UPS VAT & Brokerage charges

LittleOyster

I purchased an item online from a person in Sweden as a gift for my husband and they sent it via UPS. 

The item  total cost including postage and packing was £150.  A customs form was put on the top of the box stating that amount.  The item was delivered to the house on 16 March 2021.  My neighbor accepted it at the house - there was no signature required.

Two weeks later I received a bill for £331.78 through my door for VAT and brokerage charges from UPS.

I looked through UPS terms and conditions and I have been on the VAT site and it says that charges are applicable for items over £135 so this item qualifies but how can I get a bill for £331

I have spoken to the seller and he advised of the customs note on the top of the box which clearly states £150.

I have been on the UPS site and it states clearly that if there is an outstanding charge, the item would not be delivered until the charges were paid and that after a period of time it would be returned to sender.  

I tried calling UPS but after been on hold for an hour and twenty five minutes and got to speak to no-one. I wrote them an email and they didnt respond. 6 weeks later (today) I receive a final demand for £331.78 and I dont know what to do. The item was only £150 including postage so how do I have to pay another £300+?

Any help would be fantastic thank you as I really cant afford to pay that.  Thank you

Aylesbury_Duck

In short, yes you have to pay it because UPS have paid the charge on your behalf and you now owe them the money.  If you don't pay it they will pursue you for the money which could incur further charges.


If the wrong amount has been levied then you should dispute it with HMRC.  That's where you would get any refund due.  

visidigi

I would say that's its SO wrong that I wouldn't pay it.

They will likely pursue you for the charge and its likely to be an in house resource or a company which will have very close ties with UPS.

It might actually be quicker here to ask the person chasing for help. UPS seem to be having catastrophic problems with BREXIT.

Sandtree

Normally they provide a breakdown between VAT, duty, excise and fee... what is the breakdown? What is the item as written on the declaration? 

LittleOyster

Normally they provide a breakdown between VAT, duty, excise and fee... what is the breakdown? What is the item as written on the declaration?

On the declaration from the shipper it says what the item is and the cost being 1800 Swedish Kr and that I paid in full. 
On the UPS invoice it says value is 18000Kr import VAT 320.11, duties 0.17 and brokerage is 11.50

Aylesbury_Duck

Looks like a simple order of magnitude error, then.  UPS have been charged the wrong amount.  The problem is that they've paid and now you owe them.

Should be relatively straightforward to sort out with HMRC because it's an obvious error, but in the meantime, you still owe UPS.  Speak to UPS to see if they'll put things on hold whilst you dispute the charge.

LittleOyster

How do i get hold of the HMRC to talk about it?  And if it was meant to be COD, why did they deliver it? Surely thats their mistake not mine

jon81uk

LittleOyster said:

How do i get hold of the HMRC to talk about it?  And if it was meant to be COD, why did they deliver it? Surely thats their mistake not mine

From Tax and customs for goods sent from abroad: Tax and duty - GOV.UK (www.gov.uk)
 I think you need to use form C285 Apply for repayment or remission of import duties (C285) - GOV.UK (www.gov.uk)
There is also form BOR286 but that only applies if using Royal Mail Report incorrect Customs Duty or VAT on items imported by post (BOR286) - GOV.UK (www.gov.uk)

Contact for HMRC is here Imports and exports: general enquiries - GOV.UK (www.gov.uk)

mattyprice4004

Someone’s tapped in another 0 by mistake, that’s all. 

Personally I’d be pushing UPS to fix it; at the end of the day if the Customs documents from the sender were OK it’s not their issue and HMRC have charged given the information presented to them. 

Manxman_in_exile

LittleOyster said:

Normally they provide a breakdown between VAT, duty, excise and fee... what is the breakdown? What is the item as written on the declaration?

On the declaration from the shipper it says what the item is and the cost being 1800 Swedish Kr and that I paid in full. 
On the UPS invoice it says value is 18000Kr import VAT 320.11, duties 0.17 and brokerage is 11.50

I'd raise it with UPS in the first instance.  Point out to them that the customs declaration clearly said a value of 1800Kr but that their invoice to you wrongly states a value of 18000Kr.

I would assume that they have paid the correct amount to HMRC based on a value of 1800Kr, and it is their invoice to you that wrongly shows a value 10 x greater than it should.  Either that or they've mistakenly allowed HMRC to charge them the wrong amount of duty without checking it.

Either way I'd argue it's for UPS to correct.  The OP should not have to pay UPS an amount that is clearly wrong and then have to go to the hassle of getting a refund from HMRC.

(To clarify - I have no doubt that UPS could argue that they have authority to pay duty on behalf of the OP, but surely that authority only extends to paying the correct amount, not the wrong amount).

LittleOyster

Thank you for all your comments. I contacted HMRC and they said that the issue lays with me and UPS.  I wrote to UPS on 19 March and heard nothing back and today I wrote to them again. I managed to get hold of a woman in UPS and she said that she has emailed the brokerage and said they would call me back. She states that the invoice is correct and that the item was insured for 18000 not 1800. I have contacted the seller and he laughed and said he wished he had received 18000 for the items (key ring and pen) and said he would send me a copy of the invoice,; all positive but UPS have sent me a statement where they are now charging me a weekly rate for not paying the original bill. I feel upset and a little frightened by all of this. Today I received another envelope from UPS but I darent open it.