Can I fight Fedex’s import charges?

Q An American customer of my company returned a package of candy without informing me. Although the total cost of this candy, including postage and packaging, was only around £10, the buyer valued it at $25 (£19). Fedex, which returned the parcel, is now trying to charge me £42 for VAT and import duty (on behalf of HMRC) and for its own ‘advancement fee’. Can I fight this charge? Lee Masters

A Yes, we think Lee can. He’ll certainly be able to claim back the VAT and import duty from HMRC. As the company owner he can use Returned Goods Relief, which means he doesn’t need to pay fees on items that have been sent back by a customer (read more about this on Gov.uk: www.snipca.com/22477).

But it’s less clear whether he’ll get a refund from Fedex, although for two reasons we think he has a chance. First, the company didn’t tell him about the charges until after delivery, which is unusual because most couriers won’t do this until all taxes are paid. If Fedex had told Lee, he could have refused to take the delivery, citing that he wasn’t liable to pay taxes because the buyer is in the US, and therefore not covered by UK consumer law.

Secondly, Lee doesn’t have a contract with Fedex – the buyer does. And that means the buyer must pay the ‘advancement fee’, which is what Fedex charges when it has to pay import duties in advance. It’s approximately two per cent of the total delivery charge.

Fedex told us it wouldn’t discuss Lee’s case, and said that he should contact customer services. We said that he’d done that numerous times, and now feels like he’s being fobbed off. We’ll keep chasing the company, and hopefully report good news soon.