Buying from Overseas Sellers
At times you may bid on items in Internet auctions where the seller is overseas. If you win the auction that means paying postage and packing, and can also involve you having to pay customs charges before you’re able to get the item, unless it’s coming from inside the EU or other “special territories” (although with the latter you pay import VAT).
That can be very frustrating. It means that, depending on the value of the item, you’ll pay a variable percentage of the sales value in customs duty, as well as VAT on top of that, plus a fee from the Post Office. As if that weren’t quite enough, you’ll have to go to the postal depot to pay in person and collect the item.
What You Can Do
Although it’s illegal, buyers and sellers do sometimes avoid the problem of customs duty by putting a much lower value on an item. The shipper will have to fill out a customs form that’s attached to the package. This includes information as to whether the item is a gift, documents, commercial sample, or other, as well as the value of the enclosed item.Since no duty is payable on items valued at less than £36 (and above that the first £7 of duty is waived), if the seller puts a low figure, duty can be avoided. But – and this is a big but – it also means that if the item in insured for shipping, it will be for less than its real value.Be aware, too, that if you’re discovered, you’ll have to pay the full amount of duty and could also be liable for prosecution.
Its better by far to have the seller declare the proper amount (many insist on doing this to remain legal), be able to have the item insured, and pay the duty when it arrives.
The Charges
Although Customs duty of less than £7 is usually waived, above that you get into complex formulae that depend not only on the value of the item, but where it’s shipped from and the type of item it is. It’s charged not just on what you paid for the items, but also an applicable local sales tax, posting and packing fee and insurance costs. On top of that is import VAT, which is charged at the same rate as UK VAT, and calculated on the total prices above plus the customs duty.In some cases overseas shippers have an agreement whereby they pay import VAT before shipping (and after they collect it from you, of course). You’ll probably also have to pay a handling fee to the Royal Mail when you collect your package.
Re: How to Pay For Goods at Auction
A good blog always comes up with new and exciting information and while reading I felt that this blog has all those qualities…
Re: How to Avoid Forgeries, Fakes and Fraud at Auction
I won a few lots at auctionette They specified a slightly broken gilding at top of an edwardian mirror…
Re: Beware of the Invisible Bidder
One of the best posts I have ever come across. Not only did I learn a lot of hidden things, but I also got to know so many new…
Re: Problem With an Item Bought at Auction
Bought a beswick horse from The Action House on line timed auction.Got condition report first.All good.They offered…
Re: Consumer Law and Auction Goods
I had registered with easy live auction to bid for a watch I was successful in winning the item I duly paid the full amount by…
Re: Consumer Law and Auction Goods
Bought a car from savage auction last month. Car was described as car has power bur not starting( unknown issues) I have won…
Re: Consumer Law and Auction Goods
I have recently made a purchase at British car auction however the car I bought that I wasn’t interested to buy as it’s happen…
Re: Consumer Law and Auction Goods
I recently purchased 2 items from an auction house. I only bid because it stated they deliver . Now I've paid for the items…
Re: Consumer Law and Auction Goods
I placed a bid on a vintage car in an online auction, when I placed my bid I received an instant message telling me I was not…
Re: Problem With an Item Bought at Auction
Hi I bought some items from John Pye auctions. I knew that they were not new but in the description it never stated…