The new New Flat Rate International Shipping

[Nimo]

I read about the new New Flat Rate International Shipping via UPS.

How comes it has became more expensive to ship it to Sweden then to the rest of EU?


Is there some way to have the things shipped by the old rate which was $35 instead of the new current $55?

[Darcy]

How comes it has became more expensive to ship it to Sweden then to the rest of EU?

I'm not sure why Sweden is more expensive than the rest of the EU: that is a decision that UPS made.

Unfortunately, while Express Mail (the old option for $35) was less expensive,
it didn't offer the level of service that we feel our customers deserve. Once Express Mail packages leave the U.S. and enter the country they are intended for, they can fall into the hands of any of a number of private contracters who may or may not deliver the package on time, or deliver it at all.

UPS Expedited or Express is absolutley 100% guaranteed to arrive in 2-5 business days. You'll have to pay the same taxes/duties imposed by your country on receipt of the package that you would have had to pay if the package was shipped via Express Mail, but there are no brokerage fees: zero, zilch! You'll receive a tracking number that will actually show the progress of your package. It's flat rate shipping: if you and your friend both buy Empire Builders, you can split the cost of shipping, because it will be the same price whether you order one or two bags. It's better deal and experience all around.

FYI, UPS International rates are as follows:
Canada $25.00
United Kingdom $35.00
Japan $35.00
Italy $35.00
Luxembourg $35.00
Monaco $35.00
Netherlands $35.00
Singapore $35.00
Taiwan $35.00
Ireland $35.00
Hong Kong $35.00
Germany $35.00
France $35.00
Belgium $35.00
Mexico $38.00
Korea (South) $45.00
India $45.00
Australia $45.00
Austria $55.00
Bahamas $55.00
Bermuda $55.00
Denmark $55.00
Finland $55.00
Greece $55.00
Iceland $55.00
Liechtenstein $55.00
New Zealand $55.00
Norway $55.00
Portugal $55.00
Spain $55.00
Sweden $55.00
Switzerland $55.00
Turkey $55.00
Israel $63.00

[beancurd]

UPS Expedited or Express is absolutley 100% guaranteed to arrive in 2-5 business days. You'll have to pay the same taxes/duties imposed by your country on receipt of the package that you would have had to pay if the package was shipped via Express Mail, but there are no brokerage fees: zero, zilch!

For what it's worth, I think you need to update your shipping page as it and the above statement aren't 100% accurate. The shipping FAQ says you "ship all international orders via UPS ... Brokerage fees are included in our price for UPS International Expedited. You won't pay any extra brokerage fees upon receival of your package (though you may be asked to pay taxes/duties, which you would be regardless of the shipping carrier.)"

In fact, UPS in the UK charges "Brokerage Surcharges" of £11.00 (about $16-20), listed as such and a separate line item to taxes/duties.

Further, I'll take another chance to suggest offering customers the choice of not using DHL for UK shipments. They are the worst of the big presences (FedEx, DHL, UPS, USPS via Parcelforce) here. Unlike the others, they won't deliver until you pay the duty and brokerage. You don't know how much to pay until the delivery. For those who have a collection porter, this means the first delivery is always aborted. Fedex, DHL, and Parcelforce, in contrast will deliver the goods then invoice you for payment of duty. For single workers like me this means spending 2.5 hours going to and waiting around at a UPS depot. In retrospect, maybe I could have telephoned in on the day of delivery and attempted to pay the unknown amount via credit card. And UPS brokerage charges are high. Fedex charge £8.50. DHL charge 2% of the declared value. Something to consider

[Sco1t]

Good point beancurd.

I did not realise this at the time and have paid UPS an £11 brokerage fee for each of my purchases.

Darcy should be made aware of this fact as Tom Bihn might be paying extra for a service that UPS are not in fact providing.

Regards,
Scott

[Darcy]

We're meeting with our UPS rep tomorrow - we'll show him your posts and ask him about this. Thanks for bringing it up. FYI - FedEx and DHL are significantly more expensive than UPS. And, unfortunately, USPS packages cannot be reliably traced. That's why we ship UPS.

[Sco1t]

Hi Darcy,

Whilst you have your UPS rep there can you ask them why UPS in the UK put the shipping charge down as GBP 50 and not the USD 40 that Tom Bihn pays.

I have questioned this with UPS UK and they said that they would need to see an invoice detailing the shipping charge. When I pointed out that they were part of the same company and should be able to check themselves, they responded with the statement that it was confidential between UPS US and Tom Bihn!

