Tax and Duty to USA New Options Offered

[Rachel]

Hello,

I have recently been presented by Fedex an option to include tax and duty when booking in our shipments. This means that we could include all taxes at the time of ordering. Effectively the price you would see at checkout is the price you pay.

Currently tax is removed from your order at checkout (reducing the order by 20%) and is then due upon receipt of the parcel paid. This is presented as an invoice from Fedex.

I know there are a lot of members from the US and Canada and primarily this would effect you. I'm interested to hear if you think this is a good idea. Any feedback most welcome.

[IrishSean]

I am in favor of up-front pricing. After you make your fortune in kilts, will you please move on to the airline business?

[artificer]

In all honesty if it's possible I avoid anything international that ships FedEx or UPS, both as a customer and as a vendor.

Both of these two shippers act as their own customs brokers (I believe DHL does as well). On the face of it, that is a good thing. The problem is that the end customer usually
gets assessed ~$50US/£30GBP for this "service", in addition to the actual shipping fees AND any tariffs/taxes due.

I'd much rather use Royal Mail/Canada Post/USPS. In almost every case they are as quick as FedEx, in my experience they are more reliable, and in almost EVERY case they are less expensive (and that's before the brokerage fees).

I could tell you horror stories about Canadians who purchased $15US worth of repair parts for scuba regulators only to end up with a $37 customs&brokerage bill.

ith:

[Fergus Macdonald]

In all honesty if it's possible I avoid anything international that ships FedEx or UPS, both as a customer and as a vendor.

Both of these two shippers act as their own customs brokers (I believe DHL does as well). On the face of it, that is a good thing. The problem is that the end customer usually
gets assessed ~$50US/£30GBP for this "service", in addition to the actual shipping fees AND any tariffs/taxes due.

I'd much rather use Royal Mail/Canada Post/USPS. In almost every case they are as quick as FedEx, in my experience they are more reliable, and in almost EVERY case they are less expensive (and that's before the brokerage fees).

I could tell you horror stories about Canadians who purchased $15US worth of repair parts for scuba regulators only to end up with a $37 customs&brokerage bill.

ith:

Agreed!

Difficulty with Royal Mail is that the maximum package size is 2kg and the fastest service is around 3-4 days. FedEx more often than not is next day to the US so both are can be useful.

[artificer]

Agreed!

Difficulty with Royal Mail is that the maximum package size is 2kg and the fastest service is around 3-4 days. FedEx more often than not is next day to the US so both are can be useful.

I had no idea that there was such a restrictive weight limit for Royal Mail! Is that for a particular class of post? I've gotten boxes from a pewter caster that I KNOW were over 2kg and came RM Small Packet.
Is it a new limit?? I learn something new every day.

The weird thing is that limit certainly doesn't exist for incoming product to the UK- I've shipped more than a few packages (usually horsehair sporrans & full belt sets) that have been over that limit.

You're right though, if someone needs Overnight or 2 day international FedEx is probably the only game in town.

I have to admit Fedex look after us well.

They are the cheapest option for us shipping across the Atlantic for larger packages, and reach most zip codes the very next day. I find Royal Mail to take on average 5 working days and unfortunately experience some much longer delays.

That $30 broker charge for me seems a little steep. I've been charged a similar broker fee for parcels delivered by Royal Mail. By building in the taxes at this side I'd expect both customer and ourselves to avoid broker fees.

Ah, that's a different animal all-together. If all fees (taxes, shipping, brokerage) are upfront then it would be an excellent option to offer!

@Fergus- Thank you!

ith:

[Fergus Macdonald]

I had no idea that there was such a restrictive weight limit for Royal Mail! Is that for a particular class of post? I've gotten boxes from a pewter caster that I KNOW were over 2kg and came RM Small Packet.
Is it a new limit?? I learn something new every day.

The weird thing is that limit certainly doesn't exist for incoming product to the UK- I've shipped more than a few packages (usually horsehair sporrans & full belt sets) that have been over that limit.

You're right though, if someone needs Overnight or 2 day international FedEx is probably the only game in town.

ith:

Yeah unfortunately so. As far as I'm aware, it's always been 2kg for Airmail and Surface Mail (boat).
http://www.royalmail.com/personal/in...ional-standard

Over 2kg they send you to ParcelForce which used to be Government owned, but are now a private courier like FedEx/DHL etc.

The only exception is printed papers, which you can send up to 5kg. They're also restrictive on the size of box you can send, with the length, width and depth combined being no more than 90cms (35").

[Rachel]

I have to admit Fedex look after us well.

They are the cheapest option for us shipping across the Atlantic for larger packages, and reach most zip codes the very next day. I find Royal Mail to take on average 5 working days and unfortunately experience some much longer delays.

That $30 broker charge for me seems a little steep. I've been charged a similar broker fee for parcels delivered by Royal Mail. By building in the taxes at this side I'd expect both customer and ourselves to avoid broker fees.

[Glen]

I have to admit Fedex look after us well.

Can't say they work for the end consumer...

Last package was a brokerage fee of 28.25 CDN. No taxes, on most products from almost anywhere. The fee was just for the custom brokerage which the government otherwise provides for free. FedX, as opposed to UPS, also works only during the day, with one delivery attempt only, thereafter one has to drive to their outlet, in one industrial part of the city not close to where anyone lives, and before the end of work day for many people.

UPS delivers into the evening, with residential based routes and will make more than one attempt.

Choice for me is, in order, Royal Mail/USPS, then UPS and last FedX. I look for products from suppliers that mail first, then used alternatives only when not available...

[cck]

I have had excellent service from Royal Mail. If Fed Ex is involved, I'd look for another place to make my purchase.

[Fergus Macdonald]

How about other couriers like DHL?

We use FedEx because they're so fast (next day for most deliveries).

Equally we could use DHL or UPS who might be a little slower.