Since this particular case is now cut and dried, I figured there’s no harm in reproducing my complaint to PF and the reply I received. The ‘incoming links’ to my previous post made for depressing reading however…someone seemed to think I want to rip off HMRC by trying to avoid paying customs VAT, which is categorically not true!
That sort of reaction’s a shame really, because I’m actually very sympathetic to RMG’s workforce. What’s causing my frustration (and others too, such as the writer of this excellent piece) is a management decision, and the employees have to work under difficult conditions: a changing business model in which bulky online mail order items are replacing letters, for instance. Furthermore, some poor souls have to deal with the letters and e-mails of complaint, and take the flak off us via Twitter too.
This whole affair has a negative effect on customer trust and satisfaction, and must be harming morale among RMG employees. I want these articles to be constructive, not “whingeing” as someone put it. What I’d like to see happen is the system being made fairer for all concerned. Customers shouldn’t be made to feel like criminals when they buy goods legally abroad and are fully prepared to pay customs; and RMG shouldn’t need to resort to clawing back extra revenue through trumped-up charges.
The nature of the delivery business IS changing, and if the RMG’s commitment to its customers is more than lip service, this practice of forcing us to pay for unsolicited services needs to stop. Otherwise, it’s simply an act of hiding behind a change in the law to make more profit on their part.
My e-mail of complaint was:
Good evening
A parcel was recently sent to me from overseas and, in accordance with the laws on imported goods, was processed through UK Customs. The parcel was then held at the Parcelforce regional depot since the beginning of this month (June) and I have not yet received any written notifications or invoices. I contacted the depot today (June 12th) and was informed that they have been instructed to hold the parcel pending payment of the Customs charges, and are unable to deliver it until these charges are paid.
For your reference, the details are as follows:
Tracking number: XXXXXXXXXXXXX
Location: X Depot
Recipient address:
X
After researching the regulations I checked the 2000 Postal Services Act, specifically sections 83 and 84, which are concerned with intentionally opening, delaying or otherwise interfering with transmission of mail by post. As an organisation operating under the regulation of that Act, Parcelforce therefore does not have any legal basis for holding or otherwise delaying the delivery of parcels.I am not disputing the fact that customs charges need to be paid on the contents of this parcel; I intend to pay these Customs charges in full when I receive an invoice. HMRC do have a legal right to hold items when necessary, such as when payment of the relevant duties and import VAT is required, but according to the 2000 Postal Services Act couriers such as Parcelforce do not have this right.
I therefore request that Parcelforce give the X regional depot permission to release the parcel in question and deliver it to the delivery address. Refusal to do so on Parcelforce’s part is I believe in breach of the Act.
I would also appreciate clarification on why Parcelforce chooses to conduct the delivery of parcels that are subject to Customs charges in this way. Since the parcel is carried by an overseas courier, processed through Customs, cleared through the Customs charging procedure by Parcelforce then held at a regional depot pending the addressee’s payment of the charges, which includes Parcelforce’s own ‘Clearance fee’, the addressee is never offered any options regarding processing and/or payment of any charges until after the fact.
In other words: I, as the recipient of the parcel, have no choice but to be subject to Parcelforce’s unsolicited Customs clearance service, which includes the clearance fee. I am perfectly willing – and, as far as I know, there is no law preventing me – to deal with HMRC directly and pay the necessary Customs charges without Parcelforce’s intervention. To the best of my knowledge your procedures do not currently allow this. I am aware of how your organisation’s clearance fee “helps cover the cost of additional handling, administration, collection of monies and provision of facilities for Customs clearance of packages…” but why are customers not given the option to deal with HMRC directly? In that instance, surely Parcelforce would not be involved in the Customs payment procedure and the clearance fee would therefore be unnecessary?
I am also aware that the terms and conditions of your delivery services, which includes information on Customs clearance fees, are stated on your website. However, as I have already mentioned above, the Customs clearance procedure is carried out by Parcelforce is unsolicited. If this is not an illegal practice, it is certainly poor customer service. How do you justify this? Is there a way for your customers to settle Customs charges with HMRC directly?
I should add that the staff at your X depot were helpful and polite, so my complaint is aimed at your company’s policy, not them. They also assured me that my parcel would not be returned to the sender until this issue is resolved. Thank you for your time.