The amount of customs duty paid increases substatially as a result.

All the best,
Scott

[beancurd]

Hi Darcy,

The amount of customs duty paid increases substatially as a result.

I've pointed this out on the forum last time I had shipping. If shipping is included in 'Declared Value' then you pay VAT/Duty on the shipping, which is silly. Last time TB included the shipping charge in the declared value. VAT/Duty can be as much as 40% of the full value and therefore 40% of the shipping cost. Declared value should be value of goods only.

This time, thankfully, I had two pieces of good news. 1) The declared value was the value of the goods only, thanks to someone at Tom Bihn. 2) HMRC decided no Duty was payable, only £28 VAT. (Unfortunately, the £28 was 17.5%VAT of the USD amount, not the GBP equivalent - this is HMRC's problem though)

My guess on brokerage is that UPS promise the US merchant not to charge a brokerage fee for the shipping. But the brokerage charge we pay in the UK is brokerage for them dealing with HMRC, not a brokerage for shipping effort.

[Sco1t]

Hi Darcy,

I hope you are well after your Thanksgiving celebration.

What did your UPS rep have to say when you asked him about the issues raised in this post?

Regards,
Scott

[Darcy]

Our UPS rep will be posting a reply soon! He's waiting to hear back from his contacts in Europe.

[ChrisUPS]

UPS

Scott,

I am currently waiting for a response. Based on my estimation the VAT should have been 6.52 GPB. The $40.00 USD shipping charge is accurate. UPS UK should have been able to provide you a response of why the shipping charge was increased for VAT purposes. It it true that UPS Customer Service Reps cannot provide you with the actual rate. This is because the shipment is prepaid by Tom Bihn and due to confidentiality rules within UPS - we do not share the customers information including negotiated rates. As soon as I get the answer I will post it to the site. If a credit is due I will take care of it with you.

I appologize for the issue. Thanks for your patience.

Chris

[timothy]

This time, thankfully, I had two pieces of good news. 1) The declared value was the value of the goods only, thanks to someone at Tom Bihn. 2) HMRC decided no Duty was payable, only £28 VAT. (Unfortunately, the £28 was 17.5%VAT of the USD amount, not the GBP equivalent - this is HMRC's problem though)

That's a pretty good working over to be called *good* news! 17.5pct is quite a bit for the lion.

timothy

[Sco1t]

Hi Chris,

Thanks for the response. It is good to see action being taken.

The only issue here is that no one should be put off buying any of the wonderfully made and thoughtful products that Tom Bihn makes because of "hidden" charges.

I know that I (and now my fiance, after she stole my bag for one of her trips) would love to buy more Tom Bihn products as and when we fancy, however, the Brokerage Charge and incorrect shipping value increasing the VAT to pay is somewhat off-putting.

It is not the money at issue, as I have to admit that money is a secondary consideration and I was fully aware I had to pay both VAT and Customs Duty, rather it is the feeling of being extorted by UPS.

Cheers,
Scott

[ChrisUPS]

UPS

Scott,

Here is what I found out from the UPS UK. In the future I can fix the issue with of Delivery Charge from the Port of Entry to the Destination. The shipping charge should be included on the invoice. I am also working on reducing the disbursement fee where applicable. One correction the VAT is 17.5% not 15%, my mistake. I learn something new everyday. This has been a good exercise for me. Anything I can do within my ability to improve your buying experience with Tom Bihn I will do. Thanks for the time.

Vat and Duty charges are calculated on the value of the goods and the cost of shipping.



Value of the goods : $33.00 divided by UK Exchange Rate 1.6336 = £20.20

Cost of shipping : £24.49

Total : £44.69



Description of the goods: Shoulder Bag using tariff : 4202129990 incurring 3.7% Duty



To calculate the Duty:

£44.69 x 3.7% Duty = £1.65 ( Because the Value of the goods is below £7.00 H.M.Revenue Customs & Excise charge Zero Duty).



To calculate the Vat:

£44.69 + £6.69 (Delivery Charge from the Port of Entry to the Destination) = £51.38 x 17.5% Vat = £8.99



Explanation of the Delivery Charge:

If the shipper does not state the shipping amount on the invoice UK Customs will add on their own freight rate. When Customs use their own freight rate, they also add on the VAT value adjustment of £6.69 to each import. The VAT value adjustment is added on in order to calculate the amount of VAT due on the goods from the Port of Arrival in the UK to the final delivery address.

Thanks
Chris