Fedex Shipping to Canada. Problem! Help!

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Hello all,
I am in need on some advise.

Five months ago, I sold a set of speakers for $300 to a Canada buyer and I ship it via Fedex.

Two months ago, I receive a bill from Fedex claiming that the buyer refuse to pay the brokerage fees & tax duties and it automatically charge back to me (the seller). I received a bill of ~$70. I argue with them that they should collect the fees/duties at the time of delivery but they told me that they bill that after the fact. I gave them all the info regarding the buyer and then tell them that they should claim from the buyer again and if he refuse to pay, put him on collection agency.

Today, I receive a bill from a collection agency stating that I own fedex ~$70 and I must pay the charge back fees.

What should I do? Is that Fedex fault not collecting fees/duties at the time of delivery. Now, I am on bad credit because buyer refuse to pay?

If you have any insight, please let me know.

Thank you in advanced!

lookcool

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FedEx does bill the buyer. If the buyer doesn't pay you are then billed. This is pretty clear in their terms. Head over to the finance forum and read the FAQ on disputing collections action and negative credit report entries.

In the future. don't use FedEx (or UPS) to ship internationally. It's costly for the buyer, and in the case of FedEx may come back to bit you.

Thank you for replying. I guess I will not use Fedex International shipment anymore.
One question though.
Is that mean all international buyers will get away from paying duties and brokerage fees by refusing to pay? In other words, Fedex will charge back the duties/fees to seller and seller will get stuck with the bill.
Wow, that is so lame.

lookcool

i usually say no to international fedex/ups. but if buyer really insist on it. i ask them to pay an estimated duty/fee advance alone with payment. and of course my extimated fee is higher than whatever can possibly be. this will repel a lot annoying emails.. and if they still insist on it... then why not, since i will actually make a little money on it.

[Q]In the future. don't use FedEx (or UPS) to ship internationally.[/

Sign up for your own UPS account, and then do the following:

Use a UPS Worldwide Sevices Waybill, which is filled out by hand. Mark the prepaid box, which charges shipper for shipping and the consignee for duties and taxes. If consignee refuses to pay duties and taxes, then the package will not be delivered. Marking this box relieves shipper of all responsibility as far as duties and taxes are concerned. Also fill out and include the Declaration of Contents and Shipper's Letter of Instruction. Will speed up the process greatly.

You should be able to dispute this with the collection agency pretty easily. Read the finance forum, there's a lot of useful info.

You shouldn't have mentioned "collection agency" to FedEx at all. Usually they'll send you a few letters and if you ignore them, they'll forget about it.

"You should be able to dispute this with the collection agency pretty easily. Read the finance forum, there's a lot of useful info.

You shouldn't have mentioned "collection agency" to FedEx at all. Usually they'll send you a few letters and if you ignore them, they'll forget about it."

Well, ignore the letter is what I did. I received a letter from collection agency. It pretty much ruin my credit for a mere ~$70. <img src="i/expressions/face-icon-small-sad.gif" border=0>

I am going to file a complaint on BBB and FTC and also the president of Fedex.

lookcool

lookcool said: [Q]Well, ignore the letter is what I did. I received a letter from collection agency. It pretty much ruin my credit for a mere ~$70. <img src="i/expressions/face-icon-small-sad.gif" border=0>

I am going to file a complaint on BBB and FTC and also the president of Fedex.

lookcool

not sure what you expect them to do. you shipped something, fedex did their part. Now you owe custom so fedex is after you. fedex did nothing wrong.

dorkyden said: [Q]lookcool said: [Q]Well, ignore the letter is what I did. I received a letter from collection agency. It pretty much ruin my credit for a mere ~$70. <img src="i/expressions/face-icon-small-sad.gif" border=0>

I am going to file a complaint on BBB and FTC and also the president of Fedex.

lookcool

not sure what you expect them to do. you shipped something, fedex did their part. Now you owe custom so fedex is after you. fedex did nothing wrong.
It's not customs fees that the OP owes, it is broker fees. The customs fees, if any were applicable, were paid by the buyer, otherwise he could not have received his item. The broker fees were not paid by the buyer.

Well, I would like to follow up.

The bill is for custom duties ~$35 and brokerage fees ~$35. The part that really tick me off is the buyer said he never received any billing from fedex regarding duties and fees. (He has agreed to pay but he never know about the duties and fees.)

