After speaking to JD hotline, UPS hotline and SG Customs, I managed to find out the root cause to what went wrong. Why such unreasonable practice has taken place. And what can be done to apply for GST refund.
- contrary to what a few of you believe that JD declared the price which is before vouchers, this is not true. The amount JD declared is exactly what was charged to us to our credit card converted from CNY to USD. This part handled by JD is correct.
- BUT what went wrong is the lazy ******* at JD handling singapore shipments, instead of inputting that amount in the Custom declaration form's "Total value" field aka CIF (which stands for cost of item, insurance and freight), that bugger simply input that total amount as "cost of item" while leaving the insurance and freight charges fields blank. This is the first problem that started this chain of events.
- what we paid to JD as part of the total price in our order already included insurance and freight, that is the 111RMB which is direct international shipping to sgp. Period.
- according to UPS, when sgp customs did random check and pick up our parcel and finds out that insurance and freight charges are left out, they will fill it in based on a standard price list of the various shipping companies, to arrive at a new total amount. If this amount is over SGD$400, than GST charges will be informed to UPS brokerage dept which is suppose to liaise between sgp customs and we the customers. And this is where the second problem arises.
- That is, due to the first mistake JD made by declaring the amount in the wrong field, UPS simply goes with the flow so that they can earn that extra $15 admin charge so called disbursement fee. What UPS should have done is to check the custom declaration form's filled-in amount against the JD invoice enclosed inside the parcel and revert back to SGP custom that total declared amount already included all charges but they failed to do that.
Yes they give excuses that they will not contact customers whose GST payable is below one thousand dollars (ridiculous!) or claimed that the JD invoice enclosed in the parcel does not shows the breakdown or contains any wordings that indicated insurance but we all know it is apparent some entity just want to take advantage of this situation, exploit this loophole and benefit from that extra earning. Imagine this is quite ludicrous earnings when you take $15 times tens of thousands of singapore orders. What unscrupulous biz practice!
According to SGP customs, we'll have to raise a dispute to UPS brokerage dept on the GST charge and apply for GST refund through UPS by providing (i) the JD invoice (print from the web version of JD.com website, not the app version) which clearly shows the breakdown already included all shipping charges, and also (ii) our credit card statement showing charges in SGD to prove it is way below SGD$400.
Note complaining to JD is useless and they will not own up to their mistake.
The next step is to raise dispute to UPS but if that doesn't work, we can write directly to
customs_refund@customs.gov.sg to apply for the refund on our own.
See
https://www.iras.gov.sg/IRASHome/GST/Consumers/Consumers-Importing-Goods-into-Singapore/