Brendan Griffin (Kerry, Fine Gael)
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362.To ask the Minister for Finance if an issue with postal charges will be addressed (details supplied); and if he will make a statement on the matter.[35397/24]

Jack Chambers (Dublin West, Fianna Fail)
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Revenue, as Ireland’s Tax and Customs administration, is responsible for managing the importation and exportation of goods in accordance with European Union (EU) Customs legislation. I am advised by Revenue that the valuation of goods for Customs purposes i.e. the Customs Value, is set out in EU legislation and is the value of the goods plus the cost of transport and insurance. This also includes the cost of postage where consignments are sent via the postal network. There is a relief from Customs Duty and VAT for gifts sent from one private individual in a non-EU country e.g. the USA, to another private individual in Ireland, where the Customs Value of the gift sent is less than €45. Customs is an EU competence and applies in all Member States. The valuation for Customs purposes and the limit of €45 for gift relief is set out in EU Customs legislation and it is not possible for Ireland to amend these. Where the value of the goods is in another currency, then the following exchange rates should be used: www.revenue.ie/en/customs/businesses/importing-exporting/exchange-rates/index.aspx.

In the example provided by the Deputy, the gift was valued at $50. If for example, this item was sent in August 2024 then the value of the goods converts to €46.09 using the August exchange rate of 1.0848. As this value plus the postal costs is in excess of €45, the item is not eligible for gift relief and tax and duties may apply. As the item is less than €150, no Customs Duty is payable. However, VAT is chargeable on the Customs Value of the goods. The VAT rate charged is the same rate as would apply to similar goods being sold in the domestic market. In this instance, if the standard rate of VAT of 23% applies then this would result in a charge of approx. €25. The charge of €3.50 is a separate charge levied by An Post for completing Customs formalities on behalf of the recipient and is not included in the Customs Value.