Obligation to pay Customs charges?

[Lucan Unlordly]

Silly one this...........

I ordered 6 different product lines from a regular supplier based in Germany and duly received an invoice from GLS the courier for payment of Import Charges to Customs Clearance Ltd.
However, only a third of the order *arrived, the remainder coming in 2 further consignments each triggering further Import Charges already accounted for in the first invoice. (* 1 box stuck in hub and returned to sender, 1 box not even dispatched).

After multiple emails, here we are 2 months down the line and I finally got to talk to someone who's chasing the customs charges who tells me that the sender put a value on the 2nd and 3rd consignments and it's up to them to sort.

The sender is not responding and I'm trying to work out the sensible way of sorting this without incurring penalties on the customs invoices and further action if I don't pay?

 

[Lucan Unlordly]

151 views and clearly 151 viewers find it as difficult a problem as I do

Perhaps if I re-write the question?

I'm receiving invoices for customs charges that I don't owe.

Do 'Customs' have big teeth like HMRC which would make me mindful of additional charges etc., Should I pay them and seek a refund afterwards?

The supplier who created this mess has not yet been paid. I don't like to hold back payment but it's the only way I'm likely to get them to pull their fingers out. Not my usual modus operandi but I can't see any other options.

 

[NickGrogan]

Do 'Customs' have big teeth like HMRC

His Majesty's Revenue and Customs?

That HMRC?

Customs has more powers than Revenue. Actually, Customs has more power than the police.

Customs and Excise was merged with Tax, partly to make Tax more powerful.

So yes, I'd pay them and then take it up with the supplier.

 

[JEREMY HAWKE]

As @NickGrogan has said pay the charges
I shipped in a a Pizza oven (I actually used another member on here to help with customs) from the USA

The young gladiator that placed the order was unaware that he had to pay the £1800 vat and refused to pay it
He wanted to get his solicitor involved but had to wait a month for his return
When his solicitor finally emailed me I phoned him and explained the situation and followed up with an email and documentation

The customer then paid the vat right away but also had to pay a £1250 bonded storage fee for all the time the consignment had been sitting there
You can't argue with these people by withholding payment

 

[Deleted member 351022]

151 views and clearly 151 viewers find it as difficult a problem as I do

Perhaps if I re-write the question?

I'm receiving invoices for customs charges that I don't owe.

The customs declaration and therefore charges will be based on the invoices that were sent with those consignments.

Do 'Customs' have big teeth like HMRC which would make me mindful of additional charges etc., Should I pay them and seek a refund afterwards?

It’s most likely that customs / HMRC will have already been paid by whoever submitted the customs declaration on your behalf. It will therefore be them that you owe.
If they still hold your goods you risk extra charges or them disposing of the goods. Customs don’t hold the goods themselves, they are held in commercial premises approved by customs.

The supplier who created this mess has not yet been paid. I don't like to hold back payment but it's the only way I'm likely to get them to pull their fingers out. Not my usual modus operandi but I can't see any other options.

You do need to get invoices that match the actual shipments. You can then make a reclaim to HMRC based on duplicate payments for the same goods.
www.gov.uk/guidance/how-to-apply-for-a-repayment-of-import-duty-and-vat-if-youve-overpaid-c285

 

[Deleted member 351022]

Sorry meant to addd .If you are VAT registered you can’t make a reclaim for the VAT you would need to make the adjustment in your VAT return.

 

[Lucan Unlordly]

The customs declaration and therefore charges will be based on the invoices that were sent with those consignments.

The first charges invoice related to delivery of the whole consignment but at that point I'd only received a third of the order. If I pay that one we should be all square..............but .....*see below

It’s most likely that customs / HMRC will have already been paid by whoever submitted the customs declaration on your behalf. It will therefore be them that you owe.

That sounds right This is the latest reminder received earlier today from GLS the courier: 'You have recently placed an order from xxxxxxxxx Ltd in the EU that was shipped with us and processed through customs via our partner Customs Clearance Ltd.(CCL) who have been instructed to process your shipment through customs. We kindly ask you to pay the incurred import charges due to HM Revenue & Customs.

*This is one of two reminders chasing payment for additional invoices (which were 'mistakenly?'given a value) raised for the consignments sent to fulfil the original order. If I pay the first invoice I don't owe these.

