DutyCalculator Help Center

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
• Let’s 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
+ $ 400.00 <- price of the phone including sales tax
+ $ 40.00 <- shipping cost
+ $ 4.00 <- insurance cost
-----------------
= $ 444.00

• 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
$ 444.00 / 1.56 = £ 284.62

> 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
£ 284.62 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
-----------------
= £ 284.62

• 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
£ 284.62 x 
20.0% = £ 56.92 

• 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)
+ £ 
56.92 <- VAT
-----------------
= £ 
56.92 

• 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
+ £ 
56.92 <- import duty and VAT for the Apple iPhone 3G 8 GB
+ £ 
88.21 <- import duty and VAT for the Olympus E-620 digital camera
------------------
= £ 233.33 

Total import duty and VAT for the laptop, the mobile phone and the digital camera is therefore £ 
233.33.


The total landed cost equals:
+ £ 1,099.11 <- total cost of the consignment in £
+ £ 233.33 <- total import duty and VAT
------------------
= £ 1,332.44 

Note: The shipping provider might charge additional fees.