Notice 143 A guide for international postal users

April 2010

Foreword
This notice cancels and replaces Notice 143 (February 2010). Details of any
changes to the previous version can be found in section 1 of this notice.

Further help and advice

If you need general advice or more copies of HM Revenue &Customs notices, please
phone the Helpline on 0845 010 9000.You can call between 8.00 am and 8.00 pm,
Monday to Friday.

If you have hearing difficulties, please phone the Textphone service on 0845 000
0200.

If you would like to speak to someone in Welsh, please phone 0845 010 0300,
between 8.00 am and 6.00 pm, Monday to Friday.

All calls are charged at the local rate within the UK. Charges may differ for mobile
phones.

1. What this notice is about

This notice explains what happens when you import or export goods by post through
Royal Mail or Parcelforce Worldwide. It also applies to gifts received through the
post. All further references to Royal Mail within the text of this notice also applies to
Parcelforce Worldwide, unless specified otherwise.

The arrangements set out in this notice however do not apply when a full declaration
on a SAD (form C88) is required. That is for:

• imports of goods with a value exceeding £2,000 declared to

home use and free circulation

• imports of goods for which relief from customs duty and import
VAT is being claimed, for example, inward processing relief,
outward processing relief, temporary importation

• certain exports including all goods for export with a value

exceeding £2,000.

Information on the procedures you should use can be found in Notice 144 Trade
imports by post: how to complete customs documents.

The notice is not the law and does not change the law, extracts of which can be
found in section 7.

You can find information about exporting or importing by post on the Royal Mail
website or phone Royal Mail Customer Services on 08457 740 740, or go to the
Parcelforce Worldwide website or phone Parcelforce Worldwide Customer Services
on 0844 800 4466.

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2. Postal packages imported (arriving) from

countries outside the EU
2.1 Does the sender have to declare the
goods?
Yes. Under international postal agreements the sender must complete a customs
declaration (form CN22 or CN23) which in most cases should be fixed to the
package. The declaration includes a description of the goods, the value and whether
they are gifts or commercial items. Any Post Office abroad should be able to give
advice to the sender.

You are legally responsible for the information on the declaration; therefore it is in
your own interest to ensure, wherever possible, that the sender abroad makes a
complete and accurate declaration. If no declaration is made, or the information is
inaccurate, the package may be delayed while we make further enquiries, or in some
cases the package and its contents may be seized.

2.2 Do I have to pay import duties and/or

import VAT on goods sent to me?
Most goods arriving in the UK from outside the EU are liable to any or all of the
following taxes:

• customs duty

• excise duty

• import VAT

and must be paid whether:

• you purchase the goods or receive them as a gift

• the goods are new or used (including antiques)

• the goods are for your private use or for re-sale.

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2.3 What are the limits for customs duty and

import VAT?
• Commercial consignments of £18 or less are free from customs
duty and import VAT. For example, goods purchased over the
internet with an intrinsic value not exceeding £18, will not be
charged any duty or VAT but this does not include alcohol,
tobacco products, perfume or toilet waters. See paragraph 2.5,
2.6 and section 3.

• If you are sent a gift with a value of £40 or less, and which
complies with the rules shown in paragraph 2.4, it will be free
from customs duty and import VAT, but this does not include
alcohol, tobacco, perfumes and toilet waters.

• Customs duty becomes payable if the value of the goods is over

£135 but duty is waived if the amount of duty calculated is less
than £9.

There are a number of other circumstances where relief from some or all customs
charges may be available. If you think your goods may be eligible for a relief you
should contact the Customs Helpline for further information.

2.4 Gifts
Goods sent as a gift that are over £40 in value are liable to import VAT. Customs
duty also becomes payable if the value of the goods is over £135 but is waived if the
amount of duty calculated is less than £9.

To qualify as a gift:

• the customs declaration must be completed correctly

• the gift must be sent from a private person outside the EU to a

private person(s) in this country

• there is no commercial or trade element and the gift has not

been paid for either directly or indirectly

• the gift is of an occasional nature only, for example, for a

birthday or anniversary.

Note: if you purchase goods from outside the EU to give as a gift to a relative or
friend, whether or not addressed to that person, is treated as a ‘commercial
consignment’ for which the import VAT relief threshold is £18 (paragraph 2.3 refers).

