Amazon.com customs charges, VAT on postage

[Sodslaw]

I normally accept the fact of customs charges, its just what happens when you import discs, but thought I would look into my £12.47 charge on my blu ray order which cost $23.98.
The £8 admin charge is a rip off, dhl and fed ex dont charge this much so why should the royal mail?
The £4.47 charge did not equate to 20% of $23.98 as the current exchange rate is £1-$1.58.
With the exchange rate at that level the $23.98 equates to £15.07, so for 7p over I have to pay an £8 admin fee.
When royal mail calculate your customs charge they INCLUDE the postage costs, so you are paying VAT on this too.
Im going to call them on Monday to get clarification on this but shipping should not be applicable to VAT.
I have contacted amazon.com about this as the way they label your shipments has a total figure which incorporates cost of discs and shipping which MAY be confusing for the Royal Mail

[josuv22]

wow that steep

I know the time I got charged vat the admin charge was added to value of item + shipping

so for you etc you got 23.98 USD = 15.1146 GBP 15 + = 22 + 20 % = 4.60 round by todays exchange rate

[DaveSimonH]

If the item price was $23.98, excluding delivery, then I'm afraid the charge is valid. But if the $23.98 includes delivery charge then you should be able to contest it. Once you go over £15, they take the delivery charge into the customs amount, that is correct (even if a bit unfair).
I agree the Royal Mail £8 flat rate is ludicrous though.

Current exchange rate customs use is;
£1 = $1.5804

so
£15 = $23.70
£15.17 = $23.98

[EddieLarkin]

Originally Posted by Sodslaw

I have contacted amazon.com about this as the way they label your shipments has a total figure which incorporates cost of discs and shipping which MAY be confusing for the Royal Mail

Really? I've ordered hundreds of items from amazon.com and they always mark the item cost and postage cost as separate.

[chip75]

Originally Posted by EddieLarkin

Really? I've ordered hundreds of items from amazon.com and they always mark the item cost and postage cost as separate.

A few members have reported that the two values have been combined with recent orders. Which is confusing to the Royal Mail. You've just gone over the £15 limit with your order.

When royal mail calculate your customs charge they INCLUDE the postage costs, so you are paying VAT on this too.

Only if the intrinsic value is above £15, it states that quite clearly on their website.

2.What is the intrinsic value?

The intrinsic value is the price paid or payable for the goods excluding postage and packing and insurance costs.

[Sodslaw]

Lots of well informed folks on here, thanks, I appreciate it.
Ive cancelled all of my orders which have more than one release in the same week, if they were sent individually then the customs charge doesnt kick in.
For amazon.com it just means a extra $2.49 per seperate order but thats still better than the £8 admin charge then the VAT on top.
If I place a big order and the releases are staggered then its just cost effective to put them through in one batch, the $2.49 will only go through once and then the delivery charge.
I know the rules are the rules, but for going over by 7p the additional charge of £12.47 is just beyond shocking, the discs cost £15.07 , I could of bought another disc with that!!
Cant fault amazon.com's customer service though, they have issued a $15 gift certificate as a result of this.

[RedCellUK]

When ordering from Amazon.com I prefer to go for expedited, which lets you pay customs fees up front with Amazon, so no surprises, and doing it this way actually lowers the bill on the customs for some reason, and occassionaly its not charged and you get refunded.

I suspect OP will get nowhere with the Royal Mail as, they need to contact HMRC as Royal Mail always defaults to "just collecting the money we paid out" excuse. Laughable that effectively they charge £8 to charge you more money!

[Sodslaw]

Redcell have you tried amazon.ca?
The standard delivery is actually dhl which arrives in two days, you can arrange to pick it up at a local point if your not in.
The local points are normally open from 8-8 ( homebase , staples)
Only issue is the sometimes bilingual covers.
Received high fidelity over three weeks ago yet the order of grosse point blank and adventures in babysitting ( the one with the customs charge) I only got on friday after the day befores notification of the customs charge.
They were all released in the same week.
The reason why some discs i order from ca as opposed to com is ca is actually cheaper sometimes.
Not sure if some of you are aware but if you contact the website you can add to an order saving you that $2.49 charge, the delivery charges will be recalculated but you are still saving money, just be mindful of the discs released in the same week chstoms scenario.

[Stu123]

My item was £13.37 from amazon.com third party seller but fulfilled by amazon and got hit by customs.Sent a form to border agency to appeal and havent heard anything for 3 weeks.When i paid the customs charge and the item got delivered it was badly bent.

[Boomstick_316]

Originally Posted by stubiedoo

My item was £13.37 from amazon.com third party seller but fulfilled by amazon and got hit by customs.Sent a form to border agency to appeal and havent heard anything for 3 weeks.When i paid the customs charge and the item got delivered it was badly bent.

