Customs charges?

mollymosfet

Not sure of the right forum for this, but...

Recently I got a guitar effects pedal in an exchange for making a song for the person that build it. It was for a friend; we're both quite poor and barely able to afford what we have(same for most musicians these days). It was a prototype, never intended for sale, and the finished model isn't on sale. It has literally 0 commercial value.

Yet for some reason they're looking for 66 euros customs charge on it. How they came to this number is beyond me. But to me it's a clear case of revenue leeching off people who really don't have money to spare.

Is there any way to clear this up or when they decide on an arbitrary number, there's nothing you can do?

foggy_lad

Sounds like it is the delivery company that have added this charge, you should inform them the item has no value and appeal the charge, how to do this will be explained on the documentation you received.

mollymosfet

It was just a regular An Post delivery leaflet that came. Asking the friend for a number so I can dispute revenue over it.

mdebets

mollymosfet wrote: »

Not sure of the right forum for this, but...

Recently I got a guitar effects pedal in an exchange for making a song for the person that build it. It was for a friend; we're both quite poor and barely able to afford what we have(same for most musicians these days). It was a prototype, never intended for sale, and the finished model isn't on sale. It has literally 0 commercial value.

Yet for some reason they're looking for 66 euros customs charge on it. How they came to this number is beyond me. But to me it's a clear case of revenue leeching off people who really don't have money to spare.

Is there any way to clear this up or when they decide on an arbitrary number, there's nothing you can do?

Of course it has a commercial value, the materials of the product and the time it took to construct it can be expressed as a monetary
value.
If you friends lives outside the EU and there was no receipt attached to the packet, Revenue is just estimating its value and basing the duty on this estimate.There is no way around this for you.
The only thing you can due, is dispute the value of their estimate, but for this, you really need a proper receipt from your friend with a realistic value on it (based on either existing similar products, or on evidence, what the material is worth, how long he needed to construct it and what he normally charges for this time).

pleasant Co.

Offer to pay them with a limerick?

thesimpsons

don't delivery companies have agreements in place with customs and revenue departments as agents to collect taxes due on goods into the state. It sounds like the delivery company saw a brand new, newly packaged pedal and without anything to state otherways, see it as an import into the country and therefore liable for tax. Just because you paid through a barter system for the goods rather than through cash, not sure that you wouldn't still have to declare the goods and see what tax would be due.

Jarren

I import a lot of goods from Asia and from my experience they keep overcharging me 7/8 times out of 10.

Usually I just just send them this
http://www.dutycalculator.com/new-import-duty-and-tax-calculation/

and then they always send me generic email like this one


Good Morning

Invoice number .........

Firstly please accept my apologies for the delay in response to your enquiry.

I have raised a partial credit to reflect the duty element, a freight charge had been incorrectly included.

The amount payable is now ....... euros this is broke down as attached and VAT is applicable on the administration charge.

Kind Regards

..................

Customer Relations UK & Ireland,FedEx Express Europe, Middle East, Indian Subcontinent & AfricaTel GB: 08456 07 08 09 Tel IE: 1-800-535-800Fax : +44 247 670 2739Email: invhelp@fedex.com


The only thing that changes is the invoice number/amount of Euros charged/and a person that sent an email.


The only thing is just keep a record of all invoices and they will rectified accordingly.

That email was from Fedex, UPS and DHL are not better

The bottom line is that you have to contact them to raise the issue so they can charge you the correct amount of money.

rubadub

thesimpsons wrote: »

It sounds like the delivery company saw a brand new, newly packaged pedal and without anything to state otherways, see it as an import into the country and therefore liable for tax.

Correct, it would be customs looking for a value to put on it, they will look at similar items and estimate a value.

from revenue.ie

Do all packages require a customs declaration?
Yes. Under international postal agreements all packages received from outside of the E.U. require a customs declaration, which is usually completed by the sender. The declaration should include a description of the goods, the value and whether they are gifts or commercial items. It usually takes the form of a CN 22 or CN 23, which is attached to the outside of the package. These forms are available from An Post and are similar to forms used by all postal administrations.

Incomplete Declarations/undeclared goods
Any information omitted from customs declaration forms can lead to delays in receiving your package, as it will need to be opened to ascertain if the goods are liable to import duties. Generally, Revenue will write to the addressee requesting a copy of the purchase invoice for the goods or where this is not available a pay-pal receipt or a print-out from the internet detailing how much the goods cost. If a reply is not received within 14 days the package may be returned to the sender.
As an incorrect or false declaration may lead to seizure of your package, it is important that you inform the sender of the necessity to complete the declaration accurately with all the necessary information.

thesimpsons wrote: »

Just because you paid through a barter system for the goods rather than through cash, not sure that you wouldn't still have to declare the goods and see what tax would be due.

Tax is still due, otherwise loads of companies would be doing this barter system as a way to avoid charges.

