I’m regularly asked about grey imports, and I think after 10 years of running the site, it is about time I explained what they are and how they affect you.
What Are Grey Imports?
Camera Price Buster gives you price comparison for “genuine UK stock” photography equipment. This means photography equipment supplied via the UK or EU branch of the manufacturer (such as Canon UK). The equipment is imported into the UK by the manufacturer, sold to shops who then sell it on to you in the UK.
A grey import is equipment that has been supplied by Canon in a different part of the world, for example supplied by Canon Hong Kong to a shop in Hong Kong, and ends up being sold on to you in the UK. This equipment may be purchased by you directly from a shop in Hong Kong (meaning you are importing it yourself into the UK), or it could be imported into the UK by another company and then sold on to you. The key point is that the manufacturer has sold it into a different (not UK or EU) geographic market, and someone else is then importing it into the UK.
Grey imports are normally cheaper, but there are some downsides that you should be aware of – read on for details.
Why Should You Care?
If you buy a grey import, it will normally not come with a valid UK manufacturer warranty. This means the UK branch of the manufacturer would not offer free warranty repairs in the unlikely event of something going wrong within the warranty period (typically one year). You would therefore have to rely on the shop to provide warranty repairs instead.
You will not be able to take part in a cash back or other promotion offered by the UK manufacturer.
There may be other issues such as the manuals being in the wrong language, or the item not having a UK plug. These are pretty minor.
Depending on how you purchase the grey import, you may be liable to pay import duty and UK VAT in addition to what you are paying the shop, and this can make the price considerably less attractive. See below for more on this.
Why Are Grey Imports Cheaper?
Grey imports may be significantly cheaper than UK stock products.
There are differences in the costs of running a business in the UK compared to other parts of the world – labour costs, regulatory costs etc. This includes the costs of providing after sales support, warranty repairs and so on. Companies in the UK will pay different tax rates compared to companies in other countries. When they import the goods into the UK they may have to pay import duties which again will be different in other countries.
There is one important factor that can make grey imports cheaper – or appear to be cheaper: you may find that the prices you see do not include import duty or UK VAT – but you may still be liable to pay these yourself.
Another price factor is that the manufacturer may believe that consumers in Europe are simply prepared to pay more for things, so they make the prices higher than in, for example, Hong Kong.
Import Duty And VAT
If you buy a product from a shop based in Hong Kong, and they send it to you from there, then you will normally be liable to pay import duty and VAT. See this page on the HMRC site for details: http://www.hmrc.gov.uk/customs/post/internet.htm
Having to pay VAT on top of the price you have paid the shop, plus import duty and/or handling fees, can make the price of a grey import far less attractive – it is therefore vital to know whether you are importing the product into the UK or not, which means you need to know where it is being sent from.
There are some UK based shops that import the products themselves from outside the EU, and then sell them to you in the UK. In this case the prodcuts should be sent to you from within the UK, and you should not be liable for import duty – and will pay UK VAT on your purchase as normal. As mentioned above, these products can still be cheaper that UK stock, due to the way the manufacturers vary pricing for different regions.
How To Spot A Grey Import
Whether or not you choose to buy a grey import is a personal choice for you. The main point for me is that you should have the information to enable you to make an informed choice – knowing the product is a grey import, and whether you will be liable for VAT and import duties in addition. The problem with many of the grey import shops is that they try very hard to hide from you the fact that they are selling you a grey import. You will normally have to examine their terms and conditions in order to find out about possible VAT and import duty charges, and this is often the only way to work out if they are selling grey imports. Apart from looking for conditions that state you are responsible for import taxes and VAT, also look out for comments saying the products are not eligible for cash back promotions. I’m also cautious when a shop is offering longer warranties than normal – this often is a tactic to hide the fact that you will not get a UK warranty.
In the end though, if the price seems too good to be true compared to the UK prices listed on Camera Price Buster, then you can assume it is a grey import. And as I’ve tried very hard to list as many shops as possible that sell UK stock, you should be cautious about shops that are not listed as the chances are they are selling grey imports.
Is It Worth It?
Weigh up the price saving (taking into account VAT and import duties) against not having a UK warranty, and the lack of cashback where applicable. And factor in the chance of having to use the warranty based on the type of product. You might feel that you want the reassurance of the UK manufacturer warranty on a £500 lens, but not on a £50 lens filter which has no moving parts to go wrong. And if the price difference is not massive then please consider the benefits of supporting UK businesses.
Just make sure you know what you are getting, and use Camera Price Buster as a starting point – but do your own research too.
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