All packages and gifts mailed to Britain are examined by Customs officers who determine whether Customs Duty, Excise Duty and/or Value Added Tax (VAT) must be paid on the packages.

Listed below are general guidelines for shipping packages to Britain. However, those shipping goods to the United Kingdom are urged to consult the HM Revenue and Customs document, Notice 143: A Guide for International Post Users which provides in-depth information on the specific charges that apply to shipments.

Charges

• Customs Duty - this is calculated as a percentage of the value of the items being mailed. Duty is charged on the price paid for the goods, including any local sales tax plus postage, packing and insurance costs. Where the value of a gift falls between £36 and £282 (approximately between $57 and $451, depending on the current exchange rate) per shipment, a flat rate of 3.5% import duty may be applied.
  
• Excise Duty - this is charged on alcohol and tobacco products and is paid in addition to Customs Duty. The Excise Duty on wines and spirits depends on the alcohol content and whether the wine is sparkling or still. Excise Duty on cigarettes is based on a percentage of the recommended retail price combined with a quantity charge. Excise Duty on other tobacco products is based on the net weight. (for further information, see below).
  
• Value Added Tax. VAT of 17.5% is calculated on the total purchase value of the contents of the package plus duty and shipping costs.
  Under some circumstances, e.g., if the value of the gift does not exceed £36 (approximately $58), packages are admitted into the United Kingdom free of Customs Duty, VAT and Excise Duty. Specific information on this can be found in Notice 143: A Guide for International Post Users.

Payment of Charges
Charges must be paid only by the recipient of the package in Britain and cannot be paid in advance by the sender.

Declaration of Goods
The sender must make a customs declaration on a form (available from most Post Offices in Australia) which, in most cases, will be attached to the package. The declaration includes a description of the goods, their value and whether they are gifts or commercial items.

Alcohol, tobacco products, perfume and toilet waters
Under certain circumstances, alcohol, tobacco products, perfume and toilet waters may not be subject to value added tax (VAT), customs taxes. To be admitted free from duty and VAT, parcels containing these goods must meet strict value and allowance guidelines. Notice 143: A Guide for International Post Users provides information on this.

Gift parcels
A gift mailed to Britain is not free of duty and VAT merely because it is a gift. Gift packages can be sent to the UK free of Duty and VAT only if they comply with these rules:

• The value of the goods must not exceed £36 (approximately $72).
• Packages must be correctly declared.
• They must have been sent by a private person abroad to another private person in Britain.
• The gift must be for the use of either yourself or your family.
• There is no commercial or trade element.
• Any alcohol, tobacco products, perfumes or toilet waters are within the Customs allowances and costs (see above).
• They must be of an occasional nature only, such as a birthday or anniversary.

Shipments of multiple packages
Specific rules apply to:

• Packages intended for several different people, such as members of the same family.
• Multiple packages addressed to one recipient.

Notice 143: A Guide for International Post Users provides information to assist senders in calculating the charges that might apply.

Customs Duty Rates
An extensive listing of specific goods and the Duty rates that apply is provided on the HM Revenue and Customs website.

Examples of some Duty rates are listed below:

Category Full Duty %
Antiques Free, but 5% VAT
Cameras, Digital (Still Image) Free
Cameras, Still 3.7%
Compact Discs 3.5%
Computers (incl. Peripherals) Free
Digital Audio Disc (CD) Player 9%
DVD Player 14%
DVD Discs 3.5%
Video Cameras & Camcorder (only able to record images from camera) 4.9%
Other Video Cameras & Camcorders 14%
Video Games 2.2%
Video Tape Recorders – domestic VCRs 14%
Video Disc Player 14%