In this case it was not even a gift, which would only have increased the limit to €45 anyway.

It has literally 0 commercial value.

I bet you could have sold it for something, to somebody like yourself. Of course it has value.

sparxz

mollymosfet wrote: »

Not sure of the right forum for this, but...

Recently I got a guitar effects pedal in an exchange for making a song for the person that build it. It was for a friend; we're both quite poor and barely able to afford what we have(same for most musicians these days). It was a prototype, never intended for sale, and the finished model isn't on sale. It has literally 0 commercial value.

Yet for some reason they're looking for 66 euros customs charge on it. How they came to this number is beyond me. But to me it's a clear case of revenue leeching off people who really don't have money to spare.

Is there any way to clear this up or when they decide on an arbitrary number, there's nothing you can do?

You should look into the tax exemption for Artists in Ireland.
I am annoyed that a creative Irish person would be treated like this.

Send a letter to the minister for Arts and culture
Jimmy Deenihan T.D., Minister for Arts, Heritage and the Gaeltacht,
(met him few months ago at the launch of a well known musicians album)and ask him why an Artists is being treated like this.
Please post the reply back here. Would be interested to see reply.


http://www.ahg.gov.ie/en/AboutUs/ContactDetails/#d.en.16040
The Department's main contact details are as follows:

23 Kildare Street, Dublin 2 - (01) 631 3800/ LoCall 1890 383 000
Custom House, Dublin 1 - (01) 888 2000/ LoCall 1890 202021
New Road, Killarney, Co. Kerry - (064) 662 7300/ LoCall 1890 273 000
Press & Information Office - (01) 631 3807/ 631 3838
Newtown Road, Wexford - (053) 911 7500/ LoCall 1890 202021
Na Forbacha, Co. Galway - (091) 592 555/ 503 700/ LoCall 1890 201 401
National Parks and Wildlife Service, 7 Ely Place Dublin 2 - (01) 888 3242/LoCall 1890 20 20 21
Ballina, Co Mayo - 096 24200
Email Contacts
Press Office: press.office@ahg.gov.ie
Customer Service: customer.service@ahg.gov.ie
Website Queries: Webmaster@ahg.gov.ie

mollymosfet

I really think such charges are very often unfair regardless, personally, partly because I'm against regressive taxes in general(I would be for lower VAT and higher income tax) and in a recession it means it's disproportionately going to hit poorer people. I think there needs to be a better system in place.

VAT is one thing, but the 6 euro Post Office charge, essentially paying to have your goods opened and held from you slightly longer.

They've really started cracking down on this now, whereas before I'd rarely ever get hit for small items, it's almost always now.

mollymosfet

mdebets wrote: »

Of course it has a commercial value, the materials of the product and the time it took to construct it can be expressed as a monetary
value.

The materials maybe - time to construct it, no, because since it was an actual gift, and built as such, there is no commercial value on it - it was a favour in return for a favour. Do you think we should start taxing for things like your mate Dave giving you a lift to pick stuff up from Ikea? No. If someone chooses to give their services for free, you cannot tax them. I could spend dozens of man hours for example making a piece of art to send for someone, and then they would have to pay tax of my non-existent wage for that period? How would you even estimate something like that?

Anyway, the package ended up being sent back as we couldn't afford to collect it at the time. Hopefully they'll resend it, and will put a low stated value on it.

rubadub

mollymosfet wrote: »

VAT is one thing, but the 6 euro Post Office charge, essentially paying to have your goods opened and held from you slightly longer.

In a normal shop you will be paying VAT and an inbuilt cost to cover overheads dealing with payment of VAT etc, i.e. admin costs. I know in my company they reckon it costs an average of €25 to process an order. No idea how much it would cost an post on average. I think you can fill out some forms in advance and not have to pay this fee, not sure.

mollymosfet wrote: »

The materials maybe - time to construct it, no, because since it was an actual gift, and built as such, there is no commercial value on it - it was a favour in return for a favour.

At the start you said it was in exchange, now you are using the term "favour". Revenue would simply call this barter.

From revenues site.

In barter transactions, or in transactions in which the consideration is not stated wholly in terms of money for supplies of goods, services or ICAs,
tax is payable by reference to what might reasonably be expected to be the
open-market (arm’s length) price of the goods or services supplied.

Consideration

Usually means money received by a supplier in exchange for the supply of goods or services but may be in the form of bartered goods or services or release from an obligation etc.

As I said before even it if was a genuine gift, with no bartering, the limit is only raised to €45.

mollymosfet

The problem I have is with paying VAT twice - from the country of origin, and from the country I'm ordering from.

90% of the stuff I'm ordering isn't available here, either. I don't really think it's very moral to charge the same amount on gifts, and a lot of gifts worth sending will be worth more than €45.

It sounds very wasteful if it really costs them that much. Also, doesn't it make it pointless cracking down on smaller items as they'll barely make their money back, or not at all?