There has been increased attention by H.M. Customs / UK Customs regarding the declared values for parcels sent from Canada to the UK. In fact, the enforcement of accurately declared values by UK customs is across the board and applies to all imports
We are advising customers to keep documentation that will support the value they declared on their customs invoice. Jet and our carrier partners are working with UK Customs and our Canadian shippers to ensure accurate declarations and avoid enforcement actions.
UK VAT for online Orders: See section below on declared value for VAT for online orders imported to the UK via Shopify, eBay, Bigcommerce and other online platforms.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
The value of imported goods is one of the elements used for assessment of duty to the UK
The three elements to determining the duty rate:
- Value fo the Goods (discussed below)
- Origin of the Goods
- Customs tariff classification / HS Code
- Valuation for online orders shipped to the UK
Canadian shippers find the best shipping and UK Customs clearance solutions must declare the right value.
Free Trade Between Canada and the UK: UK-Canada TCA
Canada and the UK share a free trade agreement. The Trade Continuity Act is a continuation of the Canadian European free trade agreement (CETA).
The CUKTCA provides tariff reductions, duty free import and easier market access for services.
Benefit from Canada's Free Trade Agreements
Verify if your shipment can benefit from a certificate of origin
Methods of valuation:
While the value of a shipment can seem obvious, items that are not in commercial circulation or being sold can be tricky. We find that some shippers actually over declare the value.
What is C.I.F. Value?
Customs considers the amount subject to duty to be the cost of the item, plus the cost of insurance and shipping. Read more about valuation and CIF value.
Cost (C) + Insurance (I) + Freight (F) = value subject to UK duty
For Canadian parcels the The UK with Jet, we emphasize to our shippers to use the correct declared value to ensure expedited clearance by H.M. Customs.
Valuation methods for shipments sent from Canada to The UK
For international shipments to The UK, the most common method of determining the correct declared value is to use the "transaction value:"
- The transaction value is the price actually paid or payable for the goods when sold for export to the country of importation, with certain adjustments.
The adjustments can include such things as the cost of transportation and insurance. If, for example, you sold an item for $1,000 and cost of transportation and insurance was $290, the transaction value would be $1,290.
Virtually all countries accept the transaction Value as the appropriate amount to declare upon import.
Useful information regarding UK Import Fees
Alternatives to using the Transaction Value for international shipments:
Where the Customs value cannot be determined on the basis of the transaction value, it will be determined using one of the following methods:
- The transaction value of identical goods
- The transaction value of similar goods
- The deductive value method
- The computed value method
- The fall-back method.
Typically, when trying to assess the value, the above valuation methods are used in hierarchical order.
When declaring a value for your shipment to the the transaction value is mostly just common sense. The following two methods (value of identical or similar goods) are self explanatory.
Deductive, computed and fall-back methods can get technical. For high value, specific commodities and cases where determining the value is not immediately clear, it is critically important to get advice from experienced professionals.
Download accompanying PDF
VAT and valuation of Online Orders Shipped to the UK
Sellers exporting from Canada to the UK should note that e-commerce platforms - such as Ebay and Shopify - are responsible for collecting VAT directly from Canadian sellers. The Value Added Tax must be paid in advance for order valued up to £135 (approximately $220 CAD). The value of £135 covers only the value of the goods (i.e. transaction value)and excludes shipping costs.
The basic rules are as follows:
- Shipping platforms are required by UK Customs to collect VAT for orders shipped to the UK valued under £135.
- For Goods valued over £135, the collection will be made from the receiver at the time of import.
Package value versus individual orders
The rules related to the collection of VAT apply to the value of the package, or consignment, being sent, rather than to individual orders or items in the package.
Shipping to UK Businesses
The online marketplace must charge and account for VAT at the point of sale, unless the consignment is a business to business sale and the customer has given their UK VAT registration number. If shipping to registered business, the businesses UK VAT registration number must be noted on the invoice. Sellers can verify the businesses UK VAT number using the following website: https://www.gov.uk/check-uk-vat-number
A sample statement when shipping to a UK business: "Customer to account for VAT to HMRC: UK business customer: _______"
Added VAT and the need for Lower Delivery Cost to the UK
Contact Jet’s team to stay informed on our new shipping options to the UK and EU. Having a fully tracking low cost shipping option to the UK is more important than ever to offset the application of VAT and other costs.
Delivery between the UK and Canada via Jet Worldwide
- Jet Worldwide: A trusted brand offering international shipping for over 40 years!
- Jet Worldwide offers options for shipping between the UK and Canada for parcels, pallets, and online orders.
- E-commerce parcel delivery solutions for high volume shippers. And for shippers who want to scale their UK and European orders.
Getting a quote for shipping between the UK and Canada.
Jet Worldwide gives access to all companies seeking shipping quotes from Canada to the UK for parcels pallets, and online orders.
