Finally, an item from your favourite store abroad arrives in the UK. But you also get a message from DPD about paying customs fees.
Here’s what to expect when you receive an item from a seller abroad and what steps to take if you need to return it.
What to expect when DPD delivers a parcel from abroad
When your parcel arrives in the UK, it goes through the customs clearance process, which is the inspection of the shipment and calculation of the customs charges.
Once your order is released from customs and ready for delivery, DPD will ask you to pay customs charges.
Here’s what you can expect on the receipt.
Customs duty
Customs duty is a tax on goods from abroad worth over £135.
The customs duty rate varies on the type, value, and origin of the goods.
Fortunately, there are certain exceptions. When you order an item from the EU that was produced in the EU, you don’t have to pay customs duty. This is due to the Zero-Tariff Agreement between the UK and the EU.
Import VAT
Import VAT is another tax you need to pay for imported goods. The same as customs duty, import VAT is charged on goods worth more than £135. But in this case, HMRC doesn’t take into account where the goods have been produced.
Import VAT applies to the goods from any country and is usually 20% of the total value of the order (value of goods, insurance, customs fees, and courier costs).
Excise duty
If your order includes alcohol or tobacco, excise duty will be charged.
The UK government charges excise duty to reduce the sales of the products it considers harmful. If you receive them as gifts, you still need to pay excise duty.
DPD handling fee
To receive your parcel as quickly as possible, DPD will carry out customs checks and pay VAT and customs duties to HMRC on your behalf.
Before the DPD delivers the package to your address, they will send you an invoice for an online payment.
Besides customs duty and VAT, they will also charge for the service of paying your customs charges – the handling fee. And then your package is ready for delivery.
DPD will charge you an administration fee of £5 plus VAT, independently of all other duties and taxes. Their charge is actually the lowest of all the UK couriers.
If you decide to return the items to the seller abroad, note that the handling fee is non-refundable, as it’s a fee for courier service.
How does DPD calculate customs charges when importing from abroad?
All customs charges are based on an agreed set of tariff codes. These are product-specific codes that customs authorities use to determine the rate of import charges that should be paid.
The tariff code is made up of a 10-digit number used to classify goods. The first six digits of the tariff code are known as the HS code, while the last 4 digits are country-specific.
But if you want to know what customs charges you are likely to pay when importing something into the country, you can always use our Import Duty Calculator.
We will ask you about the type and value of the product and select the courier that will deliver your parcel. You will receive an estimate of your costs in just a few clicks.
How to pay DPD customs charges?
When DPD clears your bill to HMRC, you will get a notification via SMS or email about the payment of import duty and VAT.
You will also have to pay the DPD handling fee, i.e. the cost of their service.
To do so, you will have the following options: Visa, MasterCard, Maestro, Discover, Apple Visa, Apple MasterCard, Google Visa, Google MasterCard, and PayPal.
You can choose whichever works best for you. But DPD won’t accept BACS, American Express or cheques.
If you frequently order parcels outside the UK, DPD will offer you the option of using a Deferment Account for the payment of customs fees.
Once you have paid the import charges, DPD will send you a notification about the time of your delivery. And the order will be in your hands very soon.
What if you need to return the item abroad?
If you need to return an item you purchased from abroad, you can request a refund of both the item and the customs fees you paid – though you will have to do these separately.
After you finish packing for a return, fill out the customs declaration form.
Returning your parcel with DPD
With DPD, you can return your items to the seller abroad quickly and efficiently.
Start your return in just three steps, as in the image below:
Before the DPD courier collects your package for a return, print the return label and stick it on the package.
DPD couriers can pick up your package any day that suits you. You can track your shipment on the Returns portal from the moment of collection until returning it to your seller.
There are two ways DPD can return your parcel to the seller.
- DPD pickup returns
You can leave your return package at any of DPD’s 2500 pick-up shops. The service is cost-effective, fast and convenient with the option to track your order.
- DPD online returns
You may also be able to return the item with DPD via the seller’s online shop.
