Ordering in EU from outside EU - customs

[Tharrys78]

What can I expect to pay if ordering materials from outside EU to EU (Italy) ? I don't know if customs laws and tariffs are the same through the union but I don't think so.
How is VAT calculated? (Because I already have to pay Italian crazy 22% VAT at customs)
Are perfumery materials considered "fragrances" ? because that's also one of the most taxed goods during imports

 

[RomanB]

What can I expect to pay if ordering materials from outside EU to EU (Italy) ? I don't know if customs laws and tariffs are the same through the union but I don't think so.
How is VAT calculated? (Because I already have to pay Italian crazy 22% VAT at customs)
Are perfumery materials considered "fragrances" ? because that's also one of the most taxed goods during imports

Perfumery materials are raw chemicals, you have to find a code for every one to calculate import duties, separately from VAT. Different codes, different countries of origin - different duties. Codes and countries of origin should be listed in a declaration.

 

[shackener]

The only supplier I've ordered from outside the EU as of yet is Perfumer's World. Because my order size is under 1000 euros I pay only the dhl handling fees + 27% VAT on top. That is twenty-seven percent Value Added Tax. Talk about crazy

 

[orestes13]

I ordered materials from the US once ($700 order) that was shipped via UPS and I only had to pay shipping fees (around $150). Then I ordered from another supplier in Asia ($400 order) who for some reason included extensive documentation for each material and DHL actually requested that I provide a business VAT number, otherwise the shipment wouldn't be cleared. Had to sent that one back unfortunately. Another time that I ordered from Perfumers World ($200 order), it was also shipped via DHL and they initially didn't charge any import taxes, however they sent me an invoice via post at a later date (~35 EUR tax) that I could very well ignore and never pay, since it didn't even mention which order it was for.

I've come to the conclusion that it's pretty much hit or miss when it comes to customs. It also probably depends on which EU country you're located in.

 

[jfrater]

It depends what HS code is used and the country of origin - that determines duty. For example I ship all my bases and products as 3302.90.11 which is "Mixtures of odoriferous substances and mixtures, incl. alcoholic solutions, based on one or more of these substances, of a kind used as raw materials in industry (excluding food or drink industries)".

I ship from NZ which has free trade with the EU and UK - so from here to the EU or UK 3302.90.* has 0% duty. So you only get charged VAT on the total of the item and the shipping and insurance (if any).

I usually mark purchases at 80 euros and 20 euros shipping so the total used to calculate is 100 EUR (I offer free shipping but customs still calculates based on the included cost). The VAT in Italy is 22% so you should be charged 22 Euros.

The only difference is a carrier tries to add special charges for processing but in my experience that hasn't happened with digital invoices, etc. which is pretty standard for most shipments now.

 

[manfred]

I ordered from the UK recently. On an order of 122 euros (including shipping) UPS is asking me to pay them 38 euros of tax! Not that convenient unfortunately which is why I rarely order from outside the EU!

 

[Tharrys78]

I ordered from the UK recently. On an order of 122 euros (including shipping) UPS is asking me to pay them 38 euros of tax! Not that convenient unfortunately which is why I rarely order from outside the EU!

Damn... One third of the final price!!

 

[jfrater]

I ordered from the UK recently. On an order of 122 euros (including shipping) UPS is asking me to pay them 38 euros of tax! Not that convenient unfortunately which is why I rarely order from outside the EU!

Was that aromachems? Does the EU have a special tariff against the UK as a punishment for Brexit perhaps?

 

[Hedione HC]

This is definitely a complicated topic. Speaking as a German buyer ordering from outside EU, I've noticed that the total amount (materials + shipping) is quite important.

A) Total amount < € 150,--
B) > € 150,--

A) In this case, there's to pay only 19% VAT of the total amount + (very often) an extra service fee charged by the courier (ca. € 12,50 - € 15,00; DHL, FedEx etc.). The courier's fee is legit and has to be paid, because customs clearance is done (for you) by the courier.

B) If the total amount of your purchase exceeds € 150,-- the shipment is generally subject to customs duties. Additionally, the shipment is no longer regarded as a private purchase but a commercial purchase. And you'll be treated accordingly. So, you shouldn't be surprised, if you're requested by the courier and/or customs to declare your purchase in detail. - Depending on the products and how they're assigned to custum tariff numbers, you've to pay 19% VAT + x% customs + extra fee for courier.

Finally, a few examples for tariff numbers:
3302.90.10 (already mentioned by Jamie), in my understanding this number only applies to alcoholic dilutions.
3302.90.90 "Mixtures of odoriferous substances and mixtures, based on one or more of these substances, of a kind used as raw materials in industry (excluding food or drink industries and alcoholic solutions)". - The pure, undiluted bases.

Things become more complicate if single materials (e.g. essential oils) are concerned. Here only some examples:
3301.29.42 Rose oil, not deterpenized, including rose absolutes and extracts
3301.29.11 Clove oil, Niaouli oil and Ylang Ylang oil, terpenic, including absolutes and concretes
3301.29.79 Lavender and Lavandin oil, terpenless, including absolutes and concretes.
and MANY more.