Regards…
In the reply I’ve again omitted names, mainly because the poor office worker has suffered enough by having to deal with irate customers all the time. Numbered annotations are explained below:
Dear Mr X
Thank you for your email concerning the customs charges and clearance fee payable in respect of your parcel.
I must advise that the Postal Services act was amended in October 2011 and we now have the legal right to hold items pending payment of any customs and clearance fees under the Postal Services Act section 105, 4(a).
You do have the option to clear a parcel yourself, however the sender would have to declare specifically on the customs docket “Goods to be cleared by importer” before posting. Your item will then be held by the UKBA and you will have to complete and return any paperwork and payments requested by customs, at your own time and expense. This will delay delivery by several weeks.
Items cleared by Parcelforce Worldwide, where self clearance by the addressee has not been requested by the sender on the customs declaration form, cannot be retrospectively self cleared with the UKBA. Neither can the addressee request an item to be self cleared when the sender has not stated “to be cleared by the importer” requested to be self cleared by the addressee. Further information regarding self clearance is available on HM Revenue and Customs website www.HMRC.gov.uk.[1]
Royal Mail Group Ltd (RMG) is the universal service provider of postal services within the United Kingdom. Parcelforce Worldwide is the name of RMG’s parcel delivery business. The powers and processes described below apply equally to both.[2]
RMG has established a number of statutory Schemes, to arrange the delivery and collection of mail within the United Kingdom, and to deal with incoming and outgoing overseas mail received from abroad for delivery in this country. The Schemes which deal with incoming packets and parcels from overseas are called the Overseas Letter Post Scheme 2001 and the Overseas Parcel Post Scheme 2001. These Schemes were established under section 28 of the Post Office Act 1969 and preserved under an enabling provision.
RMG is authorised under the Postal Packets (Customs and Excise) Regulations 1986 and section 105 of the Postal Services Act 2000 to clear postal items through customs where no other arrangements have been made. This involves paying duty and taxes to HM Revenue & Customs (HMRC) up front, dealing with all relevant HMRC paperwork and record keeping, and processing the payment collected from the recipient. For higher value items we also use a commercial Customs broker to ensure speedy clearance.
A black and white label is attached to the parcel giving a breakdown of the customs charges. If you feel the customs charge may be incorrect, you can query this with HMRC.
We operate in a very competitive market[3], and, in line with many of our competitors, we do charge an import clearance fee when duty or VAT is payable. This is authorised by Article 15 of the Overseas Letter Post Scheme and Article 9 of the Overseas Parcel Post Scheme. Our fees are published in the Schemes, on our websites, and on the HMRC website.[4]
I do understand that it can be frustrating when you import goods which then are subject to further duties, taxes and clearance fees. Where we can, we do encourage retailers to make this clear on their websites so consumers understand this at point of purchase.[5]
Any queries about the clearance fee must be directed to our Clearance Fee Enquiry Team in writing, at PO BOX 486, Wakefield, WF1 9AG. RMG will only refund the clearance fee if HMRC refund the full charge on your parcel and this is the only channel to have any monies refunded where appropriate. In order to obtain a refund of the clearance fee you will need to send a copy of the reassessment letter from Customs to the Clearance Fee Enquiry Team.
I do understand your concern and hope this information has helped to explain the process to you.
If you require any further information or assistance, please reply to this email showing all conversations we have had on this enquiry.
Our hours of business are Mon to Fri: 8am to 5:30pm.
Kind regards
X
Parcelforce Worldwide
Managing Director’s Office
Notes
- Yes, you CAN declare items yourself. In practice this doesn’t work, and I shall be taking up that with them.
- Does that not constitute a monopoly?
- How can it be a ‘competitive’ market when RMG is the sole provider of the service (as indicated four paragraphs earlier)?
- I’m not contesting the fact that the nature and amounts of the charges are publicly viewable; making them publicly viewable does not alter the other clear fact: a lack of customer choice as to whether the customer wishes to have the service or not.
- The onus is therefore shifted onto the already-paying UK customer and/or a seller who doesn’t even operate in the UK. RMG in contrast could do something about this, but choose not to.