Avoid unexpected fees with our top customs tips for smooth holiday shopping. Here is the Countdown to Black Friday: Your Customs Charge Survival Guide
Welcome to the ultimate customs duty-saving guide for Black Friday 2024!
In the lead-up to this year's Black Friday, each Friday, we’ll release a new part of this series to help shoppers like you avoid unexpected customs charges and enjoy a smoother cross-border shopping experience every Friday! With Black Friday falling on the 29th of November this year, these tips come just in time for the holiday shopping season!
Customs rules may not be the first thing on a shopper’s mind, but they’re essential for anyone buying gifts or unique items from abroad. Knowing the ins and outs of customs can save you from surprise charges and delays, especially if you're shopping across borders. So whether you’re snagging a great deal on Black Friday, Cyber Monday, or gearing up for Christmas, here’s what you need to know to stay on budget and avoid unexpected fees!
Case Study: Sarah's Black Friday Splurge and the Shocking Customs Surprise
Sarah, an avid online shopper from the UK, couldn’t resist the incredible deals popping up for Black Friday. She ordered a designer bag from a famous European store, thrilled by the significant discount. With the item priced at £200 (well above her usual budget for a single purchase), she saw it as an absolute steal and eagerly anticipated its arrival.
Sarah received an unexpected notification when the package reached her local courier facility—a customs charge of £80, including a handling fee. Shocked, she learned the fee included import VAT and customs duty on her order. Sarah had overlooked checking the customs requirements, assuming that since the seller was in Europe, it would arrive as seamlessly as her previous orders.
This unexpected charge added almost 40% to the cost of her purchase, making her “deal” much less of a bargain. Frustrated and surprised, Sarah reached out to the seller, only to discover that, per new UK-EU customs regulations, they couldn’t refund her customs charges.
Had Sarah known, she could have asked the seller if the bag qualified for zero-tariff under the EU-UK Trade and Cooperation Agreement, which might have reduced the charges.
Lesson Learned: Always check customs requirements before purchasing from abroad, especially for high-value items. A little research upfront can save a lot of stress—and cash!
That is why you are here! Let's dive in!
Part 1: Know Before You Buy – What Every EU & UK Shopper Should Consider before buying from each other's countries
Since 1 January 2021, changes in UK and EU trade rules have meant that customs charges may apply even when buying goods from within the UK or EU.
Here’s a breakdown of customs tips that can help you stay in control:
Top Tip 1: Know Where You’re Based
The Good News First: If you're shopping within the EU and either buying from or sending to Northern Ireland, the Northern Ireland Protocol protects you from some customs changes. This means you won’t face the same import duties and VAT issues that other shoppers might encounter.
The Bad News: However, for shoppers in Great Britain, extra charges could apply when ordering from outside the EU customs union—or anywhere else globally, for that matter. For example, if you’re in the EU and order a product from outside the EU (say, from the US), customs charges, including VAT and potentially customs duties, will likely apply upon import.
Top Tip 2: Watch for Excise Goods (Tobacco, Alcohol, Perfume)
Certain items, like tobacco, alcohol, and some perfumes, are subject to excise duties, which can significantly inflate their cost. Excise duty is a tax based on the quantity or volume of these goods, not just their price, and is applied regardless of the product's value. For example, a pack of 20 cigarettes or a bottle of spirits can incur high excise duties, raising their final price by as much as 50% or more. Additionally, there are often restrictions on how much you can import duty-free, with excess quantities triggering higher duties or even confiscation. Shoppers should always check excise duty rates and quantity limits before ordering these items online to avoid unexpected charges that can make a bargain turn into a costly purchase.
Top Tip 3: Know the Value of Your Purchase
In the past, the rule of thumb was that items valued under £135 / €150 (before shipping and insurance) typically wouldn’t incur additional customs duty charges or import VAT. However, this is changing as governments tighten their budgets and aim to prevent duty circumvention. If your purchase exceeds this threshold, you may now need to pay both import VAT and customs duty, which can significantly increase your total cost. It’s crucial to check with the seller beforehand to avoid any surprise double charges, as import VAT alone can hike your product’s price by around 20%.
Top Tip 4: Gifting Overseas? Be Aware of Rules
Now, for gifts being sent or received abroad, if the gift is valued below £39 (or €45 in the EU) and doesn’t contain excise goods, it may still be exempted from import VAT. But this, too, is changing - note the above and double-check what rules apply BEFORE sending an item off. gifts valued above this threshold may now incur import VAT, and if the value exceeds £135/€150, customs duties could also apply. This shift in policy means that even small or seemingly inexpensive gifts could incur unexpected charges, potentially inflating the overall cost for both buyers and recipients.
Top Tip 5: Expect a Payment Notification
If there is a customs charge associated with your order, the courier responsible for delivering your package will inform you in advance to ensure a smooth and hassle-free delivery process. It is worth noting that certain sellers may take care of customs charges on your behalf, but it is always advisable to verify this information to avoid any unexpected fees, especially during the holiday season when budgets can be tight and surprises are unwelcome. By staying informed about potential customs charges and clarifying the seller's policies beforehand, you can enjoy a stress-free shopping experience and ensure that your packages reach you without any last-minute complications.
Top Tip 6: Use Available Resources
When facing unexpected customs charges or in need of disputing a charge, it is essential to be well-informed and prepared to handle the situation effectively. One valuable resource to turn to in such circumstances is the wealth of guidance available online. Numerous customs websites provide detailed information and guidelines on how to proceed with returns, refunds, and disputes, aiming to assist individuals in navigating through these potentially complex processes easily.
You can also contact us if you need advice and schedule a free call. We always love to talk about shopping!!!
Bonus Tip: Ask if the Item Qualifies for zero tariff!
Under the EU-UK Trade and Cooperation Agreement, certain goods qualify for a zero-tariff if they meet specific origin rules. If you’re buying an item from the EU or the UK that has been processed or made there, and the seller confirms this on the customs declaration, you might avoid customs duty (though import VAT may still apply).
Each week, we’ll explore another part of the customs journey for Black Friday shoppers, offering practical advice and examples. Don’t miss out on these tips to make your holiday shopping as smooth as possible, and be sure to mark your calendar for Black Friday on November 29th!
Happy shopping, and here’s to finding wonderful deals without the customs surprises!
Comentários