A guide for international post users

Foreword

This notice cancels and replaces Notice 143 (August 2005). Details of any changes to the previous version can be found in paragraph 1.1 of this notice.

Further help and advice

If you need general advice or more copies of HM Revenue & Customs notices, please ring the VAT, Excise and Customs Duties Advice Line on 0845 010 9000. You can call between 8.00 am and 8.00 pm, Monday to Friday.

If you have hearing difficulties, please ring the Textphone service on 0845 000 0200.

If you would like to speak to someone in Welsh, please ring 0845 010 0300, between 8.00 am and 6.00 pm, Monday to Friday.

All calls are charged at the local rate within the UK. Charges may differ for mobile phones.

Other notices on this or related subjects

144 Trade imports by post

200 Temporary importations

203 Registered Excise Dealers and Shippers

221 Inward Processing Relief

235 Outward Processing Relief

275 Export procedures

702 Imports

703 VAT exports and removal of goods from the United Kingdom

990 Excise and Customs appeals

1000 Complaints

1. Notice 143: A Guide for International Postal Users

1.1 What this notice is about

This notice explains what happens when you import or export goods by post through Royal Mail including Parcelforce Worldwide. All further references to Royal Mail within the text of this notice apply to both, unless specified otherwise.

The arrangements set out in this notice however do not apply when a full declaration on a SAD (Form C88) is required. That is:

• imports of goods with a value exceeding £2000 declared to home use and free circulation
• imports of goods for which relief from customs duty and VAT is being claimed eg inward processing relief; outward processing relief; temporary importation; and
• certain exports including all goods for export with a value exceeding £2000.

Information on the procedures you should use can be found in Notice 144, and other notices detailed on the front cover.

The notice is not the law and does not change the law extracts of which can be found in Section 7.

It has been re-written to improve readability and to update the technical content. In particular:

• Paragraphs 2.3, 2.4, 2.5, 2.6, 2.7, 4.5 and 4.6 have been updated to reflect that with effect from 19 July 2007 there is no longer any relief from excise duty for alcohol and tobacco products imported through the post. This follows the repeal of the Excise Duties (Small Non-Commercial Consignments) Relief Regulations 1986.
• Paragraph 4.2 is updated to include the new Member States Bulgaria and Romania which joined the European Union on 1 January 2007.
• You can access details of any changes to this Notice since August 2005 either on our Internet site at www.hmrc.gov.uk or by telephoning the National Advice Service (0845 010 9000).

You can also find information about exporting or importing by post on the Royal Mail website at www.royalmail.com call Royal Mail Customer Services on 08457 740 740, or visit the Parcelforce Worldwide website www.parcelforce.com or call Parcelforce Worldwide Customer Services on 0870 850 1150.

1.2 Glossary

The terms used are explained in Glossary of Terms Section 8.

2. Postal Packages imported from countries outside the EU

2.1 Does the sender have to declare the goods?

Under international postal agreements the sender must complete a customs declaration (CN22 or CN23) which in most cases should be affixed to the package. The declaration includes a description of the goods, the value and whether they are gifts or commercial items. Any Post Office abroad should be able to give advice to the sender.

It is in your own interest to ensure, wherever possible, that the sender abroad makes a complete and accurate declaration. If no declaration is made, or the information is inaccurate, the package may be delayed while we make further enquiries, or in some cases the package and its contents may be seized.

2.2 Do I have to pay import duties and/or import VAT on goods sent to me?

Most goods arriving in the UK from outside the EU are liable to any or all of the following taxes:

• customs duty
• excise duty
• import VAT

and must be paid whether:

• you purchase the goods or receive them as a gift;
• the goods are new or used (including antiques)
• the goods are for your private use or for sale

2.3 Are import duties and import VAT always payable?

No. Customs duty is waived if the amount of duty is less than £7.

