Was there a customs declaration certificate on the parcel?.

Was the parcel opened and 'inspected'?.

Was there a customs declaration certificate on the parcel?.

Its very important to accurately describe the contents on the Customs form but having said that you also need to be a bit creative at times.

My wife received a present from an American friend. It was an ornamental glass item and was described as 'Artwork' by the sender with a value of $100. It cost me £32 to retrieve it from the Post Office. If it had been described as an 'Ornament' and a Gift there would have been no charge.

"So, why should he pay for it?"

VAT is not payable on gifts from abroad, provided they are valued at less than £36, and provided the sender has completed a customs declaration form which must accompany the package.

In saying that the answer to the question is 'yes' I made the assumption that there was no customs declaration form, otherwise there wouldn't have been a VAT liability, and there would have been no charge. In these circumstances the VAT must be paid. If you're not satisfied with the demand for payment you can ask HMRC to reconsider their decision. If you want to do this you must contact the HMRC office that handled the tax demand.

You might find some interesting information using this link and links within the articles http://www.hmrc.gov.uk/customs/post/index.htm

Perhaps also worth mentioning, that some of the rules might change in November 2011!.

"Obviously I don't want Fedex or the Customs chasing my friend". Why should they need to do that?.