Process for appealing customs tariff charge on bicycle part (bicycle crank power meter)

[blorg]

Does anyone know what the process is for appealing a customs tariff decision.

 

Item was sent EMS and is at the post office. It's a bicycle (pushbike) part- specifically a bicycle crank with power meter. More exactly, a Ultegra 6800 4iiii Precision crank.

 

They have valued it correctly in THB (12,000) but are applying 30% duty. From everything I can see this should be 10% (plus 7% VAT).

 

The post office guy with the package doesn't know about customs or appealing, my only options from the post office as far as I can see are (1) pay or (2) have it sent back. This is Phra Sing in Chiang Mai. I've asked around the rest of the office and no-one knows anything.

 

It was declared as "cycle parts" with the HS code (8714.99.50) for a bicycle derailleur- which it is not, but it is a "cycle part", and they are all 10% as far as I can make out. Certainly a bicycle crank (code 8714.96.10) is 10%. From Googling various HS codes applied to bicycle power meters, they are also all 10% on the Thai customs tariff search. So whatever they classify it as, I am pretty sure it should be 10%. The impression I get is that they opened it and don't know what it is and are classifying it as a motorbike part or something like that.

 

Motorbike parts are under 8714 as well and I know many of them are 30%. This is NOT a motorbike part, it's a pushbike part. But it has the word "power" in it so maybe that is where they were going. It measures the power put in by the rider's legs.

 

There is no documentation or customs notification. Phra Sing never send me the notifications, I follow the tracking and go down there when it says "custom hold". From talking to the guy at the office I think the documentation may come later, in a few days. But even if there were, ones I have got in the past do not have reference to the HS codes or what they determined it to be, just the duty. The total due scribbled on the label is definitely exactly 30+7% though.

 

There is something scribbled beside the valuation (12,000) that looks like a HS code- it starts 8714 and then something and there is a 3 in there.

 

I have paid duty before- it has always been 10%+7% on the bicycle parts, and usually just 7% with no duty if they are electronics (like a Garmin bike GPS).

 

I have called Thai customs and they gave me an email to send to [email protected] but I think they need this "notification" form (I think this is the white form with green printing on it) that Phra Sing don't have. But maybe they will have it in a few days.

I'd have a strong preference for replies from people who have actually gone through this rather than speculation or about Thai Customs being X or Y. It is what it is.

 

My other option, which is likely, is just have them send it back. Can I volunteer to pay the shipping costs in that case? I think the original sender/seller will reject it if they are not paid. I don't mind paying these, should be minimal, it's 400g and small. I'm thinking, it might be least hassle just to get them to send it back and order the thing again and try a second time (and tell them to put down "bicycle crank" with the exact HS tariff code this time). The seller has a liberal no problem return policy for any reason including "just changed mind" so that shouldn't be a problem.

I don't need this in any particular rush, I'd prefer to save the extra on tax if I can even if it means I have to wait another month.

 

Edited August 21, 2018 by blorg

[ukrules]

Don't the official tarifs only apply if you have an import license and are a registered commercial importer ?

[tifino]

 

The relative problems behind this may be worth remembering, for anyone who wants to buy a Pedelec unit too?  

 

 

 

Using the word 'bike' instead of 'bicycle' would have added to somchai's confusion...   (the combination of  words 'motor' & 'bike' on the paperwork = more $$$ )

[blorg]

6 minutes ago, ukrules said:

Don't the official tarifs only apply if you have an import license and are a registered commercial importer ?

 I don't believe so, no. I have received plenty of other bicycle parts and they have always been charged at 10%+7% as per the HS code on the box and that tallies with the Thai Customs website tariff lookup.

 

There is a special 1% duty on bike stuff I believe that does require you to be a shop or otherwise registered but the standard 10%+7% is what is charged to regular people. I have ordered plenty of bike things, and they have all been charged 10%+7% according to the HS code. Other than the stuff that was charged only 7% as duty free electronics.

 

I am 95% sure that what they have done here is misclassified the item as a motorbike part. Using the wrong tariff code. That would line up precisely with the figure I was charged.

