Buying from the USA

2Phat4Rapha

I was considering buying some tools from the USA which appeared to be around 50% cheaper than the UK - that is until I looked into all the additional costs.

First there’s shipping. Fair enough, that’s what the reseller has to add.

Then there’s the exchange rate. Dollar / Pound nothing like it was 18 months ago (but improving slightly)

You take that Sterling equivalent: Product cost + Delivery + exchange rate and then you have to add Import Duty to it. Not always easy to find what that duty will be as it varies according to what you are importing but I think bicycles are 15%.

So now it’s: Product cost + Delivery + exchange rate + Import Duty.

On to that cost you now have to add Import VAT, Currently 17.5% but of course going up in Jan.

But it’s not over yet as the shipping agent pays these taxes for you and then charges you a fee on top for doing so.


Final cost = Product cost + Delivery + exchange rate + Import Duty + shipping agent.

Example Exchange rate = 1.5, Import Duty = 15%, Import VAT = 17.5%


Purchase Price = 250 (after exchange conversion)
Delivery cost = 50
Sub Total = 300

Import Duty = 45.00
Import VAT = 60.38
Sub Total = 105.38

Shipping Agent = 15.00 (example / I don’t know)

Final Cost = 420.38

So your £250 goods actually costs you £420.38 to turn up on your doorstep. A sobering lesson and answer to why so many people complain that things are only half the price in the USA!

nicklouse

complete cycles are 14% bike parts 4,7%

tools I can not remember what i paid last time.

more info

http://customs.hmrc.gov.uk/channelsPort ... e=document

StillGoing

Fell into this trap when I ordered an exhaust system for the R1 from the states. By the time I'd been stung for the import duties etc, I may as well have bought a system here.

Pokerface

Only suckers pay tax and duty

StillGoing

And people who can't afford to get caught by the taxman. I know all the loop holes such as getting the store to post it as returned parts or as a gift etc. But get caught and they'll go through ALL your transactions and those of your spouse/partner with a fine tooth comb. If you don't have a receipt for something they'll stiff you for VAT etc on that too.

Pross

2Phat4Rapha wrote:

So your £250 goods actually costs you £420.38 to turn up on your doorstep. A sobering lesson and answer to why so many people complain that things are only half the price in the USA!

Not really as people in the US won't be paying the import costs so they are still getting products a lot cheaper than us even though they have to import them themselves in many cases.

Pokerface

philthy3 wrote:

And people who can't afford to get caught by the taxman. I know all the loop holes such as getting the store to post it as returned parts or as a gift etc. But get caught and they'll go through ALL your transactions and those of your spouse/partner with a fine tooth comb. If you don't have a receipt for something they'll stiff you for VAT etc on that too.

Sounds like you have bought into the government's fearmongering. Chapeau.

(FWIW - I don't buy my goods from the US any more as it's just not worth the hassle, even if you CAN get it shipped on the cheap).

2Phat4Rapha

Sounds like you have bought into the government's fearmongering. Chapeau.

Trouble is, if a customs receive an unaccompanied package it has to have a customs declaration on the outside. If it doesn't it will be suspect, opened and checked. It might get through with an inaccurate declaration but requires the US reseller to be complicit so good luck with that. Hand luggage and buying from the EU is all a bit different of course but the OP was really just a heads up in case anyone else ends up on overseas web sites and thinks the listed prices are attractive.