FedEx “advancement fee” for import duty
Discussion
Ordered items from USA which were delivered by Fedex. A couple of weeks later Fedex sent a duty and tax invoice saying I owe them £13.99 in import tax, and also £12 “advancement fee”.
I understand I owe the import duty but an “advancement fee”?? I have googled this and some sites suggest I don’t have to pay this and that it is a scam. Anyone on here experienced this if have any advice?
I understand I owe the import duty but an “advancement fee”?? I have googled this and some sites suggest I don’t have to pay this and that it is a scam. Anyone on here experienced this if have any advice?
Sloan85 said:
Ordered items from USA which were delivered by Fedex. A couple of weeks later Fedex sent a duty and tax invoice saying I owe them £13.99 in import tax, and also £12 “advancement fee”.
I understand I owe the import duty but an “advancement fee”?? I have googled this and some sites suggest I don’t have to pay this and that it is a scam. Anyone on here experienced this if have any advice?
I got a camera lens via FedEx from Hong Kong a couple of years ago that had that added on. I paid the VAT and duty and told them to take any other shipping charges up with the shipper, which I doubt very much they will have, but they delivered the lens without me paying it. It's a scam to get paid twice for a consignment.I understand I owe the import duty but an “advancement fee”?? I have googled this and some sites suggest I don’t have to pay this and that it is a scam. Anyone on here experienced this if have any advice?
Nickyboy said:
It's not a scam it's a bill for preparing, presenting, chasing up customs paperwork etc, it's separate from shipping charges because it only applies to those shipments that require customs clearance.
Which the shipper has already paid for in the knowledge that the carrier will need to prepare and present customs paperwork etc. Being charged VAT and duty isn't some sort of surprise. Like I said, a scam. See here: http://blog.adamowen.co.uk/dont-pay-fedexs-customs...
I tried it and they waived the fee.
Like many I don't really like paying VAT, duty etc but those are the rules etc. The "Advancement fee" however charged by some really sticks in the craw and I would rather use another shipper than one that charges like this. Unfortunately many either don't offer the choice of shippers or only ever offer things like the super duper next day delivery from China option for the others rather than the same level of shipment.
I tried it and they waived the fee.
Like many I don't really like paying VAT, duty etc but those are the rules etc. The "Advancement fee" however charged by some really sticks in the craw and I would rather use another shipper than one that charges like this. Unfortunately many either don't offer the choice of shippers or only ever offer things like the super duper next day delivery from China option for the others rather than the same level of shipment.
ElectricPics said:
Which the shipper has already paid for in the knowledge that the carrier will need to prepare and present customs paperwork etc. Being charged VAT and duty isn't some sort of surprise. Like I said, a scam.
Interesting. You're saying that all international carriage contracts already include destination-side handling fees? Do you have any examples showing this?What most people seem to miss is that these charges are not based on contract, so the fact that the importer had no agreement with FedEx is not actually relevant. FedEx claims that it has performed a service (customs clearance) on behalf of the importer, for which its (reasonable) charges therefor are now payable. However, given that it is not cost-effective to pursue a £12 “quantum meruit” claim in small claims court, FedEx reportedly usually waives these charges if they receive a polite-but-firm complaint from the importer. But that doesn't mean it's a "scam".
a.lex said:
nteresting. You're saying that all international carriage contracts already include destination-side handling fees? Do you have any examples showing this?
What most people seem to miss is that these charges are not based on contract, so the fact that the importer had no agreement with FedEx is not actually relevant. FedEx claims that it has performed a service (customs clearance) on behalf of the importer, for which its (reasonable) charges therefor are now payable. However, given that it is not cost-effective to pursue a £12 “quantum meruit” claim in small claims court, FedEx reportedly usually waives these charges if they receive a polite-but-firm complaint from the importer. But that doesn't mean it's a "scam".