Import VAT is not payable on:

• commercial consignments eg goods purchased over the internet with an intrinsic value not exceeding £18, but this does not include alcohol, tobacco products, perfume or toilet waters
• gifts, excluding alcohol, tobacco, perfumes and toilet waters, with a value not exceeding £36 and which comply with the rules shown in paragraph 2.4.

There are a number of other circumstances where relief from some or all customs charges may be available. If you think your goods may be eligible for a relief you should contact the National Advice Service for further information.

2.4 Gifts

Goods sent as a gift are not free of import duties and import VAT. However, customs duty will not be collected if the amount is less than £7, and import VAT is not chargeable if:

• the value of the gift does not exceed £36
• the customs declaration is completed correctly
• the gift has been sent from a private person outside the EU to a private person(s) in this country
• the gift is for the use of either yourself or your family
• there is no commercial or trade element and the gift has not been paid for either directly or indirectly
• the gift is of an occasional nature only eg for a birthday or anniversary.

Please note the purchase of goods from outside the EU to give as a gift to a relative or friend, whether or not addressed to that person, is treated as a ‘commercial consignment’ for which the import VAT relief threshold is £18 (paragraph 2.3 refers).

2.5 Do gifts of alcohol and tobacco products qualify for relief from import duties and import VAT?

NO. Excise duty is payable on all alcohol and tobacco products regardless of whether they are a gift.

2.6 Do gifts of perfumes and toilet waters qualify for relief from duties and import VAT?

Neither customs duty or excise duty is chargeable on perfumes and toilet waters. However, import VAT is chargeable if the allowances detailed below are exceeded.

2.7 Do multi-gift consignments qualify for the customs duty waiver and import VAT relief?

(i) Where a package contains gifts that are clearly intended for several people eg members of the same family, the waiver of customs duty, and relief and import VAT applies to each individual person provided each recipient's goods are:

• individually wrapped, and
• specifically addressed to them, and
• declared separately on the customs declaration
• within the allowances specified.

If more than one individual package is addressed to a particular person the value of the goods will be aggregated. If the total value exceeds £36 customs duty (unless it is less than £7, see paragraph 2.3) and import VAT will be charged.

(ii) If a package contains a number of different types of goods, and these are separately described and given a value on the customs declaration, the waiver of customs duty will apply to each item. For import VAT only as many items as add up to a value not exceeding the import VAT threshold will be granted relief. However, the value of an item cannot be divided eg if a package contains five items each with a value of £8, only 4 items will be entitled to relief with charges payable on the fifth item.

An illustration of this is shown below:

2.8 How and why we examine packages

We examine postal packages arriving in the UK from outside the EU for prohibited or restricted goods such as drugs, indecent or obscene material, weapons, endangered species and counterfeit goods, and to confirm the description and value stated on the declaration is correct. We also check the customs declaration to determine if customs duty, excise duty and import VAT is chargeable.

We will sometimes need to examine the contents of a package particularly when the sender has not completed the declaration fully. In such cases the opening, repacking and resealing of the package is carried out, under our instruction, by Royal Mail staff.

3. Charges

3.1 How are customs charges calculated?

Charges are raised by Customs staff at the postal depots where the packages are received. However, in some cases special arrangements are in place for goods purchased on the internet (see paragraph 3.4 below).

The amount of customs charges payable will depend on the type of goods imported and the value (converted using the rates of exchange for the month of importation as shown on the HMRC website) stated on the customs declaration (CN22/CN23):

Customs duty - this is usually charged as a percentage of the value. The percentage varies depending on the type of goods and their country of origin. Duty is charged on the price paid for the goods including any local sales taxes plus postage, packing and insurance costs. However, postage is excluded from the calculation for duty on gifts sent by post except for Express Mail Service (EMS).

Where the value of gifts is below £290 per consignment a flat rate of duty of 3.5% will be applied, but only if it is to your advantage.

Note: Customs duty will be waived if the amount is less than £7.

Excise duty - this is charged on alcohol and tobacco products and is additional to customs duty. The excise duty on wines and spirits depends on the alcohol content and whether wine is sparkling or still. Duty on cigarettes is based on the percentage of the recommended retail selling price combined with a quantity charge. On other tobacco products eg cigars or hand rolling tobacco, it is charged on the net weight.

