If you live in Europe and were one of the few people lucky enough to have ordered an Analogue Nt Mini Noir a while back, in the past day or two you may have realised that you’re now also unlucky enough to have been hit with an enormous customs charge.
FedEx, who are handling Analogue’s shipments, are currently in the process of contacting those who bought the company’s premium souped-up NES (including this writer) and informing them that before they get their $500 console they’re going to have to fork out another £201.60 / €235 on top of that.
Now, when confronted with a shock like this the natural response is to say: “This has to be a big mistake, and I won’t rest until my hands are absolutely soaked in blood… or at the very least I get some of that money back. Actually, probably just the money back would be easier. Who should I be complaining to in order to make this happen?” Unfortunately, in this case, nobody’s at fault – other than angry governments, that is. Bear with us here, because there’s a lot of numbers in this article and if you haven’t been practising your Brain Training, you might have to take your time.
You see, the EU and the USA have been having a bit of a fight recently. We could be here all day explaining the details, but the gist is that America was angry at Europe for giving subsidies to European plane-maker Airbus, and threatened to add extra taxes on $7.5 billion worth of goods coming into the States from European countries. The tables were then turned when the U.S. started giving similar subsidies to Boeing, causing the EU to say: “well, we’re going to add extra taxes too, on $4 billion of American goods coming into Europe.”
The EU put together a huge list of categories of items that these new tariffs would cover. It’s a pretty random bunch of things, from cheddar cheese and ketchup to tractors and potatoes. The one that’s sadly relevant to our interests, though, is the catchily-named Commodity Code 9504500000, which covers “video game consoles and machines”. As such, anyone importing video game consoles from the US is going to have to pay an extra fee on top of the usual customs charges they should already expect.
How much extra? Well, let’s take the UK for example, because that’s where we’re mainly based and people in the comments keep telling us we’re all biased, so let’s roll with it. Usually, if we import something from outside of the EU and its value is more than £15 (or £39 if it’s a gift), we’re expected to pay 20% of that total value including shipping (to cover tax costs, specifically VAT). That means if you buy something and the total cost including shipping is, say, $200, you can probably expect a bill of $40 (converted to pounds).
This new EU-imposed tax adds another 25% on top of that for video game consoles, which means that $200 item will now come with a $90 bill: your usual $40 VAT plus $50 for this new charge. That’s why people who spent $550 to get the Analogue Nt Mini Noir (plus shipping costs) would have expected to get charged around $110 in fees but are now being stung with a bill for $247.50. With FedEx’s own processing fee added to this, Brits are looking at a total of £201.60 (around $270).
So, pitchforks and flaming torches at the ready, and off to Analogue’s headquarters, yes? Well, not quite, even though we looked it up and “spades, shovels, mattocks, picks, hoes, forks and rakes” don’t fall under the 25% charge. You see, Analogue isn’t to blame for this: it’s got a legal duty to declare exactly what it’s selling and its monetary value, and that hefty fee seems to match up with the 45% tariff currently being charged. The only way it could have gotten around this was by declaring the consoles were only worth $100, or by declaring them as gifts: problem is, that’s fraud.
Analogue confirmed the situation when we got in touch, telling us:
The charges are VAT/Taxes from the UK or EU government. The UK has recently added a new tax or increased pre-existing taxes for video game consoles and machines imposed by UK customs. Laws and regulations when importing goods from abroad are different on a country by country basis and in the responsibility of the individual importing the goods (this is listed in Analogue’s terms & conditions which are required to be agreed upon at every checkout on the Analogue store).
So no, Analogue can’t be blamed for this hefty fee. It could, however, be blamed for a lack of communication with its customers. The Nt Mini Noir was delayed numerous times and, had it been released on time, it would have been delivered before 10th November (when this extra 25% charge kicked in). Still, this can’t be helped: delays obviously happen – especially in this most tumultuous of years – and it's not like Analogue has deliberately held the machine back to make sure its customers incur extra charges.
Despite that, there’s now a growing backlash on Twitter that’s being allowed to swell and spread misinformation due to Analogue’s lack of public response (at the time of writing). For example, some FedEx customer service agents, seemingly unaware of the new charges, thought the issue may have been Analogue failing to declare the correct shipping information. As such, there are plenty of people online who feel this is Analogue’s fault for messing up.
Of course, since the new charge only kicked in a fortnight ago there’s a case to be made that Analogue has genuinely only just become aware of it (and, again, if it was to explain this in a statement we’d hope most people would understand, annoyed as they may be at the cost). There’s an even bigger potential problem on the horizon, though, and this argument won’t be valid when and if it comes around: the Analogue Pocket.
The company’s hugely-anticipated handheld device is due to ship in May 2021, and it received far more orders than the Nt Mini Noir did, many of which will have come from Europe. If this extra tariff is still in place, UK customers who ordered the handheld and a dock can expect a charge of around $150, converted to whatever that’ll be in pounds at that time. If Analogue wants to stay in its European customers’ good books we suggest it emails everyone with information on this extra charge, making it perfectly clear to them all that there could be an extra 25% on top of any usual import charges if this situation isn’t resolved by the time the Pocket is ready to ship.
