Parcelforce Fees for Collecting VAT

[Rob S]

I recently ordered an item from the USA. It went through customs and I was liable for VAT on it (I can't complain as I have ordered a few things over the years that have come through without being charged by customs). The VAT payable was only £11.76, but Parcelforce have slapped on a collection charge of £13.50 just for processing this!! Has anyone ever challenged them on it? I intend to write to them and ask for a full breakdown of their costs, but if this is familiar territory for anyone their thoughts would be appreciated.

[graeme1970]

hi rob, looking at this with interest as i intend to do the same, i have had a lot of charges from parcel force and have been very unhappy with there attitude. cant work out exactly what they are charging me for, plus they charge different charges depending on shipping method used. i dont mind the customs charges, i factor that into my purchases, but the parcel force charges seem to be very excessive at times

[Rob S]

Hi Graeme,

 

I'll keep you posted on my progress. I fail to see how they can charge a fee that is higher than the amount of VAT they are collecting. It must be a simple process for them to go through and I can't see the actual cost coming anywhere near that figure.

[graeme1970]

i dont see what they do different in picking up a parcel that has charges on it, than a one without, surely the whole payment process is automated anyway, the package has to be picked up and delivered just the same. they charge double for a express parcel than a standard delivery parcel. i asked them on the phone why this was, and they couldnt answer.

[StormWarrior]

surely the whole payment process is automated anyway, the package has to be picked up and delivered just the same.

AFAIA, parcels that incur customs charges are taken out the system and dealt with by hand.

[graeme1970]

but surely each parcel is picked up anyway, everything comes in through customs. so apart from paying the charge what else do they do???

[StormWarrior]

Parcels that have no duty to pay are put in a big van to go to thier destinations.

 

Parcels that have duty to pay are the put to one side, logged, paperwork generated, duty calculated, details entered into computers etc. then continue on thier way.

 

When they get to thier destinations..

 

Parcels that have no duty to pay are given to the customer and signed for. End of story.

 

Parcels that have duty to pay are offered to the customer, customer pays duty (often at collecions office), signs for parcel. money is then booked into carriers office, entered into a log of duty received, transfered to HMRC, and the paper trail is then tidyed up.

[graeme1970]

Parcels that have duty to pay are the put to one side, logged, paperwork generated, duty calculated, details entered into computers etc. then continue on thier way

but this is done by customs not parcel force

Parcels that have duty to pay are offered to the customer, customer pays duty (often at collecions office), signs for parcel. money is then booked into carriers office, entered into a log of duty received, transfered to HMRC, and the paper trail is then tidyed up.

and this is done by an automated letter from a pc, going into parcel force and paying this takes maybe a minute longer than when you pick up a missed delivery

basically a parcel comes into the country, i dont know the reasoning but some get charged some dont, hmrc work out the amounts and charge you accordingly, parcel force pay this charge (automated payment) when they collect the parcel. please note that parcel force would be collecting the parcel anyways. parcel arrives at correct depot, a letter is generated from a pc to the parcel adressee advising of a parcel/charge, person receives letter through post, then arranges to pick up parcel/pay charges, or have it delivered and pay charges online. so far parcel force have done 2 things, different to the normal on customers behalf, pay an automated payment, and send a pc generated letter. yes they should be able to charge something, but should it be the amounts they are charging, its n ot as if we have a choice, well actually we do have a choice, pay or parcel is returned to sender. and why is the charge doubled for a parcel that is express delivered?????

[Zamzara]

I've never had to pay any VAT on delivery, but the issue I have with this after reading the above is that the recipient has not entered a contract with Parcelforce, and therefore has not had any opportunity to accept/reject the terms.

[buzby]

However if you do not pay the VAT required, you don;t get the parcel and it is returned... a bit of an own goal.

[graeme1970]

its not about the vat or customs fees, purely about parcel farce charges

[Rob S]

This forum started in relation to bank charges, and has expanded into many other areas. The reason I started this thread was because of Parcelfarces charges. A charge of £13.50 to collect £11.26 in VAT is excessive in my opinion. The VAT charge I can live with, as it is expected, but not Parcelfarce chipping in to rip off the consumer.

