I want to share my experience of sending a package from
India to the UK and what I could have done better and paid less fees and
charges.
We have been living in the UK for some years now. We
used to go to India every year during the school holidays and we bring things
like homemade masalas when we return.
Due to Covid-19, we did not go to India this year and
all the masalas ran out and the taste of the food was deteriorating day by day😃. So, we have decided to get a shipment from India.
From India
As per my understanding, the cheapest way to send a
package from India to UK is via Indian Postal Services. However, Post Office
told us that they will not accept any package until the situation becomes
normal. So, we have decided to send it via a private courier service.
The shipment weight was 15.5 kg so we paid around ₹10K
for the services. When they pick up the shipment, we need to disclose all the
items and we need to provide the value of each item. It would be something like
the below,
We were given a UPS tracking number to track the
shipment.
To the UK
I was tracking the shipment in UPS website and it was
moving from one warehouse to another and finally reach the UK after 4 days but
all of a sudden, the status was updated as ‘Documentation for personal
belongings is missing and is required from the receiver.’
I had no clue about what documentation was missing, and
I could not find any details from UPS website as well, so I called them.
Charges for UPS Service
I got the line after holding patiently for 40 minutes (I
believed that it was because of less manpower due to Covid-19 so I did not get
frustrated) and a Customs Clearance Advisor from one of the UPS Brokerage
explained to me that I need to provide details like,
· Commodity Code,
· EORI Number
· Approval to use Deferment Approval Number (DAN), etc.
I told the advisor that this was for personal use and I
never had or heard these things. I also informed the advisor that not all the
items in the shipment are new and it has some items which we left in India when
we were there last year.
The advisor told me that they will send and mail and
asked me to provide the details of which items are new and which are old, and
they will take care of the customs clearance however I had to pay for the
clearance procedure. I had no other choice other than saying yes.
Another important point to note here is that your
shipment service provider may apply storage fees (£13 for my shipment) if the
package is held in their premises for more than few working days (3 days with
UPS) and it was already day 2 for me so I have replied immediately once I have
got the e-mail.
After a day, UPS has updated the status that the ‘Import
C.O.D. (ICOD) charges are due for this shipment’ and there were two options to
pay the amount, cash on delivery or online payment. I paid £32.14 online and in
the bill, I found the line items as follows,
· VAT: £5.8
· Brokerage fees: £26.34
Finally, I have got the package after 10 days it was shipped
from India and altogether, I had paid approximately £140 (₹13, 000), which is
2.5 times higher than the original value of the items sent in the shipment.
UK Import Tax and Customs
After I got the parcel, out of curiosity, I wanted to
know more about the import taxes and found that there are 3 tax and customs we
need to pay for goods sent from abroad, VAT, Customs Duty and Excise Duty.
The below details are from gov.uk website (https://www.gov.uk/goods-sent-from-abroad/tax-and-duty)
and always refer the link for latest updates.
VAT
You need to pay VAT when
· gifts worth
more than £39
· other goods worth more than £15
· alcohol, tobacco products and fragrances of any value
The standard VAT rate is
· 20% for most goods and services
· 5% for some goods and services (e.g., children’s car
seats and home energy)
· 0% for most food and children’s clothes.
Customs Duty
You’ll be charged Customs Duty on gifts and other goods
sent from outside the EU if they’re above a certain value. The value includes:
· the price paid for the goods
· postage, packaging and insurance
The rate is as follows,
· 0% for anything under £135
· 2.5% for gifts worth £135 — £630
· Different % for gifts above £630 and other goods above
£135
Excise Duty
If you are getting alcohol or tobacco, then you need to
pay Excise Duty and the rate varies based on the product.
Things I could have done better:
1. Check what would be the cheapest service from India,
I believe it is Indian Postal Service, but I may be wrong.
2. Check how the import tax and customs will be cleared
in the UK.
3. Contact the shipment service who will deliver the
shipment in the UK and check about the customs clearance procedure. UPS website
says that routine clearances are free, so it is better to call the shipment
service and be clear about the charges and fees you need to pay.
4. We can do the customs clearance on our own, but I
guess there would be lot of procedures and paperwork involved.
