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Customs/tax on sweater
I recently got a note from the Post Office to pick up a parcel - which had a 130EUR 'tax' payable. It was only a hand-knitted jumper from the US. Value of material around EUR 30, plus relative's time. The relies reckon they paid full postage and paperwork, but here the PO couldn't explain what the tax was or even how it was calculated. It has now been returned to sender on my request.
Anyone know what this could have been???
The European Union is starting free trade talks with the US.
Try to bring this shocking example of a trade barrier to the attention of for example a Euro MP, the EU Commission, newspapers such as the Daily Mail, Financial Times. .... And persevere!
I work in shipping - and I know that the customs officials have to select an "HS Code" to describe the type of article coming into the EU. Different HS codes have different tax and duty rates associated with them, which are applied to the declared value. They usually base the code selection on whatever the person from the US writes on the package (there is a little sticker for personal shipments where you write what's inside). They get it wrong all the time - but once it's cleared customs there's no way of changing it, except sending it back. Plus, they may have read the declared value wrong, since the declared value has to be >130 EUR if they are going to charge you that much in duties and taxes! Wow. Hope you get to pick up your sweater in person! If you do have them try sending it again, make sure they write on the little sticker: "HS Code 611010 Sweaters, Pullovers, Sweatshirts, Waistcoats (Vests),Knitted or Crocheted, of Wool
Value 30 EUR." That way you are MUCH less likely to have the same problem again. Good luck!
Items imported from the US to the EU are subject to customs duty and VAT, even if they are gifts, unless the total value of the goods is below €22.
For the tax and VAT to be as high as 130 euros the item would have to be valued at 400 euros. The evaluation is at the discretion of the customs agent, of course, but it sounds very strange that they would have estimated a hand-knitted jumper to be worth 400 euros. Is your relative absolutely sure they did not put any arbitrary value of the item on the parcel by mistake - if so, then this declared value would have been used by the customs agents and they have not even opened the parcel.
