FAQs - FedEx Duty and Tax Invoice UK

Why do I have to pay Duty and Tax?

Sometimes people do not expect to receive a Duty and Tax invoice and as such do not understand as to why they have been slapped with one. In order to clear the matter and ensure that you are not in for a nasty surprise when you receive one, we have put together a list of Frequently Asked Questions (FAQs) to clarify the rules and regulations of such taxes. For any additional queries and questions, you can contact on 03456 07 08 09.

What is Duty and Tax and why am I required to pay it?

Customs duty is a tax levied on all products that are shipped to the country from anywhere barring EU. The tax imposed by HM Revenue and Customs serves the purpose of bringing at par the cost of imported goods with the goods produced in the UK to keep the completion fair for local businesses.

Who all are required to pay this tax?

The person or business responsible for importing the goods is liable to pay the taxes unless it has been specifically mentioned in the contract of sale that the sender will bear the cost.

Tell me more about clear administration charge

FedEx in order to ensure that there is no delay in delivery and receive your item as quickly as possible pays the Duty and Tax on behalf of its customers. This entails an administration fee of 2.5 per cent of the combine Duty and VAT charge or £12.00 (whichever is greater).

Why FedEx didn’t provide any information about it at the time of delivery?

This is not done on purpose. Whenever it is possible, FedEx informs you about the estimated tax that may be imposed before the HM Revenue and Customs has assessed the actual tax that needs to be paid. However, prior intimation is not always possible as the firm is itself not aware of the charges levied until after the package is delivered.

What if I have already paid Duty and Tax?

1. I have already paid the tax at the time of purchasing the item. Why should I pay again? The tax paid at the point of purchase is subject to tax rules and regulations of the concerned country. You still have to pay Duty and Tax once it enters the UK as per the law of the country.
2. What if I paid Duty and Tax charges before the delivery? You are charged a certain amount at the time of import. The charge is levied before the actual tax that needs to be paid is assessed by HM Revenue and Customs. After the actual estimation, you need to pay more if you had initially paid less and if the final charge is lower than what you have paid, you will be refunded the surplus. If the amount of your invoice is different to the amount you pre-paid, please call Customer Service on 03456 07 08 09.
3. I was under the impression that all the charges were already taken care of the sender Duty and Tax charges are not levied unless the shipment has entered the UK. If your shipper says that the charges have already been paid to FedEx, they are probably referring to transportation charges and not Duty or Tax.

I feel that my shipment should not have been subjected to Duty and Tax

1. I am a temporary visitor to the UK Even if you are a temporary visitor, you will still need to pay the taxes. However, you can claim the money back once you leave the country depending upon the circumstances of your package. You can get in touch with customer care at 03456 07 08 09 for further information and clarification.
2. I brought goods online The prices that you see on websites outside the UK do not include taxes. It can thus give an impression that the products outside the country are cheaper. The Office of Fair Trading advises that buyers check for additional costs before purchasing. You can visit http://www.gov.uk/consumer-protection-rights for more information.
3. The shipment is a gift

   Gifts up to £34.00 in value are not subjected to any import duty given they meet the below mentioned criteria laid down by HR Revenue and Customs. The shipment must be sent from person to person and the following criteria should be met.

   The sender should be a private individual and the person receiving it should do so at a private address.

   You have to specifically mention the word’ gift’ on Air Waybill and commercial invoice

   The gift should be of occasional nature and must be sent free of charge

   It is also imperative to note that gift items like alcohol and tobacco are not exempted from Excise duty. Food items may require extra checks and as such will bear extra costs.

4. The shipment contains sample

   You can import sample to the UK without paying any taxes subject to they meet the following rules and regulations proposed by HR revenue and customs.

• It should only contain samples
• The items shipped should of negligible value
• They are sent so as an order is received for them in bulk quantities
• The goods shipped to me are second hand
• HM Revenue and Customs imposes Duty and Tax irrespective of age or previous ownership.

What is the procedure for rejecting a shipment?

In order to ensure that your order is eligible to be classified as rejected import, it must fulfil following criteria laid down by HR Revenue and Customs

1. The goods are defective
2. They were rejected prior to their clearance by HR Revenue and Customs
3. The supplier does not fulfil the terms laid in the contract
4. All the claims must be made before the goods are rejected or destroyed within 12 months of the original entry to HM Revenue and Customs
5. Also, you need to pay Duty and Taxes to FedEx and get the claim processed by HR Revenue and Customs

Where can I find additional information about Duty and Tax?

For more information about Duties and Taxes you can get in touch with HM Revenue and Customs National Advice Service on 0300 200 3700 or visit the HMRC website.

For consumer advice about products brought outside the UK, you need to contact the Office of Fair Trading consumer advice service on 08454 04 05 06 or visit the Citizen’s Advice consumer service website.

For general invoice and account enquiry, contact Customer Service on 03456 07 08 09.

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.