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2.5 Do gifts of alcohol and tobacco products

qualify for relief from import duties and import
VAT?
Yes - gifts of alcohol and tobacco products qualify for relief from import duties and
import VAT, subject to the following limits against each of the goods described below:

(1) Tobacco products— Quantity

Cigarettes 50

Or

cigarillos (cigars with a maximum 25

weight each of 3 grammes)

Or

Cigars 10

Or

smoking tobacco 50 grammes

(2) Alcohol and alcoholic beverages—

distilled beverages and spirits of an 1 litre

alcoholic strength exceeding 22 per
cent by volume; undenatured ethyl
alcohol of 80 per cent by volume and
over

Or

distilled beverages and spirits, and 1 litre

aperitifs with a wine or alcohol base,
tafia, saké or similar beverages of an
alcoholic strength of 22 per cent by
volume or less; sparkling wines and
fortified wines

Or

still wines 2 litres

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If gifts of alcohol and tobacco are sent in excess of the quantities shown in the above
table, relief from import duty will only apply up to the limits shown above, and the
consignment will not benefit from any relief of import VAT.

Please also note that excise duty is payable on all alcohol and tobacco
products regardless of whether they are a gift.

2.6 Do gifts of perfumes and toilet waters

qualify for relief from duties and import VAT?
Neither customs duty or excise duty is chargeable on perfumes and toilet waters.
However, import VAT is chargeable if the allowances detailed below are exceeded.

Item Quantity

Perfumes 50 gms of perfume

Toilet waters 0.25 litres of toilet water

2.7 Do multi-gift packages containing more

than one gift qualify for the £40 customs duty
waiver and import VAT relief?
Where a package contains gifts that are clearly intended for several people, for
example, members of the same family, the £40 VAT relief applies to each individual
person provided the goods are:

• individually wrapped, and

• specifically addressed to them, and

• declared separately on the customs declaration

• within the allowances specified.

If more than one individual package is addressed to a particular person the value of
the goods will be aggregated. If the total value exceeds £40 import VAT will be
charged, and if the value exceeds £135 customs duty may also be due.

If a package contains a number of different types of goods intended for more than
one person, and these are separately described and given a value on the customs
declaration, the waiver of customs duty will apply to each item. For import VAT only
as many items as add up to a value not exceeding the import VAT threshold (£40)
will be granted relief. However, the value of an item cannot be divided; for example, if
a package contains five items each with a value of £8, only four items will be entitled
to relief with charges payable on the fifth item.

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An illustration of this is shown below:

Goods Relief given

One item valued at £40 or below Free of customs duty and import VAT.

One item valued at £44 Import VAT is chargeable on the full

value.

Six of the same items valued at £8 each Five items are relieved of import VAT
leaving import VAT chargeable on the
remaining one item.

Five different items valued at £120 each Import VAT is chargeable on the full
value.

One item valued at £300 Customs duty is charged (but will not be
collected if the amount of duty is less
than £9). Import VAT is chargeable on
the full value.

2.8 How and why we examine packages

We examine postal packages arriving in the UK from outside the EU for prohibited or
restricted goods such as drugs, indecent or obscene material, weapons, endangered
species and counterfeit goods, and to confirm the description and value stated on the
declaration is correct.

We also check the customs declaration to determine if customs duty, excise duty and
import VAT is chargeable. We will sometimes need to examine the contents of a
package particularly when the sender has not completed the declaration correctly. In
such cases the opening, repacking and resealing of the package is carried out, under
our instruction, by Royal Mail staff.

3. Charges
3.1 How are import charges calculated?
Charges are calculated by UK Border Agency (UKBA) staff at the postal depots
where the packages are received. However, in some cases special arrangements are
in place for goods purchased on the Internet (see paragraph 3.4 below).

Value Added Tax (VAT) - Import VAT is charged at the same rate that applies to
similar goods sold in the UK and applies to commercial goods over £18 in value, and
on gifts that are over £40 in value. The value of the goods for import VAT is based on
the:

• basic value of goods, plus

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• postage, packing and insurance, plus

• any import (Customs or Excise) duties charged.

