General question re Import Tax/Duty

[IrishEyes]

Just a general import question.

An acquaintance purchased a Japanese Market Nissan Fuga (aka Infiniti) Q45 a few years ago and it was broken into more recently where they smashed the drivers door glass and also damaging some of the external silver chrome/plastic trim. Googling I found a used glass and trim in Japan for $173 with shipping of $159. He was happy, so he transferred the dosh and the kit arrived via FedEx the following week.

I was just talking to him and he received a letter from FedEx looking for an amount (can't remember what is was ) but seemed to be a tax whose calculation seemed to be based on the total amount of $332 (which included the cost shipping) rather than the two items themselves.

I'd have a few thoughts:

i) If there is any import tax applicable, who is responsible for establishing the value, how and who it should be paid to?
ii) Is it normal for courier companies to come back afterwards looking for it?
iii) Do the Courier companies alert customs when items come in from outside the EU?
iii) Is it possible that this is some sort of scam where couriers may collect but maybe pocket it themselves?
iv) Should he ignore the letter from FedEx, go to someone else or pay it after clarifying the actual value of the items without shipping?

Thanks in advance

[rebel.ranter]

Couriers certainly do come looking for the import tax for sure.

DHL's Policy:

Goods Purchased Online for Personal Use

- You may be charged customs duties and taxes for something purchased online because:
- Duties and taxes are most typically not included in the price of the goods you purchase online, and might not be included in the overall shipping costs you pay to the online retailer.
- When purchasing goods online, some or all of these goods may not originate in the country you reside in, therefore are subject to a customs duty, which is a tariff or tax imposed on goods when transported across international borders.
- When goods are not shipped domestically (within your country) or within a single customs union, such as the European Union, you are liable to pay any inbound duties and taxes which your local customs authority deems appropriate.
- To ensure the DHL courier can deliver your goods in shortest possible time after entering your country or customs union, DHL pays the customs authority on your behalf for any duties and taxes that are due on the goods.
- Once the duties and taxes are fully repaid to DHL the goods will be delivered to you
- What is payable, if anything, depends on where the goods are sent from, the type of goods, their transactional value and the weight of the package
- When buying goods online, you should always check whether they are either being sent to your address from:
- Your country
- Another country
- Outside your customs union country

[JohnH]

I put my replies below each question

i) If there is any import tax applicable, who is responsible for establishing the value, how and who it should be paid to?
Yes, the value is the purchase price plus shipping cost to Ireland. The courier is responsible to calculate, collect and remit to Revenue.

ii) Is it normal for courier companies to come back afterwards looking for it?
Yes

iii) Do the Courier companies alert customs when items come in from outside the EU?
The courier act as agent for Customs / Revenue so pass over all required data.

iii) Is it possible that this is some sort of scam where couriers may collect but maybe pocket it themselves?
No, but they do get paid a fee for undertaking the service

iv) Should he ignore the letter from FedEx, go to someone else or pay it after clarifying the actual value of the items without shipping?
No

[IrishEyes]

Thanks guys. That helps clarify the situation. I'm sort of surprised that the cost of shipping is used in the calculation to arrive at the duty rather then the items only.
I'll get him to contact FedEx and see how they arrived at the tax/duty figure. :-)

[johnmaloney88]

same situation with cars, 10% of cost of car plus shipping to get into the EU, then 23% on cost of car plus shipping plus eu 10%, nice money racket!