VAT Charges for returning a jacket?

[ProteinNerd]

Hi Guys,

A little off topic but still outerwear related. I'm sure someone else has had to return a jacket from outside the UK.

I've sent back an incorrectly made jacket (it was made smaller than my specifications) to AL. I copped the return postage ($115 or £50) on the chin even though I had ordered specific measurements and the jacket wasn't made to those specifications.

So the jacket has arrived back in the UK to be returned but has been held up by parcelforce (?) due to an additional £166 in charges to be paid? but I had already paid for the delivery? (of which £128 is VAT which can be claimed back apparently). So I'm assuming the rest is coming out of my refund....so basically I'm out almost £90 because of their mistake....cant say I'm impressed.

This just doesn't seem right to me that there are additional fees (plus VAT) to be paid on a returned item, its not a purchase. Can anyone shed some light on this?

 

[wdw]

I'm surprised you got hit for the return cost if it was the manufacturer's error, but I don't know if Aero and others are the same for overseas sales.

The other charge could be courier's fees, so realistically whoever pays the return would pay that as well.

It doesn't sound fair, as when I had a broadly similar issue from a US retailer they paid all return charges, but then AL prices are so low they can't have much more room to be generous.

 

[majormajor]

Sounds like Parcelforce (bless 'em) and HMRC are treating the parcel as an "import", and are charging duty and vat on the declared value. I would hope that the original supplier can intercede on your behalf and sort this out.

 

[Brettafett]

Have you contacted AL about this?
I have returned jackets to the UK from South Africa and as far as I understand and in my experience, as long as you incl your purchase invoice and documents with the jacket and state ' returning to manufacturer' on the box, all should be OK....
But, No, this is not ideal. You should not be liable for one penny in the case of incorrectly made item IMO...

 

[Brettafett]

Have you contacted AL about this?
I have returned jackets to the UK from South Africa and as far as I understand and in my experience, as long as you incl your purchase invoice and documents with the jacket and state ' returning to manufacturer' on the box, all should be OK....
But, No, this is not ideal. You should not be liable for one penny in the case of incorrectly made item IMO...

 

[Buco]

Same thing happened to me as a seller, I sold a jacket to a guy in the US but it didnt fit so he returned it for a refund. However when its returned it should be declared on the customs form as a 'returned item' otherwise Customs will just treat it like they do any import and slap some costs on it.
There is a form that your seller can fill in to reclaim their costs from hmrc (which is what im having to do), so i dont think you should really be left out of pocket.
I can just imagine what my ebay buyer would do if i gave him his refund less the duty for re-importing... a big fat NEGATIVE
Luckily i think its fairly easy to dispute/claim back with hmrc if it can all be proved.

 

[majormajor]

After 28 days (I believe), if the recipient hasn't paid the bill to parcelforce, they will return it to the sender. I would be having a hard word with the maker of this ill fitting jacket. And soon.

 

[HoosierDaddy]

I sent a jacket from US to Aero for exchange. At the time..Amanda asked in I would write 'return' on the box to save 'them' from paying VAT. In turn she sent the new jacket back as 'repaired' to save me from paying US customs.
HD

 

[Jeff M]

There is no customs fee for returned items.
As I recall from returning jackets to the UK, there is a box on the US customs form you can check of for "returned item" so it won't be charged any duty / VAT fees.
I also write it on the address label next to the company name. ie; "Aero Leathers, (Returned Item)".......

I believe the recipient is responsible for customs fees. I know I am the one who gets stuck paying them if I receive a jacket directly from a UK manufacturer. I'm surprised ParcelForce isn't going after AL for the duty fees.

 

[majormajor]

There is no customs fee for returned items.
As I recall from returning jackets to the UK, there is a box on the US customs form you can check of for "returned item" so it won't be charged any duty / VAT fees.
I also write it on the address label next to the company name. ie; "Aero Leathers, (Returned Item)".......

