Ad valorem duty... Anyone know anything about this?

[Just_Starting]

Stumbled upon an old thread here where this tax is mentioned:

[URL='https://www.pricescope.com/community/threads/whiteflash-are-fantastic-plus-important-uk-tax-info.16926/']https://www.pricescope.com/community/threads/whiteflash-are-fantastic-plus-important-uk-tax-info.16926/[/URL]

I can't seem to find out what happened though. This seems confusing... https://www.gov.uk/how-to-value-your-imports-for-customs-duty-and-trade-statistics

UK VAT is now 20%, so when importing a loose diamond that has to be paid, if it is set in jewellery it is an additional 2.5% duty. I am assuming this ad valorem tax no longer applies, but as the thread above indicates that could be an assumption that could cost up to another 17% in tax. I don't like the sound of 39.5% tax on a diamond import lol, again I doubt this is the case but would like to know for sure.

 

[diamondgezer]

Hi JS

'Ad Valorem' simply means a tax (or duty) assessed on the value of an item (as opposed to for instance the number of units, weight, size etc). The catch can be how the 'value of an item' is determined'

So UK VAT is an ad valorem tax. So is the customs duty you pay for on importing jewelry into the UK.

Import/Export Duties are used to regulate inflow/outflow of particular items and are, inter alia, used by countries to erect or dismantle trade barriers, because the amount charged can be amended easily by using appropriate legal instruments and can be targeted at specific items.

It would appear that the original thread was referring to trade barriers.

All you need worry about is what the CURRENT rules say. and the UK GOV website you reference was updated in June 2013.

 

[MollyMalone]

The international brouhaha that was behind the 10-year-old PS post was resolved some years ago.

Don't be concerned about all the hoops it seems -- on the basis of that UK.gov page -- you'd have to go through; the info & forms there are for commercial importers, not those purchasing a diamond or other merchandise from abroad for their own use or a gift.

 

[Just_Starting]

Thanks for the replies. I figured I probably would have heard about it if this were still relevant, thought I better check with people on here though first, I'd have felt pretty stupid if I got stung by it otherwise ^^.