 

[Tharrys78]

If you get over 150 euros, do you pay duties for ALL or just the amount over 150?

 

[Hedione HC]

If you get over 150 euros, do you pay duties for ALL or just the amount over 150?

Unfortunately for the whole amount!

 

[manfred]

Was that aromachems? Does the EU have a special tariff against the UK as a punishment for Brexit perhaps?

Yes, they were! I don't know about the punishment issue but I had stopped ordering right after Brexit since I had to pay a ridiculous amount of money after an order from Pell Wall plus customs required a lot of documents and signatures from me in order to deliver my order. In the end they refused to deliver my order and I lost my money as well. I was hoping that the situation would be better by now (which it is) but still it's really inconvenient!

 

[jfrater]

Yes, they were! I don't know about the punishment issue but I had stopped ordering right after Brexit since I had to pay a ridiculous amount of money after an order from Pell Wall plus customs required a lot of documents and signatures from me in order to deliver my order. In the end they refused to deliver my order and I lost my money as well. I was hoping that the situation would be better by now (which it is) but still it's really inconvenient!

That really is terrible! NZ has free trade with EU kicking in so perhaps that makes things different here, but I must confess in the past that trying to ordering things from the UK was very problematic for us too even though we share a king!

There are online calculators that can vbe very good - just make sure you know what the HS code is of the items being sent and you should get a very accurate picture of what you are paying. Also bear in mind that if the sender doesn't specifically list the shipping costs, customs will make a guess (based on their own data I presume) and their guess is ALWAYS vastly higher than reality - so ask your shipper to list the true (or discounted if necessary) shipping costs - then you'll have no surprises.

 

[Capybaron]

I´d like to note that many non-eu sellers will "fudge" their receipes, to circumvent buyers having to pay import tolls. E.g. declaring that a order of, let´s say, 150€ is worth only 12 € or something.

Please note, too, that this is definitely fraud. How likely this is to be found out and what consequences you, or the seller, might face- i don´t know.

 

[Hedione HC]

I´d like to note that many non-eu sellers will "fudge" their receipes, to circumvent buyers having to pay import tolls. E.g. declaring that a order of, let´s say, 150€ is worth only 12 € or something.

Please note, too, that this is definitely fraud. How likely this is to be found out and what consequences you, or the seller, might face- i don´t know.

Very true! - Out of own experience, I can say for sure that customs nowadays is totally aware of this. In these cases, you'll required inevitably by customs to show your actual payment, e.g. paypal transaction.

The likelihood of such manipulations being uncovered has increased continuously in recent years.

 

[Culpa Ire]

So... perhaps it's best to keep shtum about this sort of thing...

*whistles*

 

[polysom]

I've ordered something from UK (Pell Wall) last year to Germany for 93.50 EUR and had to pay 23.69 EUR of customs fee. But the real problem was that the customs fees were paid by FedEx and then suddenly I got an invoice from FedEx. After I paid the amount, I got a reminder from FedEx a month later, because they had somehow not booked my transfer correctly. That was quite a circus until everything was correct. To avoid this, I have since then no longer ordered outside the EU.

NZ has free trade with EU kicking in so perhaps that makes things different here

Oh, I was not aware. This is great news. So, we don't need to pay custom fees if we order from NZ to Germany? Wow!

 

[Hedione HC]

(...)
Oh, I was not aware. This is great news. So, we don't need to pay custom fees if we order from NZ to Germany? Wow!

As somebody who very recently ordered a few times from NZ I can say that you have to pay customs, at least 19% VAT (in German: Einfuhrumsatzsteuer) + courier's service fee. If your order exceeds € 150,- you may have to pay even more.

 

[jfrater]

I've ordered something from UK (Pell Wall) last year to Germany for 93.50 EUR and had to pay 23.69 EUR of customs fee. But the real problem was that the customs fees were paid by FedEx and then suddenly I got an invoice from FedEx. After I paid the amount, I got a reminder from FedEx a month later, because they had somehow not booked my transfer correctly. That was quite a circus until everything was correct. To avoid this, I have since then no longer ordered outside the EU.



Oh, I was not aware. This is great news. So, we don't need to pay custom fees if we order from NZ to Germany? Wow!

Correct - it is being implemented this month and is rolling out progressively. That said, my bases are 0% duty anyway due to the HS code so this is already in effect for us. You do still have to pay your goods taxes (VAT in the EU) but that is true regardless of where and from whom you buy.

 

[jfrater]

As somebody who very recently ordered a few times from NZ I can say that you have to pay customs, at least 19% VAT (in German: Einfuhrumsatzsteuer) + courier's service fee. If your order exceeds € 150,- you may have to pay even more.

True for the VAT of course, but there is 0% EU duty on HS 3302.90 so you should only be charged VAT and anything your courier adds to that cost.