UK Ring to USA and back for reset. Help with import duties.

[SapphireLover]

I am based in the UK and have a ring that I want resetting and love David Klass’s work. I want to post my ring to him (you can’t get insurance on loose stones), then have my stone reset and the new ring sent back to me. I know I’d need to get the full value of the ring insured and declared on the paperwork, not just the value of the remodel, however import duties of items sent into the Uk are based on the value declared on the packaging. This seems unfair as I’ve already paid tax in the UK on the purchase of the stone. Is there a way to get my ring sent back to me but only pay tax on the remodel?

 

[lissyflo]

I think you’d need to phone HMRC to check the rules and confirm any paperwork needed. Logically, you shouldn’t have to suffer tax twice on the stone portion of the value, but tax isn’t always logical! For instance, I think if you return faulty goods overseas you can fill in a form so you don’t pay duplicate tax on the replacements that are sent to you. You do, however, pay tax twice if the faulty item can’t be repaired and replacements are sent to you, which makes no sense to me whatsoever!

 

[SapphireLover]

Well this sounds like it could be a total pain in the arse! Thank you for your reply.

 

[lissyflo]

Well this sounds like it could be a total pain in the arse! Thank you for your reply.

Yep, tax is always a PITA...

Have you got accurate measurements for your stone? A workaround could be to have DK make you a new setting (based on accurate measurements) and send it to you so you pay tax on that element, but have your stone set in it in the UK? Then your stone never leaves the country so there’s no tax issues. From what I read on here, I think he’s fairly used to working that way so should be accommodating.

 

[SapphireLover]

Yes, I have thought about that but I want a delicate bezel setting and wouldn’t trust anybody else to finish it off. It’s a 6.1mm square cushions do cut slightly desp, and I’m loathed to end up with a wonky finish.

 

[SapphireLover]

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/581510/bor286.pdf

Why didn’t I look at the HMRC website first?

“You’ll be charged at the VAT rate that applies to your goods. VAT is charged on the total value, including:

• the price paid for the goods
• postage, packaging and insurance
• any duty you owe”
  
  There is an appeal form that you fill in if you think you’ve been overcharged. I could send my receipts/ insurance valuation of my current ring and then the invoices of the reset.

 

[new-beginning]

the price paid for the goods - so the ring needs to be insured for the total value when he returns it, but his paperwork seems it should only show the price of the new setting.

 

[Bron357]

Here in Australia provided you have proof of original item ie receipt, detailed appraisal, original customs paperwork and payment receipt etc proving that the item is only “coming back”you can claim back the extra customs taxes.
but its a slow and painful process. Takes them 3 seconds to charge you on the way in, applying for and getting the refund, months!

 

[OoohShiny]

the price paid for the goods - so the ring needs to be insured for the total value when he returns it, but his paperwork seems it should only show the price of the new setting.

This sounds like the technical approach that would be needed - although I'm sure it will be a faff!

I think ring HMRC (if you can) and check for certain - I am inclined to think that they might charge on the insured value rather than the work done, but if the invoice is attached to the outside of the box, along with the shipping papers, I would hope that would be enough...

I'm assuming it will be Fedex or a similar postal service? I think ask them, as they may well handle the import tax as part of their service (and demand it before releasing the package).

Speak to DK if you haven't already, though - he might have experience of this!

 

[SapphireLover]

I haven’t spoken to him yet! Wanted to try and do some research into tax in case it’s a nightmare situation, rather than wasting his time if I’m never going to go ahead.

 

[lissyflo]

Just be careful and check everything in advance. I’m virtually certain that the UK isn’t the same as some other countries - if you don’t file paperwork in advance of your stone leaving the country then you’re liable for double tax when it’s returned to the UK, even if you can prove that you’ve already paid tax on some elements of the total.