Fedex seeking 'ancillary charge' alongside import tax

Jack_Bauer

Hi All,

I purchased some items from Belgium and at the time I understood I would have to pay import tax charges due on receiving them. When I got the invoice from Fedex however, I was surprised to see an additional charge for a 'disbursement fee' of £12. The import tax itself amount to £94.80 however Fedex are seeking £107.55.

My question is, do I have to pay this 'disbursement fee' of £12? I was not made aware of this charge by Fedex prior to delivery and I did not agree to pay to this upfront. I have queried this with Fedex and have refused to pay it but the following is what I got back in terms of response. I am wondering how I should reply and what my rights are here: 

"Dear Sir or Madam,

Thank you for your query regarding the charge on invoice xxxxxxxxxx.

FedEx would like to inform you that the amount billed is an ancillary charge and these are raised on shipments that require a specialised clearance procedure through customs.

Under certain circumstances additional fees are payable to FedEx for the clearance of goods, for example to cover fees paid to external agencies for border inspections or for non-standard clearances. The charge may also cover all other services not covered by the standard conditions of FedEx.

The charges raised for this additional service are specifically billed to the consignee / importer rather than the shipper. The charges remain the responsibility of the consignee / importer as they relate to the importation of the goods through customs.

FedEx trust this concludes the matter, however should you have any further queries please do not hesitate to contact us.

Yours Faithfully,

FedEx Invoice Adjustment Team"

user1977

Yes, it's normal. They're not doing the customs clearance on your behalf for free.

Sandtree

Yes, they have dealt with HMRC for you and clearing your items and provided credit to you so you can get the items quicker. The relevant  legislation allows them to charge for providing this service to you given that you as the importer are responsible for importation costs for any parcel over £135 (or of any value for something attracting excise duty).

It is possible to do clearing yourself, if you know the right forms to complete etc, but it requires coordination between you, the sender and the courier plus almost certainly will slow the process of delivery.

Jack_Bauer

I take what you say on board but why the additional charge? This should have been paid for by the person making the shipment/covered by the delivery charges. Why should I have to pay this additional charge as the recipient without forewarning FedEx are seeking additional charges above and beyond the import tax required by the HMRC. Delivery is their job and that's what the seller paid for. The seller charged me for that so I shouldn't have to pay above and beyond that. I have sent the following reply to FedEx

"Hello,

Thank you for your response – it however does not resolve this matter.

Under the Unsolicited Goods and Services Act 1971 (updated in 2000), it is a criminal offence for a company to bill for unordered services in the hope that the recipient will pay due to ignorance. Also, the Consumer Contracts Regulations 2013 (regulations 39 and 40) outline that a company must obtain consent / express agreement from the consumer prior to levying and / or billing for any charges.
At no point prior to receiving invoice xxxxxxxxxx did I receive any communication of this advancement fee from any party. I therefore did not agree to, nor do I accept, these charges.
To resolve this matter, please remove the sum of £12 for the disbursement charges from invoice number xxxxxxxxxx. I am happy to make payment for the import tax charges of £94.80 to close the matter at your earliest convenience.

Kind regards"

Aylesbury_Duck

Jack_Bauer said:

I take what you say on board but why the additional charge? This should have been paid for by the person making the shipment/covered by the delivery charges. Why should I have to pay this additional charge as the recipient without forewarning FedEx are seeking additional charges above and beyond the import tax required by the HMRC. Delivery is their job and that's what the seller paid for. The seller charged me for that so I shouldn't have to pay above and beyond that. I have sent the following reply to FedEx

"Hello,

Thank you for your response – it however does not resolve this matter.

Under the Unsolicited Goods and Services Act 1971 (updated in 2000), it is a criminal offence for a company to bill for unordered services in the hope that the recipient will pay due to ignorance. Also, the Consumer Contracts Regulations 2013 (regulations 39 and 40) outline that a company must obtain consent / express agreement from the consumer prior to levying and / or billing for any charges.
At no point prior to receiving invoice xxxxxxxxxx did I receive any communication of this advancement fee from any party. I therefore did not agree to, nor do I accept, these charges.
To resolve this matter, please remove the sum of £12 for the disbursement charges from invoice number xxxxxxxxxx. I am happy to make payment for the import tax charges of £94.80 to close the matter at your earliest convenience.

Kind regards"

Because you are the importer.

emmajones1976

Why should it be paid by the person shipping? The fees payable in the destination country are none of their concern.

Brie

I agree it makes it more expensive to buy things but the post office does the same thing.  Doesn't necessarily make it right but at least it's consistent.  

And it seems to be all outlined on their website.  

Sandtree

Jack_Bauer said:

I take what you say on board but why the additional charge? This should have been paid for by the person making the shipment/covered by the delivery charges. Why should I have to pay this additional charge as the recipient without forewarning FedEx are seeking additional charges above and beyond the import tax required by the HMRC. Delivery is their job and that's what the seller paid for. The seller charged me for that so I shouldn't have to pay above and beyond that. I have sent the following reply to FedEx

"Hello,

Thank you for your response – it however does not resolve this matter.

Under the Unsolicited Goods and Services Act 1971 (updated in 2000), it is a criminal offence for a company to bill for unordered services in the hope that the recipient will pay due to ignorance. Also, the Consumer Contracts Regulations 2013 (regulations 39 and 40) outline that a company must obtain consent / express agreement from the consumer prior to levying and / or billing for any charges.
At no point prior to receiving invoice xxxxxxxxxx did I receive any communication of this advancement fee from any party. I therefore did not agree to, nor do I accept, these charges.
To resolve this matter, please remove the sum of £12 for the disbursement charges from invoice number xxxxxxxxxx. I am happy to make payment for the import tax charges of £94.80 to close the matter at your earliest convenience.

Kind regards"

Unfortunately they have a statutory right to charge it and therefore do not require your express permission; permission was indirectly given when you ordered something to be delivered from outside the UK.

The issue is that you were ignorant of the fact that its the importer's responsibility to deal with HMRC and Clearing for parcels over £135 and having failed to do it yourself nor notify FedEx of your intention of doing it yourself then they have relied on their statutory right to deal with it for you with the associated fee.

Imagine now many millions of parcels would be stuck in limbo if couriers/RM just sat back and waited for the recipient to process clearing and pay HMRC? Just look at the number of threads here where people didnt even realise they were ordering from overseas or that ordering overseas attracts VAT etc. Add on top of all of those the people who dont know how to fill in the forms or look up the commodity code etc.

emmajones1976

Are you really quoting the Unsolicited Goods and Services Act? 

Crikey. Just pay the £12 and suck it up as a life lesson.

Jack_Bauer

Life lesson indeed. I'll go ahead and pay it. Thanks everyone.