Example calculation - import taxes for a laptop, iPhone and camera

Example 3: a HP 2133 Mini Note laptop ($600), an Apple iPhone 3G 8 GB ($300) and an
Olympus E-620 digital camera ($600), shipped in one parcel from the USA to the UK
Data
Lets buy a HP 2133 Mini Note laptop for $ 600.00, an Apple iPhone 3G 8 GB for $ 300.00
and an Olympus E-620 digital camera for $ 600.00
Total Shipping cost: $ 200.00
The consignment is insured up to $ 1,000.00 for $ 20.00
Official exchange rate by customs agencies on June 1st, 2009: 1.56 USD to 1 GBP
Import duty tax rate for laptos: 0.00% (laptops are duty free items)
Duty tax rate for mobile phones: 0.00% (mobile phones are duty free items)
Import duty tax rate for digital cameras: 0.00% (digital cameras are duty free items)
VAT tax rate in the UK: 20.0%
Calculation
Step 1 of 9 - Calculate the customs value
+ $ 600.00 <- price of the laptop (including sales tax)
+ $ 300.00 <- price of the Apple iPhone (sales taxes included)
+ $ 600.00 <- price of the Olympus digital camera (sales taxes included)
+ $ 200.00 <- shipping cost
+ $ 20.00 <- insurance cost
----------------= $ 1,720.00
Step 2 of 9 - Split the shipping cost and insurance cost among the laptop, the iPhone 3G
and the digital camera
The value of the laptop is 40% of the total value of the goods
therefore
the shipping cost allocated to the laptop equals = $ 200.00 x 40% = $ 80.00
the insurance cost allocated to the laptop equals = $ 20.00 x 40% = $ 8.00
The value of the Apple iPhone is 20% of the total value of the goods
therefore
the shipping cost allocated to the mobile phone equals = $ 200.00 x 20% = $ 40.00
the insurance cost allocated to the mobile phone equals = $20.00 x 20% = $ 4.00
The value of the Olympus digital camera is 40% of the total value of the goods
therefore
the shipping cost allocated to the mobile phone equals = $ 200.00 x 40% = $ 80.00
the insurance cost allocated to the mobile phone equals = $20.00 x 40% = $ 8.00
Step 3 of 9 - Calculate the customs value
for the HP laptop
+ $ 600.00 <- price of the laptop including sales tax
+ $ 80.00 <- shipping cost
+ $ 8.00 <- insurance cost

----------------= $ 688.00
for the Apple mobile phone
+ $ 300.00 <- price of the phone including sales tax
+ $ 40.00 <- shipping cost
+ $ 4.00 <- insurance cost
----------------= $ 344.00
for the digital camera
+ $ 600.00 <- price of the digital camera including sales tax
+ $ 80.00 <- shipping cost
+ $ 8.00 <- insurance cost
----------------= $ 688.00
Step 4 of 9 - Convert into
the HP laptop
$ 688.00 / 1.56 = 441.03
the Apple iPhone
$ 344.00 / 1.56 = 220.51
> the Olympus digital camera
$ 688.00 / 1.56 = 441.03
Step 5 of 9 - Calculate the import duty
for the laptop
441.03 x 0.00% = 0.00
for the iPhone
220.51 x 0.00% = 0.00
for the digital camera
441.03 x 0.00% = 0.00
Step 6 of 9 - Calculate the value on which the VAT will be paid
for the HP notebook
+ 441.03 <- customs value of the laptop
+ 0.00 <- import duty USA to UK
----------------= 441.03
for the Apple iPhone
+ 284.62 <- customs value of the phone
+ 0.00 <- import duty USA to UK
----------------= 220.51

 for the Olympus camera

+ 441.03 <- customs value of the digital camera
+ 0.00 <- import duty USA to UK
----------------= 441.03
Step 7 of 9 - Calculate the VAT
for the HP laptop
441.03 x 20.0% = 88.21
for the Apple mobile phone
220.51 x 20.0% = 44.10
for the Olympus camera
441.03 x 20.0% = 88.21
Step 8 of 9 - Get the total calculation for import duty and VAT per item
for the laptop
+ 0.00 <- import duty (laptops are free of duty)
+ 88.21 <- VAT
----------------= $ 88.21
for the iPhone
+ 0.00 <- import duty (mobile phones are free of duty)
+ 44.10 <- VAT
----------------= 44.10
for the digital camera
+ 0.00 <- import duty (digital cameras are free of duty)
+ 88.21 <- VAT
----------------= 88.21
Step 9 of 9 - Total Import Duty and VAT
+ 88.21 <- import duty and VAT for the HP Mini Note laptop
+ 44.10 <- import duty and VAT for the Apple iPhone 3G 8 GB
+ 88.21 <- import duty and VAT for the Olympus E-620 digital camera
-----------------= 220.52
Total import duty and VAT for the laptop, the mobile phone and the digital camera is
therefore 220.52.
The total landed cost equals:
+ 1,099.11 <- total cost of the consignment in
+ 220.52 <- total import duty and VAT

-----------------= 1,319.63
Note: The shipping provider might charge additional fees.