RMA and double/triple import TAX


#1

How do you send faulty components for repair/replacing and how do you avoid double/triple taxing?

This is my story. I sent my Bridge (I’m in NL) back to PSA to get it replaced using PostNL. PSA sent me the new one back via Fedex. And after a month I received an import tax bill for 95 euros. After some mail exchange I received the following from Fedex:

I saw the below and I would like to confirm to you, that there is no option to cancel the tax bill, as it is not logged as a temporarily export / import.

If you have a repair in the future, than you can complete all the things that you normally do, and when you have the paperwork ready, you can email them to einexport@mail.fedex.com.

It will cost 44 euro to let the export department create the paperwork for the export and 44 euro for import. It can be that the duties and taxes are less then the 88 euro, so then you can still decide to follow up on the normal procedure, without the temporarily export / import story.

That means I paid the import and VAT twice for the same product. And apparently I will have to pay again, because the USB in my Bridge is not functioning.

Any ideas?


#2

I’m sorry to hear that Alekz :(

Thankfully I have not had such situation yet, but always when coming into contact with authorities due to import tax or something I’m feeling that I will explode or kick someones back :)


#3

And now imagine a more expensive product. Let’s say something for 6000 euros. That’s gonna cost more than 1300€ to get it replaced or serviced (if you are not using the same carrier and/or did not prepare in advance).

Something’s wrong…


#4

Well, I gotta say, to this whole thing, this is the reason we have distributors. I am unclear why (at the start of this thread) the Bridge was ever sent to us in the first place. It should have gone to our Belgian distributor and none of this would have ever happened. Just saying. Onwards.


#5

Yes, something IS wrong but it is not PS Audio, it is Government happily sticking it to you for buying a product not built, sold and serviced in your country / economic zone / free trade union. If you don’t like it then you can move to another location where the government does not screw global trade quite so gleefully, or get involved in politics and change the policies. Sorry, not an easy answer for almost anyone. :-?

PS Audio might be able to do a little about this but likely very little. The answer is to be able to have equipment serviced within your economic zone. If you have a PS Audio dealer or distributor within your economic zone then PS Audio should STRONGLY suggest that they service all current and recent PS Audio equipment, including warranty service. Of course, PS Audio should support this local service as sell as possible too.

J.P.


#6

I wonder how the dealers deal with the tax. Do they have a special agreement with a shipping company or do they have a special paragraph in the tax forms?


#7

They pay it up front. There’s no escape. This is one of the reasons why it’s tough being an importer/distributor. VAT and duty are paid upfront for all good brought into the country. When they sell a piece of gear or even a part, they are then reimbursed for the tax because they customer purchasing it now assumes the costs.


#8

Yes, this is understandable if a customer buys something new (the customer pays ;) ). I wonder how it works if something needs to be replaced.


#9

Importing dealers and distributors pay the taxes based on declared invoice and are reimbursed by the govt in the following reporting period. [usually the following month].

When they sell the product, at the “higher” retail price, they collect the tax from the consumer and remit to the govt in the next reporting period.

So, any taxes paid when importing are deducted from retail taxes collected and the diff is remitted. IOW taxes are in and out neutral to the importer.

Duties however, [when applicable] are paid by the importer and remain part of his total cost. The dealer will recooperate the duty in his mark up to the retail selling price.

Re your question.

When you send a part back there should be an RMA number on the box as well as the documentation and a declaration of “back for repair”.

When the part is returned the Box and invoice [0-$] should refer to the same RMA number and declared as “Warranty Repair”.

FEDEX knows what to do when this is documented correctly.


#10
gordon said

FEDEX knows what to do when this is documented correctly.


Yeah, see their response above :(

#11

I would check with an importing dealer to see how they do it.

The above from Fedex is a “carnet” or “merchandise passport”. This is meant for use with expensive gear that goes in and out of the zone.

As Paul said, using the local dealer might be a good option if needed in the future. OR, I’ll bring it over with me and we can go for a beer.drinking-39_gif

EDIT

quote below

"My goods were sent outside the EU to be repaired. Do I have to pay import duty and VAT when they are returned to me?

No duty and VAT will be payable if the goods have been repaired free of charge and you can provide a copy of the guarantee/warranty agreement to your shipping provider for presentation to customs.

If you have to pay for the repair, duty and VAT will be charged on the repair costs only.

If the goods have been replaced free of charge under guarantee or warranty, no duty is payable. However, VAT is payable on the full value of the goods because all replacement items are treated as new goods for VAT purposes."