VAT and Duties Outstanding Fee Explanation

VAT and Duties Outstanding Fee Explanation

Some orders for the 8KX (usually in Europe) have encountered taxes and fee’s as part of their FedEx delivery and those users have questions about how this occurred and what should be their next steps.

First, we need to clarify that there are two potential fees which include Duties and VAT. These fees are based on the value of the goods that are shipped to the destination. Some have incorrectly stated that shipping to a warehouse in the local country and then on to the destination would reduce that packages value to $0. The package value is the same no matter how it arrives to the customer.

What warehousing does do is avoid problems as all the packages pass through at the same time rather than individually. Therefore, all values and other rules applied are much more consistent.

These two images – one from the Kickstarter Statement does not state there will be no fees but merely shipping to a warehouse can prevent packages from being held up in customs and avoid other problems. The 2nd image is the shopping cart shown when ordering an 8KX, we have consistently shown the price does not include any tax.

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In the following image you can see that Pimax chose the FedEx “Commercial Express” service which is among the best services they offer. You can see in the image there are sections labeled “Import Duty” (marked in red) and “Import Tax” (marked in blue). To speed up delivery usage of the Commercial Express FedEx Service allows the package to quickly pass through using agreements they have with each customs bureau prior to the fee being remitted.

We have received feedback from a few customers who have stated they will not pay their VAT or duties. Unfortunately, such an action would initiate an unfortunate series of events that begin with FedEx filing a collections claim on the package recipient and non-payment notification to the customs bureau. We sincerely do not wish this to happen to anyone so we would ask you to work with FedEx and your customs bureau to make sure these fees are paid.

Pimax is a company that attaches a great deal of importance to our customers. We know that in previous years our limited size, team ability, service awareness, management, and system tools (and other deficiencies as well) failed to satisfy many customers. But you should know that none of this was intentional. Our intention has always been if we see an opportunity to help our customers, we take it as long as the opportunity is there.

If you are having any issue with this matter we urge you to contact your local FedEx service representative and provide them with your tracking number or account number if you have one.
They will provide a detail of any fees you may owe and provide the option to pay it immediately.

In the event FedEx does not provide you with this information please submit a ticket to our helpdesk as soon as possible and we will assist you.

Sincerely,
Your Pimax Logistics Team

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