Value Added Tax (VAT) - Import VAT is charged at the same rate that applies to similar goods sold in the UK. The value of the goods for import VAT is based on the value for customs duty plus any import duties charged.

3.2 Is duty charged on used goods?

Used goods are still liable to the same duty and VAT charges as if they were new. However, their value may vary depending on their age and condition.

3.3 How do I pay customs charges?

Royal Mail provides several options for payment and they will inform you of the options available and the amounts payable when they contact you. In all cases details of the charges, including the Royal Mail or Parcelforce Worldwide handling fee, will be shown separately on a label affixed to the package.

Sometimes you may be sent a customs declaration form (C88 or C160) which you must complete and return to the Postal Depot before your package can be delivered. You should not send any payment with this form unless asked to do so.

3.4 Pre-payment of import VAT on goods purchased on the internet

For goods purchased on the internet UK Customs have special arrangements that allow some overseas traders to charge, collect and pay over to us the import VAT that would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding signed with the overseas countries customs and postal authorities, and traders wanting to use this procedure must be authorised to do so by these authorities. Once authorised they are issued with a unique authorisation number, which should be shown on the customs declaration or packaging. Also they will include the statement 'Import VAT Pre-paid'. Where these arrangements are used you will not be charged import VAT or a Royal Mail handling fee when you receive your package.

If you are a VAT registered business and purchase goods for use in your business you should keep the outer wrapper and invoice from the supplier to support your claim to input tax.

3.5 Why do I have to pay a handling fee to Royal Mail?

If customs charges are payable upon importation Royal Mail charge a handling fee to cover the costs for operating the postal customs depot, handling the package for customs examination, and, if required, opening, repacking and resealing the package if, for example information is missing from the declaration. Royal Mail fees are itemised separately on the charge label and collected at the same time as customs charges. Because they are completely separate from any customs charges any queries about them should be raised with Royal Mail or Parcelforce Worldwide as appropriate.

3.6 Where can I ask about or query a customs charge?

If you have any questions about a particular customs charge you should contact Customs at the postal depot shown on the charge label as soon as possible. If you write to Customs you should include as much detail as you can including, if possible, the charge label, the sender's declaration and the part of the wrapper with your address on it. If your claim is about an overcharge of tax because the declared value of the goods was incorrect you will need to supply evidence eg an invoice, receipt of purchase etc, to support your claim.

Customs deals with thousands of packages every day and without this information we may not be able to trace your particular package in our official records. If you telephone it will help if you have the package with you. In the event of a claim you should retain all wrappings and documents until your claim is settled.

3.7 What can I do if I am not satisfied with the reply I receive?

If you think that your query has not been answered satisfactorily, or you have some additional information that may affect an earlier decision, please contact Customs at the postal depot again to try to resolve the matter.

3.8 Can I appeal against your decision?

Yes. If you disagree with a decision we have given you must first ask for a Departmental review. In most cases this will be carried out locally by a nominated Review Officer who has had no previous involvement in the decision, and is senior to the officer who made it.

If you want us to reconsider an appealable decision you should write to us with your reasons and any additional information within 45 days of the date of our decision. We then have 45 days from the date of the receipt of your letter to provide a reply.

If following the Departmental review you still wish to pursue the matter you have 30 days from the date of the review decision to lodge your appeal with the Tribunal.

For further information please see Notice 990 Excise and Customs Appeals.

3.9 Repayment of duty and VAT

If you reject and return goods to sender after paying duty and import VAT you may ask for a refund. You should make your claim in writing to HM Revenue and Customs at the address shown on the charge label, within three months of the acceptance of the declaration, enclosing:

• the original charge label
• the senders declaration (CN22 or CN23) and outer wrapper showing your address
• a certificate of posting stamped by Royal Mail confirming the goods have been returned to sender.

