Brexit and Faulty Item

Kyle1974

Hi

Hope this is right section. I bought a Rode Podcaster Pro audio device, approx £507 inc VAT. I did not realise the company was based in Germany - this was last September. Subsequently the unit developed a fault and I had to return the Unit in March. Upon inspection and discussions with the manufacturer, a new one has been sent out to me at zero cost and with paperwork tied to all existing paper work stating very clearly - this is under warranty - no cost to customer as all taxes and duties have been paid.

So UPS are saying that the repaired item coming back to me from Germany (VAT/taxes already paid) is now subject to £96.83 import duty from HMRC despite it being a free repair which the company has documented and provided evidence for. Does that sound right?

I have been on the phone all morning to UPS and they are saying that it does sound like an error on their part and I should just print my letters and invoices from the company and present to the driver and he will release the parcel to me - but I don't think they will. What should I do?

bris

 print the letters and invoices from the company and present to the driver 

Thats the advice given so do it then worry about it after that if it doesn't work.

Kyle1974

Thanks bris.

Just spoken to HMRC and apparently, I am liable (but wasn't pre Brexit) - the repair/warranty etc is covered but the actual importing is separate. As a friend just said "a life lesson" and he also found this for me about things getting repaired.

"What it the item can't be repaired?

If, after export, the supplier decides to replace the faulty goods instead of repairing them, then VAT and Import Duty will be charged on the full value of all new replacements."

neilmcl

Kyle1974 said:

Hi

Hope this is right section. I bought a Rode Podcaster Pro audio device, approx £507 inc VAT. I did not realise the company was based in Germany - this was last September. Subsequently the unit developed a fault and I had to return the Unit in March. Upon inspection and discussions with the manufacturer, a new one has been sent out to me at zero cost and with paperwork tied to all existing paper work stating very clearly - this is under warranty - no cost to customer as all taxes and duties have been paid.

So UPS are saying that the repaired item coming back to me from Germany (VAT/taxes already paid) is now subject to £96.83 import duty from HMRC despite it being a free repair which the company has documented and provided evidence for. Does that sound right?

I have been on the phone all morning to UPS and they are saying that it does sound like an error on their part and I should just print my letters and invoices from the company and present to the driver and he will release the parcel to me - but I don't think they will. What should I do?

It's not a repaired item though is it, you've be given a new replacement.

neilmcl

Kyle1974 said:

Thanks bris.

Just spoken to HMRC and apparently, I am liable (but wasn't pre Brexit) - the repair/warranty etc is covered but the actual importing is separate. As a friend just said "a life lesson" and he also found this for me about things getting repaired.

"What it the item can't be repaired?

If, after export, the supplier decides to replace the faulty goods instead of repairing them, then VAT and Import Duty will be charged on the full value of all new replacements."

Good thing to know, although as mentioned above your original post is a little misleading stating that you were getting a repaired item back, which of course wasn't the case.

Kyle1974

neilmcl said:

Kyle1974 said:

Thanks bris.

Just spoken to HMRC and apparently, I am liable (but wasn't pre Brexit) - the repair/warranty etc is covered but the actual importing is separate. As a friend just said "a life lesson" and he also found this for me about things getting repaired.

"What it the item can't be repaired?

If, after export, the supplier decides to replace the faulty goods instead of repairing them, then VAT and Import Duty will be charged on the full value of all new replacements."

Good thing to know, although as mentioned above your original post is a little misleading stating that you were getting a repaired item back, which of course wasn't the case.

Well in fairness I did write this in a state of mild panic since I have been on edge since last night and also when I was asked to send the item back, the original intention on both sides was for a repair to be carried out by their engineers.