Are you moving from the United States of America to the UK and needing to shift all your belongings there?
Or, do you want to transfer any commercial goods from the former nation to the latter?
Then, it’s pronounced that you must pay customs taxes for this exchange of goods from one nation to another.
Yes, we know that paying this tax is undesirable for most people. However, it’s not easy to ignore this tax unless you know the right tricks. Are you Curious to gain knowledge about those tricks?
Wondering, how to avoid customs charges from the USA to the UK? We have kept everything covered in this write-up. Just scroll through it and read about the right approaches to avoid the tax.
Customs Charges from USA to UK – An Overview
It is the import duty tax that is charged when you transfer some or all of your goods from the country of the United States of America to the United Kingdom.
It will not matter whether you transfer the goods between the countries for commercial purposes or personal move. The customs tax will be applied for both.
Wondering, what happens to the money that the government collects as customs tax from people? It indirectly helps in safeguarding UK industries and illegal good checking procedures.
Every transfer of goods from the USA to the UK via paperwork. The sender usually sends these documents after finalizing them.
Once received by the UK local customs officials, these papers are then thoroughly read. They are read to understand the nature of goods that are being moved.
Also, it is done to know other information about the goods. The officials also verify the legal status of those goods through these documents.
The papers also state the amount of customs tax that is needed to be paid by the recipient.
Customs Tax from USA to UK – The Amount Charged
The customs tax amount for goods varies from one country to another.
Also, the amount charged depends on the overall price of the goods. Besides, it also relies on the goods’ shipping price and the global HS code (Harmonized System code).
For goods travelling from the United States of America to the United Kingdom, the customs tax is applied. However, it only is applied if the goods’ total prices are over 135 pounds.
You can escape paying the customs tax if you know how to avoid customs charges from the USA to the UK.
If the good’s total price remains between 136 and 630 pounds, the customs tax charged is approximately 2.5 per cent.
However, the commodity code will also be a factor in the calculation of the actual customs tax for such goods if the gift value exceeds 630 pounds.
If the customs tax of the goods is not already paid, the recipient has to pay it. The Courier personnel contacts the recipient for the same. He/she has to pay it along with the VAT.
How to Avoid Customs Charges From USA to UK – The Tricks
It’s not always possible to completely escape paying this tax. However, you can certainly reduce the due amount to be paid by importing the goods temporarily.
To make it happen, you can transfer the goods as samples. Or, you can also import professional equipment, exhibition goods, and demo goods from the USA to the UK.
Also, you can claim relief for the same tax if the goods you are sending between the two nations are –
- Educational goods.
- Promotional goods.
- Goods that can be used for special purposes.
Things Required for The Transportation of Goods
- Customs Declaration.
- Commodity Code.
- EORI Number.
- Import License.
- TOR / Transfer Of Residence.
How to Avoid Customs Charges from USA to UK – Some Tips
Still wondering, how to avoid customs charges from the USA to the UK? Here are some tips –
1. Research Customs Regulation
Don’t just go for shipping your items. First, educate yourself about the current customs regulations for the transfer of goods for both countries. The regulations vary depending on the –
- Type of item to be transferred from the USA to the UK.
- The value of the items taken together.
- The intended use of the items.
With the help of knowledge about these rules and regulations, you will be able to predict the possible tax rates. So, you can make the required documentation ready based on it.
2. Prefer For A Dependable Shipping Service
Still marvelling, how to avoid customs charges from USA to UK? To reduce your customs tax rates for the transfer of goods, it’s always wise to choose reliable carriers.
Those carriers must be well experienced in international deliveries. Also, ensure that the carrier has previously done any transportation of goods from the USA to the UK.
These carriers often professionally deal with customs documentation through their conventional methods.
Also, they help the customers minimize their customs charges for goods in exchange for a certain amount. They know how to expedite the process.
3. Declare Accurate Values
It’s always good to face the customs declarations honestly. Complete the process by being precise about the to-be-shipped items’ prices. Being dishonest to evade charges may expose you to fines and other penalties.
Also, it will delay the delivery of goods to the recipients. Accurate information always helps customs officials to calculate appropriate customs charges for your goods transfer. So, you will never have to pay an excess amount for customs than you ought to pay.
4. Understand Duty-Free Allowances
Transferring goods from the USA to the UK has customs charge exemption for some types of goods. These goods are duty-free. So, transferring such types of goods between those nations will save you money.
Also, customs charges are applicable if the value of your goods exceeds 135 pounds. So, try to keep the price of your goods within that limit to save yourself from paying the customs charges.
If you see that your shipment doesn’t qualify for these exemptions, try other tricks. Instead of transferring goods of higher value in a single package, split the goods.
Send them in unique packages many times. By doing it, the value of each of your shipments will be reduced. As a result, you will be saved from being listed in the customs tax category.
5. Provide Detailed Descriptions
How to avoid customs charges from the USA to the UK or escape the additional payments for the same?
Whenever you are shipping your goods from the USA to the UK, include detailed descriptions for it.
Shipping that lacks the description part arouses suspicions in the minds of the customs officials.
It may result in an additional level of inspection of the goods. In this process, you may have to go through the payment of extra charges for the same.
Giving descriptions of items saves you from harassment and extra expenditure for the shipment of your goods. Whenever you opt for shipment of any item, don’t forget to include the details about its –
- Type of material.
- Purpose of the transfer.
- Intended use.
6. Use Preferential Trade Agreements
Some preferential trade agreements existing between these two nations give exemption of customs charges.
However, these exemptions are applicable for only some types of goods. Also, some special programs between these two countries offer the same.
Know the details about such agreements or programs. See if the goods you want to transfer from the USA to the UK fall under these agreements or not.
The percentage of exemption of the customs tax for these agreements varies based on the item’s type. Explore these agreements and find out which of them relates to your items.
7. Consider Shipping Incoterms
Shipping incoterm explains the norm of customs clearance for different goods.
It declares, who is responsible for paying such international trading customs tax. Also, it tells about the associated rates involved in the transaction.
Selecting the right type of shipping incoterm will help you pay the right tax. With it, you can avoid paying unexpected charges for the goods transfer.
8. VAT Plan
Any good imported to the United Kingdom claims for the payment of VAT.
Paying the VAT in advance will not delay your customs clearance process. So, you will not have to pay any additional charge to get your customs clearance process done.
Providing the required documents on time is also another factor that streamlines the process of customs clearance. With all this planning, you can avoid unexpected charges for the goods transfer.
FAQS
1. Why is it so expensive to ship from the USA to the UK?
The rate of the shipping process is quite expensive if you ship the goods from the USA to the UK because of –
- The high distance between the two nations.
- The potential import duties are taxable on the goods.
- The VAT applies to the items’ overall price.
2. Who pays for customs clearance?
A customs charge is required to be paid for any transfer of goods between the countries of the USA and the UK. It is the importer of the goods who has to pay for the goods’ customs clearance.
Conclusion
Hope, you have understood, how to avoid customs charges from the USA to the UK. Though it’s not possible to escape the payment altogether by any method, pursuing the above methods will reduce the amount to some extent. Also, they will help you stay away from any additional payment of charges or penalties.
So, go through them once again and research thoroughly on the topic before preparing the shipping of your goods from the USA to the UK. If needed, don’t feel shy to take professional help for the customs charges reduction of your goods transfer.
