What's the deal with import tax...grrrrr....

What\'s the deal with import tax...grrrrr....

As you can probably tell from the growl, I'm not amused.

Recently, in an extremly rare display of good luck, I managed to win something in one of the raffles held here. An SF L2 with the PK crown, as seen on the "Bag o' Surefires" raffle page.

The light was delivered, great, and I love it, really. There's no way on earth I'd ever have been able to afford something like that. Not in the forseeable future anyway.

As a result of my somewhat lacking disposable income (I'm not toally broke, but just about break even most months), you can imagine my amusement when I got a letter from FedEx this morning demanding £32.92 in import tax (USD $56 give or take). To me that's a lot of money! Had a bad week on that sense...car tax had to be paid (£92), printer and scanner both died within three days of each other (£129), and my credit card bill's just arrived...aaarrrggghhh..this bill I did not need!

How on earth can they charge you that much just for bringing a flashlight into the country?!? To me, that is just ludicrous, not to mention more than a little annoying. *Growls in a threatening manner in the general direction of the nearest customs office*

Sorry guys, just needed to vent I think, even I get frustrated sometimes. Hasn't been a great week. I'll go sit in the corner and be quiet now.

Re: What\'s the deal with import tax...grrrrr....

Same thing happens here in Canada! Apparently doesn't matter what the item is or how much it's worth. Couriers charge brokerage fees around $50cad, or so I heard since I've never taken the chance myself, using only the post office for shipping. If it did happen though, I think it may be cheaper to refuse the package and have them return it to be sent again by post. About time we had a full discussion on international shipping, for the good of all concerned. Anyone care to open a separate thread for that specific purpose?

Re: What\'s the deal with import tax...grrrrr....

There is apparently some sort of trade war going on between the US and the UK. Not exactly the 'special relationship' I expect. Anyway as a result the import taxes on certain goodies are really high. There was thread on the british blades forum about that a while ago. Extremely bad news for us. Shame they spoiled the occasion for you. Enjoy the light.

Re: What\'s the deal with import tax...grrrrr....

Very little to do with a trade war actually, although there may be one in the offing. The problem is that all courier companies (Fedex, UPS and DHL) handle their own customs clearance, and as a result, all are legally required to collect any taxes (GST/PST/VAT or whatever), plus any duties. Most also charge for the honor of doing so (UPS charges 25CAD for US imports to Canada).

By contrast, postal imports are handled by the customs service, be that Her Majesty's Customs, Customs
Canada, or US Customs. They have no legal obligation to collect anything, and on most postal shipments, simply cannot be bothered most of the time. The fees they are allowed to charge for their services are sufficiently low that most of the time it doesn't pay to make the effort.

Out of some 200 merchandise shipments to Canada, only one recipient has actually been charge GST, and when she complained, Customs Canada said 'You were unlucky'...

We tend to see less of it into the USA because Duty rates are low, and compared to most countries, US customs is exceptionally easy to work with. Cost you nothing to protest a duty charge (just file the paperwork), in fact in many situations you can be your own customs broker.

So for my customers, if there isn't a compelling reason to use a courier service, I don't...

Re: What\'s the deal with import tax...grrrrr....

Thanks for clearing that up, Matthew. Something everyone should be made aware of. None of us want such unpleasant surprises and many simply can't afford them.

Re: What\'s the deal with import tax...grrrrr....

Grrrr indeed, I know how you feel.

The one and only thing I will never miss about recieving new shipments of lights from Arc Flashlight is the FedEx customs invoices. All the other couriers including the UK postal service`s own parcel carier Parcel Force will demand payment up front for duties payable on parcels *before* they hand over the box. Which might be annoying, but it at least gives you the opportunity to refuse it if you can`t afford to pay the duty. FedEx makes no indication or hint of the fact that you have any duties to pay when they hand over their packages, it arrives in the mail a week or two later. Meaning it`s pay up or get in trouble. At least they`d let you settle it over the phone by bank card, and I usually got away with waiting up to a fortnight from the date of reciept so I could afford to settle the bill.

You probably got charged so much because, no disrespect to Mistress Sasha (it was her who shipped them wasn`t it?) she filled out the form declaring a high value for the light. Maybe this was the true commercial value, but since it was a raffle prizew, surely it could have been declared as "one-off custom flashlight" "Gift" "no commercial value" or words to that effect. After all, that`s got to be true - it is pretty much irreplaceable after all. Arc and many others including Ebay sellers are/were legally obliged to declare the full value of everything, after all it was/is merchandise, not given away. FedEx and others usually base their charges on the declared value, so there would be import duty plus VAT calculated around that value, plus the obligatory handling charge all added together to make that £32.92. There should be a breakdown of those charges as well as a copy of the original despatch note where the declared value will be found.

Still means you have to pay it, which is a big kick in the pants /ubbthreads/images/graemlins/mad.gif , but they should let you do it on the credit-card, and at least in my experience it doesn`t need to be paid immediately. You should be able to wait a week or thereabouts if necessary.

/ubbthreads/images/graemlins/icon15.gif

Re: What\'s the deal with import tax...grrrrr....

When it comes to shipping and importing goods, best to ask questions first from carriers and customs, to avoid possible problems later, not that some won't still arise. If in doubt, it's also a good idea to record the date, time and name of whoever gave you the answers. Don't just meekly accept that nothing can be done. Patient and persistent can not only solve your particular situation, but actually change the system for the future benefit of others as well.

Re: What\'s the deal with import tax...grrrrr....

You should see the bill i got for a £800 shipment.

Re: What\'s the deal with import tax...grrrrr....

Ah well, will go pay the darn thing tomorrow...whenever I find the letter anyway. College generates entirely too much paperwork...things get buried.

Suppose I can't really grumble, you can do what Chris M. suggested, and quote that it's a low value item...all fine and good until your $250 package gets lost in transit, then you're totally out of luck, as you've no comeback really. In the long run, it's best just to face the fact that you're going to be hit with the import tax. Still wish that FedEx had TOLD me when I picked the package up! Forewarned is forearmed...well...at least I'd have put off buying the printer for a month or so...oh well, grumble mode off...I'll survive.

Re: What\'s the deal with import tax...grrrrr....

After a few weeks Fed Ex will send you a letter from their debt collection arm, think its 7 days they give you from this to pay up before they get heavier and start adding surcharges.

I look at it as a few weeks interest free credit, certainly less than pay on a credit card.

If its something big, phone customs, they have help line, and get the Tariff code from them first, and if its expensive get them to write to you with a Binding Tariff Decision which stops you being at mercy of a Customs guy having a bad day and not liking the look of your goods and feeling you should really pay.

Adam