My experience of sending a package from India to the UK

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.