Question about import fees for a repair sent to Netherlands and then sent back to the UK?

jkk45

Hi all,

I sent an electronic device to the Netherlands for repair via courier. The reason for this is because the UK repairs warehouse for this manufacturer was out of action at time of sending.

2 weeks after the item was delivered back in the UK, I have been hit with a demand for import fees from the courier today. This is not a scam, as I checked with the courier that it was not.

The import fees were not stated at the time the quote for the repair costs was given. Because it was a very minor repair (under £10), the import fees are nearly 10 x the repair cost. 

Does the electronics manufacturer have any legal obligation to pay these import fees? If it were importing a purchased good from the Netherlands I understand. But this seems rather unusual. 

MyRealNameToo

jkk45 said:

Hi all,

I sent an electronic device to the Netherlands for repair via courier. The reason for this is because the UK repairs warehouse for this manufacturer was out of action at time of sending.

2 weeks after the item was delivered back in the UK, I have been hit with a demand for import fees from the courier today. This is not a scam, as I checked with the courier that it was not.

The import fees were not stated at the time the quote for the repair costs was given. Because it was a very minor repair (under £10), the import fees are nearly 10 x the repair cost. 

Does the electronics manufacturer have any legal obligation to pay these import fees? If it were importing a purchased good from the Netherlands I understand. But this seems rather unusual. 

No they dont but normally the customs declaration will be marked as "returned goods" with comments that it was a warranty repair which would mean customs dont charge 

Have you actually for the item back and seen the customs form?

jkk45

Yes I have received the item back, I have it in my hands right now. I haven't seen the customs form at all. The only form I have seen is for a a 'shipping manifest'?

jkk45

The other point is that I wasn't actually a repair completed under warranty. It was for a customer induced damage repair (I knew this, but didn't think this would affect import fees). Not sure if that affects anything? 

sheramber

https://www.gov.uk/guidance/using-outward-processing-to-process-or-repair-your-goods

Duty on goods you export for repair

You’ll pay duty at re-import on charges made for repair or replacement, plus any inward shipping and insurance costs you pay for the return of the goods.

VAT is charged on the repair costs, plus outward and inward freight charges and duty, but excluding insurance charges.

These charges depend on you not paying less for the repair or replacement because you’re related to the seller.

You do not need to pay duty on goods that have been repaired or replaced free of charge, by the manufacturer or seller, under a guarantee, if the following conditions are met:

MyRealNameToo

jkk45 said:

The other point is that I wasn't actually a repair completed under warranty. It was for a customer induced damage repair (I knew this, but didn't think this would affect import fees). Not sure if that affects anything? 

Yes it does. 

VAT = Value Added Tax. At its core it's supposed to be a tax on the value that has been added which is why a business can recover the VAT on the raw materials etc. 

So under a warranty repair no value has been added and so no VAT applies. If you have an out of warranty repair or you get a warranty repair but pay them to upgrade the item whilst they have it then value has been added to the goods and the VAT should be paid on what you've paid them for the repair/upgrade.