- Go to the retailer’s DPD Pickup Returns page and click “Return my item”
- Fill out a short form with the details of their returned item
Reclaiming customs charges on returned goods
After you return the goods to the seller abroad, you can reclaim your customs charges. But to be eligible for a refund, you need to meet these two criteria:
- The original order has to be above £135
- It has to be less than 365 days since your return for a damaged or defective item or 90 days for an unwanted item
You can also reclaim customs charges in specific situations like these:
- You paid customs charges, but you didn’t receive your package
- You didn’t receive a full refund
- You only returned one item from the order worth over £135
- You received a refund from the seller, but you didn’t return the item
If you’re still unsure whether you’re eligible for an import duty refund, you can contact us for further information. We’re happy to help.
There are two ways you can reclaim your customs charges:
- Reclaiming customs charges with HMRC
- Reclaiming customs charges with Duty Refunds
Reclaiming customs charges with Duty Refunds
Duty Refunds is the UK’s leading customs duty and import VAT refund specialist. We can help you recover the customs charges on imported goods in just three to six weeks.
Check your refund eligibility by filling out our online form. To start your claim, all we need from you is the tracking number.
Then, we’ll ask you to upload a customs declaration and proof of returned goods. Don’t stress if you can’t find this paperwork, as we will liaise with your courier and get details about your order.
Once we have all the information, we’ll initiate a refund of your customs charges and send the claim to HMRC on your behalf.
When your request is approved, we’ll ask you for your bank details so we can transfer the refund to you.
There is a small commission fee of 15% of the refund amount for our service. We have a “no win, no fee” policy, which means that we will only charge for our service when your request is approved.
Reclaiming customs charges with HMRC
If you want to go at it alone, you can file directly with HMRC, though it’s quite a time-intensive process.
To reclaim your customs charges with HMRC, you will need to prepare all the necessary paperwork.
- The proof of returned goods
You will need to contact your seller to send you a confirmation of the returned goods and a proforma invoice with a reason for returning the items.
- Courier documents
Ask your seller for a customs clearance letter from the courier to get information about your customs fees. Remember, the courier usually provides you with the total amount of customs charges, so you will need to calculate each of them on your own.
- The C285 form
You can find the C285 form in the CHIEF claims section of the gov.uk website which contains around 40 questions about you, the delivery and the return.
Once you’ve collected all the paperwork and printed out the C285 form, you’re ready to send your claim. Make sure you enter the correct details, as you won’t get feedback from HMRC if you make the slightest mistake.
If you want the peace of mind of a job done correctly, let us handle HMRC. Start your claim today.
FAQs
How long does DPD delivery take?
DPD delivery in international trade takes two to four working days. Couriers can deliver your parcel from Monday to Friday, except weekends and holidays.
If you are curious about the time of your parcel delivery, you can check our guide on courier delivery times from Europe to the UK.
How long does DPD customs clearance take?
The customs clearance process is necessary for inspection and calculation of customs charges for imported goods.
It usually takes less than 24 hours, but there are situations when it may take longer if something is wrong or missing.
Luckily, UK customs usually start the process before your package arrives in the UK to avoid delays.
How to pay DPD customs charges?
After DPD has settled the cost of your package to HMRC, you will receive an SMS or email with instructions on how to pay import duty and VAT. You will have to pay a handling fee. i.e the cost for their service of paying your customs charges.
You have one of the following payment options: Visa, MasterCard, Maestro, Discover, Apple Visa, Apple MasterCard, Google Visa, Google MasterCard and PayPal.
DPD won’t accept BACS, American Express, and cheques.
How does DPD shipping to Europe after Brexit work?
After Brexit, the UK introduced new customs rules for shipping your goods.
Since your package goes through the customs clearance process, DPD shipping to Europe may take longer. It’s because customs need to check all the paperwork about customs charges of your parcel.
How to avoid customs charges from the EU to the UK?
To receive your parcel from a seller abroad, you will need to pay customs charges.
Fortunately, in some cases you can avoid paying customs duty based on the origin of imported goods. Because of the Rules of Origin Agreement between UK and EU, the duty import rate is 0% for goods sent to the UK, but produced in the EU.