02 Apr 2019

A question about : Parcelforce 'Clearance fee'

I've recently ordered an item of computer diagnostic equipment from a manufacturer's website in the USA as it seemed cheaper than buying it from a UK reseller. I did the dollar to Sterling conversion, add VAT and it came out about Ј13 cheaper overall (Ј135+VAT including delivery versus Ј175.99 inc. VAT).
However, when I received an invoice from Parcelforce I hadn't bargained for the addition of a 'Parcelforce Clearance fee' of Ј13.50 which reduced my saving to 22p!
I did a Google search on this fee and there seem to be a few mentions of it on eBay's forums and this interesting article on The Guardian web site:
https://www.guardian.co.uk/post/story...875711,00.html
It looks like there is no way of avoiding this fee (at least until PostComm do something about it), so be aware of it if ordering goods from outside the EU.

Best answers:

  • You were lucky. As well as VAT, you could be hit with customs duty. Also, the VAT is calculated on value of goods plus shipping and insurance etc. plus customs duty! Added to which, the agent which handles the incoming mail will add their admin fee.
    HM customs info here...
    https://customs.hmrc.gov.uk/channelsP...HMCE_CL_001454
  • I just came across this website which may be of some use to you...
    https://www.volkszone.com/VZi/showthread.php?t=351900
  • It does not matter which courier was used they all charge for the service, some might do it up front though, so shipping cost would be more expensive to begin with. Basically you are importing goods, and so have to pay the extra costs - rightly or wrongly that is how it works by buying goods out side of the EEC.
  • Nice one smiley_mum. Never thought to challenge the ParcelFarce admin fee.
  • When you purchase an item from outside of the EU you are expected to check that the item you are purchasing can legally be imported to the UK and be aware of any additional costs that you may incur with your purchase.
    Because HM customs office makes available these details on their website and by telephone it is assumed that you are aware and agree to these costs before placing an order from outside of the EU.
    Quote:
  • I did it too.. my first ever purchase on ebay, my first ever purchase from the US.. contacted postwatch to check that these 'clearance fees' are legal and they are apparently.. Parcelforce also claimed (a very rude postal person on the phone) that this fee is charged to them by the H&M Custom in order to hand to them the parcel for them to deliver hence why they are charging us.. I suppose it makes people think twice about ordering goods that are less than 30% cheaper than in the UK. That's the way it works if it is less than 30% it probably is worth it otherwise not.
    Thanks
  • I had a problem years back with a game I ordered off ebay. Its a collectors item, and old video game. The guy wrote the value on the package like this:
    $5oo
    and they thought it was $500 or $50 when in fact he meant
    $5.00
    I had to pay £50 in charges but amazingly I got a cheque from customs about 2 weeks later after I had sent them the documentation they wanted...
  • Well - don't we have some sceptics?
    When an inspector from Morriston Police phoned Parcelforce HQ, they gave the answer that they (Parcelforce) work as agents on behalf of H.M. Customs. Now, this is a police inspector they have told this to - so it must be true, eh?
    I spoke to the legal department of H.M Customs yesterday (Friday) and the nice lady there said that as far as she knew, Parcelforce acted as agents for the public, delivering mail. She did not know of any agreement or law that excluded them from section 104 of the Postal Services Act and she knew of no 'agency' agreement with them that would allow Royal Mail to hold our parcels in lien.
    To make sure, she has passed it on to her policy department and they will be getting back to me Monday or Tuesday.
    It's looking bad for Parcelforce :-)
  • Hmm a couple of thoughts, pointing in different directions.
    Are Parcelforce a postal operator at all? I thought the point of hiving them off was to free them from some of the shackles of being such. If yes, are TNT, DHL and the like, postal operators?
    And lets all start posting all our mail unstamped. It will be illegal for the Post Office to refuse to deliver it, and the amounts will be too trivial for them to bother to go to the small claims court about it.
    Somehow I think there is something OP has missed. Maybe the bit that says 'without reasonable excuse', maybe there's something somewhere else.
  • I'm not disputing we should pay VAT but why should I pay Parcelforce for administering my payment on my behalf? I would rather pay HM Government extra than have some fat cat raking in a minimum Ј8 every time for pressing a couple of keys on a keyboard.
    What you are advocating is a private company acting as a tax collector and holding your goods to ransom for the privilege.
    Perhaps if you took some time to read sections 104 and 105 of the Postal Services Act 2000, you may also become enlightened :-)
    I don't think (and neither do HM Customs and the Police) that the Government would make such a clear law only for it to be stomped on by Parcelforce PLC !!
  • when i order items from usa or china i make them send the item as a gift so i dont get any import tax or fees, but not all companys will do this, but the ones i use do so im lucky
  • Custardy - I have received notification from Customs in writing that as far as they are concerned, the Parcelforce Clearance Fee is not covered by their legislation, therefore, as far as they are concerned, the parcel cannot be held in lien for charges owed to Parcelforce.
    I telephoned Sean O'Hara of PostComm who enforce the Postal Services Act 2000, their legal department challenged Royal Mail to prove in law that they can hold parcels in lien for their fees. That was two weeks ago and PostComm still have no answer from them.
    The point here is that it looks like Parcelforce (Royal Mail) are breaking the law regarding holding parcels in lien for their charges.
    Within two weeks I will know for certain whether there is legislation allowing them to do this, the police at Morriston are awaiting my phone call to proceed with a case against the worker who held back my parcel, even though I had my Ј10 note out to pay the VAT.
    If it is found that Parcelforce have broken the law, I will carry forward the prosecution which will, I hope, send ripples through every depot in the country and allow people to dispute and not pay the clearance fee, if they wish.
  • right,im sure the police are standing by on that one.
    if that be the case then i have no problems with it but im laughing at your case against an RM/PF worker.
    remember PostComm control RM's pricing set up so its hardly the 1st they have heard of this!
    so if you get the go ahead and the present system is ended.
    your parcel will stop at customs
    a customs charge will be issued
    you will have to pay for this
    now the interesting point for you is the postage ends at customs as they pull it from the mail system.
    so you end up paying postage/courier costs again
  • But when a company collects VAT from a customer they don't add on aa extra charge for having done so.
  • as ive said if it came to setting a presidence(spelling?)then i would assume RM would remove the service.
    remember they pay the fee and bring the item to your local office.
    if its removed from the mail system then that is the end of its journey,RM would have no obligation to forward it on after any customs charges were paid.
    so you would have to pay a courier to forward it on,possibly paying customs directly using the courier they choose ot use at the rate they set
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