Import duty charged on a replacement item. Seems unfair?

deaston

I ordered some good from the US totalling over £12,000. I paid the various duties and VAT necessary.

But the manufacturer had sent an incorrect part. So they sent the correct part along with a returns label for me to return the incorrect part. I noticed on the package the manufacturer had randomly put the value as $100 (in fact, it would cost $750 if I was buying it).

I've just had an invoice from FedEx for £25.74 (£13.74 VAT and £12.00 "advancement fee").

This seems a little unfair to me. But do I bother fighting it for the sake of £25.74? If they're going to charge me VAT as the part comes in, shouldn't I then get a rebate as the unwanted part leaves?

molerat

Googling found

If the goods have been replaced free of charge under guarantee or warranty, no duty is payable. However, VAT is payable on the full value of the goods because all replacement items are treated as new goods for VAT purposes.

So no import duty but liable to VAT.

booksurr

deaston wrote: »

shouldn't I then get a rebate as the unwanted part leaves?

in principle yes - read this ....
https://www.gov.uk/government/publications/notice-266-rejected-imports-repayment-or-remission-of-duty-and-vat/notice-266-rejected-imports-repayment-or-remission-of-duty-and-vat