what method does FEDEX use to calculate its exchange rate USD to EURO

cboards

i imported goods from the US, via FEDEX, with a total value of USD$563.
thats USD$563 for goods plus shipping.

this dollar amount needs to be first converted to EUROS, then duties and vat paid on that euro amount.

from my fedex invoice for duties and vat now due, fedex converted the USD$563 to EUR€477.61

goods were shipped on the 16th, entered ireland on the 18th, invoice dated the 19th, (all December 2008).

USD$563 = EUR€477.61 implies an exchange rate of 1.17188.

the exchange rate hasnt been near 1.17188 since 2005

the real exchange rate for the month of december up to point of invoice was

12/01/2008 1.26980000
12/02/2008 1.26630000
12/03/2008 1.26520000
12/04/2008 1.26780000
12/05/2008 1.26930000
12/06/2008 1.27330000
12/07/2008 1.27230000
12/08/2008 1.27240000
12/09/2008 1.28310000
12/10/2008 1.28920000
12/11/2008 1.29590000
12/12/2008 1.31420000
12/13/2008 1.33420000
12/14/2008 1.33900000
12/15/2008 1.33870000
12/16/2008 1.35020000 shipped $563 = €416.97
12/17/2008 1.37220000
12/18/2008 1.41390000 entered $563 = €398.19
12/19/2008 1.44390000 invoiced $563 = €389.92

why am i being charged vat and duties on €477.61 and not on a figure between €389.92 and €416.97 ?

especially given that no real money was actually converted, goods were just valued in euros.

does anyone know why FEDEX exchange rate is over %20 out of line with the rest of the world?

rubadub

cboards wrote: »

i imported goods from the US, via FEDEX, with a total value of USD$563.
thats USD$563 for goods plus shipping.

You are saying shipping is included in that $563? what was on the package and invoices? they might have paid more than they charge you for shipping. You do realise shipping costs are charge on to right?

cboards wrote: »

from my fedex invoice for duties and vat now due, fedex converted the USD$563 to EUR€477.61

Does it specifically say this somewhere?

Sounds like you are simply missing a charge somewhere, they will charge their own fees too, above duty & vat. If I saw the full invoice I bet I could spot it.

cboards

thanks for the reply rubadub, heres some of the figures on my invoice, sorry dont have a scanner.

$
total commodity value = $470.55
freight = $ 92.45

total invoice value = $563.00

€
duty = €12.90 (477.62 x 2.7%)
vat = €105.46 (477.62 + 12.90) x 21.5%
admin fee = €10.00

total = €128.36

+ vat on €10 admin fee @ 21.5% = €130.51 (128.36 + 2.15)

....

so both the dollar and the euro calculations seem correct with regard percentages and compounding.

but the value conversion of $563 to be worth €477.62. this implies an exchange rate of 1.17876.

there is a figure of 1.2634 coded on the invoice, which looks like an exchange rate figure. theres 2 problems with that being the exchange rate, firstly its the lowest rate for the month (maximizing my taxes) thats if it ever did go that low in december, secondly that would equate to only €445.62 not €477.62 (again maximizing my taxes)

anyway upshot is a possible overcharge by about %17, not much on €130 but what if my goods cost more, and what taxes did fedex pay the revenue, what theyre claiming or a lesser figure.

GristlyEnd

FedEx should be using EU exchange rates which at that time was 1.2634. Below is a link to the archive rates for December.

December exchange rates

jor el

They should also have added VAT to the shipping cost, of $92.45 = €73.17*.21 = €15.36. The admin fee of €10, will also have VAT applied, being another €2.10 totaling another €17.46 to be added.

You should contact FedEx and ask them to clarify what rate they used, where they got it, and what exactly is the total breakdown of all conversions and charges.

cboards

so theres a exchange rate for the month which is set on the first day of the month, thats worth knowing with the fluctuations in the currency market lately.
and that number is indeed on the invoice 1.2634.

still $563 @ 1.2634 = €445.62 not €477.62 , exactly €32 overvalued.

or €477.62 @ 1.2634 = $603.42 not $563.00 , not so exactly $40.42 overvalued.

@jor el
all the duties and vats you mentioned were calculated after the conversion to euro.

rubadub

cboards wrote: »

still $563 @ 1.2634 = €445.62 not €477.62 , exactly €32 overvalued.

Very strange, possibly a typo/mistake but you would think it would all be computerised these days.

Seems nothing was missed by you alright, my fedex stuff had similar breakdowns like that before. I would contact them as advised.