If you are unable to provide the above information your claim may be rejected.

4. Postal packages received from other EU countries

4.1 Are there customs controls on goods from the EU?

We carry out selective checks to ensure that no prohibited goods such as drugs, indecent or obscene material, weapons etc are received in the UK from other EU countries. We also carry out routine controls for revenue purposes. However, because goods from the "Special Territories" ie countries who are not included in the fiscal territory of the EU (see paragraph 4.3), are subject to excise duty and import VAT, they are processed in the same way as goods imported from outside the EU.

4.2 Which countries are full members of the EU?

The current Member States are: Austria, Belgium, Bulgaria, Cyprus*, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.

*The European Commission has advised that the application of the Community Customs Code and 6th VAT Directive shall be suspended in those areas of Cyprus in which the government of the Republic of Cyprus does not exercise effective control. Goods from those areas will be treated as non-EU imports.

4.3 What are the "Special Territories"?

These are countries that are part of the EU for customs purposes, but not for fiscal purposes. Goods imported from these countries therefore are free of customs duty, but subject to excise duty and import VAT. The "special territories" are:

• The Ǻland Islands (Finland).
• The Canary Islands (Spain).
• The Channel Islands.
• The French Overseas Departments of Guadeloupe, French Guiana, Martinique and Reunion.
• Mount Athos also known as Agion Poros (Greece).

4.4 What is the relationship between EU and Turkey?

The EU and Turkey established a Customs Union on 1 January 1996, and many goods from Turkey no longer attract customs duty, but excise duty and import VAT still apply.

4.5 Can I receive alcohol and tobacco from the EU?

If you receive alcohol and tobacco by post on a commercial basis this is known as 'distance selling', and there is a liability to both excise duty and import VAT. The sender should have made prior arrangements to account for these taxes no later than the date of despatch from the exporting Member State. It is in your own interests to ensure these arrangements have been completed otherwise the goods may be liable to forfeiture. You can find more information about this in Notice 203 Registered Excise Dealers and Shippers, and on the HM Revenue and Customs web-site www.hmrc.gov.uk 'Buying tobacco over the Internet'.

If you receive goods that are for your own personal use e.g. a gift from another person, or you have posted them to yourself from another EU Member State, there will be a liability to excise duty but not import VAT.

If you are in doubt about the duty liability of goods you have received you should contact our National Advice Service.

4.6 Can I receive alcohol and tobacco from the Special Territories?

Yes. Gifts of alcohol and tobacco are free of customs duty but they are liable to excise duty and import VAT.

5. Exports

5.1 What do I need to do when I send a package abroad?

For sending a package to any country outside the EU including the Special Territories you must complete, and affix a customs declaration (CN22, CN23 or a Parcelforce Worldwide Despatch Pack incorporating the CN23) which you can obtain from the Post Office. Any necessary preference certificate or licence should be attached to the outside of the package and clearly identified before handing it over to the post. For commercial items a commercial invoice should accompany the package.

You do not need a customs declaration for packages sent to another country within the EU.

5.2 Do I need to obtain evidence of posting?

For private persons there is no Customs need to obtain evidence of posting. However, if you are in business and registered for VAT you will need to obtain and retain a certificate of posting to support the VAT zero-rating of your supply, and to discharge your liability to customs charges on goods temporarily imported into the UK. You can find further details of the procedures to be followed in Notices 200, 221, 235, 275 and VAT Notice 703.

5.3 Are there customs controls on goods exported from the UK?

We do carry out selective examinations to ensure that no prohibited or restricted goods, or items relating to the proceeds of crime are being improperly sent.

5.4 Are there any other restrictions on what goods can be sent abroad?

Customs and Postal administrations throughout the world set certain restrictions on what type of goods can be sent by post. If you have any concerns about sending your goods by post you should contact Royal Mail.

6. Quality of service

6.1 What should I do if I have a complaint about delay or damage to my package?

Although we can examine the contents of a package the responsibility for opening, repacking and resealing it is carried out by Royal Mail who also deliver it. Therefore if you have a complaint about delay or damage to your package you should contact the appropriate Royal Mail or Parcelforce Customer Service Centre.

