FEDEX IMPORT DUTY Invoice

DullGreyGuy

Is the company the manufacturer of the goods or a retailer? Was it a formal claim under the warranty?

In principle if its the manufacturer and under warranty there shouldn't be any VAT on the parts as effectively their value was baked into the original sales price of the goods and so VAT has effectively already been paid. 

If its not the manufacturer or its not a warranty then the goods will attract VAT based on their value even if you didnt pay for them. 

From the courier's point of view they can only go by what's been entered into the declarations. 

https://www.gov.uk/hmrc-internal-manuals/vat-supply-and-consideration/vatsc06200

MattMattMattUK said:

mrjermaineh said:

Hi all, I hope you can help me understand.
I was sent some warranty parts free by an audio equipment company in Germany. It was very difficult to source in UK and due to this, they decided to send them free directly. The information shows the customs value as 22 euros on their paperwork and states they are a free of charge replacement. I have now received an invoice from FedEx for the following
£18.63  - VAT ITEM
£5.59 - DPC
£1.12 -VAT
£25.34 - NET

I have been sent something free and now having to pay more for the actual cost of the item. 

TIA

Yes, because you imported it. 

By the look of it the item value (which also includes shipping cost) was £93.15, hence the VAT of £18.63, there was then a processing charge and the VAT on that. Just stating that the replacement is free of charge on the paperwork does not mean that VAT is not applicable or charged, the sender has to follow a special procedure.

https://www.gov.uk/guidance/apply-to-pay-less-duty-on-goods-you-export-to-process-or-repair

This applies if you are sending the goods back for repair... sounds like the OP hasn't sent the original but instead just been sent the parts to fix themselves. 

Daffodilly16

FedEx has a scam embedded in its system. I am the victim of that. I am not willing to pay any money to them. My goods were £132 all in. According to HMRC there are no charges below £135.01. This is a scam where the system triggers and operates automatically. No person is involved. It operates within the FedEx system automatically and produces a 'genuine' invoice. The goods arrived after International shipment release, with no charges payable! I have my goods!

DullGreyGuy

Daffodilly16 said:

FedEx has a scam embedded in its system. I am the victim of that. I am not willing to pay any money to them. My goods were £132 all in. According to HMRC there are no charges below £135.01. This is a scam where the system triggers and operates automatically. No person is involved. It operates within the FedEx system automatically and produces a 'genuine' invoice. The goods arrived after International shipment release, with no charges payable! I have my goods!

How are you working out that your goods were £132? Its an overseas purchase so most likely not in GBP so FX movements cause problems.

Secondly its not the value of the goods that matter but the landed cost of the package so if your goods were £132 and the P&P was more than £3 then the landed cost is over £135 so becomes liable for VAT and Duty. "Free P&P" can cause issues with these things.

Can you post a copy of the importation declaration the retailer made (obv with your personal details obscured)

sheramber

Daffodilly16 said:

FedEx has a scam embedded in its system. I am the victim of that. I am not willing to pay any money to them. My goods were £132 all in. According to HMRC there are no charges below £135.01. This is a scam where the system triggers and operates automatically. No person is involved. It operates within the FedEx system automatically and produces a 'genuine' invoice. The goods arrived after International shipment release, with no charges payable! I have my goods!

How long have you had yhour goods? An invoice can ariive some time after the goods have been delivered.

There is no charge under £135 as the seller is supposed to account for the charge direct.  If they have not done so then you, as the importer, as liable for the charge.

dumpster_fire2025

sheramber said:

Daffodilly16 said:

FedEx has a scam embedded in its system. I am the victim of that. I am not willing to pay any money to them. My goods were £132 all in. According to HMRC there are no charges below £135.01. This is a scam where the system triggers and operates automatically. No person is involved. It operates within the FedEx system automatically and produces a 'genuine' invoice. The goods arrived after International shipment release, with no charges payable! I have my goods!

How long have you had yhour goods? An invoice can ariive some time after the goods have been delivered.

There is no charge under £135 as the seller is supposed to account for the charge direct.  If they have not done so then you, as the importer, as liable for the charge.

Yep. I think the Gov.UK website is quite misleading with its advice here as it assumes every foreign company will sign up for their VAT scheme, which is wishful thinking to say the least.

It really should say "If you bought the goods yourself and they are not excise goods, the seller should have included VAT in the total you paid. If they did not, you will have to pay VAT to the delivery company either before the goods are delivered or when you collect them."

Daffodilly16

As requested I have attached the commercial invoice.
Total cost =£132 - P&P was within the price of the goods.

MattMattMattUK

That document lacks the cost for delivery and insurance. As others have said even if the total was below £135 that means the supplier should pay VAT, but they did not, so you as the importer have to pay.

Pollycat

Daffodilly16 said:

FedEx has a scam embedded in its system. I am the victim of that. I am not willing to pay any money to them. My goods were £132 all in. According to HMRC there are no charges below £135.01. This is a scam where the system triggers and operates automatically. No person is involved. It operates within the FedEx system automatically and produces a 'genuine' invoice. The goods arrived after International shipment release, with no charges payable! I have my goods!

Is it really a scam?

I would suggest it's not wise to accuse a global company of operating a scam unless you are 100% sure you are on solid ground with your accusation.

a dishonest scheme to gain money or possessions from someone fraudulently, especially a complex or prolonged one

use deception to gain money or possessions from (someone) fraudulently; swindle or defraud:

DullGreyGuy

Daffodilly16 said:

As requested I have attached the commercial invoice.
Total cost =£132 - P&P was within the price of the goods.

They have failed to note the P&P and have declared the goods alone as £132. 

What was the breakdown of the charges from the courier? 

sheramber

It is not FedEx who charge customs.


 HMRC  make the charge and FedEx pay it , on your behalf, to get the package released from customs. 

Then there is their handling charge for doing that and delivering it to you.
 

As the importer you are liable for any  customs charges. If you do not want a courier to do it for you , you need to arrange with the seller to mark the parcel that recipient will pay and you need to go to the customs depot to pay the customs charges and get the parcel.