Festive shoppers urged to remember post-Brexit changes to goods
HM Revenue and Customs is reminding shoppers of post-Brexit changes to customs requirements ahead of the holiday shopping season.
Orders containing goods subject to excise duties - such as tobacco, alcohol or perfume - will be subject to charges no matter the value or origin of the goods. Shoppers buying these goods will need to pay import VAT and excise duty, as well as possibly having to pay customs duty.
Products purchased from abroad that are worth over £135 will be subject to import VAT and potentially customs duty. The amount due will depend on a number of factors, including shipping and insurance costs.
Goods received from the EU and valued at less than £39 - not containing excise goods - will be exempt from import VAT and customs duty. Goods worth more than £39 will be subject to import VAT and, once the value reaches £135, customs duty. Shoppers could also get charged a 'handling fee '.
Shoppers required to pay customs charges will be contacted by the courier company and asked to pay charges before they can receive their goods. Alternatively, the seller may arrange to pay any charges upfront on the buyer 's behalf, but this should be checked with the seller.
Customs duty will not be due on goods if they meet criteria set out in the EU-UK Trade and Cooperation Agreement and a zero tariff can be correctly applied. Rules of Origin requirements dictate that, even if a parcel is valued at more than £135, if the goods originate from or have been sufficiently worked and processed in the EU, no customs duties will be due as long as the zero tariff is claimed on the customs declaration.
Erin Henwood, policy advisor at Greater Birmingham Chambers of Commerce said: “With Christmas just over three weeks away, and festive shopping already well underway for many, it is important that shoppers understand how they will be impacted by changes to customs requirements.
“We strongly encourage all shoppers to consider the new requirements and whether they are applicable before purchasing goods from abroad in the coming weeks to avoid any surprise charges. ”
For more information about Brexit and how it might impact your business, please visit our Brexit hub.