Importing Advise


S

Sim

My wife is the process of importing some samples from the USA which a
approximately £300.00, what duty/tax implications are there. If the samples
are a success she will probably order more stock.

She is also looking at other countries, are the imports laws the same.

Currently she is a housewife, she does not have a company name or VAT
registered, this is a experiment and if she is successful she will register.

Also someone in her situation does she have any allowances and claim on any
expenses (phone calls, shipping charges)

Thanks
 
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R

Robert Killington

Sim said:
My wife is the process of importing some samples from the USA which a
approximately £300.00, what duty/tax implications are there. If the samples
are a success she will probably order more stock.
If certain conditions are met, the samples should be imported free of
duty and VAT.
She is also looking at other countries, are the imports laws the same.
You mean importing from other countries into the UK? The laws are the
same, the amount of duty that may be charged may vary depending on the
country of origin of the goods.
Currently she is a housewife, she does not have a company name or VAT
registered, this is a experiment and if she is successful she will register.
Your wife doesn't need to form a company to set up in business, she
can do so as a sole trader. Using a company can provide some
protection in the way of limited liability. I'm sure others who know
more about this will comment shortly.

A person doesn't have to register for VAT until it has taxable
turnover over the VAT registration limit. A person can register on a
voluntary basis if it benefits them.
Also someone in her situation does she have any allowances and claim on any
expenses (phone calls, shipping charges)
Yes. She'll have a personal allowance and will be able to claim tax
relief for business expenses. I'm sure there'll be an accountant
along shortly to provide more indepth advice on this aspect.

Best wishes


Robert Killington
Visit http://www.vatark.co.uk
for help with VAT matters

Please contact me via my website.
 
S

Snowman

Sim said:
My wife is the process of importing some samples from the USA which a
approximately £300.00, what duty/tax implications are there. If the
samples
are a success she will probably order more stock.

She is also looking at other countries, are the imports laws the same.

Currently she is a housewife, she does not have a company name or VAT
registered, this is a experiment and if she is successful she will
register.

Also someone in her situation does she have any allowances and claim on
any
expenses (phone calls, shipping charges)

Thanks
On a similar topic - and a topical one - how do you go about legally
bringing in spirits from another EC country for sale in the UK?
 
J

Jonathan Bryce

Snowman said:
On a similar topic - and a topical one - how do you go about legally
bringing in spirits from another EC country for sale in the UK?
You tell the Customs Officer on entry to the UK that you have some spirits
for resale in your possession. You then offer them large quantities of
money as payment of excise duty for them. I'm sure HMCE will tell you how
much if you ask them.
 
A

A *********

1) importing samples - there could be duty and VAT on these if you are not
careful

samples of no commercial value normally attract no VAT or duty. the exporter
would enclose an invoice stating "samples of no commercial value" and the
invoice would have a nominal value of $5 or something similar.

the goods should not be in a saleable condition - maybe marked indelibly
with the words "samples of no commercial value." or in small containers - eg
100ml of shampoo rather than 500ml as it would be in a shop, etc. if you
import something which is clearly saleable - eg a new rolex watch - you will
not find it easy to claim it to be a sample.

see customs notice 367 at this address: http://tinyurl.com/6sbar

2) samples from European Union countries - no customs formalities

3) importing from the USA / other non-EU countries for commercial purposes

VAT payable on arrival for most goods. Duty depends on what the goods are.
They must be classified and given a tariff number - this can be used to
determine the duty payable.

if you know the tariff number, this site can help find the % duty payable:-

http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm

Classifying can sometimes be tricky - try this link:
http://194.223.26.57/icn/main.cfm

You will need someone to make a customs entry and handle the VAT and duty on
your behalf. This would be a freight forwarder for larger consignments

4) importing from European Union for commercial purposes

The exporter must charge you VAT at their local rate if you are not
registered for VAT in this country.

There is no duty. It is much easier to import from the EU.

5) Running a business

You can get help and possibly a grant to set up a business from your local
Business Link.

Allowable expenses include, amongst other things:-

Shipping
Telephone calls
Duty
Postage/carriage to deliver to UK customers
Bank charges
Insurance
Rent of premises
Bad debt
Employee's wages

6) VAT registration

Registration is compulsory if the turnover is over £58,000 per year.

7) other resources

www.hmce.gov.uk Customs and Excise

For help on classifying goods for customs purposes, you can call customs on
01702 366077

If not commercially sensitive, post a description on this newsgroup and
someone may be able to classify your goods and indicate duty implications.
 
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Z

zaax

Jonathan Bryce said:
You tell the Customs Officer on entry to the UK that you have some spirits
for resale in your possession. You then offer them large quantities of
money as payment of excise duty for them. I'm sure HMCE will tell you how
much if you ask them.
No you don't you have to be a R.E.D. trader. Ring 0845 010 9000 & ask
 
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