We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

FEDEX - Admin Fee

Options
Hi,
I'm pretty sure that this has been discussed on this site before, although I can't find any threads.

I recently received a parcel, delivered by FedEx, from a country outside the EU. The parcel contained a wristwatch and the parcel was clearly marked as a 'GIFT' with a value of US$40.00. I had to sign for delivery, but was given no other information or documentation at this time.

Two weeks later, however, I received an invoice from FedEx for an amount of £10.44. This amount was for a 'deferred Revenue' (customs VAT) of £3.64 and a FedEx 'Administration Fee' of £6.80.

I fully understand the requirement to pay any VAT to our esteemed Chancellor, however I am not happy paying an admin fee to FedEx - particularly as their fee is almost twice the cost of the VAT.

Can anyone advise me as to whether I have a legal obligation to pay FedEx their fee, and if I don't, what consequences could there be? :confused:
«13

Comments

  • Ivory_Tinkler
    Ivory_Tinkler Posts: 1,089 Forumite
    Sorry but yes you do have to pay. Fedex have already paid the vat on your behalf to release the parcel to you and this is their fee for processing your parcel through customs. Parcelforce also charge a fee for handling the import of goods over the allowance threshold but they make you pay up front before they will release the goods to you. If you import anything (whether gift or otherwise) you as the recipient are responsible for taxes and charges to import. For the amount involved its probably not worth the bother so just chalk it up to experience.
  • Thanks for the reply Ivory Tinkler, but as you can imagine, it wasn't what I was looking for or hoping for :rotfl:

    I'm still mightily annoyed over it all though and the money has no bearing on my annoyance. The item was a gift and I didn't import it. It was exported by the sender and the importers were FedEx. I was just the recipient of a postal delivery and was blissfully unaware of the arrival of a gift or the terms and conditions coming with it.

    I don't mind paying the VAT although I believe the sender was the one under contract with FedEx and not me, so why should I pay their admin fee, why wasn't this paid by the customer in the first instance? I was not the one entering into a contract with FedEx and I dread to think what would have been charged if the sender of the gift had grossly over-represented the value (as some people do when sending gifts). :mad:

    Thanks again Ivory Tinkler, much appreciated.
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    customs are decided in the receiving country so its not as easy as fed ex charging the sender
    though some companies do a full inclusive service
    however given the item was marked as a gift at $40 the you may want to appeal the customs fee in the first place.
  • Thanks Custardy, but I think that the UK's custom limits only allow up to £18 (or something like that) before duty is levied.

    I really haven't got a problem with the duty element though, it's just the principle of paying an admin fee (twice the cost of the customs VAT charge) to a third-party when I'm not their customer. :mad:
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Thanks Custardy, but I think that the UK's custom limits only allow up to £18 (or something like that) before duty is levied.

    I really haven't got a problem with the duty element though, it's just the principle of paying an admin fee (twice the cost of the customs VAT charge) to a third-party when I'm not their customer. :mad:

    £36 for gifts IIRC

    edit: http://www.nibusinessinfo.co.uk/bdotg/action/detail?site=191&type=RESOURCES&itemId=1082225059
  • Thanks again Custardy... I'm going to appeal! :beer:
  • There's a few more caveats on the customs website: http://www.hmrc.gov.uk/customs/post/buying.htm#4

    Was the sender clearly an individual? If so, sounds like you should be able to challenge at least the VAT/duty portion. Not sure if Fedex would still charge for 'processing it' :confused:
  • Thanks Pedant. Yes, the recipient was an individual and the gift was for a special occasion (birthday). I've sent an e-mail to FedEx asking for review of the charges... I might just be lucky! ;)
  • KeithP
    KeithP Posts: 41,296 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks Pedant. Yes, the recipient was an individual and the gift was for a special occasion (birthday). I've sent an e-mail to FedEx asking for review of the charges... I might just be lucky! ;)
    But The Pedant asked...
    Was the sender clearly an individual?
  • Hi KeithP,

    Yes, the sender was clearly marked as an individual, my mistake, I meant this in my reply.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.