If they still hold your goods you risk extra charges or them disposing of the goods. Customs don’t hold the goods themselves, they are held in commercial premises approved by customs.

I have now received all the goods.

You do need to get invoices that match the actual shipments. You can then make a reclaim to HMRC based on duplicate payments for the same goods.

Yes. I've spoken to GLS and informed them that the invoices do not match the shipments, that customs charges for the 2nd and 3rd consignments were already accounted for on the first invoice. They've acknowledged this by phone and tell me they only work from details provided to them by the sender and it is they who need to correct the error. Thus far, they haven't, maybe because somebody has messed up and hopes the situation will go away?

 

[Deleted member 351022]

Although you have overpaid on the first shipment that isn’t the courier fault . It is that entry that needs adjustment based on an accurate customs invoice for what was physically sent. It is this declaration that is incorrect on quantity and value and too much duty paid. You need to make a reclaim on this entry.
It maybe that you have sufficient evidence to show what you ordered, received and paid for, plus the evidence of the two later declarations.

The second and third entries had a customs invoice presumably showing a value that represented what was in that consignment. This is the correct way as customs will never accept a nil value. If so the customs declarations for these shipments are correct on value and quantity.

The courier isn’t responsible to stand the customs charges for you as they acted in good faith using the documents they were given. Nor can they recover anything back from customs themselves. If you don’t pay them they will be within their rights to take recovery action .

The dispute is between you and your supplier. A reputable supplier should have no problem in providing a replacement customs invoice for the first shipment and or providing a letter explaining about the shipment issues.

 

[Lucan Unlordly]

Although you have overpaid on the first shipment that isn’t the courier fault .

I've not paid a bean to anyone yet.

It maybe that you have sufficient evidence to show what you ordered, received and paid for, plus the evidence of the two later declarations.

I do......

The second and third entries had a customs invoice presumably showing a value that represented what was in that consignment.

Yes, that's correct but there's a *twist in the tale at the end of this post!

The dispute is between you and your supplier. A reputable supplier should have no problem in providing a replacement customs invoice for the first shipment and or providing a letter explaining about the shipment issues.

They are a major supplier in Germany & Europe and I've dealt with them for 6 years without any problems. The responses I've had in terms of speed of reply makes me think somebody is covering their backside. All contact has been by email so it's trackable but a phone call is pending so some straight answers may be forthcoming.

*The twist! We checked the contents of the final consignment to make sure it was what we ordered but didn't count the contents until today. 200 pieces as invoiced were expected but we've received 600.

I now have a dilemma. If I advise the supplier of their error it will add another angle to a problem they don't appear to consider worthy of speedy action, if at all.
If I pay all the invoices for goods and customs even the one's we don't owe, we are quid's in and the supplier is out of pocket on paper to the tune of a couple of hundred pounds. I'd struggle with that outcome.

 

[DontAsk]

I now have a dilemma. If I advise the supplier of their error it will add another angle to a problem they don't appear to consider worthy of speedy action, if at all.
If I pay all the invoices for goods and customs even the one's we don't owe, we are quid's in and the supplier is out of pocket on paper to the tune of a couple of hundred pounds. I'd struggle with that outcome.

It's your choice

If you are not happy to let things lie then I would push them to sort things out but also inform them of their mistake and that there's a deal to be done. Either they sort out the paperwork and arrange for the return of the surplus goods or forget it and they let you keep them.

 

[Lucan Unlordly]

It's your choice

If you are not happy to let things lie then I would push them to sort things out but also inform them of their mistake and that there's a deal to be done. Either they sort out the paperwork and arrange for the return of the surplus goods or forget it and they let you keep them.

I'm not sure there's much more that I can do until they start responding.
I'll keep and pay for the goods if we get that far!

 

[Newchodge]

I've not paid a bean to anyone yet.

Don't you think you should? At the very least you owe the money on the first invoice, as you have received all the goods.

 

[Lucan Unlordly]

Don't you think you should? At the very least you owe the money on the first invoice, as you have received all the goods.

Yes and No.........

The Invoice was due for payment on the 12th April. The order wasn't satisfied in full until the final delivery on the 22nd April. I think that's an argument for extended payment terms but more importantly the poor response in sorting the returned to sender and unsent parts of the order tell me that they won't be sorting the customs issue if I relinquish my only means of focusing their attention - and that's delaying payment.