 

Pedelecs I know have a high rate of duty. This is not a pedelec, or a pedelec part, or in any way related. It's a crank with a sensor on it.

[harrry]

You say they are applying 30% duty.  did they say this or did you caculate it from the amount asked.

Customs is based on the value of the goods plus the shipping plus 2% insurance) * the rate

GST is based on the total calculated above * the rate.

I believe GST increased to 10% this year,

If you left out the freight I think this may be about the 30% you say they asked.

[blorg]

I think the post office mentioned 30%. It's *EXACTLY* 30%+7%, to the baht, on the value they assessed it at. It's definitely 30%. It's not "near", it's exactly that, down to the exact baht.

 

You calculate this by multiplying the assessed value by 1.1 (or 1.3 in this case) and then the result again by 1.07 for the VAT. So you pay VAT on the duty, I know this. Shipping is included already in the assessed value. The post office adds a 20B handling fee to that at the end.

 

I forgot to mention- I picked up another package today, same seller, both packages were there in the post office, arrived same time, were processed through customs in the same container within five minutes of each other, the other package was correct, 10%+7% exactly.

 

There is no GST here. VAT is 7% and has not gone up.

 

I am really pretty certain this is a misclassification after they opened it to inspect it. It's written "bike derailleur" on the packet and it's not, is another bike part. So really wondering what the process is to appeal, if anyone has done this. Customs on the phone were not unhelpful, they just need this piece of paper I don't have yet.

Edited August 21, 2018 by blorg

[tropo]

If you can't have it reassessed, then I'd let the post office send it back. It's the seller that caused the problem by mislabelling it, so he should pay return shipping. Just explain to him what happened and get him to send another with the correct label.

[blorg]

9 minutes ago, tropo said:

If you can't have it reassessed, then I'd let the post office send it back. It's the seller that caused the problem by mislabelling it, so he should pay return shipping. Just explain to him what happened and get him to send another with the correct label.

This is what I'm thinking, it might be the easiest. Return shipping won't be much, it's not large, I think maybe 100-150B. I don't really mind about paying that if it makes the whole thing smoother. The only hiccup I could possibly forsee is I think there is a lithium coin cell (CR2032) in it and I know Thai Post don't allow them in international airmail. So who knows what they do then. Just hoping someone might have actually gone through the tariff appeal process and could give me some guidance on it.

Edited August 21, 2018 by blorg

[jackdd]

http://en.customs.go.th/cont_strc_simple.php?lang=en&left_menu=menu_customs_tariff&current_id=14223132414b505e4f

 

[blorg]

45 minutes ago, jackdd said:

http://en.customs.go.th/cont_strc_simple.php?lang=en&left_menu=menu_customs_tariff&current_id=14223132414b505e4f

 

I saw that page, thanks, hoping to get some feedback from someone who has actually gone through the process.

 

>To dispute a tariff classification decision, the importers first discuss the matter with the Customs officer who has made the decision in the Customs House at the port of entry/exit.

 

For example, how to actually do this? This sounds like there is a quick informal, "just ask" the guy who made the determination to look at it again, but how to contact him in the first place. I think to be honest if it went beyond that, I would just have it sent back. But I do think it is a misclassification, so maybe it is just a matter of asking the first guy to look at it again, and explaining it is a push bike part, not a motorbike. But I don't know how to get in contact with them (I have been in contact with customs though, so maybe that is the first step).

[TGIR]

I've never had any luck with customs problems.  You are probably better off just accepting the higher value and getting your merchandise......you are only talking about a few dollars, hardly worth all the hassle of dealing with it.  I just had a fifty dollar batch of laxative destroyed because isn't on the accepted list....consider yourself lucky.

[TravelerEastWest]

If you had used DHL for example you simply provide a new invoice and they submit it for you - done.

 

With the post office the idea is the same but you need to do everything yourself.

 

You need to document the correct duty rate and get an adjustment made.

 

You can do it but it will take time an energy.

