Import Duty Query - FedEx Service Charge

SuzyL

My issue with FedEx is this. I was sent £9 worth of jewellery supplies by an Etsy seller in Korea. FedEx sent me a message saying I owe £33.67 in customs duties and taxes. I get imports attract taxes and handling fees, whilst annoying go with the territory - but on a £9 order? When I called they said the sender hadn’t declared the shipping cost so they assigned one for him. This was clearly the maxed out shipping cost they have on their rate card, clearly something like £120. When I asked if they could get the info from the seller and adjust it they said that would incur a £60 admin fee. Can they do this? There was nothing from HMC on the package to say it had incurred charges the way you’d get if it arrived via the mail service. Should I pay and appeal to HMC, ignore FedEx?? Thanks in advance for any advice.

custardy

SuzyL wrote: »

My issue with FedEx is this. I was sent £9 worth of jewellery supplies by an Etsy seller in Korea. FedEx sent me a message saying I owe £33.67 in customs duties and taxes. I get imports attract taxes and handling fees, whilst annoying go with the territory - but on a £9 order? When I called they said the sender hadn’t declared the shipping cost so they assigned one for him. This was clearly the maxed out shipping cost they have on their rate card, clearly something like £120. When I asked if they could get the info from the seller and adjust it they said that would incur a £60 admin fee. Can they do this? There was nothing from HMC on the package to say it had incurred charges the way you’d get if it arrived via the mail service. Should I pay and appeal to HMC, ignore FedEx?? Thanks in advance for any advice.

Where do you see yourself getting with HMRC?
Your issue is the sellers failure to declare.

SuzyL

Well I assumed FedEx would be passing the money on to HMC so might require FedEx to justify why they assumed shipping was £120 when the seller probably paid £10 as they have an account. I’m not against taxes, just crass unfairness

Gabriel_UK

Matty36 said:

Copy the template there but put your own details in. Used it loads of times. Works everytime

Unfortunately it didn't work for me. Is there a stronger reply I can come back to them with I wonder ? Please see below their surprising response:

"Thank you for your e-mail.  Please accept my apologies for the delay in getting back to you.

By way of explanation, all goods entering the UK may be liable for import charges in accordance with HM Revenue & Customs regulations.  Any monies due on a package are paid in advance by the carrier to HM Revenue & Customs, so that the goods can be cleared and delivered in a timely manner.  For this advance payment, FedEx charge an advancement fee to cover the cost of the use of our deferment account with Customs.  A deferment is an account we hold with Customs, this is the only way Customs will accept payment for import charges, unless you employ your own broker. FedEx charge 2.5% of the total duty and taxes or £12.00, whichever is greater.  As this charge relates to the import of the goods, the importer is responsible for the fee, not the exporter.

If you wish to avoid the advancement fee you can use one of the following options.

1.  Open a credit card account with FedEx to enable us to take the duty/VAT at clearance.  Customer Service can set the account up for you on 03456 070809.
2.  Apply to HMRC for a deferment account and supply FedEx with the details for future shipments.  This is only available to businesses.
3.  Ask the shipper to send the goods on the Broker Select Option (BSO) and employ your own broker to clear the goods at the UK border.

As we have none of these options on file for yourself, the advancement fee has been charged and will stand as issued.

We trust that this clarifies the matter for you.  However, if you should have any further queries, please do not hesitate to contact us.

 

Regards

Invoice Adjustments Team "

SuzyL

I got those patronising standard emails endlessly from them. What I did in the end was pay the customs charges reluctantly and claimed them back from HMRC. After many letters, the final one threatening me with court action, they eventually backed down and cleared my account with the debt collectors.  Just keep sending this till you bore them into submission. It’s not worth their while to take you to court.  Good luck!

[Deleted User]

SuzyL said:

I got those patronising standard emails endlessly from them. What I did in the end was pay the customs charges reluctantly and claimed them back from HMRC. After many letters, the final one threatening me with court action, they eventually backed down and cleared my account with the debt collectors.  Just keep sending this till you bore them into submission. It’s not worth their while to take you to court.  Good luck!

Why should you get to use their services for free? Clear the parcels yourself if you think that is easier and cheaper.

SuzyL

If you’d actually read the situation you’d see it was a sub-tax threshold import (£9) that FedEx then added an arbitrary £120 shipping cost to and then demanded £33.  Thanks for the pointless comment though, really enlightening