[buzby]

Actually, the VAT fee has no co-relation to the amount charged. They have a set fee for the paperwork, and £13.50 is the lowest I have ever heard. If they didn't do it, and you had to use your own import/export agency it would cost you considerably more. (Even DHL are now just over £20). So the secret is either not to import, or factor in the anticipated additional costs. It's not particularly rocket science. Yes, I'd like the fees removed, but it ain't gonna happen.

[graeme1970]

what paperwork, its all computerised. bar code scanner etc. as for the fees, what exactly are you paying for? and why is it doubled for faster shipping, when parcel force do exactly the same thing, wether normal or express shipping

[barracad]

It must be a simple process for them to go through and I can't see the actual cost coming anywhere near that figure.

 

It is actually quite a complex process (see below)

 

they charge double for a express parcel than a standard delivery parcel.

 

£13.50 is not double £8. I think the reason they charge extra is obvious - it is an express parcel so has to be "fast-tracked" through the customs process, hence extra costs. If they didn't charge extra then the standard cost would need to be higher to compensate for this.

 

but this is done by customs not parcel force

 

No, Parcelforce do all the work on behalf of customs (see below)

 

the recipient has not entered a contract with Parcelforce, and therefore has not had any opportunity to accept/reject the terms.

 

They have the choice to accept or reject. If they do not wish to pay the VAT and/or handling fee they have the opportunity to reject the item - it will then be returned to sender and no fees will be due.

 

 

Why you have to pay a handling fee:

 

The process is quite complex but I will try to explain to the best of my knowledge...

 

When you receive an item from overseas, you become the importer by law. This means you could be liable for customs charges before delivery.

 

Instead of the items having to go via HMRC, Parcelforce perform work on behalf of HMRC to speed up the process, and also pay the customs charge on your behalf to make things simpler.

 

In addition to the customs fee, Parcelforce will levy a 'handling charge' to cover their costs. Some of the work they have to do to process your item includes:

 

- operating the postal customs depot

- handling the package for customs examination

- (if required) opening, repacking and resealing the package (for example if information is missing from the declaration

- paying the customs fee on your behalf

 

(This list is not exhaustive - just some of the work which I know takes place - there may be a lot more to it in the background which we are unaware of).

 

 

Therefore I do not believe you will get anywhere with challenging the fee - especially as they are permitted to charge this under Article 165 of EC Regulation (EEC) 2454/93

[babyboo23]

Hi

I have a similar problem and would be very grateful for some help/advice.

I had an item sent from America. I received a letter today from Parcel Force stating that I have to pay charges..they are as follows

V.A.T = £35.55

PARCEL FORCE CLEARANCE FEE = £8.00

 

Now my issue is with this VAT charge because the item I bought is only worth £35.00 so how the blimmin hell can they justify charging £35.55..thats over what the item is even worth.

 

Needless to say I am not paying it without disputing it first. The say I have 20 days before they send the item back to sender. I have tried ringing the HMRC but they are constantly engaged. I have emailed them and got an automated repsonse saying that they have a 10 day backlog and my options are to wait or to pay the charges and then if I wish to try and reclaim them I will have to write to them, or I can have the item re-assessed.

Has anyone gone through this process? Would be grateful to hear from you if so.

[buzby]

As barracad noted earlier, the Parcelforce fee is non-negotiable, however unless things have changed, Parcelforce do not assess the tax, this will be done by HMRC staff working at the depot. The 'VAT Fee' will also include Import Duty which is in addition, as to how the fee is calculated, the sender may have provided an unrealistic price for the goods and this is what was used for the calculation, but by the same token HMRC do know the value of things, so cameras or electronic gear coming in with a value of $20 are often targeted. If there is a genuine error, it might be worth visiting the Parcelforce depot and ask if it is possible to query the amount being charged. You may be lucky and the HMRC staff on site when you visit.

[babyboo23]

Oh I really hope they can help me out. The item in question was bought on Ebay for £35 (total paid including postage was £50).The seller has told me she put the value as $375!!!! which is rediculous as it was a 2nd hand item and the value she should have put was the amount I paid as that is all I was asking insurance to cover. I wonder if I was to take a copy of the auction listing printed out showing amount paid then they may be able to reduce the charge? or if the seller was to put it in writing that she made a mistake with the value.

thanks for your help....much appreciated!

