Customs Dispute

SauRoNZA

SauRoNZA

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Figured I would ask here before going down an endless rabbit hole.

What’s the best method with the greatest chance of success to dispute a customs invoice?

I imported an exhaust which had duties applied which it shouldn’t have, but beyond that the VAT calculation also seems way off on 110% of the value.

Unless the VAT is calculated on the original value + duties + 10%? But even so it’s wrong for the duties being there in the first place.

What are my options? Is it worth the bother? Will I ever win?
 
SauRoNZA said:
Figured I would ask here before going down an endless rabbit hole.

What’s the best method with the greatest chance of success to dispute a customs invoice?

I imported an exhaust which had duties applied which it shouldn’t have, but beyond that the VAT calculation also seems way off on 110% of the value.

Unless the VAT is calculated on the original value + duties + 10%? But even so it’s wrong for the duties being there in the first place.

What are my options? Is it worth the bother? Will I ever win?
Click to expand...
Original value (converted at the time of calculation by Customs) + shipping + duties + VAT (on the entire lot).

It's absurd.

I've just been nailed too. I imported a brake master cylinder for a classic vehicle. It is not manufactured or supplied in this country. The actual purchase cost was around R4,5k. After two weeks with Customs, I have it in my hands, having outlaid a total of around R10,6k.
 
Merlin said:
Original value (converted at the time of calculation by Customs) + shipping + duties + VAT (on the entire lot).

It's absurd.

I've just been nailed too. I imported a brake master cylinder for a classic vehicle. It is not manufactured or supplied in this country. The actual purchase cost was around R4,5k. After two weeks with Customs, I have it in my hands, having outlaid a total of around R10,6k.
Click to expand...
Wait, vat on a shipping cost..?????
 
Merlin said:
Original value (converted at the time of calculation by Customs) + shipping + duties + VAT (on the entire lot).

It's absurd.

I've just been nailed too. I imported a brake master cylinder for a classic vehicle. It is not manufactured or supplied in this country. The actual purchase cost was around R4,5k. After two weeks with Customs, I have it in my hands, having outlaid a total of around R10,6k.
Click to expand...

Definitely shouldn’t include the shipping cost.

I have their total declared base value on the manifest, the rest of it just doesn’t add up.

But I’m damn sure there shouldn’t be duties on an exhaust and I suspect the sender didn’t make it clear so it got tagged as “Other”.

They never checked it physically, that I’m sure of.
 
You need to check your documentation.

The first point is to ensure that the invoice is clear and makes a distinction between the cost of the goods and the cost of the freight, insurance etc as applicable. Where the cost of the freight cannot be determined separately from the cost of the goods it will be included in the calculation. See excerpt from a SARS directive:
"However, if the actual costs paid are not available or cannot be verified, costs for international freight and insurance will not be excluded from the transaction value:"
The VAT calculation does indeed carry a 10% "premium" so the calc should be:
Foreign currency cost of goods x R.O.E x 1.1 x 0.15 = Import VAT

If your invoice is clear in this respect and the freight costs are identifiable you should be able to request a correction. EDIT: it may be that SARS requires that the costs of the shipment be verified beyond just the invoice - for example for ocean freight imports lately they have been requesting a copy of the invoice or statement from the shipping line to the overseas shipper.

You do not mention how the shipment was cleared. If it was cleared by a courier company or other clearing agent for example you should be able to request the customs worksheet from them. On the customs worksheet you would be able to identify the HS code used to classify the product - likely 8708.92.20 or 8708.92.90 - in which case 20% duties would apply unless accompanied by a declaration of preferential origin such as EUR.1. Just because something is not manufactured here it does not automatically make it duty-free.
 
Merlin said:
Original value (converted at the time of calculation by Customs) + shipping + duties + VAT (on the entire lot).

It's absurd.

I've just been nailed too. I imported a brake master cylinder for a classic vehicle. It is not manufactured or supplied in this country. The actual purchase cost was around R4,5k. After two weeks with Customs, I have it in my hands, having outlaid a total of around R10,6k.
Click to expand...
Attached scans of the documentation.

Shipped in via UPS SCS.

Their VAT calculation is a little different to mine. Not sure where the discrepancy lies.

Regardless, the costs are ridiculous.
 

Attachments

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ScottulusMaximus said:
On what basis?

There is duty payable.
Click to expand...

Checking the schedules it indicates 0%.

Unless you can show me otherwise? Then I’ll just let it go.

Also unless it changed in recent years I have never been charged customs on exhausts historically.

VAT yes. No problem there.

They’ve processed it under 9404.29 - Of Other Materials which definitely isn’t right.
 
You are the one that should be declaring the tariff code, so what did you endorse on the clearing instruction ?
 
SauRoNZA said:
They’ve processed it under 9404.29 - Of Other Materials which definitely isn’t right.
Click to expand...
The tariff 94.04 is for :


Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or
internally fitted with any material or of cellular rubber or plastics, whether or not covered
 
SauRoNZA said:
Motorcycle, but would imagine they don’t really make that distinction.

Interesting then it must have changed in recent times.

Can you point me to the code? Should it be 10%?
Click to expand...

Should be under motorcycle parts then, no duties.

Query the clearance with your courier and tell them to fix it.
 
Check tariff code 87.14 in part 1 chapter 1-99.
Everything for motorcycles is listed as duty free.
 
The_Traveller said:
The tariff 94.04 is for :


Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or
internally fitted with any material or of cellular rubber or plastics, whether or not covered
Click to expand...

Yea I know that.

Definitely not for exhausts.
 
ScottulusMaximus said:
Should be under motorcycle parts then, no duties.

Query the clearance with your courier and tell them to fix it.
Click to expand...

That’s the sticky part.

There ended up being no courier but the Italian Post Office instead and I’m actually pretty damn astounded it went through out local post office and arrived in the estimated time and perfectly in one piece.

So I’ll need to take it up with customs directly and therefore the thread.
 
@SauRoNZA You're forgetting the important bit here. We were promised a video of the exhaust installed, and it seems like you have the exhaust now, but still no video.
 
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