£12 is not reasonable. What most people seem to miss is that these charges are not based on contract, so the fact that the importer had no agreement with FedEx is not actually relevant. FedEx claims that it has performed a service (customs clearance) on behalf of the importer, for which its (reasonable) charges therefor are now payable. However, given that it is not cost-effective to pursue a £12 “quantum meruit” claim in small claims court, FedEx reportedly usually waives these charges if they receive a polite-but-firm complaint from the importer. But that doesn't mean it's a "scam".
a.lex said:
ElectricPics said:
Which the shipper has already paid for in the knowledge that the carrier will need to prepare and present customs paperwork etc. Being charged VAT and duty isn't some sort of surprise. Like I said, a scam.
Interesting. You're saying that all international carriage contracts already include destination-side handling fees? Do you have any examples showing this?Fastdruid said:
£12 is not reasonable.
No doubt that would be a topic of discussion if the case ever went to court, which I have already suggested is unlikely for such a small amount. Would you litigate over £12? (Or, more precisely, over the difference between £12 and whatever lower amount you do consider "reasonable"?)Nickyboy said:
ElectricPics said:
I don't need any examples. FedEx are certainly not alone in this but if it's not sharp practice, why do they waive the charge when it's questioned.
Because it’s good customer relationsThey pay staff specifically to do brokerage so collect money to cover those costs
From the way they carry on you'd expect that having to pay customs duty was some unexpected surprise. It is literally their job, they know when the declaration is made exactly what is due and the fee for collecting that should be included in the shipping cost. It's all automated and the real costs are going to be a pennies per item.
If it's not included then it is only because they have dropped the postage fees to get as much custom as possible and are then attempting to claw back profit from making such unreasonable charges once the contract has been agreed.
The same goes for the Royal Mail shysters who demand similar amounts to delay your item. I have *slightly* more sympathy with them because unlike with FedEx the contract is with the local shipper who then just deliver it to Royal Mail for the UK delivery... but it's still an unreasonable charge.
a.lex said:
Fastdruid said:
£12 is not reasonable.
No doubt that would be a topic of discussion if the case ever went to court, which I have already suggested is unlikely for such a small amount. Would you litigate over £12? (Or, more precisely, over the difference between £12 and whatever lower amount you do consider "reasonable"?)If there is a charge (and I agree that it is not unreasonable for them to recoup their costs and even make a reasonable profit on such) then that charge is due at the time of shipment.
Of course no one is going to go to court over £12, which is why they get away with it.
The fact they're usually happy to waive the £12 without too much debate shows they're trying it on. Not scamming, but trying it on.
If everyone refused to pay, they'd stop charging it as the time taken to credit the charge wouldn't be worth it to them, but presumably plenty cough up so they'll continue to do it.
If everyone refused to pay, they'd stop charging it as the time taken to credit the charge wouldn't be worth it to them, but presumably plenty cough up so they'll continue to do it.
Fastdruid said:
a.lex said:
Fastdruid said:
£12 is not reasonable.
No doubt that would be a topic of discussion if the case ever went to court, which I have already suggested is unlikely for such a small amount. Would you litigate over £12? (Or, more precisely, over the difference between £12 and whatever lower amount you do consider "reasonable"?)If there is a charge (and I agree that it is not unreasonable for them to recoup their costs and even make a reasonable profit on such) then that charge is due at the time of shipment.
Of course no one is going to go to court over £12, which is why they get away with it.
Fastdruid said:
It doesn't cost anywhere near that amount though does it? Unless you are honestly saying someone spends an hour or so *per item*.
From the way they carry on you'd expect that having to pay customs duty was some unexpected surprise. It is literally their job, they know when the declaration is made exactly what is due and the fee for collecting that should be included in the shipping cost. It's all automated and the real costs are going to be a pennies per item.
If it's not included then it is only because they have dropped the postage fees to get as much custom as possible and are then attempting to claw back profit from making such unreasonable charges once the contract has been agreed.
The same goes for the Royal Mail shysters who demand similar amounts to delay your item. I have *slightly* more sympathy with them because unlike with FedEx the contract is with the local shipper who then just deliver it to Royal Mail for the UK delivery... but it's still an unreasonable charge.