[buzby]

Oh dear - what a stupid seller! So the VAT and Tax being charged is calculated on the stated value. Nothing wrong with that, apart from the fact she's made a false declaration on a customs form.

 

The bad news is HMCR will not take any other documentation as proof - the stated declaration is binding, irrespective of whether you can show otherwise (as it is much easier to fake putting up a fake auction and doing it the other way where you gain!).

 

I would think the best option is to say to your seller the fault is hers, and whilst you don't mind paying any appropriate tax, you're not paying for a value that is incorrect. Say that she'll need to re-send it to you with the correct amount showing on the label, or - as second hand goods - describe them as such with a value of $25. This will allow discretion when it is received again in the UK and Parcelforce will deliver it with no problem.

[ScarletPimpernel]

I note Barracad's comments, but my experience has been that I have successfully argued against courier company's handling charges on VAT/Import Duty on items from abroad.

 

Fedex delivered two parcels to me; some weeks later I received invoices for duty and handling charges. In each case I wrote back to them, enclosing a cheque for the VAT and Import Duty, but declining to pay the handling fee as their contract was with the sender of the package, and because I was not given an option to reject or accept the package - the driver turned up, handed me the package and said 'sign here'.

 

They passed both invoices to a DCA in Scotland (the name escapes me, but it wasn't one of the players we see so often on CAG); I repeated my position to them. Nothing more heard.

[buzby]

They passed both invoices to a DCA in Scotland (the name escapes me, but it wasn't one of the players we see so often on CAG); I repeated my position to them. Nothing more heard.

 

I had a similar battle with FedEx, goods delivered and signed for, then a month later an importation and VAT bill. As these firms are usually delivering to businesses, they don;t expect the kickback from consumers. AIUI, the fees are rightfully charged, but the inability to forewarn customers of their potential future liability places them in a weak position. With auction sites assisting international trading like never before, companies like Lynx now do not deliver at all until the fees are paid up front. (Although this has nothing to do with the latest poster's problem).

[arxidoskulo]

anything new about your fedex story?

 

i also got a weird 20 pounds fee,, (not the v.a.t)

and i actually went to fedex to collect my packet (i really wanted it)

and no one ever mentioned for an extra fee

 

then after one month i got the nice invoice about the 20 pounds fee

 

and my pack value fas 40 pounds...

[buzby]

As noted earlier, the fee is not based on the value of the goods, but the cost per consignment for the service.

 

As for an earlier post that the fee wasn't;t paid and it all 'went quiet' - this works fine until another parcel arrives. FeDex flag non payers, and subsequent deliveries will be retained until any outstanding fees plus interest are recovered.

[Dizzy74]

I was just wondering if anyone could advise me?....

 

I made this mistake of letting my mother pack my son's clothes for a 3 week trip to New Zealand. Halfway round I decided to send some of his clothes back home to the UK to make room in his case and to make things easier when packing every day! Yesterday I got a letter from Parcelforce saying that I have to pay £20.79 V.A.T. and £8.00 for their Clearance Fee. After finally getting through to HMRC - I couldn't email coz their facility has been suspended until further notice! - they told me that I still have to pay the V.A.T. on my child's old clothes that I bought in this country a year ago+, but then I can claim it back with one of their forms. My query is, would I get the Clearance Fee back as well as HMRC have made an error? There is the bit about sending the parcel back to sender, but as I was the sender where else would they send the parcel to?? The Post Office in Dunedin in NZ certainly don't want my son's old vest, t-shirts and trousers!!

 

If anyone has a clue where I stand with all this, I would be certainly greatful!!

[buzby]

The 'clearance fee' is not a tax as such, but a fee paid to the company that administers the process of collecting dues to be paid to the Revenye. Whilst uoi may get the tax element back, the clearence fee will remain as it was legitimately incurred.

 

The issue was really that the items that were shipped were not clearly marked as used personal clothing - if they were, they attract no taxes, providing the declaration is clear and unambiguous. If they treat them as new, they attract the tax amounts you experienced. However, the forms you got will probably require that you submit receipts to prove that the clothing had already been purchased in the UK, as without this, they usually reject claims as unsubstantiated. There was no Customs error - it was the declaration that was wrong.