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Import Tariff Codes and Duty.

Kudoscycles

Official Trade Member
Apr 15, 2011
5,360
132
113
www.kudoscycles.com
#1
There seems to be confusion on this forum about the duty and vat on importing,especially from China...
There are 3 tariff codes (commodity codes) that are important to understand...
1. E-cars,golf carts and mobility scooters and parts thereof....code 8703 1018 00....the duty is 10%,vat 20%....total 30%
2. E-bikes and parts thereof ,under 250 watts power....8711 9010 00...6% duty,vat 20%...total 26%
3. Bicycles not motorised....8712003010....from 27/9/2012!!!!
From China,Indonesia,Sri Lanka,Tunisia....48.5% anti-dumping duty,vat 20%....total 68.5%
From any non EU country....14%,vat 20%....total 34%

The last one is the killer,it makes that carbon frame bike at $800 out of Shenzhen as expensive as buying a German built bike,which of course is the purpose of the anti-dumping duty.Especially when you add the cost of shipping.

It's a crazy world where non motorised bikes are hit by minimum of 14% duty,or 48.5% from China but a 250 watt e-bike has only 6%.
KudosDave
 
Last edited:
Sep 29, 2012
2,228
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#3
There seems to be confusion on this forum about the duty and vat on importing,especially from China...
There are 3 tariff codes (commodity codes) that are important to understand...
1. E-cars,golf carts and mobility scooters and parts thereof....code 8703 1018 00....the duty is 10%,vat 20%....total 30%
2. E-bikes and parts thereof ,under 250 watts power....8711 9010 00...6% duty,vat 20%...total 26%
3. Bicycles not motorised....8712003010....from 27/9/2012!!!!
From China,Indonesia,Sri Lanka,Tunisia....48.5% anti-dumping duty,vat 20%....total 68.5%
From any non EU country....14%,vat 20%....total 34%

The last one is the killer,it makes that carbon frame bike at $800 out of Shenzhen as expensive as buying a German built bike,which of course is the purpose of the anti-dumping duty.Especially when you add the cost of shipping.
HMRC are currently tightening up,I myself have just been hit with a 22% anti-dumping duty plus interest on an invoice over 2 years old,the original mistake was HMRC but their exclusion clauses makes me at fault. For circumstances where you have obviously tried to avoid the duty,by miss stating the nature of the goods or intentionally miss stating the tariff code they can also issue fines or big cases imprisonment.
It's a crazy world where non motorised bikes are hit by minimum of 14% duty,or 48.5% from China but a 250 watt e-bike has only 6%.
KudosDave
The duty rates for assembled products like eBikes are often higher than for component parts such as those found in kits. Analyzing the kit in its different component parts and ascribing relevant codes to the bits gives duty rates around 2-2.8%. Or it would be if the shipment actually qualifies as being subject to duty at all. Some of the TARIC codes used for parts which can be incorporated in eBikes include these. Apparently !

8504909990, 9032900090, 9401908090
 

Kudoscycles

Official Trade Member
Apr 15, 2011
5,360
132
113
www.kudoscycles.com
#4
Please understand that HMRC will often respond to the classification defined by the shipper and often get the duty rates wrong,especially on low value consignments....if you are an assembler of e-bikes in the UK and less than 40% of the value added is imported then the duty is only 3.5% but I know of no e-bike assembler in the UK that qualifies.
The Tariff code system is both complex and archaic,some of the codes go back to the early 1900's. However many do not know about the anti-dumping duty on non assisted bikes....I have seen it suggested to buy a carbon bike from China then add an e-kit to it,that would be completely the wrong approach....better to spend $50 assembling in China,then import the whole.
My comment about the $800 carbon bike from China actually happened to one of my customers,he thought a £500 bike from shenzhen was too good to be true...the final cost with duty and shipping was £1200.....he could have bought a better bike,cheaper from his local bike shop.
Knowledge is no good in retrospect!!!
KudosDave
 
D

Deleted member 4366

Guest
#5
Those rates are for traders with official documentation. Myself and many others on this forum have bought loads of stuff from China, and we've never had to pay anywhere near that, so stop trying to scare people from buying their Chinese kits.
 

