DHL Promise to pay form

downsouth11

Hi,

I've had a shipment of clothing come from Bangkok via DHL express, and have just had a letter including a 'promise to pay' form, meanwhile my package is being held. I wondered if somebody could shed some light on what this means..to be honest I really don't understand it... what am I paying ?
Sorry this is a stupid question, the letter I received just doesn't make it very clear (to my eyes anyway!)

Thanks

Horace

As you are importing goods from abroad - this could well be a letter asking for payment of import tax which is why DHL are holding onto your goods.

CKhalvashi

Horace wrote: »

As you are importing goods from abroad - this could well be a letter asking for payment of import tax which is why DHL are holding onto your goods.

This was my first thought, too.

We have an agreement with our supplier that they will pay the charges, of which we will pay within 28 days of being invoiced for it by them.

I can't think who the supplier is (and will ask the fleet manager when she gets in, as the thing we import most is vehicle parts) off hand, but it seems to be standard practice within the international postage industry for companies.

CK

martindow

Carriers differ in the way they collect import payments. some like Fedex and TNT normally deliver and then invoice a few days later. Others require payment before delivery. However I've nor come across a 'promise to pay' form before.

Aquamania

rubyhobo wrote: »

Hi,

I've had a shipment of clothing come from Bangkok via DHL express, and have just had a letter including a 'promise to pay' form, meanwhile my package is being held. I wondered if somebody could shed some light on what this means..to be honest I really don't understand it... what am I paying ?
Sorry this is a stupid question, the letter I received just doesn't make it very clear (to my eyes anyway!)

Thanks

Call DHL and ask them.

My quess is the fee will include:
1. Import Duty (if any)
2. Import VAT
3. Customs clearance fee

doningtonphil

The promise to pay form is for duty and vat that YOU as the IMPORTER will be liable for. The consignment will have been shipped as a DDU (Delivered Duty Unpaid) shipment, which means the SENDER is not responsible for the Duty and VAT- it remains the responsibility of the IMPORTER (you)


Consignments can be sent DDP (Delivery Duty Paid) which means the sender is invoiced for the Duty/VAT before the consignment is released by UK customs. The express parcel companies (TNT/DHL/FEDEX) are all about speed and volume so they have no room for the hassle of messing with DDP consignments (They will each have an airfreight arm that will offer this service).


So why a 'Promise to pay form'. Well, you are responsible for paying the Duty and VAT on the import. That means you going to the airport with a wad of cash and handing it to the customs officer, who will then release the goods. Again, this all takes time that the express carriers can't be doing with so they very kindly pay the customs officer for you which stops the parcel being held up awaiting payment.


Of course,they want to be sure they get the money off you. TNT just send you an invoice a week later. DHL are, I suppose, a little less trusting and want you to confirm in writing you will pay them back.


As mentioned above thye will be paying the following:


VAT - a figure of 20% of the Invoice Value
DUTY - this depends THE TARIFF. To be sure you get charged the right level of duty, you should confirm with the sender that they include the correct COMMODITY CODE to identify the items. This is an almost unique number which specifically identifies what the items are that are being imported (for more info see http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HMCE_CL_001196&propertyType=document


This COMMODITY CODE can be important because it could vary drastically the amount of duty you pay. Have a go at finding the COMMODITY CODE for your goods here: https://www.gov.uk/trade-tariff/sections


If you don't include a COMMODITY CODE the customs officer will just guess and will charge the relevant level of duty. The items we import are rated at 2.2% for exampl


So that's VAT at 20% (most of the time) DUTY at 2.2% (or whatever) and then a fee they charge you for paying on your behalf which is either a flat fee or a % of the invoice value


I hope this makes sense and doesn't waffle on too much.


of course, the value of the consignment stated on the customs invoice needs to accurate as that is what the VAT and duty are calculated on. The lower the value stated, the lower the charges. However I have known people import goods with a stated value of £10 and then be shocked/surprised/angry when they can't claim more than £10 when the item gets lost or damaged. The TRUE VALUE has to be stated, even if that isn't the amount you are paying for the goods