Thought that some of you may be interested in an update before ordering from abroad....
I thought that I'd take advantage of the current exchange rate and I ordered a few items from the States. Having taken an age to arrive I found out yesterday that they have been stuck in customs for over a week and the post office tried to deliver two packages yesterday but Mrs dat didn't have the £36.10 in readies for the postman. They wouldn't take a cheque and can't take a debit card at the door (obviously). Postie left a card saying that insufficient postage had been paid by the sender (turned out not to be true).
Anyway, looking at HMRC's web I found out that you won't be charged duty on anything bought under £18 or £36 if it's a gift. Customs also use a different exchange rate to work out values and they fix the rate at the beginning of the month. When you are charged duty, this is calculated as a percentage of the cost of the items WITH the cost of the postage added on top.
Example: if the item is $70 and the postage is a further $20 then the duty is charged on $90.
For most items the duty is between 3% and 5% but after this percentage has been added, they then work out and add the 17.5% VAT.
So it's now $70 + $20, apply their exchange rate, add duty if applicable and then add 17.5% VAT.
You should note that if the sender wrongly describes and prices the goods sent then you are liable for their error and a fine may follow and the goods can be destroyed and you lose the shipment, particularly as they can open the box and check. These guys also have the internet to check prices if they open your box and they do it all the time so will know what is and isn'd dodgy. It's not really worth asking the sender to mark down the price for the sake of a few decks of cards if that's what you are ordering.
This process occurs whichever method of shipping you use. Sometimes you'll be lucky and have nothing added but other times you will. Swings and roundabouts.
The sting is in the handling charge made by Royal Mail which has now gone up to £8 per item from £4. This is where you need to be clever when ordering!
As an example, let's say that normal surface mail costs $19, is dog slow as it goes over land before ending up in the hands of the post office. When they add their £8, the total cost of the postage is $35 or there abouts. You can usually pay an extra $4 to upgrade postage to DHL air or priority for a little more with the benefit of it being trackable, much quicker and no additional cost from DHL for handling it. Work out your postage as this is where you can save a few pounds and it's probably cheaper to upgrade to DHL as spending £2 or £3 more at that end can save you a fiver or more at this side of the water.
Overall, it turned out that I only saved about £20 on a spend of £180 by the time I added all of the costs and it took three weeks longer than buying it in the UK. I could argue that it's better in my pocket but the convenience factor and the trip to the post office where you can never park plays a part.
Maybe there's not such a large advantage to the exchange rates when you take everything into consideration. It's only worth buying something abroad if you can't get it in the UK in my opinion(which was the case for one of the packages).
P.S. Why did it take THREE people at the collection office to sort a customs package when it took just one for normal parcels?
Member of the Magic Circle & The 2009 British Isles Close-Up Magician of the Year
It's not really an optical illusion - it just looks like one!