It doesn't matter whether it costs that or not, thousands of parcels are processed every night that don't have charges applied because they are on customers accounts or are exempt from brokerage charges etc etc but they are still processed in the same way at the collection point. From the way they carry on you'd expect that having to pay customs duty was some unexpected surprise. It is literally their job, they know when the declaration is made exactly what is due and the fee for collecting that should be included in the shipping cost. It's all automated and the real costs are going to be a pennies per item.
If it's not included then it is only because they have dropped the postage fees to get as much custom as possible and are then attempting to claw back profit from making such unreasonable charges once the contract has been agreed.
The same goes for the Royal Mail shysters who demand similar amounts to delay your item. I have *slightly* more sympathy with them because unlike with FedEx the contract is with the local shipper who then just deliver it to Royal Mail for the UK delivery... but it's still an unreasonable charge.
It's not added on the shipping charges because not every shipment will have duties to pay so charging every customer more so that those who do have to pay duties don't have to pay a clearance charge isn't exactly fair is it
Nickyboy said:
Fastdruid said:
It doesn't cost anywhere near that amount though does it? Unless you are honestly saying someone spends an hour or so *per item*.
From the way they carry on you'd expect that having to pay customs duty was some unexpected surprise. It is literally their job, they know when the declaration is made exactly what is due and the fee for collecting that should be included in the shipping cost. It's all automated and the real costs are going to be a pennies per item.
If it's not included then it is only because they have dropped the postage fees to get as much custom as possible and are then attempting to claw back profit from making such unreasonable charges once the contract has been agreed.
The same goes for the Royal Mail shysters who demand similar amounts to delay your item. I have *slightly* more sympathy with them because unlike with FedEx the contract is with the local shipper who then just deliver it to Royal Mail for the UK delivery... but it's still an unreasonable charge.
It doesn't matter whether it costs that or not, thousands of parcels are processed every night that don't have charges applied because they are on customers accounts or are exempt from brokerage charges etc etc but they are still processed in the same way at the collection point. From the way they carry on you'd expect that having to pay customs duty was some unexpected surprise. It is literally their job, they know when the declaration is made exactly what is due and the fee for collecting that should be included in the shipping cost. It's all automated and the real costs are going to be a pennies per item.
If it's not included then it is only because they have dropped the postage fees to get as much custom as possible and are then attempting to claw back profit from making such unreasonable charges once the contract has been agreed.
The same goes for the Royal Mail shysters who demand similar amounts to delay your item. I have *slightly* more sympathy with them because unlike with FedEx the contract is with the local shipper who then just deliver it to Royal Mail for the UK delivery... but it's still an unreasonable charge.
Nickyboy said:
It's not added on the shipping charges because not every shipment will have duties to pay so charging every customer more so that those who do have to pay duties don't have to pay a clearance charge isn't exactly fair is it
Nonsense. When you send anything abroad you have to declare what is in it and what the value is, you can't send something abroad (even within the EU) without the customs declaration. FedEx **know** before the item is even picked up, before it is even agreed to be picked up if there will be customs duty on the item. So that is the point at which they should go "that'll be £12 extra please". Honestly the way they charge it they make out as if it's an utter surprise. "However did that customs declaration get there?"Again I would have some sympathy if Customs had inspected, decided that the value declared wasn't truthful and FedEx had to do extra work above and beyond their contract but they are double charging for what literally is their job.
Oh and just to add. If all international couriers needed to charge it... Why don't DHL?
Compare and contrast.
FedEx - Parcel delivered, receive Posted Invoice for Duty + "Advancement fee"
Royal Mail - Parcel delayed, receive Posted Invoice for Duty + "Advancement fee". Parcel released once paid.
DHL - txt received while item is in transit (before it arrives in the country) with the duty due. Online payment (of duty only). Item turns up a few days later.
Compare and contrast.
FedEx - Parcel delivered, receive Posted Invoice for Duty + "Advancement fee"
Royal Mail - Parcel delayed, receive Posted Invoice for Duty + "Advancement fee". Parcel released once paid.
DHL - txt received while item is in transit (before it arrives in the country) with the duty due. Online payment (of duty only). Item turns up a few days later.
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