A guide for international post users

Foreword

This notice cancels and replaces Notice 143 (January 2010). Details of any changes to the previous version can be found in section 1 of this notice.

1. What this notice is about

This notice explains what happens when you import or export goods by post through Royal Mail or Parcelforce Worldwide. It also applies to gifts received through the post. All further references to Royal Mail within the text of this notice also applies to Parcelforce Worldwide, 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 for:

• imports of goods with a value exceeding £2,000 declared to home use and free circulation
• imports of goods for which relief from customs duty and import VAT is being claimed, for example, inward processing relief, outward processing relief, temporary importation
• certain exports including all goods for export with a value exceeding £2,000

Information on the procedures you should use can be found in Notice 144 Trade imports by post: how to complete customs documents.

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

• can access details of any changes to this notice since January 2010 either on our website at www.hmrc.gov.uk or by phoning the Customs Helpline on 0845 010 9000.

You can also find information about exporting or importing by post on the Royal Mail website or phone Royal Mail Customer Services on 08457 740 740, or go to the Parcelforce Worldwide website or phone Parcelforce Worldwide Customer Services on 0870 850 1150.

2. Postal packages imported (arriving) from countries outside the EU

2.1 Does the sender have to declare the goods?

Yes. Under international postal agreements the sender must complete a customs declaration (CN22 or CN23) which in most cases should be fixed 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.

You are legally responsible for the information on the declaration; therefore 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 re-sale

2.3 What are the limits for customs duty and import VAT?

• Commercial consignments of £18 or less are free from customs duty and import VAT. For example, goods purchased over the internet with an intrinsic value not exceeding £18, will not be charged any duty or VAT but this does not include alcohol, tobacco products, perfume or toilet waters, see paragraph 2.5, 2.6 and section 3.
• If you are sent a gift with a value of £40 or less, and which complies ,with the rules shown in paragraph 2.4 it will be free from customs duty and import VAT, but this does not include alcohol, tobacco, perfumes and toilet waters.
• Customs duty becomes payable if the value of the goods is over £135 but duty is waived if the amount of duty calculated is less than £9.

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 Customs Helpline for further information.

2.4 Gifts

Goods sent as a gift that are over £40 in value are liable to import VAT. Customs duty also becomes payable if the value of the goods is over £135 but is waived if the amount of duty calculated is less than £9.

To qualify as a gift:

• the customs declaration must be completed correctly
• the gift must be sent from a private person outside the EU to a private person(s) in this country
• 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, for example, for a birthday or anniversary

Note: if you purchase 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 packages containing more than one gift qualify for the £40 customs duty waiver and import VAT relief?

Where a package contains gifts that are clearly intended for several people, for example, members of the same family, the £40 VAT relief applies to each individual person provided the 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 £40 import VAT will be charged, and if the value exceeds £135 customs duty may also be due.

If a package contains a number of different types of goods intended for more than one person, 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 (£40) will be granted relief. However, the value of an item cannot be divided; for example, if a package contains five items each with a value of £8, only four 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 correctly. 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 import charges calculated?

Charges are calculated 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).

Value Added Tax (VAT) - Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to commercial goods over £18 in value, and on gifts that are over £40 in value. The value of the goods for import VAT is based on the:

• basic value of goods, plus
• postage, packing and insurance, plus
• any import (Customs or Excise) duties charged

Customs duty - Customs duty becomes payable if the goods are over £135 in value but is waived if the amount calculated is less than £9. Customs duty is usually charged as a percentage of the value of the goods.

The amount of customs duty charged will depend on the type of goods imported and their value stated on the customs declaration CN22/CN23 (converted using the rates of exchange for the month of importation as shown on our website).

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, the cost of postage is excluded from the calculation for customs duty on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.

Where the value of gifts is below £630 per consignment a flat rate of duty of 2.5 per cent will be applied, but only if it is to your advantage.

Excise duty - this is charged on alcohol and tobacco products and is additional to customs duty. The excise duty on alcohol products such as wines and spirits depends on the alcohol content and volume. In the case of wine and cider whether they are sparkling or still. Duty on cigarettes is based on a percentage of the recommended retail selling price plus a flat rate amount per 1,000 cigarettes. On other tobacco products, for example, cigars or hand rolling tobacco, excise duty is charged at a flat rate per kilogram.

