Incorrect duty / VAT charged by DHL

sghughes42

I ordered some LEDs from a Chinese supplier on AliExpress about a month ago, these were samples and I only paid a nominal $5 for shipping, nothing for the LEDs themselves.

The supplier shipped them via DHL and for some reason they decided they were worth about £50 so charged me VAT and a handling fee on them.

I got an email from them advising they were on their way to the UK and that there was duty to pay - I immediately contacted them saying this was incorrect due to the value and to not deliver them until the problem had been resolved.

I got home from work one day to find they'd come to deliver them and had got my wife to pay this charge - I'd not mentioned to her that I was disputing it, indeed she knew nothing about the shipment but knows I often get odds and ends delivered for my various hobbies so didn't know to question the charge.

I've tried raising this complaint with their customer service but am getting absolutely nowhere. I keep getting passed around between departments, phone calls go unanswered or not returned, emails are ignored. It is almost as if they don't care now they've got some money off me.

Has anyone had any success in getting these charges refunded or is there anyone I can complain to about this? What started out as £3 for 30 LEDs has become over £20 which is a stupid amount to pay - I could have got them from the most expensive UK supplier for less than that.

vuvuzela

sghughes42 wrote: »

I ordered some LEDs from a Chinese supplier on AliExpress about a month ago, these were samples and I only paid a nominal $5 for shipping, nothing for the LEDs themselves.

The supplier shipped them via DHL and for some reason they decided they were worth about £50 so charged me VAT and a handling fee on them.

I got an email from them advising they were on their way to the UK and that there was duty to pay - I immediately contacted them saying this was incorrect due to the value and to not deliver them until the problem had been resolved.

I got home from work one day to find they'd come to deliver them and had got my wife to pay this charge - I'd not mentioned to her that I was disputing it, indeed she knew nothing about the shipment but knows I often get odds and ends delivered for my various hobbies so didn't know to question the charge.

I've tried raising this complaint with their customer service but am getting absolutely nowhere. I keep getting passed around between departments, phone calls go unanswered or not returned, emails are ignored. It is almost as if they don't care now they've got some money off me.

Has anyone had any success in getting these charges refunded or is there anyone I can complain to about this? What started out as £3 for 30 LEDs has become over £20 which is a stupid amount to pay - I could have got them from the most expensive UK supplier for less than that.

What value was declared by the vendor ?
And 30 LEDs as samples ? I suspect that when customs saw the quantity they would have been aware that it looked more like a simple purchase transaction that had been potentially fraudulently marked down.

sghughes42

I'm not sure what value was declared - I've not opened the package yet as I want to be able to show it untampered to prove what was inside.

LEDs are pence each, and I got ten of three different colours, not an unreasonable number to sample.

Even if they did consider it a purchase then the amount they charged for VAT would show the unit value to be much, much higher than these things actually cost.

The seller has offered to confirm to DHL what is in the package and the value but they aren't interested in that either...

visidigi

You need to check what is declared on the paperwork on the outside of the package.

If the declared amount is low. But you've been charged based on a higher value then it would indicate HMRC have disputed the declared value of the goods and have levied based on a realistic value.

sghughes42

It doesn't have a declared values, just says free of charge samples.

The amount charged is not a realistic value - these cost about 15-20p each in small quantities bought in the UK. I was charged £6 for the VAT which would indicate a cost of £30 which is well over the top.

Buzby

If this had been sent to you via RM, it would have been free - DHL on the other hand, as agent from HMC&E will charge what they feel is an appropriate amount. If you have paid, getting a refund would be virtually impossible - negotiations can take place beforehand, but after the cash is paid, the collected amount (less fee) is sent to C&E.

sghughes42

I'm surprised they used DHL to be honest - I'd have thought it would cost more than the $5 I paid just to send them.

I think my only 'bargaining point' is that I told them I was disputing the charge before they delivered it and I wasn't the one who accepted the parcel, although I'm sure they have something in their T&Cs that says others can do things on my behalf without my consent....

Is there any way to 'opt out' of having the courier handle import duty and VAT?

visidigi

sghughes42 wrote: »

It doesn't have a declared values, just says free of charge samples.