By all means, it can explain that it isn’t to blame for this, because it isn’t. But it’s at least the decent thing to do to make its European customers aware of the situation, and give them the information they need to decide whether to stick with their order or cancel if it’s getting a bit expensive for them (especially during times like this, when money is tight for a lot of people). It’s not like a cancellation would mean a lost sale: there are thousands of people who missed out on the ridiculously small pre-order window.
We should also stress that this isn’t a problem limited to Analogue. Every American company that exports gaming hardware to Europe should now be made aware of this, and should be passing that information on to its customers to avoid future confusion, shock and anger. What does this news mean, for example, for the constantly delayed Polymega, which is now scheduled to ship in February? European customers were only able to order it through a single German distributor: will they now try to charge us even more than the premium already added in order to recoup these extra import fees?
And at the risk of confusing things even further, if this was a decision made by the EU, what’s going to happen in January when Brexit kicks in and the United Kingdom is no longer part of the European Union? Is the UK still going to be a part of this agreement, or will the 25% be wiped in some sort of UK-US trade agreement? Have we actually managed to find the one benefit of Brexit?
Our heads hurt. We’re off to pay this £201 fee then have a lie down while we think of the 402 cans of Irn-Bru we could have bought with that money.
Comments 39
As an American, I can say this will probably blow over by January.
Where I live we have to deal with over 100% taxes on imported tech, so I feel for our fellow european gamers
Hope it gets sorted for UK, in the least
@dew12333 Enjoy the paying VAT and import fees (under currently no trade-deal) on EU imports too from January. Also the UK has no trade-deal with the US in place for January yet, so we could be facing even higher import fees.
Well couldn't we all just be "one people" and not bother taxing goods from other countries? If nobody in the EU/UK makes a particular product then why should we be taxed for buying it elsewhere?
Want my money, UK market? Then start making products I want to buy. I will buy local where I can, but it's my money and it's already been taxed, if I want a product that's made oversees then let me buy it.
Also while I'm here at those extra rates you may be cheaper telling Analogue not to ship it at all, you could get a plane ticket cheaper and collect it yourself.
I was one of the lucky few who managed to get an order in for the Pocket and I'm now really nervous after reading this.
@dew12333 They leave party had a very, very good catchphrase, psychology works wonders.
"Keep the status quo" and "Things are just fine!" aren't very excitable.
The good thing is basically everything ever will cost too much to import now. The UK is going to shrivel up.
globalism is a pain in the ass, especially when it extracts more than it gives, which it always will somewhere.
Analogue are not entirely blameless here. Apart from the poor (or lack of) communications - the fact is they could hire a proper UK/EU distributor for their products. That would mean the import costs would be paid by them - rather than the customer. This may increase the face value of the product for us - but at least we’d know what we were paying from the outset - rather than getting a nasty surprise months down the line.
Bottom line - for now, avoid Analogue products if you live in the UK/EU.
I import vinyl from all over the world, and for a number of years now importing from the US is way more expensive than anywhere else. It's so bad that I only buy from them as a last resort.
But for Analogue - I was hoping to get the SuperNT at some point, but it looks like I'll have to wait even longer now.
Got stung with the Mega Drive one back in the day, €200 in customs! I sent it back. Crazy prices now with customs.
God help the uk with brexit, everything will be import customs for them from January.
@NIN10DOXD I'm sure we won't even remember who Analogue are this time next year.
"be blamed for a lack of communication with its customers"
FOR WHAT? Not (correctly, apparently) assume the average customer is a brain dead idiot who doesn't know what taxes are?
And they DO explain it. The terms of service, the checkout page, the shipping page, and a box before you finalize the sale ALL say "hey idiot, you have to pay import taxes when you import something".
What do we expect from them? Personally work out the costs for every country they are shipping to and call the costumers to remind them of one of the only two guarantees in life?
I think this is the reason I don't import as much as I did ages ago, the import taxes can be heavy and with the added fees on top of this it makes it almost impossible to import anything fairly priced! Smdh
I don't really understand this. Anologue builds their machines in China which seems like it shouldn't have extra vat tax for tax applied directly to American goods. Unless you are saying they ship all the consoles to the US then send them to other countries. I know Analogue is small, but that seems insanely inefficient.
Also, don't all imports get hit with 15% vat tax normally? The extra 10% would stink but it doesn't seem as egregious as this article is making it out to be.
@cleveland124 That is exactly what companies do. Get their supply from China, Box it, label it for world standards, add their goodies and stickers, and then re-ship it worldwide.
Even in the stupid EU we have to sell our goods to the next door neighbor country, just so we buy it again from them at exorbitant rates.
A stupid amount of money goes to middlemen and adds a ton of expenses to everything...
Customers are ALWAYS responsible for the goods they import. Blaming the company you bought the item from is just trying to deflect the blame for your own lack of research.
Its always been pricey import tax it's the the eu parliament they hate people from the eu buying from country's outside of the eu and slap heavy import tax on up.
In the uk anything over 15 be that $15 or 15 anything gets taxed it's such a shame and has put me right off importing.
