23rd-Feb-21, 09:25 AM
This is the advice Alan (pondiless) received from HM Revenue & Customs...
Unless stated otherwise on the customs form, custom services in any country will assume the contents of a package are a purchase or a gift and therefore have commercial value. Tax and import duty (where appropriate) will be charged in proportion to the value stated on the customs form - sometimes including the shipping costs - plus a processing fee. There is usually a threshold under which no charges are made - in the UK it's £15 for purchases and £39 for gifts. And that's based on an official monthly HMRC exchange rate, not the exchange rate on your credit card, PayPal etc. It's also the HMRC rate when your parcel is processed by HMRC, not when it was purchased.
Cars shipped to a proxy race are not gifts or purchases - ownership doesn't change - and you shouldn't have to pay tax or customs duty. The HMRC advice to write 'Returned Goods' is sensible. Another option I've used as a competitor is 'Return for Repair' - the goods have already been purchased and they will be coming back to me. And they probably will be tweaked / repaired at some point! It is also advisable to consider the value written on the customs form. Ask yourself - how much did the recipient pay you for the contents? Are they now the owner? That is one way of calculating the value to the recipient - and therefore the taxes they ought to morally and legally pay.
Quote:We cannot advise on how to export, other than to complete and affix a form CN22 or CN23. It will be the US authorities who will decide whether to charge taxes on it. Please seek advice from the US postal service.
On the return shipment to the UK, the sender should attach a form CN22 or CN23 and write "Returned Goods" clearly on it.
Unless stated otherwise on the customs form, custom services in any country will assume the contents of a package are a purchase or a gift and therefore have commercial value. Tax and import duty (where appropriate) will be charged in proportion to the value stated on the customs form - sometimes including the shipping costs - plus a processing fee. There is usually a threshold under which no charges are made - in the UK it's £15 for purchases and £39 for gifts. And that's based on an official monthly HMRC exchange rate, not the exchange rate on your credit card, PayPal etc. It's also the HMRC rate when your parcel is processed by HMRC, not when it was purchased.
Cars shipped to a proxy race are not gifts or purchases - ownership doesn't change - and you shouldn't have to pay tax or customs duty. The HMRC advice to write 'Returned Goods' is sensible. Another option I've used as a competitor is 'Return for Repair' - the goods have already been purchased and they will be coming back to me. And they probably will be tweaked / repaired at some point! It is also advisable to consider the value written on the customs form. Ask yourself - how much did the recipient pay you for the contents? Are they now the owner? That is one way of calculating the value to the recipient - and therefore the taxes they ought to morally and legally pay.
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