Customs duty exemption

[Beermonster58]

In case anybody hadn't noticed, it was announced in yesterday's budget the the Customs Duty exemption on parcels valued £135 arriving into the UK is to be abolished in 2029. However, that may change as the Chancellor is already under pressure to bring the exemption forward to an earlier date to bring the UK into line with the EU and, US. I guess most of us import kits and other modelling paraphernalia from overseas but, (and speaking for myself only), this is likely to affect my buying habits.

Postage from the EU is a real killer now, so, I've virtually stopped buying from EU countries and, I suspect this latest cost imposition is likely to have a similar effect

However, that's just Customs Duty. Goods imported into the UK may also be subject to Import VAT @ 20% but, the announcement, perhaps typically, gave no further details

[PR19_Kit]

Does that mean they WILL be charging Duty on stuff that's listed at LESS than £135 in future?

If so the whole damn world has got so VERY greedy, at a Government level! We hobbyists stand no chance, it's time for a revolution I tell you!   

[Weaver]

Does that mean they WILL be charging Duty on stuff that's listed at LESS than £135 in future?

If so the whole damn world has got so VERY greedy, at a Government level! We hobbyists stand no chance, it's time for a revolution I tell you!   

Yes, to our 1/35th scale pitchforks and LED torches, comrades!

[George the Cat]

Does that mean they WILL be charging Duty on stuff that's listed at LESS than £135 in future?

If so the whole damn world has got so VERY greedy, at a Government level! We hobbyists stand no chance, it's time for a revolution I tell you!   

Yes, to our 1/35th scale pitchforks and LED torches, comrades!

Are said pitchforks, etc also available in 1/16th scale?

[Beermonster58]

Does that mean they WILL be charging Duty on stuff that's listed at LESS than £135 in future?

If so the whole damn world has got so VERY greedy, at a Government level! We hobbyists stand no chance, it's time for a revolution I tell you!   

In a word, Yes!

[PR19_Kit]

Thank you Rachel, I hate you even more than I did before now.

[Weaver]

Thank you Rachel, I hate you even more than I did before now.

Her online nickname's shifted: it used to be "Rachel From Accounts", now it's "Rachel Thieves"...

[jcf]

This is the de minimis exemption, the same thing that was suspended by the US at the end of August. The EU
is also going to abolish it and it appears that the UK is now going to do it in coordination with the EU, rather than independently and sooner which had evidently been the plan.

The US had been $800, the EU is €150. The de minimis exemption had been under review by all of the governments that were the most effected and probably would have been eliminated by 2030, after all of the concerned parties had been able to do so without causing too much disruption in trade due. The out of proportion efffect on small niche companies, and individuals,who had relied on the exemptions in order to market their products or creations internationally, much of it through Etsy in the case of artists and artisans etc. (I loathe the idiotic term "creators"). This was a known issue and it was going to require coordination between the concerned parties.

Of course the big retail trade associations in the US, UK and EU don't give a damn about the little guy and have beenpushing for de minimis policies to be scrapped for many years due to "unfair" competition. How the sale of products that they don't offer to begin with is unfair to them is a question that hasn't been asked. Amazon had been their original target but as its business model is not quite the same, as a major part is that it acts as storefront for thousands of small businesses. Of course this doesn't mean that their system isn't being gamed. The exactly the same products, all originating in China, are sold under didn't brand names by supposedly independent "stores". Yeah, right sure they are.

The exemption concept had been that consumers and small companies would benefit from the rules by enabling easier sales and by reducing import costs and complexity. It worked as intended for a while, but the entire thing was thrown out of wack by the rise of giant direct sales "retail" operations out of China like Temu. They take advantage of de minimis on a scale that none of the governments had conceived of as being possible. Also if anybody actually believes that TEMU etc. are truly independent companies they've not been paying close attention to China.

Direct sales to the consumer means that billions of $/£/€ in duties were not being collected as long as the package value was below the de minimis level. Some also had VAT collection exemption for overseas sellers, the taxes were collected on the import end not by the exporter. This had even more of a financial impact, which is why the rules were modifed to require VAT collection by the exporting party.

Of course any rational and deliberate approach to adressing the issues involved have been knocked into a cocked hat by the actions of iDJT et al, which the governments were trying to avoid.

[PR19_Kit]

And in the UK all such duties are collected by the UK Border Agency, who subcontract the actual job to the Post Office (!) who charge a £13 approx. fixed fee for EVERY transaction! That means even something that costs £1 to buy would cost the buyer about £16 at the very least!

Or that's how it DID work back in the day, I can't imagine Dear Rachel changing such a money making scheme if she can do so.

I fear that lovely shop just south east of Schiphol have sold their last kit to me......................

[jcf]

And in the UK all such duties are collected by the UK Border Agency, who subcontract the actual job to the Post Office (!) who charge a £13 approx. fixed fee for EVERY transaction! That means even something that costs £1 to buy would cost the buyer about £16 at the very least!

Or that's how it DID work back in the day, I can't imagine Dear Rachel changing such a money making scheme if she can do so.

I fear that lovely shop just south east of Schiphol have sold their last kit to me......................

Blaming "Rachel" for it is as silly as blaming Labour for the cancellation of TSR.2, it is, and was, going to happen regardless of who's in office. It isn't her idea, she's just the face of it now. If you need to blame
someone, then looked to China.

[PR19_Kit]

I'll blame who ever I feel like for it......................

It's just wrong.

[zenrat]

IME most customers sending a parcel overseas from the post office I work in, irregardless of destination, when faced with additional fees in the form of tariffs, duties, or processing charges blame the current president of the US.

[NARSES2]

Regardless of the rights and wrongs of this PLEASE lets keep the politics out of it.

[Old Wombat]

Actually, Jon's right.

Most of this is down to China's economic guerilla warfare - small-scale actions conducted on a large scale to undermine foreign economic systems.

[Weaver]

There's probably a business opportunity here for "export companies" to offer small traders a hassle-free experience. Tell them in advance what you're shipping, where to, and what it's worth, and they give you a single quote for handling, paperwork and shipping, which you can then add on to your asking price.