The loophole Chinese sellers are using to be able to sell items for pennies in the UK, even when directly shipped from China

24
Found 21st Apr
thetimes.co.uk/art…2e8


"British sellers say that subsidised postal rates and 20 per cent VAT
exemption have fuelled the boom in Chinese ecommerce that is driving
them out of business."

"Chinese-based retailers are able to
undercut British rivals by exploiting a little known international
postal treaty that requires the Royal Mail to deliver packages that
arrive from China at a fraction of the cost that it normally charges."

"Under
the agreement China is classed as a developing country alongside Gabon,
Kazakhstan and Cuba and is entitled to a huge subsidy on the cost of
delivering all packages. The exact amount of the subsidy is classed as
“commercially confidential information” but it is understood that
Chinese retailers are able to send lightweight packages within the UK
for as little as half a pence each. The cheapest stamp for sending a
letter in the UK is 56p."

"The system is beneficial to Chinese retailers because it is based on
weight rather than total number of packages. This means that they can
send thousands of small and lightweight packages via China Post to the
UK to fulfil online orders and pay per kilogram. The cost of this
subsidy is paid for by UK consumers in higher stamp prices."
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Top comments
splatsplatsplat1 h, 32 m ago

This needs to change. When can we we BR-INA?



"we we"? Is that French, or are you just Euronating?
That’s nothing compared to non tax payers like amazon etc
24 Comments
What, and who are stopping the industrious British reciprocating with them and export using this "little known" global postal treaty; flood the world with British made goods and let foreign country tax-payers subsidise British made goods?! UNIVERSAL POSTAL UNION
China has the world's 2nd largest GDP after USA - perhaps reclassification is due. I love reclassification.
catbeans10 m ago

It's not really a loophole when it's international law that the government …It's not really a loophole when it's international law that the government wont do anything about. It doesn't effect the cost of stamps but the overall cost of sending a package. Selling Royal Mail is the first place was a Tory fiasco, the company has already made more than it was sold for and made record profits last tax year, despite paying out double in dividends and investing in itself.



That's one show-stopper.
Why blame China for this. If the UK did the same thing maybe it would be better for the UK economy aswell not like they are dodging anything it's a agreement probably at the time was more advantageous to the UK didn't see anyone complain then.
davewave16 m ago

China has the world's 2nd largest GDP after USA - perhaps reclassification …China has the world's 2nd largest GDP after USA - perhaps reclassification is due. I love reclassification.


How about using GNI (PPP) per capita as many global policies are made using "per head" indices?
This needs to change. When can we we BR-INA?
But how would we have a hotukdeals site without the China adverts that only mods ever post if the rules were to change.
eslick41 m ago

But how would we have a hotukdeals site without the China adverts that …But how would we have a hotukdeals site without the China adverts that only mods ever post if the rules were to change.


With their special voucher codes which don't exist anywhere else on the internet.
splatsplatsplat1 h, 32 m ago

This needs to change. When can we we BR-INA?



"we we"? Is that French, or are you just Euronating?
fanpages17 m ago

"we we"? Is that French, or are you just Euronating?


Are you joking?
subsidy is paid for by UK consumers in higher stamp prices
That’s nothing compared to non tax payers like amazon etc
fanpages2 h, 22 m ago

"we we"? Is that French, or are you just Euronating?


Nope urinating.
eslick3 h, 51 m ago

But how would we have a hotukdeals site without the China adverts that …But how would we have a hotukdeals site without the China adverts that only mods ever post if the rules were to change.


@rogparki is that you?
Oneday7719 m ago

@rogparki is that you?


Nope it’s just me, several of us on here have similar concerns.
dorey691 h, 19 m ago

That’s nothing compared to non tax payers like amazon etc


And we know that discussion is political, even if all parties were the same for decades.
Hardly a loophole
No comment...........
Oneday772 h, 44 m ago

@rogparki is that you?


No but here now - once again I've asked HUKD to explain why they won't put a "banner warning " on Chinese deals - especially as the Mods post so many . As usual they are too coy to give me an answer - surprise, surprise

At least by paying such low postage it allows the Chinese sellers to pay hefty referral fees to Pepper (er HUKD) and I presume as part of that "entente " HUKD agree not to post warnings as to the possible pitfalls of buying from China - Nice and cosy - but I doubt its illegal .

I've noted that these cheap "Tat Deals" so often posted by Mods require you to be logged in to use the code (so presumably you have to register first to be able to Log in ) . Nice earner for HUKD , not only referral fees on purchases but more fees for getting members to register their details on these sites .

Are any HUKD employees embarrassed about what this site has become , I'm sure it hasn't turned out as Paul Nikkel intended
zworld4 h, 30 m ago

subsidy is paid for by UK consumers in higher stamp prices


It's the cost of postage rather than the cost of stamps, if that makes sense.
Always wondered how they did it! No complaints from me as love getting cheap Chinese tat through the post
BBC!
Oh boo bloody hoo. Fed up of these whingers. What happened as a result of them closing the channel islands VAT loophole? Did we become a utopia of fairness and prosperity? Or did things just become slightly more expensive for muggins here?
That explains why a jiffy bag of electronic parts I ordered off eBay cost 99p, I couldn't understand how it was so cheap considering postage, to send it back would have cost at least £4.
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