HMRC Custom taxes anyone understand it?

[georgeboy]

Hello there, Does anyone understand custom taxes? I've started shipping Swiss parts from the UK to Switzerland to be coated but don't really know anything about customs. Thanks in advance George

[TUTTSI]

Re: HMRC Custom taxes anyone understand it?

You say you are shipping swiss parts from the UK to Switzerland do you mean the other way round????

Are you selling or buying???

Is it that you want to know about charging VAT on your invoicing???

http://customs.hmrc.gov.uk/channelsP...ageImport_Home

[Sapphire]

Re: HMRC Custom taxes anyone understand it?

The receiver should pay Duty and Taxes on the goods that's shipped as Switzerland is not part of the European Union, duties and taxes are usually charged pro rata to the value of the goods shipped. You can of course ship them DDP (duties and taxes paid by sender).
Unfortunately the customs people in other countries can have a tendency to make up their own value of the goods that are shipped and ignore the value stated on the commercial invoice.

[georgeboy]

Re: HMRC Custom taxes anyone understand it?

Hi there, Clients in the UK are sending me Swiss and Japanese Seiko watches and I'm sending the stripped down watches out to Switzerland for coating the parts are then being posted back to the UK for me to assemble. I'm not selling or buying but simply providing the watch modifying service sub contracted to a Swiss firm.

[Sapphire]

Re: HMRC Custom taxes anyone understand it?

If you are importing and exporting goods for repair or modification then the rules vary from country to country, I would contact your local Customs office and they will guide you.

I've had a search and found this site for people who collect Watches, they may be able to assist you also Welcome to NAWCC

[georgeboy]

Re: HMRC Custom taxes anyone understand it?

Thanks Sapphire, I'm actually a member there BUT will check there anyway. George

[Sapphire]

Re: HMRC Custom taxes anyone understand it?

Alternatively you can contact one of the major carriers ie DHL, Fedex or UPS, if you want I will post up the direct contact details for you.

[georgeboy]

Re: HMRC Custom taxes anyone understand it?

Thanks I did try asking TNT but they didn't seem to want to know they just like to send the LARGE custom bills £550 customs bill not good just after Christmas!

[Sapphire]

Re: HMRC Custom taxes anyone understand it?

Blimey what value did you put on the goods ?

[georgeboy]

Re: HMRC Custom taxes anyone understand it?

That was for two watch items. So £1000 declaration for one and £500 for another. I really need to speak to the experts as I'm sure I should only be charged for the cost of coating the parts, I certainly don't want to have to declare a watch at £4,000 as customs would be hilarious :'(

[pompeyfaith]

Re: HMRC Custom taxes anyone understand it?

why do you need to ship them to Switzerland? is there not somewhere in this country it could be done or is this the Swiss made thing

[Sapphire]

Re: HMRC Custom taxes anyone understand it?

By declaring the goods at those values you will be hit for Duties and Taxes I'm afraid, I assume that you had the goods insured too ? Trouble is with this you could have declared them at 'under value' but if they were lost you wouldn't get the proper value. Its a catch 22 situation.
We've had a similar situation with one of our customers who has parts returned to him for repair from the USA and its always a dilemma whether to declare the true value every time.
The problem is that foreign Customs people seem to come from a different planet to the rest of us and make the rules up as they go along, think yourself lucky you're not dealing with them in the Far East, now they are a force to deal with grrrrrrrrrrrrrrrrr.

[georgeboy]

Re: HMRC Custom taxes anyone understand it?

Hi there, It's not gold plating work as that could easily be done in the UK, it's Ion DLC/PVD coating work where the coating hardness can be sapphire hardness 2,000HV going upto 4,000HV so almost diamond hardness. Most of the firms in UK aren't interested they either half botch the parts or want £500 per watch. I'll end up only coating low value watches so Seiko divers etc etc.

Such a lovely place to send watches to shame about the taxes!

DLC'D Omega Seamaster (James Bond) watch parts:-

[MEGLOS]

Re: HMRC Custom taxes anyone understand it?

swap you for my casio?

[paulb2905]

Re: HMRC Custom taxes anyone understand it?

Heya just a little "tuppence" worth.

I would think that as you are not technically selling (exporting) the goods but rather having a service supplied you are therefore not exporting and/or importing the goods.

As a result you shouldnt have any tax implication on the "export/import".

You will certainly be paying the local tax rates on the coating service in switzerland, which i would think you would be able to recover - but that would require someone more knowledgeable to advise on.

The only thing i think you have to be mindful of is taxes on the service you are supplying to UK customers.

Obviously from a Carriers point of view and more importantly yours there has to be an Insurance amount you need to consider if the items go missing and require replacement.

I DO know that you have a responsibility to declare the change in the product eg from steel to "coated" steel - this is something covered under the "Nomenclature" declaration for goods/services but if i remember correctly (it was over 15 years ago since i was involved) there are thresholds in place below which you dont have to make declaration.