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. A postcard or letter is usually delivered to your address, detailing the amount due and the options available for payment. Once payment has been made, the package may be collected from the post office or if you have paid on line/by phone you can arrange for it to be delivered. Details of the charges, including the Royal Mail or Parcelforce Worldwide handling fee, will be shown separately on a label affixed to the package.

If the value of the package is over £2,000 or it is for a particular customs regime you will be sent a customs declaration form (C88 or C160) which you must complete and return to Customs at 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 over the internet

UK Customs has special arrangements that allow some overseas traders to charge, collect and pay over to us the import VAT for goods purchased on the internet that would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding (MoU) signed with certain overseas customs and postal authorities. The countries who have an MoU with HMRC are: Channel Islands, Hong Kong, Singapore and New Zealand. Overseas traders wanting to use this procedure must be authorised to do so by their authorities.

Once authorised, foreign businesses are issued with a unique authorisation number, which they must show 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 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 carrying out customs procedures paying any customs duties or VAT due and collecting it from you. If customs examination is required, or if information is missing from the declaration, Royal Mail open, repack and reseal the package. Royal Mail fees are itemised separately on the charge label and are collected at the same time as customs charges. As 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, the customs charge label, the customs declaration and the part of the wrapper with your address on it. If your claim is about overcharged tax because the declared value of the goods was incorrect you will need to supply evidence, for example, an invoice, receipt of purchase etc., to support your claim.

Customs deal with thousands of packages every day and without this information we may not be able to trace your particular package in our records. If you telephone it will help if you have the package details 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 What do I do if I disagree with a Customs decision?

If you do not agree with any decision issued to you there are three options available. Within 30 days of the date of the decision you can either:

• send new information or arguments to the decision maker
• request a review of the decision by someone not involved in making the disputed decision. Your request must be in writing and should set out the reasons why you do not agree with the decision.
• write to:
  UK Border Agency
  Reviews & Appeals Team
  Crownhill Court
  Tailyour Road
  Crownhill
  Plymouth
  PL6 5BZ , or
• appeal direct to the Tribunal who are independent of HMRC

If you opt to have your case reviewed you will still be able to appeal to the tribunal if you disagree with the outcome.

Further information relating to review and appeals is contained in factsheet HMRC1 Decisions - what to do if you disagree which can be obtained from our website or by phoning 0845 900 0404.

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’, that is, 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 the United Kingdom.

*The European Commission has advised that the application of the Community Customs Code and Principal 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 the 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 our website.

If you receive goods that are for your own personal use, for example, 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. The UK excise duty must again be secured before the goods are sent, using the ‘distance selling’ procedure. If you are in doubt about the duty liability of goods you have received you should contact our Helpline.

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 that require an export licence or are being exported under a suspensive regime, that is, outward processing relief, a commercial invoice should accompany the package. A C&E83A Exported by Post under Customs and Excise Control (sticky label) should be attached which directs post office staff to present the parcel to Customs at the Office of Exchange for checks to be made prior to export.

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 requirement 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 (C&E132) 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?

Yes. We 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.

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 £9 - 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 £9).

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 £40 - The Value Added Tax
(Non-Commercial Consignments) Relief Order 1986:939 (as amended), 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 £40.

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.

The limit before the rate of duty taken from the Common Customs Tariff – Consignments of gifts with a value less than £630 for which the rate of duty of the Common Customs Tariff is other than 'free' attract a flat rate of duty of 2.5 per cent (Council Regulation (EC) No 275/2008.

8. Glossary of terms

If you have a question about VAT, Excise or Customs duty

Go to www.hmrc.gov.uk

Phone 0845 010 9000 Monday to Friday 8.00 am to 8.00 pm.

Os hoffech siarad â rhywun yn Gymraeg, ffoniwch 0845 010 0300,
Llun i Gwener 8.00 am i 6.00 pm.

If you are hard of hearing or speech impaired and use a Textphone,
phone 0845 000 0200.

Putting things right

If you are not satisfied with our service, please let the person dealing with your affairs know what is wrong. We will work as quickly as possible to put things right and settle your complaint. If you are still unhappy, ask for your complaint to be referred to the Complaints Manager.

For more information about our complaints procedures go to www.hmrc.gov.uk and under ‘quick links’ select ‘Complaints’.

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