I was born in the UK, and moved to America when I was fairly young. Between stuff like this, our insanely black and white political situation, and the staggering arrogance surrounding just wearing face protection and social distancing, I’m surprised we are still a functioning nation.
If I could tell my country just one thing, it would be that your actions DO impact those around you, and now would be a fantastic time to deal with that fact of life.
Having spoke to both Fedex and HRMC this article does a pretty good job of summing up the issue. I was advised by both that the additional fee is being charged as an Anti Dumping tax and if I want to challenge it I can complete form C285 with the UK Border Force. I think I will just to see what transpires. If nothing else I get to take on the system and grumble extensively about it whilst I'm at it. Or I could just play Mario3 instead on my now ludicrously expensive new system.
I ordered a record from the States a while back and had to pay over a tenner in customs and it took weeks to arrive. I ordered one from Japan and got it 3 days later, the customs was all paid for and it came hand wrapped with a bow on top. I ordered a cassette from Latvia and the customs was paid for and it had a hand written note in (extremely broken) English thanking me for the purchase and admiring my taste in music as the cassette in question was by Kino, one of the greats of Soviet rock.
That sucks. I guess I won't be buying any more Limited Run games, lol. Not that I can really afford them anymore anyway, even before the crazy tax.
Guess I'll just be buying my stuff locally. Tesco it is, boys!
What are the WTO tariffs for consoles? That will tell us if we’ll pay more or less than this 25% come January, assuming we don’t have a trade deal with the US in place by then. I suspect the 25% probably comes from WTO tariffs, so it’ll be as it is now. Until we get a trade deal with the US anyway.
I was hoping to get Analogue’s Mega Sg and DAC at some point in the future, so I’ll probably wait until all these shenanigans die down.
@Otoemetry Various eastern European countries?
This sort of "tax" is just straight up theft.
Stupid governments fighting over taxes etc, meanwhile us public pay the brunt of their consequences 🤦♂️
I posted this on your twitter, but if it helps, this seems to have previously been a way to get Fedex to take off their ridiculous £12 'processing' fee. http://blog.adamowen.co.uk/dont-pay-fedexs-customs-advancement-fees/
According to gov.uk, video game cartridges are also considered 950450, and also get this 25% tax(!!!)
So be careful importing any Switch/GB/DS/etc games from US too.
(Discs have a completely different code that's not in the EU's list, however.)
Well... guess that means not to import much from the US anytime soon.
@cleveland124
"The extra 10% would stink but it doesn't seem as egregious as this article is making it out to be."
It's normally 20%, and now + an additional 25% = total of 45%.
The 25% is a new addition, not the total.
@bluemujika
"couldn't we all just be "one people" and not bother taxing goods from other countries?"
If a customer can get Item X from a UK seller for £100+£20 tax, but the same thing from a foreign seller for just £100, then it incentivises everyone to import stuff rather than support local shops/local versions.
@bluesun
A protectionist Vat tax that puts local workers first isn't different than what Trump was doing by putting tariffs on other countries to get Americans to buy locally.
Absolutely LUDICROUS! I remember having to pay €12 in fees to get the Wonderful 101 back in May but would be absolutely livid if it were €200+!! What happened to being allies and trading partners. These airlines are in trouble anyway, wish they'd stop this nonsense already and stop protecting their plane manufacturers when it's clearly hurting many, many others.
@nessisonett,
Was Paul the psychic octopus the one that could predict World cup game scores?, because if he was then I am with you on it, that bloody sea creature's talent is amazing.
@cleveland124
In a normal world I would agree with what you say. But this ain't normal. Happy Thanksgiving and may you and yours stay well.
Analogue are not entirely blameless here. Apart from the poor (or lack of) communications - the fact is they could hire a proper UK/EU distributor for their products. That would mean the import costs would be paid by them - rather than the customer.
@cyclone5uk I've made this kind of argument myself in the past. In the case of the UK, I cannot say I feel very understanding, though.
Customers are ALWAYS responsible for the goods they import. Blaming the company you bought the item from is just trying to deflect the blame for your own lack of research.
@ukaskew I am assuming you are sincere in posting this. I have to say that I completely fail to understand this anti-customer attitude. Why shouldn't we expect vendors to cite the full price at the time of check-out? I've seen that often enough.
@scully1888
”What does this news mean, for example, for the constantly delayed Polymega, which is now scheduled to ship in February?"
I dug a bit deeper into Commodity Code 9504500000 and found this:
"If the product turns out to be vapourware, it will be exempt from VAT and the 25% import charge."
Ok let's not jump into politics or offend other users again, please.
VAT has to be charged otherwise it’s unfairly disadvantaging uk sellers of similar products.
If its true that Analogue completely manufacture the product in China then surely it would be a better idea to setup distribution from there as well for non-US customers
I'd rather fly over, unbox it and bring it back in my carry-on, then waltz through nothing to declare, would cost either the same or slightly more, and at least you'd get a trip out of it rather than paying the government
@scully1888 Analogue Pocket pre-orders reopen next week (14th December 2021). Do you know if this situation with astronomical taxes is still the case in the UK?
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