HMRC clarifies customs duty changes for small items

Date: 7th August 2008

HM Revenue & Customs (HMRC) has provided more information about the upcoming changes to de minimis limits for customs duty on goods imported by post.

According to HMRC, the rules relating to good purchased by businesses and individuals on the internet from overseas sources will change on December 1st.

From this point, the threshold for consignments despatched by letter or parcel post to be admitted free of customs duty will increase from its current £18 limit to £105.

The statement from HMRC explained that customs duty will also not be collected if the amount of duty due is less than £7.

It added that the changes would affect "all businesses … who import or may import 'low value' goods by post".

The statement also warned: "It appears people incorrectly believe that from December 1st, goods with a value less than €150 (£105) imported from outside the EU will be admitted without any import charges being levied, but the regulation applies only to customs duty.

"Import VAT and excise duties (where applicable) will still apply at the current rate."