Customs duty - Customs duty becomes payable if the goods are over £135 in value
but is waived if the amount calculated is less than £9. Customs duty is usually
charged as a percentage of the value of the goods.

The amount of customs duty charged will depend on the type of goods imported and
their value stated on the customs declaration CN22/CN23 (converted using the rates
of exchange for the month of importation as shown on our website).

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, the cost of postage is excluded
from the calculation for customs duty on gifts except where the sender has used the
Express Mail Service (EMS) as opposed to a standard mail service.

Where the value of gifts is below £630 per consignment a flat rate of duty of 2.5 per
cent Member States 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. The excise duty on alcohol products such as wines and spirits
depends on the alcohol content and volume. In the case of wine and cider whether
they are sparkling or still. Duty on cigarettes is based on a percentage of the
recommended retail selling price plus a flat rate amount per 1,000 cigarettes. On
other tobacco products, for example, cigars or hand rolling tobacco, excise duty is
charged at a flat rate per kilogram.

3.2 Is duty charged on used goods?

Used goods are still liable to the same duty and VAT charges as if they were new.
However, their value may vary depending on their age and condition.

3.3 How do I pay customs charges?

Royal Mail provides several options for payment and they will inform you of the
options available and the amounts payable when they contact you. A postcard or
letter is usually delivered to your address, detailing the amount due and the options
available for payment. Once payment has been made, the package may be collected
from the post office or if you have paid online/by phone you can arrange for it to be
delivered. Details of the charges, including the Royal Mail or Parcelforce Worldwide
handling fee, will be shown separately on a label affixed to the package.

If the value of the package is over £2,000 or it is for a particular customs regime you
will be sent a customs declaration form (C88 or C160) which you must complete and
return to Customs at the Postal Depot before your package can be delivered. You
should not send any payment with this form unless asked to do so.

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3.4 Prepayment of import VAT on goods

purchased over the Internet
UK Customs has special arrangements that allow some overseas traders to charge,
collect and pay over to us the import VAT for goods purchased on the Internet that
would normally be chargeable at the time the goods are imported. These
arrangements operate under Memoranda of Understanding (MoU) signed with
certain overseas customs and postal authorities. The countries that have an MoU
with HMRC are: Channel Islands, Hong Kong, Singapore and New Zealand.
Overseas traders wanting to use this procedure must be authorised to do so by their
authorities.

Once authorised, foreign businesses are issued with a unique authorisation number,
which they must show on the customs declaration or packaging. Also they will
include the statement 'Import VAT Prepaid'.

Where these arrangements are used you will not be charged a Royal Mail handling
fee when you receive your package.

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.

3.5 Why do I have to pay a handling fee to

Royal Mail?
If customs charges are payable upon importation, Royal Mail charge a handling fee
to cover the costs for carrying out customs procedures paying any customs duties or
VAT due and collecting it from you. If customs examination is required, or if
information is missing from the declaration, Royal Mail open, repack and reseal the
package. Royal Mail fees are itemised separately on the charge label and are
collected at the same time as customs charges. As they are completely separate
from any customs charges, any queries about them should be raised with Royal Mail
or Parcelforce Worldwide as appropriate.

3.6 Where can I ask about or query a customs

charge?
If you have any questions about a particular customs charge you should contact
Customs at the postal depot shown on the charge label as soon as possible. If you
write to Customs you should include as much detail as you can, including the
customs charge label, the customs declaration and the part of the wrapper with your
address on it. If your claim is about overcharged tax because the declared value of
the goods was incorrect you will need to supply evidence, for example, an invoice,
receipt of purchase etc., to support your claim.

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Customs deal with thousands of packages every day and without this information we
may not be able to trace your particular package in our records. If you telephone it
will help if you have the package details with you. In the event of a claim you should
retain all wrappings and documents until your claim is settled.

3.7 What can I do if I am not satisfied with the

reply I receive?
If you think that your query has not been answered satisfactorily, or you have some
additional information that may affect an earlier decision, please contact Customs at
the postal depot again to try to resolve the matter.

3.8 What do I do if I disagree with a Customs

decision?
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 either:

• 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 , or

• appeal direct to the Tribunal who are independent of HMRC.

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 review and appeals is contained in factsheet HMRC1

Decisions - what to do if you disagree which can be obtained from our website or by
phoning 0845 900 0404.

