Importing and exporting by post

All goods arriving into the UK by post from beyond the European Union (EU) must be declared to HM Revenue & Customs. The sender must attach a completed declaration form CN22 or CN23. Goods worth more than £2,000 need a full Single Administrative Document declaration.

When you receive goods from overseas, you become liable for any Customs charges (excise duty, Customs duty and/or VAT), which must be paid before you can take delivery. In most cases, charges must be paid whether you purchase the goods or receive them as a gift, whether new or used, for sale or private use.

When you send a package to a non-EU country, you must complete a Customs declaration on form CN22 or CN23, which can be obtained from the Post Office or online.

This guide will help you understand more about importing and exporting goods by post to and from the EU and elsewhere.

How to declare goods when importing by post

All postal items that enter the UK may be examined by Customs. If you are importing goods into the UK by post – from non-European Union (EU) countries – the sender must complete a Customs declaration form CN22 for goods and gifts worth up to £270 or CN23 for goods and gifts worth over £270. This should be attached to the package.

The declaration should include:

• a description of the goods
• their value
• whether they are gifts or commercial items

If you are importing goods by post, it is important to make sure that the sender makes a complete and accurate declaration. As the importer of the goods, by law, you are legally responsible for the information on the Customs declaration and for any charges due. Charges may include VAT, customs duty and/or excise duty.

If you buy goods and the declaration is found to be incorrect, you may be liable to financial penalties or prosecution. It is therefore in your interests to ensure the sender completes the Customs declaration accurately.

If no declaration is made – or the information is incorrect – the package may be delayed while further enquiries are made. In some cases, the package and its contents may be seized.

Some imports require a full declaration. For more information see the page in this guide on postal imports and exports requiring full declaration.

Declaring the goods yourself

As the importer you can carry out your own Customs procedures. If you want to do this, you will need to ensure the sender clearly marks the Customs declaration form (CN22 or CN23) ‘goods to be Customs cleared by the importer’. Do not write on the wrapping. If the Customs declaration form (CN22 or CN23) is not marked in this way by the sender, the goods will be cleared by customs in the normal way; once goods have been Customs cleared you cannot then retrospectively apply to self clear them.

For items that have been marked for clearance by the importer, a full declaration will be sent to you to complete and return to the appropriate customs postal office.

They will calculate any import charges and write and advise you of your tax liability.

When you have paid this and the funds have been cleared, your goods will be released for delivery.

However, as a manual procedure there could be a considerable delay in the receipt of your goods.

You can obtain copies of the import declaration form and further information on the HMRC VAT Helpline on Tel 0845 010 9000.

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Calculating Customs charges when importing by post

Most goods arriving in the UK from outside the European Union (EU) are liable to import VAT and Customs duty if certain limits are exceeded. Some goods are also liable for excise duty. Any charges due must be paid whether the goods:

• were purchased or received as a gift
• are new or used
• are for private use or sale

Charges are raised by Customs staff at the postal depots where the packages are received.

Import charges will depend on the type of goods imported and their value, which is stated on the Customs declaration form CN22 or CN23. Goods are not chargeable if the total value of goods in the consignment does not exceed £15*. Goods over £15 are liable for VAT.

*Please note that all mail order goods/merchandise sent to the UK from the Channel Islands is liable to VAT at import.

There is a different rate for imported personal gifts, which is £40. Gifts above £40 will attract VAT, and if the value is above £135, according to their type, Customs duty and/or excise duty may be due. For goods to qualify as a gift they must be sent between two private individuals, for example as a birthday present. An item bought online to give to someone else as a present is not considered to be a gift for Customs purposes.

If the package contains gifts for more than one person, the gift limit of £40 can be applied to each person, providing the goods are separately wrapped, individually addressed and separately identified on the Customs declaration on the front of the parcel. If there is more than one gift addressed to a particular person, the value of the goods will be aggregated.

Goods sent to the UK from the Channel Islands

From 1 April 2012, all mail order goods/merchandise sent to the UK from the Channel Islands became subject to VAT at import.

However, this change does not affect any other Customs thresholds or reliefs.

Customs duty

Customs duty is payable on imported goods with a value over £135 although payment is waived if the amount of duty is less than £9. This is usually charged as a percentage of the value. 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, postage is excluded from the calculation for duty on gifts sent by post except for goods sent by Express 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 and VAT. The excise duty rate on wines and spirits depends on the alcohol content and whether wine is sparkling or still. Duty on cigarettes is based on a percentage of the recommended retail selling price as well as a quantity charge. On other tobacco products, such as cigars or hand rolling tobacco, it is charged on the net weight.

VAT

Import VAT is charged at the same rate that applies to similar goods sold in the UK and applies to all goods over £15, and all goods sent to the UK from the Channel Islands. If the goods are gifts however, the limit is raised to £40.

