Fedex duty charge
Discussion
I bought a blood-lactate measurement gizmo, around this time last year.
It cost $419 and I paid duty and VAT to Fedex on that when it arrived.
Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
Currently Fedex want to charge me duty+VAT on the $419, I have been having an exchange of emails with them on this, and have been totally transparent about what the reality is.
They have now said that they will amend the ~£85 charge IF I get a letter from the vendor confirming the situation is as I say it is, and also if I pay Fedex a £65 "admin fee".
I can get the letter (already have it in fact), and can send it to Fedex.
However I think the admin fee is unreasonable - do I have a leg to stand on/any obvious options?
For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
It cost $419 and I paid duty and VAT to Fedex on that when it arrived.
Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
Currently Fedex want to charge me duty+VAT on the $419, I have been having an exchange of emails with them on this, and have been totally transparent about what the reality is.
They have now said that they will amend the ~£85 charge IF I get a letter from the vendor confirming the situation is as I say it is, and also if I pay Fedex a £65 "admin fee".
I can get the letter (already have it in fact), and can send it to Fedex.
However I think the admin fee is unreasonable - do I have a leg to stand on/any obvious options?
For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
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Dammit said:
I bought a blood-lactate measurement gizmo, around this time last year.
It cost $419 and I paid duty and VAT to Fedex on that when it arrived.
Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
Currently Fedex want to charge me duty+VAT on the $419, I have been having an exchange of emails with them on this, and have been totally transparent about what the reality is.
They have now said that they will amend the ~£85 charge IF I get a letter from the vendor confirming the situation is as I say it is, and also if I pay Fedex a £65 "admin fee".
I can get the letter (already have it in fact), and can send it to Fedex.
However I think the admin fee is unreasonable - do I have a leg to stand on/any obvious options?
For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
Refuse to pay, decline the item and leave the problem with your supplier. Claim the $79.99 back from your card company, you have good grounds.It cost $419 and I paid duty and VAT to Fedex on that when it arrived.
Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
Currently Fedex want to charge me duty+VAT on the $419, I have been having an exchange of emails with them on this, and have been totally transparent about what the reality is.
They have now said that they will amend the ~£85 charge IF I get a letter from the vendor confirming the situation is as I say it is, and also if I pay Fedex a £65 "admin fee".
I can get the letter (already have it in fact), and can send it to Fedex.
However I think the admin fee is unreasonable - do I have a leg to stand on/any obvious options?
For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
Sadly the way that Fedex handle the duty situation is to deliver the item, then 4-5 days later you get an invoice in the post for whatever they calculate the amount to be.
I'd received the parcel, seen the included paperwork that had stated it was a warranty replacement (not quite true, but close, and I could see why the sender went that route), so I opened and started using it.
I'd received the parcel, seen the included paperwork that had stated it was a warranty replacement (not quite true, but close, and I could see why the sender went that route), so I opened and started using it.
Dammit said:
Sadly the way that Fedex handle the duty situation is to deliver the item, then 4-5 days later you get an invoice in the post for whatever they calculate the amount to be.
I'd received the parcel, seen the included paperwork that had stated it was a warranty replacement (not quite true, but close, and I could see why the sender went that route), so I opened and started using it.
In what way have you agreed to pay the duty then, was it in the delivery paperwork you signed? Was the amount etc not mentioned at that time. I'd be surprised if they could claim this money if you hadn't been advised of the cost and agreed in some way. I'd received the parcel, seen the included paperwork that had stated it was a warranty replacement (not quite true, but close, and I could see why the sender went that route), so I opened and started using it.
I had this with Parcelfarce a few years ago. Sent item worth about £100 to US. Buyer decided he didn't want it so sent it back with 'RETURN ITEM' on it as I was told to do be PF.
Get a custom charge on the item and tell them i'm going to dispute it and that the item is not to be returned to the US without my permission as it now belongs to me.
Three days later I was told it was returned to the US and the tracking number was no recognised. Got my money back after I made a fuss but I have my suspicions it was not sent back at all and was either nicked or auctioned off.
Get a custom charge on the item and tell them i'm going to dispute it and that the item is not to be returned to the US without my permission as it now belongs to me.
Three days later I was told it was returned to the US and the tracking number was no recognised. Got my money back after I made a fuss but I have my suspicions it was not sent back at all and was either nicked or auctioned off.
