Import Duties overcharged by a Carrier

Last month, I got an invoice from the shipping carrier and I found out the import duties were wrongly calculated, I doubled checked the information based on gov.uk and found that the amount is incorrect. Then, I contacted the shipping carrier (via several emails and filling out their online form) but no any reply or follow-up, up to now. Is it legal for a shipping carrier to apply their own charges which are different compared to gov.uk? Can some shipping carriers bypass the rules set by GOV? If the carrier keeps the amount and refused to pay us back, what I can do next? Please help

The courier will base their declaration on the information they have about the import. Duty is based on the hs / commodity code , the country of origin and the value of the goods. The value is based on the cost of the goods plus the transport costs plus any insurance amount. The courier does not calculate the duty that is calculated by HMRC based on the information supplied in the declaration. They can charge for their services and for paying the duties on your behalf. You cannot claim back duty from the carrier . If you think you have been overcharged duty then you need to ask the carrier for a copy of the declaration and make a reclaim to HMRC.

Yes, we all understand that import duties are part of the import costs and importers may need to encounter it. But the question is that the zero rate duty goods are stated clearly on gov.uk, whether if the shipping carrier has a right to charge their own duty rate and ignore the rules set by gov. That's the point. If this is the case, how come we all need to follow the rules by gov but not some shipping carriers? Any ideas?

Of course a carrier cannot charge their own duty rate, but it is highly unlikely that has actually happened. The point being missed is that the difference will most likely be to do with what was declared to customs in the first place. Customs declaration s do not work in the way you appear to think they do. Agents do NOT declare a rate of duty they declare the hs code, value and goods origin ( country of manufacture). HMRC then calculate the rate and amount based on this information provided . If you think duty should be zero then it is most likely that either a different hs code or country of origin has been declared. If this information is incorrect then the entry can be amended and duty refunded. This is why you need to see what has actually been declared and therefore what may be incorrect on the declaration . Once you know what is incorrect it can be amended. Also bear in mind that if the zero duty rate is applicable by reason of country of origin then the shipment must be accompanied by the correct proof of origin to claim the reduced duty. If the correct proof is not provided then the ‘all country ‘duty rate applies.

Hi Prince

Please contact our Imporet and Export team for advice.

Imports and exports: general enquiries

Thank you.

Finally, after over a month, shipping carrier replied my email and stated that the reason why Zero Duty Rate is unable to apply for my previous shipment. (Import Goods into the UK) They said, - - - - - - - - - - - - - - - - - - - - In order for the preferential tariff to be applied at clearance, the shipper's commercial invoice must include the preferential statement, as shown below and a REX registration number. "The exporter of the products covered by this document declare that where otherwise indicated these goods are of preferential origin. Place: Date: Signature:" Without this, import duty will be applied at the appropriate rate for the tariff used. We can confirm that in this instance there is no preferential statement or REX number, therefore Duty has been levied correctly. - - - - - - - - - - - - - - - - - - - - As they (shipping carrier) said, we missed those information on the Commercial Invoice and a Rex Number. #1 Is this the rule set by HMRC? #2 Where can I apply or/and find the Rex Number? Our company is registered in England, we only have EORI (linked with VAT) and VAT number, and we don't have a Rex Number. Has anyone still using Rex Number in year of 2023? Are they (shipping carrier) still using the information before Jan 2021? This is a very confusing issue, I got a big question mark on my head, please help.

As per my earlier post the zero duty rate could not be applied as the correct proof of origin was not provided. The requirement for the correct proof of origin between the UK and EU is set out in the EU - UK trade agreement . The requirement for an EU exporter to apply use a REX number is set in EU legislation. If the goods meet the origin rules then It is your supplier that will put their REX number and statement on the invoice or other commercial documents. If the goods are from some other country then a similar statement of preferential origin would be required .the exact requirements will depend on the text of the agreement.

Wow, that's frustrating! I had a similar experience a while back. Carriers should definitely align with gov.uk regulations. If they don't respond, maybe seeking legal advice or contacting a consumer protection agency might help. Hope it gets sorted for you! 

Finally, after almost 60 days, carriers replied my email and claimed they will issue a credit note for us. They realized they made a mistake and they wrongly thought the shipment was from EU, but actually it was not. They no longer need REX number as that was not related to the case. What I can conclude is the whole progress is very complicated and not easy to handle, consumed me many days, many business hours...etc Thank you

Hi Prince,

Please refer to below link which explains how to claim preferential rate of duty and proof is required, it covers the exporter requirements.
Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU
If trader believes that goods qualify for preference and duty was overpaid they can look in claiming a repayment, more information on below link.
How to apply for a repayment of import duty and VAT if you've overpaid (C285)

Thank you.