They simply said collection from buyer is unsuccessful; therefore, shipper (seller) need to pay.

Incidentally, I have just received another two bills from Fedex stating that collection from buyers (receivers) are unsuccesful and I need to pay those duties and brokerage fees (small ~$7 and $5). I am going to email these buyers to see if they receive any bills from fedex.

I only use fedex 3 times to ship to canada. That is 3 out of 3. Did fedex send bill to buyers at all? This is ridiculous! <img src="i/expressions/face-icon-small-mad.gif" border=0>

lookcool

This is why, when shipping to Canada, you always classify it as a gift with a value of $0 (you can insure it for more) That way there are no brokerage or customs fees.

Ratmandu said: [Q]This is why, when shipping to Canada, you always classify it as a gift with a value of $0 (you can insure it for more) That way there are no brokerage or customs fees.
Wrong. If you ship FedEx or UPS, and the item is valued over a certain amount, there WILL be broker fees. If you undervalue the item, Customs can and does revalue the item. If you mark it as having a $0 value, you cannot insure the item for more than $0.

lookcool said: [Q]Well, I would like to follow up.

The bill is for custom duties ~$35 and brokerage fees ~$35. The part that really tick me off is the buyer said he never received any billing from fedex regarding duties and fees. (He has agreed to pay but he never know about the duties and fees.)

They simply said collection from buyer is unsuccessful; therefore, shipper (seller) need to pay.

Incidentally, I have just received another two bills from Fedex stating that collection from buyers (receivers) are unsuccesful and I need to pay those duties and brokerage fees (small ~$7 and $5). I am going to email these buyers to see if they receive any bills from fedex.

I only use fedex 3 times to ship to canada. That is 3 out of 3. Did fedex send bill to buyers at all? This is ridiculous! <img src="i/expressions/face-icon-small-mad.gif" border=0>

lookcool

It is ridiculous! I got the same letter! it looks like Fedex is not doing what they should do. I emailed the buyer, and am waiting the answer. Fedex should not deliver the packages if the receivers are not paying the fees, that is what i think


I rarely use FedEx, and never for international, so I could be wrong on this. I believe someone has mentioned in a previous thread that when shipping the shipper can mark that the item is not to be released to the buyer until fees are paid. If that's the case, carefully check your shipping options next time you use FedEx for international.

drnyer said: [Q]lookcool said: [Q]Well, I would like to follow up.

The bill is for custom duties ~$35 and brokerage fees ~$35. The part that really tick me off is the buyer said he never received any billing from fedex regarding duties and fees. (He has agreed to pay but he never know about the duties and fees.)

They simply said collection from buyer is unsuccessful; therefore, shipper (seller) need to pay.

Incidentally, I have just received another two bills from Fedex stating that collection from buyers (receivers) are unsuccesful and I need to pay those duties and brokerage fees (small ~$7 and $5). I am going to email these buyers to see if they receive any bills from fedex.

I only use fedex 3 times to ship to canada. That is 3 out of 3. Did fedex send bill to buyers at all? This is ridiculous! <img src="i/expressions/face-icon-small-mad.gif" border=0>

lookcool
In your invoice, did you specified that any custom/broker fee will be buyer's responsibility? If not, buyer is never going to pay any money over and above S&H fee. It is seller's responsibility to get item delivered at buyers door with no extra cost to buyer.


sandy05 said: [Q]
In your invoice, did you specified that any custom/broker fee will be buyer's responsibility? If not, buyer is never going to pay any money over and above S&H fee. It is seller's responsibility to get item delivered at buyers door with no extra cost to buyer.
Buyers are responsible for customs and associated fees. Period.

Now, if a seller doesn't bother to let the buyer know in the auction TOS that the item will be shipped via a carrier that charges this fee, then I agree that the seller is a putz. But, if the buyer knew it was to be sent via a carrier with a broker charge, it is 100% the buyer's responsibility to pay.

this is the reason Fedex will not ship international ground to Canada unless you have an account. they get to bill you for the broker's/customs fees. if you were allowed to pay cash upfront (with the green file in lable), there is no recourse by Fedex if the buyer doesn't pay.

here's a hint. broker's fee is automatic for value over $200. you interpret what that means.



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