How to buy goods from abroad safely and securely

Browsing through shops for electronic goods when you’re abroad can be a bit of shocking experience – often the prices seem ridiculously cheap compared to those charged at home.

It can be a similar story if you look at the prices quoted on foreign websites. So it’s not surprising people are tempted to buy goods when they’re abroad or to purchase them from foreign websites. But what are the pitfalls of buying goods from foreign countries?

Here, we look into the murky world of the ‘grey market’ – the legal sale of new goods through distribution channels other than those intended by the manufacturer – to see whether buying abroad is a safe bet.

British consumers are still getting a raw deal when it comes to the pricing of electronic goods and all the evidence is on the internet. For example, Apple sells the 30GB iPod on its US website for $249, which translates to just over £130 at the current exchange rate, yet charges UK consumers £189 for the portable music player.

Similarly, Sony’s Playstation Portable costs $200 (£104) on the US Amazon site, yet on Amazon UK it is £150, £46 more. It’s not just hardware that’s more expensive, we’re paying over the odds for software, too.

Some adjustments have to be made to these US prices because American sites generally quote prices excluding tax as some states don’t charge a sales tax. However, the prices are generally lower than those being charged in the UK.

Difficulties with duty
There are plenty of issues to be aware of when buying abroad. The first hurdle is Vat. While many people get away with buying a digital camera or portable music player in America by not declaring it at Customs, this is not recommended with larger items and is not possible when you buy online.

The good news is that if you shop within the EU, you can fill your boots with electronic goodies and bring them all back into the UK (or have them delivered) without worrying about additional Vat charges. Things are more complex when you buy from outside the EU.

There’s quite a low limit on how much you can bring back to the UK without paying tax. Most goods worth over £18 arriving in the UK from outside the EU are liable to Customs duty and Vat. The rules are complicated so check the Customs website to find out about the charges.

The Post Office may charge for repackaging if Customs opens an item because a Vat declaration seems suspicious. If you buy products online, DHL has a good summary of what you need to know.

Online obstacles
We’d also advise caution when buying from websites that give exceptional discounts, especially on electronic goods. Some sites within the EU may be sourcing goods from outside it, leaving you with an extra charge when it lands in the UK.

The note to say that you are responsible for paying the import duty is usually buried in the small print of the terms and conditions. It’s best to search forums and other websites to try to find user feedback on the site you’re thinking of buying from.

Another big issue is customer support and warranties. Under EU warranty regulations manufacturers are now obliged to repair products in the UK if they’ve been purchased from a country within the EU and the same model is also officially available in the UK.

But if you buy outside the EU you risk getting stung. If there’s a serious problem with the product, it may cost you a significant amount of money to return it to its country of origin. Also, the local customer support department may refuse to send it to an address that’s outside its own country.

On some products such as notebook PCs and cameras, which tend to be used by frequent travellers, you may be able to buy an international warranty card. This will entitle you to get your product repaired in a different country to where it was purchased and give you access to local customer support.

But if you haven’t bought from within the EU or don’t have an international warranty card, it is likely that UK customer support employees will treat the product as a ‘grey import’ – an item that has been imported, legally, but without the agreement of the manufacturer – and refuse to help you.

Cost in translation
When buying abroad the product might come with a foreign manual, foreign power adapters, or be set by default to a foreign language. User manuals are often less of an issue because companies tend to post them on their websites. But you should check this before you purchase the product, as many companies still don’t do this.

Certain items, such as notebooks, tend to use power supplies that can work in a range of countries. Similarly, desktop computers normally have a switch on the back so you can set the product to work with the UK mains systems. However, most items won’t come with compatible power supplies and, as manufacturers tend to charge a premium for official adapters, replacing a US one with a UK model can be very expensive.

You do have the option of using the original with a stepdown transformer – an attachment that reduces voltages, enabling you to use products intended for foreign mains supplies with higher voltages here. Prices for these start at around £5 from stores such as Maplin, but they tend to be bulky and ugly.

Shop around here first
Buying abroad is not always straightforward, so don’t forget to shop around in the UK before you open your wallet. Use price comparison websites such as our A ctive Prices service. It’s always possible you will find a deal here that will negate the need to shop abroad.

Web help
• The HM Revenue & Customs site has information about importing goods. Be warned, though, most of it is phrased in impenetrable government-speak.
• The European Consumer Centres Network (ECCN) provides useful advice on buying from other EU member states.
• The UK arm of the ECCN is run by the Citizens Advice Bureau and contains lots of useful information.
• Shipping firm DHL’s website contains a good breakdown of the issues surrounding tax and Vat on imported goods.
• Wikipedia has interesting information about grey imports.