How to calculate the £135 consignment value
Add the selling values of all goods in the consignment. Exclude separately stated delivery and insurance, plus identifiable taxes and charges; retain delivery and insurance bundled into the goods price without invoice separation. Compare the result with £135. You can ask Cambridge China Bridge to help check the supplier’s breakdown.
Start with the consumer sale
This guide covers goods in China when sold directly to consumers in Great Britain, without an online marketplace. Use the consumer selling price when calculating intrinsic value, rather than substituting the factory purchase cost. Our customs valuation guide covers the separate calculation used for import duty.
Add every item travelling together
Unless goods are sent individually, HMRC requires the individual values of all items in the consignment to be added together. A basket containing different products therefore needs a combined calculation. Ask the fulfilment team to map the invoice lines to the actual consignment before dispatch.
Check how delivery and insurance appear
Exclude delivery and insurance shown separately on the invoice. Retain them when included in the goods price without being separately shown. For an inclusive quote, ask for a genuine breakdown before approving the invoice; do not deduct an estimated freight amount from an unexplained total.
| Invoice presentation | Treatment |
|---|---|
| Delivery or insurance shown separately | Exclude from intrinsic value |
| Delivery or insurance included without separate invoice amounts | Retain in intrinsic value |
| Other identifiable taxes and charges | Exclude from intrinsic value |
Identify other charges before deducting them
HMRC also excludes other identifiable taxes and charges. Ask the seller to explain each charge and reconcile it with the invoice total. If a label such as handling or service charge is unclear, get clarification before treating it as an exclusion. Keep the quote, invoice and calculation together.
Compare the result and recheck changes
Exactly £135 falls within the £135-or-less category. Above it, normal import VAT and customs rules apply. For the direct consumer sales covered here, the lower category has VAT charged at the point of sale. See our import VAT guide for the wider import calculation.
Recheck the calculation if items or charges change before dispatch. Ask whoever manages checkout and shipping to confirm that both use the same invoice breakdown. Do not assume that excluding delivery from this threshold calculation also excludes it from the amount on which VAT is charged.
Frequently asked questions
Is the £135 limit per item or per consignment?
It applies to the total consignment. Add the individual values of goods sent together, rather than testing each product separately.
Does separately charged delivery count?
Delivery shown separately on the invoice is excluded from intrinsic value. Delivery included in the goods price without separate invoice presentation remains included.
Can I deduct insurance from an inclusive price?
Only where it is separately shown on the invoice. Ask for a documented breakdown rather than estimating the insurance element yourself.
What if the consignment value is exactly £135?
It is within the £135-or-less category. A value above £135 brings normal import VAT and customs rules into play.