Kudoscycles

Official Trade Member
Apr 15, 2011
5,360
132
113
www.kudoscycles.com
#6
Those rates are for traders with official documentation. Myself and many others on this forum have bought loads of stuff from China, and we've never had to pay anywhere near that, so stop trying to scare people from buying their Chinese kits.
Hey Dave....that was unfair,I have no reason to stop you guys from buying your kits,you know that I personally am supportive of expanding the e-bike industry,whatever the chosen route.
But HMRC are tightening up of late...this government have realised it is much more effective to have less clerks and more enforecement officers.
The catalyst for my posting was that a pedelec member was proposing to import a vanilla bike and add a kit to it,he was completely unaware of anti-dumping duty on the bike....even a blind customs officer cannot fail to see the difference between a vanilla bike and an e-bike.
If you import a product with knowledge and you only get hit by a small duty rate then you are obviously pleased but if you get hit by a 48% duty rate,plus 20%vat, that you were not expecting it obviously comes as a shock.
HMRC has no distinction between traders and private customers.
One of the well known traders on this forum PM'd me worried that he had been hit by a big duty on some parts he bought into the UK,he should have known better but he seperated the bikes and the electric parts,HMRC hit him 68.5% on the lot,he never got that duty back.
The duty on parts fitted to an ebike should be 6%,if you are involved in ebike assembly it should be 3.5%,often HMRC will charge the 3.5%.
I don't think that is scaring anyone,just educating how to avoid legally the anti-dumping duty.
I think you owe me an apology on that one!!!
KudosDave
 

Kudoscycles

Official Trade Member
Apr 15, 2011
5,360
132
113
www.kudoscycles.com
#7
The duty rates for assembled products like eBikes are often higher than for component parts such as those found in kits. Analyzing the kit in its different component parts and ascribing relevant codes to the bits gives duty rates around 2-2.8%. Or it would be if the shipment actually qualifies as being subject to duty at all. Some of the TARIC codes used for parts which can be incorporated in eBikes include these. Apparently !

8504909990, 9032900090, 9401908090
Alex....I looked up those codes

8504909990....transformers,static converters....2.2%
9032900090....photographic and surgical control instruments.....2.8%
9401908090...furniture,bedding,seats.....2.7%

Alex,you must agree that those codes are stretching the imagination somewhat as to their relevance to ebike components. However,I did say that HMRC will grab the code that is presented to them and unless the code is obviously wrong it will slide through the system,especially when the product is of low value,a few % on a £50 import is just not worth investigating.
The maximum the kits will be charged is 6% so its small beer really.
I made my posting because a member was thinking of bringing a high value non assisted bike from China,lets be honest e-bay is full of bike offers direct from China,it would be a shock if you were asked for 68.5% duty and vat when that bike arrived.
I must say that I was not aware of this anti-dumping duty prior to my first visit to bike shows in China,so I suspect there are many members who are not aware of it.
I think I have flogged that one to death,apologies.
KudosDave
 
Oct 25, 2006
40,227
186
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#8
I'm surprised you hadn't known that Kudos Dave, the very high European anti-dumping duty on ordinary bikes has been in existence for 20 years. That 2012 date was just a renewal point for the 48.5%, and the previous renewal was in 2011.
 
Oct 25, 2006
40,227
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#10
Why has it gone so quiet?

Digestives anyone?

MS.
39 minutes past midnight when you posted. After the disruption of the Saturday night clock change and awake listening to the storm on Sunday night, they were probably all fast asleep.
 