The calculation for import VAT is based on the price paid for the goods, including any local sales taxes, plus postage, packing and insurance costs, plus any import duties charged.

Used goods and antiques

Any goods which have been purchased are considered a commercial transaction and are therefore subject to import duty/VAT. However, rates of duty and VAT do vary on antiques.

Exchange rates

The rate of exchange from Euros to pounds sterling is set annually by the EU Commission. These rates are published in the European Commission Journal on the first working day in October, to take effect from 1 January the following year.

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Examination of postal packages entering the UK

Postal packages arriving in the UK from outside the European Union are checked to make sure they do not contain banned or restricted goods, such as:

• drugs
• indecent or obscene material
• weapons
• endangered species
• counterfeit goods

Checks also take place to make sure the description and value stated on the declaration is correct, as well as to find out whether any Customs duty, excise duty and import VAT is payable by the recipient.

Customs sometimes need to examine a package when the sender has not completed the declaration fully. When directed by Customs, Royal Mail staff carry out package opening, repacking and resealing.

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Paying outstanding charges on goods imported by post and Royal Mail handling fees

Where Customs charges are payable, Royal Mail and Parcelforce levy a handling fee to cover the costs of operating the postal Customs depot, carrying out Customs formalities, paying the import charges on the importer’s behalf and collecting it from them. Royal Mail/Parcelforce may also handle the package for Customs examination and, if required, open, repack and reseal the package if information is missing from the declaration.

If you have been sent an item from overseas and Customs charges are due, Royal Mail will hold the item and send you a ‘fee to pay’ card, letting you know how much you owe. In the case of Parcelforce, a letter will be sent explaining the amount to be paid.

Items that have outstanding Customs charges are kept at the local delivery office for three weeks. If they are not paid for and collected, or if no enquiries are made, they are returned to the sender.

Royal Mail/Parcelforce fees are itemised separately on the charge label and collected at the same time as the Customs charges.

You can find more information about Parcelforce Worldwide handling fees on the Parcelforce Worldwide website – Opens in a new window or find information on the Royal Mail Handling fee on the Royal Mail website – Opens in a new window.

How can you get your items

There are several options available. You can:

• Put postage to the correct value on the other side of the ‘fee to pay’ card and send it back to the Royal Mail.
• Bring the card to the delivery office (as stated on the ‘fee to pay’ card), pay the charge and collect the item. Please remember you will need to bring proof of identity.
• Pay online on the Royal Mail website – Opens in a new window.

Once you have paid the fee, the item will be delivered along with your post, or you can arrange a delivery online on a convenient date. Alternatively, you may pick it up from the postal depot.

If you are sent a Customs declaration form (C88 or C160), you must complete and return it to the address in the top right hand corner of form C87 ‘Notice of Arrival’ which accompanies the Customs declaration form. Only then will your package can be delivered. You should not send payment with this form unless you are asked to.

Pre-payment of import VAT on goods purchased online

For goods purchased online, HM Revenue & Customs (HMRC) operates a scheme which allows some authorised overseas traders to charge, collect and pay import VAT on your behalf under a Memorandum of Understanding with that country.

Items that are purchased through this scheme are not subject to a handling fee by Royal Mail/Parcelforce in the UK.

Read more about international shopping on the internet on the HMRC website – Opens in a new window.

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.

Querying Customs charges

If you believe you have been charged too much because your goods have been valued too highly, you can contact the UK Border Agency (UKBA) at the postal depot shown on the charge label on your goods. You will be asked to supply evidence of the value, eg an invoice or receipt of purchase.

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:

• 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. Please write to:
  
  UK Border Agency
  Reviews & Appeals Team
  Crownhill Court
  Tailyour Road
  Crownhill
  Plymouth
  PL6 5BZ
• Appeal directly to the tribunal who are independent of the UKBA.

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 reviews and appeals is contained in leaflet HMRC1. You can download HMRC1 from the HMRC website (PDF, 65K) – Opens in a new window or phone the HMRC Self Assessment Orderline on Tel 0845 900 0404.

For further information, you can read about how to deal with Customs Appeals on the HMRC website – Opens in a new window.

Repayment of duty and VAT on mail order/internet goods

If you decide to return imported goods to the sender after paying duty and import VAT, you can ask for a refund of the charges.

You will have to make your claim in writing within three months of the date of import to the UKBA at the address shown on the charge label, enclosing:

• the original charge label
• the sender’s declaration (CN22 or CN23) and outer wrapper showing your address
• a certificate of posting stamped by Royal Mail confirming the goods have been returned to sender

If you aren’t able to provide this information, your claim may be rejected.

