Complex question about import fees for a repaired electronics item sent to a European country?

jkk45

Hi,

I sent an electronics item to a European country which is part of the EU from the UK. It arrived back at home in mid July. This is a repair by a well known manufacturer, and was customer induced damage (i.e: not in warranty, and I had to pay for the repair).

In early August I was hit with an unexpected fee for import charges from the courier. I raised with this with the manufacturer and they replied stating that its not something I should have been hit with, and told me to ignore any further reminders from the courier, as it would be sorted out between the local logistics team of the manufacturer and the courier. In mid August, I sent a follow up email to confirm that it had been sorted out, and the manufacturer stated that since they'd not heard back requesting anymore info from my local logistics it should've have resolved itself.

At the end of August I received a surprise invoice via post from the courier. The invoice being dated for mid August. This shock me up, as I had assumed the matter had been resolved, as hadn't received alerts for payment from the courier for 2 weeks. Again I told the manufacturer about the arrival of the letter, and they are currently checking that this has been re-billed. 

I have been in contact with the courier, and they have confirmed both that there's zero £ outstanding on the invoice and that its a return and repair, but from their end they think according to the paperwork, the manufacturer has made me responsible for import charges. Strange? Again I've let the manufacturer know of the courier's comment, and am awaiting their advice.

Its also true that when I type in the invoice number printed on the letter, into the courier's online payment system, it doesn't come up saying £0, it comes up with the full amount

I'm not sure what to make of all of this this? Can anyone advise?

What I'm most concerned about is having bailiffs turn up at my house at short notice? What's the typical time period between non-payment of a import fees and demand for payment. 

Undervalued

Was this a personal item or business equipment?

My limited understanding of this is that the courier is probably correct. You paid for a service that was carried out and billed from another country.

Look at it another way.....

The equipment you sent abroad was faulty so its value was clearly reduced.

What came back had been professionally repaired so was clearly worth substantially more.

That change was brought about by work carried out in another country. So, in a way you have imported the work that caused the increase in value.

That maybe is not the correct legal explanation but it does I think help to understand the effect.

A friend of mine had a similar issue last year but that was further complicated by it being business equipment and being VAT registered! I think their accountants advice was along the lines I have explained.

QrizB

Similar questions come up from time to time on the forum.

As I understand it, there should be no taxes or duties to pay since they were paid on the original import of the item to the UK.

jkk45 said:

In early August I was hit with an unexpected fee for import charges from the courier.

What is the nature of this fee? Is it taxes and duties that the courier has (erroneously) paid to HMRC on your behalf, or is it a "handling charge" imposed unilaterally by the courier?
There's a blog post here that might be helpful:

https://blog.adamowen.co.uk/how-to-claim-back-overpaid-import-vat-customs-duty-from-hmrc/

Undervalued

QrizB said:

Similar questions come up from time to time on the forum.

As I understand it, there should be no taxes or duties to pay since they were paid on the original import of the item to the UK.

jkk45 said:

In early August I was hit with an unexpected fee for import charges from the courier.

What is the nature of this fee? Is it taxes and duties that the courier has (erroneously) paid to HMRC on your behalf, or is it a "handling charge" imposed unilaterally by the courier?
There's a blog post here that might be helpful:

https://blog.adamowen.co.uk/how-to-claim-back-overpaid-import-vat-customs-duty-from-hmrc/

But....

The value of the item has significantly increased due to the work done in another country. That (as best I understand it) was the argument used by my friend's accountant which I described in my previous post.

If I remember correctly I have heard similar reasoning in respect of art and antiques sent abroad for restoration then sold for a (much) higher value once back in the UK.

QrizB

Undervalued said:

QrizB said:

Similar questions come up from time to time on the forum.

As I understand it, there should be no taxes or duties to pay since they were paid on the original import of the item to the UK.

jkk45 said:

In early August I was hit with an unexpected fee for import charges from the courier.

What is the nature of this fee? Is it taxes and duties that the courier has (erroneously) paid to HMRC on your behalf, or is it a "handling charge" imposed unilaterally by the courier?
There's a blog post here that might be helpful:

https://blog.adamowen.co.uk/how-to-claim-back-overpaid-import-vat-customs-duty-from-hmrc/

But....
The value of the item has significantly increased due to the work done in another country. That (as best I understand it) was the argument used by my friend's accountant which I described in my previous post.

Ok, I think I see where you're coming from. The fact the OP paid for the service will make them liable for duty and VAT on the service cost. See info here:

https://www.chamberelancs.co.uk/international-business-news/returning-eu-goods-for-repair-exporting-international-business/

If it had been a warranty repair at no cost, there would be no duty payable.

"If the repair is covered under warranty (i.e., at no cost), duty and VAT will be waived.

If the repair involves a cost (not under warranty), duty and VAT will be applicable on the repair charges."

(Admittedly that's a Chamber of Commerce webpage and not a gov.uk one but it does reference the relevant treaty terms.)

Undervalued

QrizB said:

Undervalued said:

QrizB said:

Similar questions come up from time to time on the forum.

As I understand it, there should be no taxes or duties to pay since they were paid on the original import of the item to the UK.

jkk45 said:

In early August I was hit with an unexpected fee for import charges from the courier.

What is the nature of this fee? Is it taxes and duties that the courier has (erroneously) paid to HMRC on your behalf, or is it a "handling charge" imposed unilaterally by the courier?
There's a blog post here that might be helpful:

https://blog.adamowen.co.uk/how-to-claim-back-overpaid-import-vat-customs-duty-from-hmrc/

But....
The value of the item has significantly increased due to the work done in another country. That (as best I understand it) was the argument used by my friend's accountant which I described in my previous post.

Ok, I think I see where you're coming from. The fact the OP paid for the service will make them liable for duty and VAT on the service cost. See info here:

https://www.chamberelancs.co.uk/international-business-news/returning-eu-goods-for-repair-exporting-international-business/

If it had been a warranty repair at no cost, there would be no duty payable.

"If the repair is covered under warranty (i.e., at no cost), duty and VAT will be waived.

If the repair involves a cost (not under warranty), duty and VAT will be applicable on the repair charges."

(Admittedly that's a Chamber of Commerce webpage and not a gov.uk one but it does reference the relevant treaty terms.)

Yes, that is my understanding / reasoning but I am not 100% certain.

A further part of the thinking process is that suppose the OP had bought parts from abroad for somebody in the UK to fit there is no doubt that would be a chargeable import. Most repairs (so I presume this one) involve at least some parts so they at least would be an import and I am sure (ish - say 70:30) that would also apply to the labour element of the repair.

Okell

I thought @QrizB was correct and that nothing should be payable (I'm sure that answer has been given before) but a quick Google suggests that that is only the case if the repair was free or under warranty and not paid for, and if the correct procedure was followed when sending the item out of the UK.   (Mind you I'm only looking at a .gov.uk site many of which are notorious for giving wrong legal advice

In this case the OP had to pay for the repair, so he has to pay duty and VAT on the cost of the repair?