I believe the recipient is responsible for customs fees. I know I am the one who gets stuck paying them if I receive a jacket directly from a UK manufacturer. I'm surprised ParcelForce isn't going after AL for the duty fees.

In a perfect world......

As I understand it, Parcelforce ARE asking AlexCo to pay. I guess the problem may be that they are not doing so....

 

[tonypaj]

Hi Guys,

A little off topic but still outerwear related. I'm sure someone else has had to return a jacket from outside the UK.

I've sent back an incorrectly made jacket (it was made smaller than my specifications) to AL. I copped the return postage ($115 or £50) on the chin even though I had ordered specific measurements and the jacket wasn't made to those specifications.

So the jacket has arrived back in the UK to be returned but has been held up by parcelforce (?) due to an additional £166 in charges to be paid? but I had already paid for the delivery? (of which £128 is VAT which can be claimed back apparently). So I'm assuming the rest is coming out of my refund....so basically I'm out almost £90 because of their mistake....cant say I'm impressed.

This just doesn't seem right to me that there are additional fees (plus VAT) to be paid on a returned item, its not a purchase. Can anyone shed some light on this?

A couple of questions:

1) Did you ask in advance the exact procedure of sending the jacket back?
2) VAT has nothing to do with delivery costs, did you verify who pays for VAT or any possible customs fees? Or whether they are applicable? All carriers make mistakes...
3) Did you agree to pay the delivery costs or all costs?

I'd not assume anything in overseas transactions, just make sure that all parties know their responsibilities.

 

[ProteinNerd]

Thanks for the replies, it makes perfect sense now, Parcelforce think its an import...of course.

Amanda never suggested writing "returned item" on the package, she just said send it back and they can either remake or refund. As we don't pay duty or taxes on importing individually purchased items in Australia, it didn't cross my mind it would create an issue.

I'll get back to her, it does seem strange that she has been so confused by the charges, surely she would have come across this before?

Thanks again

 

[ProteinNerd]

I just double checked my paper work and I did write "Returned Purchase" as the reason for Export from Australia....I've submitted a query through the parcel force website outlining the situation, lets see what they say.

 

[wdw]

I imagine you'll still be hit for their handling fee, although £38 sounds like it might include duty. I think the Parcelforce fee is £13.50.

 

[Tomasso]

when I had a broadly similar issue from a US retailer they paid all return charges

That's the way most reputable companies treat orders when they are in error.

 

[majormajor]

There is no customs fee for returned items.
As I recall from returning jackets to the UK, there is a box on the US customs form you can check of for "returned item" so it won't be charged any duty / VAT fees.

Here is a standard CN22 label, from a parcel I received just today. No box for "returned items".

This parcel was delivered to me by a smiling postman, with NO request for any fees. If Parcelforce are involved, then it means both duty and vat are due to be paid (along with their handling fee).

I trade regularly with the US. If the value is over the limit, Parcelforce WILL get involved, so you either pay 'em, or lose the parcel.

 

[hpalapdog]

Obviously no VAT is due on returns or indeed import duty if an item is ever being delivered to the country of origin (where originally manufactured)

 

[majormajor]

Obviously no VAT is due on returns or indeed import duty if an item is ever being delivered to the country of origin (where originally manufactured)

Of course. Goes without saying. But if the form does not give you the opportunity to say that (like the one above) you are stuffed

 

[Capesofwrath]

You include the original customs form which it came with in the label wrapper. Sticking out a bit so it can be seen, and write return on that. You also write it on the new customs form along with 'see original form included,' and also clearly on the package so customs will check it out.

I've had to return several items like this and never had any issues at the delivery end. I have had grief from the UK Border Agency when it came to getting VAT and duty back for items returned overseas though.

 

[Edward]

I imagine you'll still be hit for their handling fee, although £38 sounds like it might include duty. I think the Parcelforce fee is £13.50.

I don't think you should get hit by the handling fee.... at least, on anything I've had shipped in from outside the UK, when I've not been stung for tax (under the minimum threshold), they've not gouged me for the handling fee.