REALIST123 said:
In what way have you agreed to pay the duty then, was it in the delivery paperwork you signed? Was the amount etc not mentioned at that time. I'd be surprised if they could claim this money if you hadn't been advised of the cost and agreed in some way.
They left the parcel with a neighbour, I signed nothing but the neighbour may well have done (indeed, it is likely).I have asked for site of the schedule of charges/t's and c's which I had agreed to with Fedex and the chap I am talking-to chose to ignore that request.
Dammit said:
Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
Even though it isn't a warranty replacement, and it isn't zero rated for duty or VAT?The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT.
They should have put the correct value - $80 - and you then pay duty/VAT on that.
Dammit said:
......Roll on to this year, I paid $79.99 for the upgrade to the gen 2 unit, plus something like $20 for postage.
The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT........
.......For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
So basically, an attempt has been made to avoid paying the necessary duty and VAT on the item by fraudulently describing the goods and their value and it has backfired? The vendor posted it to me and on the shipping documentation they put the value of the unit at $419 but then crossed it out and wrote "warranty replacement", which they believed would effectively zero rate the item for duty and VAT........
.......For the record I am happy to pay the correct duty+VAT, I just object to this admin fee which seems out of proportion with the task of amending some paperwork.
I would have thought the simplest thing to do, assuming you were not party to the plan to avoid paying the required duty and VAT, would be to pay the admin fee and then request the vendor reimburse you that amount as it was their fault that you have been put in this position.
Should they not want to reimburse you due to their own illegal activity then perhaps you should then report the to the authorities as I'm sure this will not be the first time that they have carried out this type of deception.
On the other hand, were you party to the attempted deception (as Fedex probably suspect), then bad luck! - Perhaps you should have been more honest in the first place!
What was the process? Did you send your unit back for upgrade or was it a little gizmo to plug in to what you had?
If they sent you a plug-in thing with a value of $79 then this is your supplier's fault. That's how they should have valued it and you should have paid the VAT and duty on that value.
If you sent your unit to the USA for upgrade then you should have declared it specially on export, retained a copy of the export declaration and then declared it specially on import. You would have been able to avoid the VAT and duty on the value of the item, only paying on the added value.
If you've paid twice then you could conceivably be due a refund of the duty and VAT, but it will be quite a lot of hassle. You can do it directly with HMRC with this form:
https://www.gov.uk/government/publications/import-...
But you will need a copy of the import declaration from Fedex, which might be tricky to get.
If they sent you a plug-in thing with a value of $79 then this is your supplier's fault. That's how they should have valued it and you should have paid the VAT and duty on that value.
If you sent your unit to the USA for upgrade then you should have declared it specially on export, retained a copy of the export declaration and then declared it specially on import. You would have been able to avoid the VAT and duty on the value of the item, only paying on the added value.
If you've paid twice then you could conceivably be due a refund of the duty and VAT, but it will be quite a lot of hassle. You can do it directly with HMRC with this form:
https://www.gov.uk/government/publications/import-...
But you will need a copy of the import declaration from Fedex, which might be tricky to get.
I've actually got a copy (in the text field of the PayPal payment) where I requested that the supplier made sure to declare the value for exactly what I paid for it in order to be charged the correct amount.
It's very much the fault of the supplier for having declared the value wrongly, and I've identified that to Fedex and provided supporting documentation.
I've also asked them, in light of this, why they are charging me for the mistake which the supplier made - to which Fedex said that if I could get the supplier to agree to pay their admin fee then that was fine with them.
My view is that Fedex should discuss this with the supplier, who wrongly declared the value, rather than myself - I've said at every stage that I'm happy to pay the VAT on the correct value.
It's very much the fault of the supplier for having declared the value wrongly, and I've identified that to Fedex and provided supporting documentation.
I've also asked them, in light of this, why they are charging me for the mistake which the supplier made - to which Fedex said that if I could get the supplier to agree to pay their admin fee then that was fine with them.
My view is that Fedex should discuss this with the supplier, who wrongly declared the value, rather than myself - I've said at every stage that I'm happy to pay the VAT on the correct value.
davepoth said:
What was the process? Did you send your unit back for upgrade or was it a little gizmo to plug in to what you had?
If they sent you a plug-in thing with a value of $79 then this is your supplier's fault. That's how they should have valued it and you should have paid the VAT and duty on that value.
