Royal Mail customers are being urged to check the organisation's regulations to avoid unexpected charges under a £135 rule. According to Royal Mail, some items imported into the UK “may be subject to VAT and customs duties”.
While letters, postcards and documents are usually exempt, people could see these charges more often as Christmas approaches, such as when buying a gift from abroad or receiving one from friends and family outside the UK.
How the £135 rule works
The postal service explains: "VAT and customs duty may be applied depending on the type and value of the goods. VAT on items under £135 (except for gifts) will be accounted for and collected directly at the point of sale."
"For items containing goods with a value over £135 and gifts over £39, customs charges will continue to be applied on behalf of HM Revenue & Customs (HMRC). Royal Mail will collect these directly from the recipient prior to delivery. Letters, postcards and documents are usually exempt."
Why a customs fee may be charged
Royal Mail says it is legally required to present all items arriving in the UK to Border Force. Those parcels and letters may be inspected and, in some cases, could incur customs charges.
It explains: "Any charges are calculated and applied on behalf of HM Revenue & Customs (HMRC). These charges aren’t applied by Royal Mail."
How much the fee costs and when to pay
Fees vary depending on what’s inside the package, where it’s been sent from and who sent it. For items sent through the post, Royal Mail pays any import VAT and customs duty to HMRC on your behalf, then sends a 'Fee to pay' card showing how much you need to pay before receiving your item. The amount includes an £8 handling fee, which reflects the cost of clearing items through customs, presenting them to customs, staff, storage, administration, handling through customs and cash handling at the Delivery Office.
Royal Mail says it cannot release mail until the charges and fees are paid in full. You have 21 days from the date on the 'Fee to pay' card to pay the fee, or you will not get your item. If charges are not paid within this period, the item will be returned to the sender. If paying online, you need to pay within 19 days of the card's expiration date.
If you no longer want the item, you must confirm this change online at royalmail.com/pay-a-fee. Royal Mail will then return it to the sender. If you change your mind at the Customer Service Point, let staff know and they’ll return it to the sender.
