IOSS PDDP - duty fees are not calculated correctly. This urgently needs fixing.
When applying postage to an order in Click & Drop. The options are not treating the new 3 Euro duty fee the same.
You are presented with three options when applying postage.
Option 1 - I will pay any taxes, duties & fees with Click & Drop. (PDDP).
Option 2 - Taxes have been prepaid via IOSS. I will pay any duties & fees with Click & Drop. (IOSS PDDP).
Option 3 - The recipient will pay any taxes, duties & fees. DDU.
Option 1 and 3 and working perfectly. Option 2 is not and it needs fixing as a matter of emergency.
Option 1 adds the duty fee based on how many different HS Codes are in the order, regardless of how many items are in the order. 5 items with matching HS Codes will result in 1 duty fee being added. This is correct.
Option 2 adds the duty fee based on how many items are in the order regardless of them having the same HS Codes. 5 items with matching HS Codes will result in 5 duty fees being added. This is NOT correct.
Here is my example order and what happens when trying to pay.
Item 1 = £13.00
Item 2 = £14.00
Items Subtotal: £27.00
Shipping: £15.50
Finland VAT (25.5%): £10.84
Order Total: £53.34
Option 1 - I will pay any taxes, duties & fees with Click & Drop. (PDDP).
International Tracked
£9.80
£0.00
£9.80
Customs Duty Fee
£14.49 (This amount is correct. It is the order tax and one duty fee.)
£0.00
£14.49
Customs Handling Fee
£1.00
£0.00
£1.00
Total postage cost
£25.29
£0.00
£25.29
Option 2 - Taxes have been prepaid via IOSS. I will pay any duties & fees with Click & Drop. (IOSS PDDP).
International Tracked
£9.80
£0.00
£9.80
Customs Duty Fee
£5.11 (This amount is wrong. It has created two duty fees instead of one.)
£0.00
£5.11
Customs Handling Fee
£1.00
£0.00
£1.00
Total postage cost
£15.91
£0.00
£15.91
As you can see, the Customs Duty Fee of Option 2 is incorrect. It has added two duty fees instead of one. They should both only add 1 duty fee, with the only difference in Option 1 also adding Finland VAT (25.5%): £10.84.
I am signed up to an IOSS service. I prepay the EU tax, but this is making the whole system unworkable now. You are essentially stealing by incorrectly adding 3 Euro to every single line. Even though I have signed up to an IOSS service, I have to use Option 3 (DDU) now until you fix this issue.
Please fix this as a matter of emergency. It is an emergency. It is people's livelihoods you are breaking.
J S
shared this idea
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J S
commented
Why aren't the Royal Mail clowns replying?
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J S
commented
Reply to RWAP.
It's Royal Mail. Duty is correct if you choose to pay the EU tax to Royal Mail when applying postage. They correctly identify that the HS Codes match and only apply the Duty based on HS Codes. If you select prepay IOSS Tax, then they add duty per line item. This is shown in my example.
What is worse now is, on the apply postage screen, they are telling you to combine your products into one line if they have the same HS Code. Which I am pretty sure is a breach of customs. I sell very similar items. All the same HS Code, but variants which should not be combined into the same line. Different products, different weights, different prices. Royal Mail is asking us to break our records and customs forms because they are lazy and inept.
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RWAP
commented
The EU customs duty is supposed to be paid on each HS code - so I agree if you send two items the same there should only be one fee, if you send two different items, but with the same HS code, again there should only be one fee.
The problem is we do not know if this is the Royal Mail systems having implemented this incorrectly, or the EU customs system!
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J S
commented
Click & Drop is now telling me to combine items to avoid paying multiple customs duties because they have the same HS Code. This is complete nonsense. They are not the same items. Your entire products upload system will be broken because of this. Two items can be the same HS Code and be practically the same type of product but differ in weight and price and name. Fix your garbage system and fire what tool made this mistake. This is unworkable and is going to cost me thousands in sales. I will have to cancel all orders and refund customers unless you fix this.
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J S
commented
You are even trying to charge VAT on Etsy and Ebay orders when they have been prepaid directly to Ebay and Etsy. This is an absolute shambles or ineptitude. I am embarrassed for you.