If you sent your unit to the USA for upgrade then you should have declared it specially on export, retained a copy of the export declaration and then declared it specially on import. You would have been able to avoid the VAT and duty on the value of the item, only paying on the added value.
If you've paid twice then you could conceivably be due a refund of the duty and VAT, but it will be quite a lot of hassle. You can do it directly with HMRC with this form:
https://www.gov.uk/government/publications/import-...
But you will need a copy of the import declaration from Fedex, which might be tricky to get.
The original unit was decommissioned remotely by the vendor - once I plugged it into my laptop it updated to "paperweight" status.If they sent you a plug-in thing with a value of $79 then this is your supplier's fault. That's how they should have valued it and you should have paid the VAT and duty on that value.
If you sent your unit to the USA for upgrade then you should have declared it specially on export, retained a copy of the export declaration and then declared it specially on import. You would have been able to avoid the VAT and duty on the value of the item, only paying on the added value.
If you've paid twice then you could conceivably be due a refund of the duty and VAT, but it will be quite a lot of hassle. You can do it directly with HMRC with this form:
https://www.gov.uk/government/publications/import-...
But you will need a copy of the import declaration from Fedex, which might be tricky to get.
They sent me a new unit to take it's place.
Issue with going back to the vendor (I suspect, I've not tried this yet) is that I paid them $80, the fee that Fedex want me (or someone) to pay in order that I pay the correct amount to HMRC is $100.
I doubt, therefore, that the vendor is going to pay a $100 admin fee on my $80 purchase.
I doubt, therefore, that the vendor is going to pay a $100 admin fee on my $80 purchase.
4rephill said:
So basically, an attempt has been made to avoid paying the necessary duty and VAT on the item by fraudulently describing the goods and their value and it has backfired?
I would have thought the simplest thing to do, assuming you were not party to the plan to avoid paying the required duty and VAT, would be to pay the admin fee and then request the vendor reimburse you that amount as it was their fault that you have been put in this position.
Should they not want to reimburse you due to their own illegal activity then perhaps you should then report the to the authorities as I'm sure this will not be the first time that they have carried out this type of deception.
On the other hand, were you party to the attempted deception (as Fedex probably suspect), then bad luck! - Perhaps you should have been more honest in the first place!
ThisI would have thought the simplest thing to do, assuming you were not party to the plan to avoid paying the required duty and VAT, would be to pay the admin fee and then request the vendor reimburse you that amount as it was their fault that you have been put in this position.
Should they not want to reimburse you due to their own illegal activity then perhaps you should then report the to the authorities as I'm sure this will not be the first time that they have carried out this type of deception.
On the other hand, were you party to the attempted deception (as Fedex probably suspect), then bad luck! - Perhaps you should have been more honest in the first place!
The shipper should have put the correct value on the customs paperwork and you would have paid the VAT etc on that amount. What you have to remember is that the customs paperwork you have on the package when it arrives isn't necessarily the same as when is presented to the Fed-Ex brokerage department. Just because they've crossed it out on your invoice doesn't mean they did at the other end. I had a parcel last week with a value of $1500 declared on it, the guy i was delivering to questioned it 3 days running claiming it was 3x the value he paid, we're now holding it until he sorts it out with the shipper.
Also, writing "Warranty replacement" "Warranty repair" etc on an invoice doesn't mean you'll get away without charges, the shipper has to supply the correct documentation at their end, with original export/import documentation etc. Many don't.
REALIST123 said:
In what way have you agreed to pay the duty then, was it in the delivery paperwork you signed? Was the amount etc not mentioned at that time. I'd be surprised if they could claim this money if you hadn't been advised of the cost and agreed in some way.
Read the small print on any American website, it clearly states you could be liable for duties when importing into your country. How the duties are collected varies from company to companyDuties, duties+VAT - as long as its the correct amount I am fine with. I also understand that I am liable for them, I buy a lot of stuff from overseas/outside the EU.
But the $100 admin fee is communicated nowhere but the email to me from Fedex, and it was only mentioned when they realised that they'd charged me the wrong amount.
Anyway, I guess I have no choice but to pay it, which is an unpleasant situation to be in due to no fault on my side.
But the $100 admin fee is communicated nowhere but the email to me from Fedex, and it was only mentioned when they realised that they'd charged me the wrong amount.
Anyway, I guess I have no choice but to pay it, which is an unpleasant situation to be in due to no fault on my side.
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