Calling out extreme postage prices…
- Thread starter AirbrushNo5
- Start date
Snowman
Well-Known Member
With international shipping costs soaring like this, the upside is that it may encourage more domestic manufacturing for domestic markets everywhere.
In theory, this might mean a company like KATO spreads out into...say...KATO North America, KATO EU, etc., in somewhat the same way BMW's are made here in the US.
But does anyone actually think this will happen soon? Ever?
I don't either. But it's a nice theory.
In theory, this might mean a company like KATO spreads out into...say...KATO North America, KATO EU, etc., in somewhat the same way BMW's are made here in the US.
But does anyone actually think this will happen soon? Ever?
I don't either. But it's a nice theory.
Smudge617
Well-Known Member
That's weird, this one doesn't show the international postage, ah, well no biggie
Smudge617
Well-Known Member
No, main reason why China makes so much stuff is cheaper labour, main reason Hornby moved it's manufacturing there.
AirbrushNo5
Well-Known Member
I ended up using the Woodland Scenics Brown Tufts…which are cheaper and I didn’t have any hassle in finding a supplier.. Otter Valley in this case
rbwhale
Member
USPS Priority Mail is quite cheap. When I was selling my heavy G scale track on EBay this year it reduced the rate for a heavy box of 12 pieces by about 50 bucks. The seller has to use the USPS Priority Mail Boxes or envelopes. Perhaps your seller is just lazy or unconcerned.
Smudge617
Well-Known Member
I've bought stuff from both East and the West Coast, to the UK. One of the most expensive items postal wise was a EMD, at around $60, via USPS, so when a seller wants $70+ postage for a $10 motor, I'm not sure if that's just being greedy, or stupid, for that size/weight item I can expect to pay between $7-$10, quite often less.
skyliner
Well-Known Member
I think part of the costs and issue with shipping is that in addition to international requirements, e-commerce sales to the UK got more complicated after Brexit. Keep in mind that to ship something from the US to the UK that is considered a "purchase" (i.e. you're not sending a package to your family), the seller has to:
-Complete customs declaration and paperwork
-Calculate and collect VAT, which is now generally around 20% (before Brexit, VAT was generally paid by the buyer upon arrival at customs; now the seller has to collect and record it before export)
-Depending on the value of the item(s) sold, the seller may have to establish an account with the UK tax system, HMRC
-Depending on frequency of transactions and value, the seller may have to make quarterly VAT fee payments to HMRC
Also keep in mind that with Brexit, the UK eliminated the low-value tax exemption, so VAT now has to be collected for everything imported from the US, regardless of value. Previously, something like a $10 motor would have been exempt.
That's a fair amount of work for a seller who doesn't have a business large enough to have an international processing system. He/she would have to figure out the customs and tax requirements, setup applicable accounts, do customs paperwork, and account for required VAT fees. I could see someone thinking, "Well that's gonna take about two hours of work to figure out, add in VAT, packaging, air shipping, etc. and that comes to about $70."
-Complete customs declaration and paperwork
-Calculate and collect VAT, which is now generally around 20% (before Brexit, VAT was generally paid by the buyer upon arrival at customs; now the seller has to collect and record it before export)
-Depending on the value of the item(s) sold, the seller may have to establish an account with the UK tax system, HMRC
-Depending on frequency of transactions and value, the seller may have to make quarterly VAT fee payments to HMRC
Also keep in mind that with Brexit, the UK eliminated the low-value tax exemption, so VAT now has to be collected for everything imported from the US, regardless of value. Previously, something like a $10 motor would have been exempt.
That's a fair amount of work for a seller who doesn't have a business large enough to have an international processing system. He/she would have to figure out the customs and tax requirements, setup applicable accounts, do customs paperwork, and account for required VAT fees. I could see someone thinking, "Well that's gonna take about two hours of work to figure out, add in VAT, packaging, air shipping, etc. and that comes to about $70."
Smudge617
Well-Known Member
Exactly where did you get the information from that you've based this on?
skyliner
Well-Known Member
From various shipping information sites, namely:
Shipping from the U.S. to UK with 2021 VAT Rules - Stamps.com Blog
Starting January 1, 2021, shipping to the UK is becoming more complex due to Brexit. If you’re an online retailer shipping products from the U.S. to the United Kingdom (UK), you will need to change your fulfillment process starting January 1, 2021. The UK has left the European Union trading...
blog.stamps.com
International Shipping 101: Shipping To The UK From The US | Shippo
E-commerce merchants in the US looking to expand globally should first consider shipping to the UK. We explain why that is and how to do it.
goshippo.com
Smudge617
Well-Known Member
We're going off topic here, but I'll try and reply, it is interesting information, but both articles deal with Business sellers, who are presumably selling high volumes of their products to the UK.From various shipping information sites, namely:
Shipping from the U.S. to UK with 2021 VAT Rules - Stamps.com Blog
Starting January 1, 2021, shipping to the UK is becoming more complex due to Brexit. If you’re an online retailer shipping products from the U.S. to the United Kingdom (UK), you will need to change your fulfillment process starting January 1, 2021. The UK has left the European Union trading...blog.stamps.com
International Shipping 101: Shipping To The UK From The US | Shippo
E-commerce merchants in the US looking to expand globally should first consider shipping to the UK. We explain why that is and how to do it.
Individuals, or companies that seller much smaller quantities, don't need to go through all that hassle, they can, and do, just fill in a Customs Declaration form, and post, as long as you've told the buyer they are responsible for import taxes etc. your good.
If you sell through someone like eBay and use their international postal system, they do it for you, the seller then only receives the actual item price, nothing else, so do not need to register with HMRC as eBay are the registered importer and they pay HMRC any taxes due.
However, I, as a private individual buying say a Model Locomotive, for myself, I do not need to pay import tax. any any item valued at under £135. But the Taxman wants his share, so they have a sneaky way of getting it.
If say I buy from you a Locomotive, value £110, postage and insurance, is £35, total £145, I have to pay Import Tax and VAT, if the postage was £19 then only VAT is payable.
Also A bug bear I have is that Sellers in the US don't correctly fill in the Declaration form, there are two important boxes on the form,
1) Description.
2) Category or Tariff Code.
1) should read "TOY" invariably they write "Merchandise" however merchandise means I am importing the item for resale not private use.
2) is usually left blank, (Tariff/ Category Code for a Model Locomotive is 950300) so HMRC don't know exactly what's in it, and the correct Import tax (if any) to apply, so they error on the side of caution and assume I'm a business (because Description box say's "Merchandise") which then attracts a higher % of import tax.
That means after I've paid the Import Tax and VAT, and received the item I have to print out the original advert for the item, (usually a screenshot) two pages of documentation, when, where, price paid, postage etc. and a foto's of the actual item, including the packaging and send that off and hopefully get either a full or partial refund of the Import tax.
This is a link to the UK Government Tax and Customs website for goods sent from overseas, if your interested.
Tax and customs for goods sent from abroad
VAT, duty and customs declarations for goods received by post or courier - paying, collecting your goods, getting a refund and documents.
