Advise needed: Import and GST issue

EasyEnemy · Feb 28, 2018

Hi all,

I need advise on import and GST related issue. Recently, I purchased item from Japan shipped via Fedex, I paid less than SGD$ 400 for everything including shipping. I received a tax invoice from Fedex asking me to pay GST, with a CIF value of SGD $567.21. I asked them why that amount, Fedex gave me the breakdown as below attached picture. From the breakdown, value of my order is only SGD $321.70 and the added IATA to the value (Yen 850 x 24 kg = SGD $245.51). IATA according to Fedex "this means that in the calculation of the freight- broker has to get the IATA FREIGHT RATE for the country of origin multiply to the WEIGHT of the package then multiply to the country of origins exchange rate to Singapore dollar. "

This is the first time I get slapped with IATA freight rate added to my CIF. Anyone else experienced having IATA freight rate added to my CIF. I don't really believe Fedex as this is so random/inconsistent (only this shipment). Neither the seller or I paid SGD $245.51 worth for freight, and then why is this amount added in for calculation. The question is the practice of adding IATA freight rate to CIF common? right, real and/or valid? Hope that someone could advise on this practice of adding IATA freight rate to CIF. Is there any explaination, documentation, guideline, price list or a way to mitigate this charges in the future?

Thank you.
Tin

mynickname · Feb 28, 2018

Can you fix the embed?

EasyEnemy · Feb 28, 2018

mynickname said:
Can you fix the embed?

fixed, thank you.

mynickname · Mar 1, 2018

If you're absolutely sure that that CIF paid was less than 400, write in to customs and apply for refund.

limster · Mar 1, 2018

from your photo, the package is 24kg, you telling us that Fedex shipping for a 24kg package from Japan to Singapore is not $245?

BBCWatcher · Mar 1, 2018

Singapore Customs has a rule for business traders that they can use a flat shipping rate (when shipping is included in the purchase cost) of 19% from Japan. That would still get you below $400, though, so good enough. Maybe point this out to them and ask them to recalculate using the Singapore Customs flat rate? I don't know why they're using the IATA rate either.

EasyEnemy · Mar 1, 2018

Thank you all for the reply,

BBCWatcher said:
Singapore Customs has a rule for business traders that they can use a flat shipping rate (when shipping is included in the purchase cost) of 19% from Japan. That would still get you below $400, though, so good enough. Maybe point this out to them and ask them to recalculate using the Singapore Customs flat rate? I don't know why they're using the IATA rate either.

I think the link you attached will be quite a powerful point in my argument.

limster said:
from your photo, the package is 24kg, you telling us that Fedex shipping for a 24kg package from Japan to Singapore is not $245?

Japan only charged me like 5500+ yen for shipping but don't know why they never including it in the commercial invoice.

mynickname said:
If you're absolutely sure that that CIF paid was less than 400, write in to customs and apply for refund.

Right now I am liaising with Fedex, I think the fault is with Fedex. If that fails then maybe I will talk to custom.

henrylbh · Mar 1, 2018

You only need to pay gst on your taxable goods and services as charged, unless the charges are deliberately suppressed.

member1 · Mar 1, 2018

fed is charging u the 24kg shipping fee too

henrylbh · Mar 1, 2018

EasyEnemy said:
Right now I am liaising with Fedex, I think the fault is with Fedex. If that fails then maybe I will talk to custom.

If fedex decided to charge you for local delivery, you kena. GST is secondary.

EasyEnemy · Mar 1, 2018

henrylbh said:
If fedex decided to charge you for local delivery, you kena. GST is secondary.

Aiyo, don't scare me leh. Japan side should considered already paid for delievery, fedex can double charge for one shipping one meh?

member1 said:
fed is charging u the 24kg shipping fee too

They never really charge me the 24 kg shipping but added in to GST calculation.

henrylbh · Mar 1, 2018

EasyEnemy said:
Aiyo, don't scare me leh. Japan side should considered already paid for delievery, fedex can double charge for one shipping one meh?

They never really charge me the 24 kg shipping but added in to GST calculation.

You got a tax invoice. You sure they not charging you delivery? If seller bears fedex charges, you still need to bear the gst.

limster · Mar 1, 2018

EasyEnemy said:
They never really charge me the 24 kg shipping but added in to GST calculation.

the problem seems to be that your commercial invoice didn't state the shipping charge. so Fedex had to add the actual shipping charge to it in order to calculate GST.

remember that just because you get a goods or service for 'free' doesn't mean its not taxable at its actual value. someone from overseas mail you a rolex watch for your birthday, you have to pay GST on it...

EasyEnemy · Mar 1, 2018

limster said:
the problem seems to be that your commercial invoice didn't state the shipping charge. so Fedex had to add the actual shipping charge to it in order to calculate GST.

remember that just because you get a goods or service for 'free' doesn't mean its not taxable at its actual value. someone from overseas mail you a rolex watch for your birthday, you have to pay GST on it...

I kind of understand. somehow the freight rate feel very inflated to me but then I'm a noob at this kind of rate.

henrylbh said:
You got a tax invoice. You sure they not charging you delivery? If seller bears fedex charges, you still need to bear the gst.

Japan charge me for shipping as I mentioned earlier around 5500+ yen. I know I have to bear GST if it occurs. I have to pay GST because Fedex used the inflated IATA freight rate in GST calculation. Real shipping fee I paid is around SGD $60+, but Fedex use $250+. if you compare isn't it a huge difference. As I mentioned earlier I know nuts about freight rate and stuff, I only know what the Japan side charge me, maybe the IATA freight rate is standard. Assuming IATA freight rate is really the standard, people/business who ship tonnes will die paying.

EasyEnemy · Mar 1, 2018

I don't think Fedex have anything in their site along the line that states that they use IATA freight rate if no freight rate it present for CIF declaration. I could be wrong if anyone know please point me there. Thank you.

henrylbh · Mar 1, 2018

You got invoice that shows CnF and that you paid that amount and nothing more or less?

mynickname · Mar 1, 2018

I don't think you should waste time with FedEx.

Just bring your case to customs as you're the one being levied the gst.

limster · Mar 1, 2018

EasyEnemy said:
I don't think Fedex have anything in their site along the line that states that they use IATA freight rate if no freight rate it present for CIF declaration. I could be wrong if anyone know please point me there. Thank you.

Fedex won't charge only 5500 yen /S$68 for shipping 24kg....

EasyEnemy · Mar 1, 2018

limster said:
Fedex won't charge only 5500 yen /S$68 for shipping 24kg....

Wow, The Japan seller very good to their customer.

mynickname said:
I don't think you should waste time with FedEx.

Just bring your case to customs as you're the one being levied the gst.

The GST tax invoice is from Fedex not singapore custom. In this case i still go straight to singapore custom?

mynickname · Mar 1, 2018

EasyEnemy said:
Wow, The Japan seller very good to their customer.

The GST tax invoice is from Fedex not singapore custom. In this case i still go straight to singapore custom?

If I'm not wrong it's not an invoice but get certificate. Just call customs.

Advise needed: Import and GST issue

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