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Postal imports and exports requiring full declaration

When trading with non-European Union (EU) countries, you or the sender need to complete a full Customs declaration when:

• the value of the goods being imported or exported exceeds £2,000
• you are claiming relief from Customs duty and VAT eg inward processing relief, outward processing relief or temporary importation

In these circumstances you must complete a Single Administrative Document C88 (SAD). The UK Border Agency (UKBA) will send a copy to you which you must complete and return.

UKBA will also send you form C87 ‘Notice of Arrival of Goods by Post’. This informs you that your goods have arrived in the UK but cannot be delivered until you have completed and returned the SAD form. It contains the customs reference number for the package which you should use if you wish to speak to UKBA about your delivery.

If you are sending or receiving goods within the EU, you don’t need to complete a Customs declaration.

Completing the SAD

You can complete a SAD yourself or arrange for an agent to act for you. For more information on using agents for SAD submissions, see our guide on declarations and the Single Administrative Document.

Each form contains four pages which you must complete. Once you have completed the SAD, you should make sure that you have completed all the necessary boxes. See our SAD completion checklist in our guide on declarations and the Single Administrative Document.

You should return the SAD promptly as any delays could result in additional storage charges and the package might even be disposed of.

You should not send any payment with your form unless you have been asked to. Royal Mail will collect charges from you when the package is delivered. If you want to postpone the payment of Customs charges, you will need to quote the appropriate deferment number in Box 48 of the SAD.

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Customs declarations when sending packages outside the European Union

If you are exporting goods to countries outside the European Union (EU) you must complete and attach a Customs declaration. You can get Customs declaration forms CN22 (for goods worth up to £270) or CN23 (for goods worth more) at your local Post Office. Download the CN22 form from the Royal Mail website (PDF, 52K) – Opens in a new window.

Any necessary certificates or licences should also be attached to the outside of the package and clearly identified before posting. A commercial invoice should be sent with packages containing commercial items. A ‘C&E 83A’ (sticky label) should be attached, which directs the postal authority to present the parcel to Customs for checks prior to export.

If you leave important details off your Customs declarations, it could lead to delays or even seizure of the goods by Customs. You must also include your name and address on the Customs declaration or item being sent overseas.

You do not need to fill out a Customs declaration for packages sent to another EU country.

For help with classifying goods for export by post, see our guide UK Trade Tariff.

UK Customs controls

Customs carries out selective checks to stop banned or restricted goods, or items relating to the proceeds of crime, from being sent overseas.

Customs and postal agencies throughout the world have restrictions on types of goods that can be sent by post. You can read about postal restrictions on the Royal Mail website – Opens in a new window.

Should I retain evidence of posting?

If you are registered for VAT, you need to keep a certificate of posting to support your VAT zero rating.

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Receiving postal packages from the European Union

There are selective checks on goods imported from the European Union (EU) to prevent banned items, such as drugs, indecent or obscene material and weapons, from entering the UK. These also help to make sure that the correct charges are being paid.

Which countries are full EU members?

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
• UK

Goods received from areas of Cyprus that are not under the control of the government of the Republic of Cyprus are treated as non-EU imports.

What are the ‘Special Territories’?

These are part of the EU when it comes to Customs procedures. If you import goods from these places, you do not have to pay Customs duty, but they are subject to excise duty and import VAT. The special territories are:

• Åland Islands (Finland)
• Canary Islands (Spain)
• Channel Islands*
• Guadeloupe, French Guiana, Martinique and Reunion
• Mount Athos (Greece)

Because goods from the Special Territories are liable for excise duty and import VAT, they are handled in the same way as goods imported from outside the EU.

*However from 1 April 2012, all merchandise/mail order goods sent to the UK from the Channel Islands became liable to VAT at import, no matter what the value of the goods.

Following the establishment of a Customs Union between Turkey and the EU in 1996, many Turkish goods do not have to pay Customs duty, although excise duty and import VAT still apply.

VAT rates

Within the EU, every country is required to charge a standard VAT rate of at least 15 per cent, and a reduced rate of at least 5 per cent, on a wide range of goods and services. But VAT rates vary between EU member states and for different goods. In addition, some countries have special rules and exceptions. You can find the most up-to-date VAT rates applicable in all EU member states on the Europa website – Opens in a new window.

What about receiving alcohol and tobacco from the EU?

If you buy alcohol and tobacco by post on a commercial basis from the EU, excise duty and import VAT must be paid. The seller should arrange to pay these taxes before the items are sent to you. If this isn’t the case, the goods may be confiscated. Read information about paying duty on excise goods in Public Notice 203 on the HM Revenue & Customs (HMRC) website – Opens in a new window.

If you are sent alcohol and tobacco for personal use – as a gift through the post – or you send it to yourself from another EU member state, you must pay excise duty but not import VAT.

Gifts of alcohol and tobacco from the Special Territories do not attract Customs duty. However, they are liable to excise duty and import VAT.

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