Kudoscycles

Official Trade Member
Apr 15, 2011
5,360
132
113
www.kudoscycles.com
#11
I'm surprised you hadn't known that Kudos Dave, the very high European anti-dumping duty on ordinary bikes has been in existence for 20 years. That 2012 date was just a renewal point for the 48.5%, and the previous renewal was in 2011.
I sort of got involved in this e-bike business by accident...the fair I was attending had the bike hall next to the auto parts hall....these aisles are 250 yards long and there are A-M aisles,add that up and you have walked a few miles by the end of the show and your head is like twizzle.
Anyway,I strode into the e-bike hall by accident and have been on a learning curve since that date,it was only one of the booth holders trying to sell me a non assisted bike and explaining that you could avoid the duty by shipping via Malaysia or Tunisia,but since that date the EU have closed that loophole.
KudosDave
 
Oct 25, 2006
40,227
186
113
#12
Of course, I should have remembered that your connections were motor rather than bike trade Dave.
 
#13
Those rates are for traders with official documentation. Myself and many others on this forum have bought loads of stuff from China, and we've never had to pay anywhere near that, so stop trying to scare people from buying their Chinese kits.
thats just luck though isn't it? an individual is still liable to all the stuff companies are, its just that they can't check everything so a certain number slip though without the correct duty applied. There is always the chance as an individual that you'll get stung for the correct duty.
 
Oct 25, 2006
40,227
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#14
No duty applied, but I've just been lumbered with the VAT and Post Office collection charge for an item from China, adding 38% to it's £76 purchase price. Not quite at the anti-dumping cost level, but still a large unwelcome addition.

They seem to be missing less and less these days, far different from not long ago when the chance of getting caught for duty and VAT was almost non-existent. I daresay it's directed policy, yet another of the present government's ways of roping in every penny possible.
 
Jul 31, 2010
1,770
10
48
Ireland
#15
They seem to be missing less and less these days, far different from not long ago when the chance of getting caught for duty and VAT was almost non-existent. I daresay it's directed policy, yet another of the present government's ways of roping in every penny possible.
Exactly what I said would happen, over a year ago.
 

bayrider

Finding my (electric) wheels
Sep 21, 2013
89
1
8
DEVON
#16
looking at conversion kits from China

Has any one on here purchased or been able to purchase as an individual a conversion kit from China / Asia if so what charges have you occurred?

Myself been looking at the following spec front wheel hub 250-500w Bafang or MXUS 36v 10ah Li-Ion battery kit price range 300/400 USD any suggestions or advice and most importantly information on duty - vat and handling charges ect or any thing else I need to know, thank you in advance
 

103Alex1

Pedelecer
Sep 29, 2012
2,228
19
48
#17
Has any one on here purchased or been able to purchase as an individual a conversion kit from China / Asia if so what charges have you occurred?

Myself been looking at the following spec front wheel hub 250-500w Bafang or MXUS 36v 10ah Li-Ion battery kit price range 300/400 USD any suggestions or advice and most importantly information on duty - vat and handling charges ect or any thing else I need to know, thank you in advance
BMS Battery - +/- £32 on $750 or thereabouts kit. So I've heard ;).
 

averhamdave

Finding my (electric) wheels
May 13, 2009
331
0
16
#18
The subject keeps coming up. I've just replied to his other post.

You should be clear that vat at 20% plus a couriers handling fee, £10 to £20 is payable.

You pay less only when the exporter lies about the value of the goods (or tells the truth about the true value and has just seriously overcharged you, LOL)
 

averhamdave

Finding my (electric) wheels
May 13, 2009
331
0
16
#19
The subject keeps coming up. I've just replied to his other post.

You should be clear that vat at 20% plus a couriers handling fee, £10 to £20 is payable.

You pay less only when the exporter lies about the value of the goods (or tells the truth about the true value and has just seriously overcharged you, LOL)
 
Aug 27, 2009
3,277
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48
Cambridge, UK
#20
It also seems to vary with what courier is used.

Jerry
 

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