Import tax on wheels

dav3e
dav3e Posts: 46
edited December 2013 in Road general
Has anybody purchased carbon wheels from China recently and had to pay import taxes or any other costs. If so how much ? and are they worth the significant saving ?
Thanks in advance.

Comments

  • Calpol
    Calpol Posts: 1,039
    Paid about £30 on a set of wheels from singapore. Value of the wheels was approx $480.
  • StillGoing
    StillGoing Posts: 5,211
    Paid around £40 on a set from China. Still came in cheaper than you can get them in the UK and I'm quite happy with the build quality and the components.
    I ride a bike. Doesn't make me green or a tree hugger. I drive a car too.
  • philthy3 wrote:
    Paid around £40 on a set from China. Still came in cheaper than you can get them in the UK and I'm quite happy with the build quality and the components.
    was just going to ask that very question.

    what are other peoples opinions on them as I was looking into a set myself but was kind of put off by talk of poor quality.
    Lapierre Aircode 300
    Merida
  • Zero on the rims only I got, possibly as smaller box.

    Got them built by LBS with hubs and spokes etc I wanted.
    Kuota Kharma Race [Dry/Sunny]
    Raleigh Airlite 100 [Wet/Horrible]
  • nicklouse
    nicklouse Posts: 50,675
    parts are 4.8% tax and add the vat on that for your total. and then a handling charge of about a tenner.
    "Do not follow where the path may lead, Go instead where there is no path, and Leave a Trail."
    Parktools :?:SheldonBrown
  • Mettan
    Mettan Posts: 2,103
    £38 for a pair, and most recently £23 for a 38mm rear tubby.
  • barrie h
    barrie h Posts: 102
    There is a Customs import tax web site that will tell you the cost, I`ve imported from the USA and if it was under £130 I have not been charged

    http://www.dutycalculator.com/

    Barrie
  • briantrumpet
    briantrumpet Posts: 17,857
    It's all bit random if they do slap the charges on, but if they do, they put VAT on the total amount paid (including shipping cost), then put the import duty on that total amount, i.e., they put a tax on their own tax. And then if Royal Mail do the last leg of the journey, they put on their own charge for handling the taxes.

    So, for £100, you get £20 VAT, then 4.8% on £120 (£5.76), then about £10 handling charge, bringing total taxes and charges to £35.76.
  • dav3e
    dav3e Posts: 46
    I believe that some of the chinese suppliers mark the goods as 'sample' valued at $70 so as to avoid the taxes. Don't know if this works or not ?
  • briantrumpet
    briantrumpet Posts: 17,857
    dav3e wrote:
    I believe that some of the chinese suppliers mark the goods as 'sample' valued at $70 so as to avoid the taxes. Don't know if this works or not ?
    Sometimes it'll work, but if you get caught out you can get fined as well.
  • brettjmcc
    brettjmcc Posts: 1,361
    It's all bit random if they do slap the charges on, but if they do, they put VAT on the total amount paid (including shipping cost), then put the import duty on that total amount, i.e., they put a tax on their own tax. And then if Royal Mail do the last leg of the journey, they put on their own charge for handling the taxes.

    So, for £100, you get £20 VAT, then 4.8% on £120 (£5.76), then about £10 handling charge, bringing total taxes and charges to £35.76.

    Wrong way round Brian. ((Goods Value+Duty)+Shipping)*VAT
    BMC GF01
    Quintana Roo Cd01
    Project High End Hack
    Cannondale Synapse SL (gone)
    I like Carbon
  • briantrumpet
    briantrumpet Posts: 17,857
    brettjmcc wrote:
    It's all bit random if they do slap the charges on, but if they do, they put VAT on the total amount paid (including shipping cost), then put the import duty on that total amount, i.e., they put a tax on their own tax. And then if Royal Mail do the last leg of the journey, they put on their own charge for handling the taxes.

    So, for £100, you get £20 VAT, then 4.8% on £120 (£5.76), then about £10 handling charge, bringing total taxes and charges to £35.76.

    Wrong way round Brian. ((Goods Value+Duty)+Shipping)*VAT
    Ah yes VAT and duty the wrong way round, VAT on everything, but the duty goes on the value of the item + the shipping cost, as in the fictional trumpet below:

    Product description: Trumpet
    Product category: Brass-wind Instrument (Upgrade account to get HS code)
    Product value: £400.00
    Country of manufacture: United States
    Shipping costs: £100.00
    Insurance costs: US$0.00

    Total customs value (CIF): £500.00 This is the amount that customs values your import at
    - Duty: £16.00
    - VAT: £103.20
    Total import duty & taxes due: £119.20 This is the amount that needs to be paid to customs
    Total landed cost: £619.20 This is the total cost of importing, including product, shipping, insurance and import duty & taxes
    Notes on duty & taxes rates
    Trumpet has an import duty rate of 3.2% and VAT rate of 20%.

    So, in other words, you pay VAT on the goods value, the shipping AND the import duty (which itself has included the shipping cost). Cunning how they leave the biggest mark-up till everything's been added/multiplied together.
  • brettjmcc
    brettjmcc Posts: 1,361
    Yes... Over the years I have imported a lot V8 engine parts and had rows with HMRC trying to disagree with them that shipping is not part of the added value of the goods, but a payment for a service. Death and taxes, death and taxes...
    BMC GF01
    Quintana Roo Cd01
    Project High End Hack
    Cannondale Synapse SL (gone)
    I like Carbon