The amount charged is not a realistic value - these cost about 15-20p each in small quantities bought in the UK. I was charged £6 for the VAT which would indicate a cost of £30 which is well over the top.

There is no such thing as free of charge samples, I would expect its been reassessed. They are free of charge to you, but the fact is they have an intrinsic value which the shipper should have declared.

When D&T is levied the value is based on the value of the product plus the list transportation price to get the item from origin to destination, along with the VAT amount on that total, plus the couriers handling fee for the clearance (funds the HRMC implants at the courier clearance hubs).

Buzby wrote: »

If this had been sent to you via RM, it would have been free - DHL on the other hand, as agent from HMC&E will charge what they feel is an appropriate amount. If you have paid, getting a refund would be virtually impossible - negotiations can take place beforehand, but after the cash is paid, the collected amount (less fee) is sent to C&E.

Uhhh. You have that completely wrong. Both Royal Mail and DHL have implants from HMRC who do the evaluation and assessment - they tell DHL what to charge based on the information that DHL provide to HMRC - DHL do not make it up - they have to pay the amount declared to HMRC to get the package to you, they only make money on the fee they charge to perform the clearance which should be stated on the D&T invoice. If HMRC believe the information to be bogus then they will reassess the value before deciding how much should be levied. There is no negotiation - the shipment has already cleared at the point you are sent an invoice. The cash you pay the courier etc is not the same physical cash that goes to HMRC!

sghughes42 wrote: »

I'm surprised they used DHL to be honest - I'd have thought it would cost more than the $5 I paid just to send them.

I think my only 'bargaining point' is that I told them I was disputing the charge before they delivered it and I wasn't the one who accepted the parcel, although I'm sure they have something in their T&Cs that says others can do things on my behalf without my consent....

Is there any way to 'opt out' of having the courier handle import duty and VAT?

Ultimately the shipper is liable. So you could ask them to return the charge to the shipper but that is at their discretion. The courier fees from APAC into the EMEA market are obscenely cheap.

Your choice to opt out must be made by the shipper up front - you would then have to make your own arrangements to achieve clearance.

shaun_from_Africa

visidigi wrote: »

There is no such thing as free of charge samples, I would expect its been reassessed. They are free of charge to you, but the fact is they have an intrinsic value which the shipper should have declared.

Provided that the goods in question are truely samples with a low value, no money was paid for them, and they were declared as being samples, then there is indeed an HMRC procedure in place for allowing these goods to be imported free of VAT and import duties.

3.3 How do I claim relief on goods imported by post?

Ask the sender to write clearly on the package and its accompanying customs declaration (CN22 or CN23):

“Samples of negligible value - relief claimed.”
We may send you a simplified form to complete.

If the package is not clearly marked it may not be delivered until you have paid the import duty and VAT. You should pay these charges and then write to Customs at the postal depot where the goods arrived. Explain what happened and enclose the document showing the charges. If we are satisfied that the goods qualify for relief, we will repay the duty and VAT

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000061&propertyType=document

visidigi

shaun_from_Africa wrote: »

Provided that the goods in question are truely samples with a low value, no money was paid for them, and they were declared as being samples, then there is indeed an HMRC procedure in place for allowing these goods to be imported free of VAT and import duties.




http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000061&propertyType=document

That's post. Not courier - and yes, express transportation has different rules - compare what you are required to fill in on a commercial invoice for the post versus courier and you will see what I mean.

There is a declaration they could have made to make, 'Commercial Samples, not for resale - nominal value' for example. And when they made that declaration put a $5-10 value on it. By putting free samples and no value figure this would have flagged to HMRC in the data DHL provided them or clearance - such inconsistencies are currently under the spotlight from HMRC.

Note, samples or not, they still have a value - even if you didn't pay for them, that doesn't make them zero value. The value declared should be the replacement cost to the shipper if lost - not the retail price paid.

sghughes42

Either way, the amount I paid in VAT was more than the actual value of the parts in question...

Both I and the sender are happy to explain what the items are and prove their value but now the money has been paid, no-one seems to want to know...