 

So it sounds like you are being overcharged about 4000 baht.

 

Is the time and energy worth it?

 

Good luck!

[blorg]

Well the other option is I can just send it back.

 

The shop is sending me a copy of the invoice, the post office I think is going to get me the customs document and I'll send these to the customs email that I already got and see what happens. I have the correct HS code for a bicycle crank,  "Pedals and crank-gear, and parts thereof : 8714.96.10    - - - For bicycles" and confirmed that is definitely 10%.

 

If it's a no, I'll just get them to return it and get a refund- the shop already confirmed that was no problem and they will refund my card when they get it back.

 

Hoping to hear from people who have gone through it. Helpful to hear about the getting an invoice, I will get the invoice for customs so.

 

3 hours ago, TGIR said:

I've never had any luck with customs problems.

What process did you attempt to deal with it? Laxatives are drugs, this is a bicycle crank, not a controlled substance.

Edited August 22, 2018 by blorg

[DJ54]

Can you get documentation from manufacture showing it use. I had a similar problem in a China once I provided documents what the part 

Is used for ...... but it took 4 trips before they changed it. 

[blorg]

19 minutes ago, DJ54 said:

Can you get documentation from manufacture showing it use. I had a similar problem in a China once I provided documents what the part 

Is used for ...... but it took 4 trips before they changed it. 

I can get the invoice, and a manual, or something explaining it. It's available in Thailand as well for that matter, I can refer them to a webpage in Thai from the Thai distributor that pretty clearly shows it's a racing bicycle part.

 

What process did you go through exactly to get it changed? Who did you contact?

[Media1]

23 hours ago, ukrules said:

Don't the official tarifs only apply if you have an import license and are a registered commercial importer ?

Correct there attempting to rob him. Refuse and demand the phone number for the customs officer

[Media1]

23 hours ago, tifino said:

 

The relative problems behind this may be worth remembering, for anyone who wants to buy a Pedelec unit too?  

 

 

 

Using the word 'bike' instead of 'bicycle' would have added to somchai's confusion...   (the combination of  words 'motor' & 'bike' on the paperwork = more $$$ )

Yes there stupid and stupid you must lie always

[Media1]

22 hours ago, tropo said:

If you can't have it reassessed, then I'd let the post office send it back. It's the seller that caused the problem by mislabelling it, so he should pay return shipping. Just explain to him what happened and get him to send another with the correct label.

Must lie it saves Somchai having to think

[blorg]

2 minutes ago, Media1 said:

Correct there attempting to rob him. Refuse and demand the phone number for the customs officer

Import duty and VAT applies to everyone. It's not inherently a matter of "robbing". With bike parts specifically there is a special 1% duty I believe you can get if you are a shop and registered with the Thai Cycling Association but the regular 10% (+7%) applies to everyone else.

 

The issue is that this particular item has been misclassified, and I need to know how to go about appealing this. "Refusing" and "demanding" isn't going to get me very far, the post office neither knows no cares about it, from their point of view I can either pay what is written on the package or have it sent back, it's a binary choice.

 

So really, what I am hoping for here, is practical feedback as to how the process works from people who been through the customs appeal process, more than "refusing" and "demanding" and calling them stupid and liars which isn't going to get me anywhere.

[mogandave]

Will they let you return it?

[blorg]

On 8/24/2018 at 9:51 PM, mogandave said:

Will they let you return it?

 

Yes, they did, and that's what I ended up doing. Ordered another one which was not stopped so zero tax.

[meechai]

I lived years in CM & dealt with that post office for motorcycle parts I brought in.

They will not budge they only will give you two options..pay or return

 

When pressed they explained to me it is not they who set the fees it is Bangkok. So if you want to change it you need to tell them hold it while you deal with Bangkok.

You may also get the contact info from them as to who in Bangkok to deal with

 

PS: Glad to see you sorted it out with return/re-ship

That is how it was with me...no rhyme or reason sometimes no charge other times stopped & overcharged

 

 

Edited October 1, 2018 by meechai