Ebay and Fedex import duties

FizzyGal

Hi
I purchased item on eBay which included VAT and had free shipping from Japan. I chose the option to "pay import duties now" rather than on delivery. I received item but then received a Duty & Tax  invoice from Fedex stating i owed Import tax and disbursement fee. Fedex will not accept i paid eBay. What do i do?

DullGreyGuy

What was the price of the item and P&P exc taxes?

Ultimately it sounds like the sender didnt complete the paperwork inline with eBay's instructions to them. Thankfully its not happened to me before but would imagine its a complaint to the seller via eBay's systems. Did you keep the packing label and customs declaration they put with the parcel?

Spoonie_Turtle

Fedex seem to be notorious for this.

As above, what was the price of the item?  If below £135 then eBay collected the import VAT and there's no customs charge.  If above, eBay don't collect it and it's possible the Fedex invoice is correct.

FizzyGal

Paid US dollars 170 and VAT 33.40. Shipping free. I understand there can be import duties/tax but as i opted to pay this in advance on eBay i don't understand why Fedex would be asking for this again. I did not keep label etc on packaging as i received invoice from Fedex after delivery.

DullGreyGuy

FizzyGal said:

Paid US dollars 170 and VAT 33.40. Shipping free. I understand there can be import duties/tax but as i opted to pay this in advance on eBay i don't understand why Fedex would be asking for this again. I did not keep label etc on packaging as i received invoice from Fedex after delivery.

The key is what's put on the declaration forms. 

In principle if it is under £135 landed price then eBay doesn't have an option, it has to charge you for UK VAT. If its over £135 in principle its discretionary, can't say I know if eBay passes on the discretionary option or not as its not obliged to. 

Clearly is the seller doesn't use the labels provided, doesn't fill in the form correctly etc then FedEx can only go by what they have declared and certainly if what they put adds up to over £135 without the relevant codes to confirm VAT already paid then they would correctly add VAT & Duty. This can be more problematic because FX rates change so if you're borderline it could be under £135 at the point of purchase but over £135 when it lands in the UK for DHL to enter the details.

Spoonie_Turtle

Going by September's exchange rates from HMRC, $170 USD = £130.45 GBP, and ever so slightly less using August's rates.  So you are fine as far as customs goes.

https://www.trade-tariff.service.gov.uk/exchange_rates/view/2024-9?type=monthly

I've seen in other contexts people have been advised to send a 'prove it' letter, asking a company/organisation claiming that a person owes money to prove that the person does owe it.  Does anyone know if that's something that could help here?

DullGreyGuy

Spoonie_Turtle said:

Going by September's exchange rates from HMRC, $170 USD = £130.45 GBP, and ever so slightly less using August's rates.  So you are fine as far as customs goes.

https://www.trade-tariff.service.gov.uk/exchange_rates/view/2024-9?type=monthly

I've seen in other contexts people have been advised to send a 'prove it' letter, asking a company/organisation claiming that a person owes money to prove that the person does owe it.  Does anyone know if that's something that could help here?

Assuming they declared it as $170... if they added on the cost of the courier service or added on the taxes the OP says they prepaid then it would convert to over £135

RFW

I've been disagreed with on this before so take it as you will. The seller had the contract with FedEx so if there's a discrepancy for an amount paid then FedEx should take it up with them. This gets more confusing now prepaying tax and duty is being used.

From several posts on here and elsewhere, in similar circumstances, it sounds like FedEx are getting paid at both ends or are doing something wrong.

It's not happened to me but if it had I'd be trying Trading Standards to see if they can find out what's happening.

One question that I can't see has been asked is if it was sent by the seller directly or via Ebay's "Global Shipping Programme"? If it is the latter then it should, in theory, be easy enough to get Ebay to sort it on your behalf.

Spoonie_Turtle

DullGreyGuy said:

Spoonie_Turtle said:

Going by September's exchange rates from HMRC, $170 USD = £130.45 GBP, and ever so slightly less using August's rates.  So you are fine as far as customs goes.

https://www.trade-tariff.service.gov.uk/exchange_rates/view/2024-9?type=monthly

I've seen in other contexts people have been advised to send a 'prove it' letter, asking a company/organisation claiming that a person owes money to prove that the person does owe it.  Does anyone know if that's something that could help here?

Assuming they declared it as $170... if they added on the cost of the courier service or added on the taxes the OP says they prepaid then it would convert to over £135

True, and that could explain the invoice.  But in absolute terms, they've paid what legally needed paying.

DullGreyGuy

RFW said:

I've been disagreed with on this before so take it as you will. The seller had the contract with FedEx so if there's a discrepancy for an amount paid then FedEx should take it up with them. This gets more confusing now prepaying tax and duty is being used.

From several posts on here and elsewhere, in similar circumstances, it sounds like FedEx are getting paid at both ends or are doing something wrong.

It's not happened to me but if it had I'd be trying Trading Standards to see if they can find out what's happening.

One question that I can't see has been asked is if it was sent by the seller directly or via Ebay's "Global Shipping Programme"? If it is the latter then it should, in theory, be easy enough to get Ebay to sort it on your behalf.

Other than this eBay @RFW so its FedEx haven't been paid twice as eBay deals with the taxes but the seller is the one that pays FedEx

Dookdik17095

Avoid using FEDEX  they are  notorious for  charging taxes  and extra charges  and overcharging  ,,even when pre-charged and  prepayed , I have used them in the past but they are  not a good company. I use others now . When I was in business we had to take the to small claims court in UK and we won a large refund from them for false charges .We also had to take them to court in USA  and we won refunds there again for false charges and fees, i was advised by lawyer there never to use them for any thing that might be customs  related as FEDEX are not a reliable partner