In cases where Customs have damaged the contents we will acknowledge this by enclosing a letter within the package.

6.2 What standards can I expect from you?

We subscribe to the Citizen's Charter and Taxpayer's Charter. These Charters outline the standard service you can expect from us. Copies are available from any of our offices in the UK.

7. Extracts from the law

Opening of postal packages - Regulation 12 of the Postal Packets (Customs and Excise) Regulations 1986 (Statutory Instrument 1986 No 260) gives authority for an Officer of Customs and Excise to require the Royal Mail to open for examination any postal packet being imported or exported.

Waiver of customs duty of less than £7 - Article 868 of EC Regulation (EEC) 2454/93 allows member states to waive amounts of customs duty of less than 10 euros (sterling equivalent of £7).

Relief from import VAT on commercial consignments, excluding alcohol, tobacco, perfumes and toilet waters, with a value below £18 - The Value Added Tax (Imported Goods) Relief Order 1984:746, Schedule 2, Group 8 item 8 provides relief from import VAT on consignments of goods not exceeding £18 in value.

Relief from import VAT on gifts of goods, excluding alcohol, tobacco, perfumes and toilet waters, with a value not exceeding £36 - The Value Added Tax (Non-Commercial Consignments) Relief Order 1986:939, Article 3, provides that no tax is payable on the importation of goods forming part of a small consignment of a non-commercial character sent from a third country by a private person to another private person if the value of the goods does not exceed £36.

Inclusion of postage charges in customs value - Article 165 of EC Regulation (EEC) 2454/93 requires all postal charges levied up to the place of destination in respect of goods sent by post to be included in the customs value of the goods. However, this does not apply to gifts other than those sent by Express Mail Services.

8. Glossary of Terms

CN22 and CN23 - customs declaration forms to be used for import and export of postal packets.

Customs duty - tax charged on imported goods under the Combined Nomenclature of the Community.

Datapost - The Parcelforce Worldwide Express Mail Service.

EC - European Community.

EU and Member States - European Union consisting of twenty five Member States listed in paragraph 4.2.

Euro - unit of currency used by some Member States of the European Union.

Excise duty - tax charged on certain goods particularly alcohol and tobacco.

Gifts - goods of a non-commercial character sent by a private person to another private person without payment of any kind and intended for personal use only.

Intrinsic value - means the price paid or payable for the goods excluding postage and packing and insurance costs.

Import VAT - VAT chargeable on importation.

Package - includes a letter, parcel, packet or other article transmissible by post.

SAD - Single Administrative Document (C88).

Do you have any comments?

We would be pleased to receive any comments or suggestions you may have about this notice. Please write to:

HM Revenue and Customs
Customs & International
Room 75, Lower Ground
London
SW1A 2BQ

Please note this address is not for general enquiries. You should ring our VAT, Excise and Customs Duties Advice Line about those.

If you have a complaint or suggestion

If you have a complaint please try to resolve it on the spot with our officer. If you are unable to do so, or have a suggestion about how we can improve our service, you should contact one of our Regional Complaints Units. You will find the telephone number under ‘Revenue & Customs' or under 'Customs and Excise' in your local telephone book. Ask for a copy of our code of practice ‘Complaints and putting things right’ (Notice 1000). You will find further information on our website at http://www.hmrc.gov.uk.

If we are unable to resolve your complaint to your satisfaction you can ask the Adjudicator to look into it. The Adjudicator, whose services are free, is a fair and unbiased referee whose recommendations are independent of Revenue & Customs.

You can contact the Adjudicator at:

The Adjudicator's Office
Haymarket House
28 Haymarket
LONDON
SW1Y 4SP

Phone: (020) 7930 2292
Fax: (020) 7930 2298
Email: adjudicators@gtnet.gov.uk
Internet: http://www.adjudicatorsoffice.gov.uk/

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