigns as they are nominally £1 legal tender. Granted they are gold and so excluded but i am talking about the legal principle.  

i did a search using the words of the additional notes and i see Australian returns at the top. i will need to look at this more. i am trying to put together something definitive if and when the UK leaves the EU and members are faced with customs bills for 20% VAT on silver coins imported from the EU.

[caloundracats]

Looking at importing some rounds from the USA so this thread is of importance to me. Having just checked, this is from the updated Government website of 16 May 2018.

https://www.gov.uk/guidance/imports-and-vat-notice-702

11.3 Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest (tariff code 9705 00 00).

 

So VAT is charged at 5% if the correct code is used and full invoice can be provided by seller.

 

https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users

• 2.3 Customs Duty becomes payable if the value of the goods is over £135

In summary:

Goods Value*	Customs Charges applicable
£0.01 to £15	- No customs duty - No Import VAT**
£15.01 to £135	- No customs duty - Import VAT due
£135.01 and greater	- Customs duty due,  - Import VAT due

 

3.1  Customs Duty - becomes payable if the goods are over £135 in value.

The amount of Customs Duty charged will depend on the type of goods imported and the value stated on the customs declaration CN22/CN23 (converted to pound sterling using the rates of exchange for the month of importation as shown on the HMRCwebsite).

The percentage varies depending on the type of goods and their country of origin. Duty is charged on:

• the price paid for the goods, plus
• any local sales taxes, plus
• postage, packing and insurance

However, the cost of postage is excluded from the calculation for Customs Duty on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.

Where the value of gifts is below £630 per consignment, a flat rate of duty of 2.5% will be applied, but only if it is to your advantage.

 

In order to only pay VAT at 5% and avoid customs duties, the total cost of the items plus P & P and insurance must be less that £135. 

Oh well, may have to rethink or have several small packages but then that won't be cost effective due to shipping costs.

[caloundracats]

Legal Tender (UK) @sixgun  

I found this very interesting (long)article which I thought I'd share all about legal tender in the UK. 

http://robertleach.co.uk/wp-content/uploads/2011/05/Quick-guide-to-legal-tender3.pdf

These coins are legal tender though not in circulation:

• Britannia gold and silver coins minted from 1987

• £2 and £5 gold coins minted from 1887

• sovereign (£1) and half-sovereign (50p) minted from 1838

• £5 commemorative crowns minted from 1990

• £2 coins minted in 1986, 1989, 1994, 1995 and 1996

• crowns (25p) minted between 1816 and 1981

• double florins (20p) minted between 1887 and 1890

• Maundy money for 1p, 2p, 3p and 4p.