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4. Postal packages received from other EU

countries
4.1 Are there customs controls on goods from
the EU?
We carry out selective checks to ensure that no prohibited goods such as drugs,
indecent or obscene material, weapons etc., are received in the UK from other EU
countries. We also carry out routine controls for revenue purposes. However,
because goods from the ‘Special Territories’, that is, countries who are not included
in the fiscal territory of the EU (see paragraph 4.3), are subject to excise duty and
import VAT, they are processed in the same way as goods imported from outside
the EU.

4.2 Which countries are full members of the

EU?
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 and the United Kingdom.

*The European Commission has advised that the application of the Community
Customs Code and Principal VAT Directive shall be suspended in those areas of
Cyprus in which the government of the Republic of Cyprus does not exercise
effective control. Goods from those areas will be treated as non-EU imports.

4.3 What are the 'Special Territories'?

These are countries that are part of the EU for customs purposes, but not for fiscal
purposes. Goods imported from these countries therefore are free of customs duty,
but subject to excise duty and import VAT. The ‘Special Territories’ are:

• The Lland Islands (Finland)

• The Canary Islands (Spain)

• The Channel Islands

• The French Overseas Departments of Guadeloupe, French

Guiana, Martinique and Reunion

• Mount Athos also known as Agion Poros (Greece).

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4.4 What is the relationship between the EU

and Turkey?
The EU and Turkey established a Customs Union on 1 January 1996, and many
goods from Turkey no longer attract customs duty, but excise duty and import VAT
still apply.

4.5 Can I receive alcohol and tobacco from

the EU?
If you receive alcohol and tobacco by post on a commercial basis this is known as
'distance selling', and there is a liability to both excise duty and import VAT. The
sender should have made prior arrangements to account for these taxes no later
than the date of despatch from the exporting Member State. It is in your own interests
to ensure these arrangements have been completed otherwise the goods may be
liable to forfeiture. You can find more information about this in Notice 203 Registered
Excise Dealers and Shippers, and on our website.

If you receive goods that are for your own personal use, for example, a gift from
another person, or you have posted them to yourself from another EU Member State,
there will be a liability to excise duty but not import VAT. The UK excise duty must
again be secured before the goods are sent, using the ‘distance selling’ procedure. If
you are in doubt about the duty liability of goods you have received you should
contact the Excise Helpline on 0845 010 9000.

4.6 Can I receive alcohol and tobacco from the

Special Territories?
Yes. Gifts of alcohol and tobacco are free of customs duty but they are liable to
excise duty and import VAT.

5. Exports
5.1 What do I need to do when I send a
package abroad?
For sending a package to any country outside the EU including the Special
Territories you must complete and affix a customs declaration (CN22, CN23 or a
Parcelforce Worldwide Despatch Pack incorporating the CN23) which you can obtain
from the Post Office. Any necessary preference certificate or licence should be
attached to the outside of the package and clearly identified before handing it over to
the post.

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For commercial items that require an export licence or are being exported under a
suspensive regime, that is, outward processing relief, a commercial invoice should
accompany the package. A C&E83A Exported by post under HM Revenue &
Customs Control (sticky label) should be attached which directs post office staff to
present the parcel to Customs at the Office of Exchange for checks to be made prior
to export.

You do not need a customs declaration for packages sent to another country within
the EU.

5.2 Do I need to obtain evidence of posting?

For private persons there is no Customs requirement to obtain evidence of posting.
However, if you are in business and registered for VAT you will need to obtain and
retain a certificate of posting (C&E132) to support the VAT zero-rating of your supply,
and to discharge your liability to customs charges on goods temporarily imported into
the UK. You can find further details of the procedures to be followed in Notices 200,
221, 235, 275 and VAT Notice 703.

5.3 Are there customs controls on goods

exported from the UK?
Yes. We carry out selective examinations to ensure that no prohibited or restricted
goods or items relating to the proceeds of crime are being improperly sent.

5.4 Are there any other restrictions on what

goods can be sent abroad?
Customs and postal administrations throughout the world set certain restrictions on
what type of goods can be sent by post. If you have any concerns about sending
your goods by post you should contact Royal Mail.