So the whole thing with Amazon making a mistake, is in fact, false. They have no control over how third party sellers pack up their goods. The customs bill is down to the person you purchased from, not Amazon. Although, they might refund you, if you ask them but they don't have to as it's not their error.

[malcy30]

Originally Posted by stubiedoo

My item was £13.37 from amazon.com third party seller but fulfilled by amazon and got hit by customs.Sent a form to border agency to appeal and havent heard anything for 3 weeks.When i paid the customs charge and the item got delivered it was badly bent.

It sounds as if the customs declaration was screwed. As Dave saw you only pay if the actual item is £15 or over, but if it is then you have to pay VAT on the shipping as well.

Something else to remember is the exchange rates are set on the 1st month and then that applies all month. Important if you are buying something clse to the limit, as it's not the rate on the day you purchase, it's the rate from the previous 1st of the month when it is assessed by UK customs.
You can check the rate on their website, so you know how much you can spend up to.

[chip75]

Originally Posted by malcy30

It sounds as if the customs declaration was screwed. As Dave saw you only pay if the actual item is £15 or over, but if it is then you have to pay VAT on the shipping as well.

Something else to remember is the exchange rates are set on the 1st month and then that applies all month. Important if you are buying something clse to the limit, as it's not the rate on the day you purchase, it's the rate from the previous 1st of the month when it is assessed by UK customs.
You can check the rate on their website, so you know how much you can spend up to.

I have a pre-order with Amazon.ca which is due to be released on October 23 2012. If the exchange rate on the HM Revenue & Customs site on October 1 2012 puts my package below the £15 is it safe to go with Standard Shipping? It would save a few pounds and Amazon Canada don't pay the fees on your behalf with Expedited Shipping although they have said they'll refund any charges incurred.

It was under £15 but now it's gone over. But if I get hit it will end up costing more than Expedited Shipping!

[Boomstick_316]

Where on the HMRC website does it state the current currency values?

[Albatross365]

Originally Posted by Boomstick_316

Where on the HMRC website does it state the current currency values?

Here you go

[DJJez]

Originally Posted by Sodslaw

I normally accept the fact of customs charges, its just what happens when you import discs, but thought I would look into my £12.47 charge on my blu ray order which cost $23.98.
The £8 admin charge is a rip off, dhl and fed ex dont charge this much so why should the royal mail?
The £4.47 charge did not equate to 20% of $23.98 as the current exchange rate is £1-$1.58.
With the exchange rate at that level the $23.98 equates to £15.07, so for 7p over I have to pay an £8 admin fee.
When royal mail calculate your customs charge they INCLUDE the postage costs, so you are paying VAT on this too.
Im going to call them on Monday to get clarification on this but shipping should not be applicable to VAT.
I have contacted amazon.com about this as the way they label your shipments has a total figure which incorporates cost of discs and shipping which MAY be confusing for the Royal Mail

i got charged exactly the same amount as you for ordering full metal jacket digibook from amazon.com. i reckon customs are clamping down at the moment as alot of people are getting raped recently.

the £8 handling fee is a joke.

[Sodslaw]

Chip, I dont know if you read my post before but I dont know why you would pay for fast shipping for amazon.ca.
The standard shipping is sent by DHL which arrives in 2 days as opposed to amazon.com whose standard shipping can take 6-8 weeks by their own estimate.
I honestly dont think the express shipping at amazon.ca is worth it if it only takes two days to arrive on regular postage.
I havent used their express service but I think that at a guess it would arrive the next day, I would rather wait the extra day than pay more for it to be delivered a day sooner.
If you do get charged customs their admin fee is considerably less than the royal mail £8 admin fee,and they will call you to arrange payment which can be done over the phone, I appreciate that a customs charge is a kick in the nuts but with dhl at least they are wearing softer shoes as opposed to royal mails doctor martens.

[Phil92]

I could've sworn it was if you go over £20.

*Cancels some orders*

[Indiana Jones]

Originally Posted by Phil92

I could've sworn it was if you go over £20.

*Cancels some orders*

Been £18 for many years but recently changed to £15

Not sure where you got £20 from

[chip75]

Originally Posted by Sodslaw

If you do get charged customs their admin fee is considerably less than the royal mail £8 admin fee,and they will call you to arrange payment which can be done over the phone, I appreciate that a customs charge is a kick in the nuts but with dhl at least they are wearing softer shoes as opposed to royal mails doctor martens.

Thanks for the information. Have you had items delivered over the £15 limit which you haven't received a customs invoice and administrative charge for? Do some slip through unchecked?

[Phil92]

Originally Posted by Indiana Jones

Been £18 for many years but recently changed to £15

Not sure where you got £20 from

I'm not either.

Although, $23.98 works out to £15 converted, so the OP has a point. Unless it was $23.98 before shipping, then he's screwed...