asked the Minister for Finance whether the same rates of customs duties, excise and VAT apply to gifts sent by parcel post as to commercial importation; and if so, if he will explain an apparent discrepancy (details supplied).
Written Answers. - Taxation Discrepancies.
381.
Save where they qualify for exemption from import charges or for a standard customs duty charge, goods sent as gifts by parcel post are liable to the same rates of import charges as those imported commercially. The gift parcel referred to by the Deputy, which contained cigars, did not qualify for special treatment. The excise duty, which is chargeable by reference to weight, amounted to £9.33. Since no value was declared, it was assessed for customs and VAT charges on an estimated value of £12.
There may be considerable variations in pricing structures as between private and commercial importations, depending on considerations such as trade discounts, freight costs, etc., which could give rise to differences in the amounts of customs duty and VAT payable.