6. Quality of service
6.1 What should I do if I have a complaint
about delay or damage to my package?
Although we can examine the contents of a package the responsibility for opening,
repacking and resealing it is carried out by Royal Mail who also deliver it. Therefore if
you have a complaint about delay or damage to your package you should contact the
appropriate Royal Mail or Parcelforce Worldwide Customer Service Centre.

In cases where Customs have damaged the contents we will acknowledge this by
enclosing a letter within the package.

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7. Extracts from the law

Opening of postal packages - Regulation 12 of the Postal Packets (Customs and
Excise) Regulations 1986 (Statutory Instrument 1986 No 260) gives authority for an
Officer of Customs and Excise to require the Royal Mail to open for examination any
postal packet being imported or exported.

Waiver of customs duty of less than £9 - Article 868 of EC Regulation (EEC)

2454/93 allows Member States to waive amounts of customs duty of less than 10
euros (sterling equivalent of £9).

Relief from import VAT on commercial consignments, excluding alcohol,

tobacco, perfumes and toilet waters, with a value below £18 - The Value Added
Tax (Imported Goods) Relief Order 1984:746, Schedule 2, Group 8 item 8 provides
relief from import VAT on consignments of goods not exceeding £18 in value.

Relief from import VAT on gifts of goods with a value not exceeding £40 - The
Value Added Tax (Non-Commercial Consignments) Relief Order 1986:939 (as
amended), Article 3, provides that no tax is payable on the importation of goods
forming part of a small consignment of a non-commercial character sent from a third
country by a private person to another private person if the value of the goods does
not exceed £40, subject to specified limits for alcohol, tobacco, perfumes and toilet
waters as listed in the Schedule to the order (detailed in parts 2.5 and 2.6 of this
notice).

Inclusion of postage charges in customs value - Article 165 of EC Regulation

(EEC) 2454/93 requires all postal charges levied up to the place of destination in
respect of goods sent by post to be included in the customs value of the goods.
However, this does not apply to gifts other than those sent by Express Mail Services.

The limit before the rate of duty taken from the Common Customs Tariff –
Consignments of gifts with a value less than £630 for which the rate of duty of the
Common Customs Tariff is other than 'free' attract a flat rate of duty of 2.5 per cent
Council Regulation (EC) No 275/2008.

8. How we use your information

HM Revenue & Customs is a Data Controller under the Data Protection Act 1998.
We hold information for the purposes specified in our notification to the Information
Commissioner, including the assessment and collection of tax and duties, the
payment of benefits and the prevention and detection of crime, and may use this
information for any of them.

We may get information about you from others, or we may give information to them.
If we do, it will only be as the law permits to:

• check the accuracy of information

• prevent or detect crime

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• protect public funds.

We may check information we receive about you with what is already in our records.
This can include information provided by you, as well as by others, such as other
government departments or agencies and overseas tax and customs authorities. We
will not give information to anyone outside HM Revenue & Customs unless the law
permits us to do so. For more information go to www.hmrc.gov.uk and look for Data
Protection Act within the Search facility.

9. Glossary of terms
Term Description

CN22 and CN23 Customs declaration forms to be used for import

and export of postal packets.

Customs duty Tax charged on imported goods under the

Combined Nomenclature of the Community.

Datapost The Parcelforce Worldwide Express Mail Service.

EC European Community.

EU and Member States European Union consisting of twenty seven

Member States listed in paragraph 4.2.

Euro Unit of currency used by some Member States of

the European Union.

Excise duty Tax charged on certain goods particularly alcohol

and tobacco.

Gifts Goods of a non-commercial character sent by a

private person to another private person without
payment of any kind and intended for personal
use only.

Intrinsic value Means the price paid or payable for the goods
excluding postage and packing and insurance
costs.

Import VAT VAT chargeable on importation.

Package Includes a letter, parcel, packet or other article

transmissible by post.

SAD Single Administrative Document (C88).

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Putting things right

If you are not satisfied with our service, please let the person dealing with your affairs
know what is wrong. We will work as quickly as possible to put things right and settle
your complaint. If you are still unhappy, ask for your complaint to be referred to the
Complaints Manager.

For more information about our complaints procedures go to www.hmrc.gov.uk and

under ‘quick links’ select ‘Complaints’.

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