Customs Duty Threshold Raised For UK Shoppers
HM Revenue and Customs (HMRC) is giving UK shoppers an early Christmas present by raising the threshold that customs duty is charged from £18 to £105 reports Which?. The new rules apply from 1st December 2008
This means that smaller imports from outside the EU below £105 will no longer attract import duty although VAT will still be charged at the current rate of 17½%. The amount of import duty varies depending on the type of goods: On DVDs and CDs it’s 3.5%, for watches it’s 4.5%, clothing 12% and on DVD players 14%.
There are a couple of things to be aware of before going on a shopping spree however. Not all stores will ship internationally and those that do may charge high postage fees. While the ticket price for a particular item may be cheaper, you could end up paying more overall. As always with online shopping, check carefully exactly how much you will be charged before you commit yourself. Remember too that companies outside the EU are not bound by the Distance Selling Regulations (DSRs).
The timing of this change seems significant to me. December 1st is probably a little to late to be shopping internationally for Christmas. It looks like HMRC wants to give UK sellers the benefit of the Christmas rush, while tempting consumers to buy more afterwards.
