Unpaid Duties/Taxes Sent to Collections Agency by Fedex

So in October of last year, I sold a watch via Chrono24 (a Tudor Black Bay 36 Heritage) and the buyer was an American based in Japan.

I've sent the watch via FedEx from Australia to Japan and indicated that the Duties/Taxes are to be shouldered by the buyer.

This fact is also stated in Chrono24's website (that buyers will pay import duties and taxes) as well as on the description on my listing, which is further reflected in the Purchase Certificate which the buyer also received.

Now, after a few months, I received an invoice from FedEx last January to pay the Duties/Taxes amounting to $131.77

After a few back on forth calls, I was made aware that if the receiver does not pay the said amount, it will be charged back to the shipper (me). I've asked them why they released the shipment prior to settling the said Duties/Taxes and apparently it is a common practice by FedEx Japan to release the shipment even though it has not been paid yet.

I've seeked help with Chrono24 but the buyer is unresponsive up until now. I've also asked for help on FedEx's side but they just told me to send a form to the buyer indicating their bank details and sign a part there that they would pay it. But again, the buyer is not responding to any correspondence.

Now, FedEx have sent it to a collections agency, and the said agency is now asking me to pay.

I'm looking for advise as to how to proceed. It's not a big amount, I can easily pay it buy I really believe I shouldn't. Also will I get in trouble for not paying it?

I'm expecting to get harassed by the agency the longer I let this unpaid but as of now they have only sent one email since last week.

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Comments

Search through all the comments in this post.
  • +23

    I'm looking for advise as to how to proceed.

    Classic ozbargain

  • +20

    Yakuza (bikies)

    • -1

      Make sure you contact the right department. The appliance rental division probably won’t help unless you’re after a short term dishwasher or vacuum cleaner lease.

  • +7

    There may be recourse through Chrono24, if you kept all messaging through their platform. At the very least get them banned from trading on the site or negative mark against their name. What you were told about FedEx Japan sounds suss. There may have been an issue with the paperwork on the shipment.

  • +5

    If it were me, I'd just ignore them until the statute of limitations has expired (I think its 6 or 7 years here), then as long as you haven't paid anything towards the debt (the timeline resets if you do) you're free and clear. They should have done their job and collected the duties from the buyer. Just make sure to block any payments to FedEx, maybe report the card as lost and get a new one if that's the way you paid.

    I think it's unlikely that they will commence legal action over a hundred and thirty dollars.

    Otherwise tell them that you can only afford something ridiculous like $1 a month and pay it off that way.

    Take this advice with a grain of salt as all my information came from a quick google.

    • +7

      Otherwise tell them that you can only afford something ridiculous like $1 a month and pay it off that way.

      Don't do this as you'll still end up paying it. Better off ignoring them, screening your calls and not answering the front door. They'll eventually go away.

    • +2

      six seven years 😑

  • +5

    A cheap $131.77 lesson in international trade (the lesson being, add $150 to the next similar transaction to cover fees when they come back to you) …

    Pay it quick before it affects your life in unexpected ways :/

  • +4

    Your buyer stiffed you and declined to pay it.
    Default accountability then falls to you it looks like.
    Seems like you need to pay the duties, and then it becomes a civil case between you and the buyer for recovery.

    (Aus site)
    https://www.fedex.com/en-au/customer-support/faq/duties-taxe…
    Generally, there are two options to pay the authorities. The first option is for the receiver to pay the authorities directly for any duties and tax, usually due at the time of import.
    The shipper is ultimately responsible for payment of duties and taxes and all fees and surcharges related to our disbursement of duties and taxes if payment is not received.

    (Ireland site)
    https://www.fedex.com/en-ie/customs-tools/customs-documents-…
    12. Billing of duties and taxes
    Duties, taxes and disbursement fee will be charged to the recipient by default, unless the shipper marks the ‘Bill Shipper’ option on the air waybill. If the recipient declines the shipment or refuses to pay, the shipper is ultimately liable for any duties, taxes and fees assessed on the shipment.

  • +3

    Also will I get in trouble for not paying it?

    How is your credit rating?

    Buyer has the watch. If they intended to pay the duty, they would have already done so, they're not going to pay it now.

    May as well send the buyer a letter of demand but I doubt there is anything else you could do that would be both legal and affordable.

    • +1

      Can it affect OP's credit score since it's under $150?

      • Also just curious if cant pay utilities and claim financial hardship does it still affect credit score

        • +1

          if you claimed financial hardship and are meeting your agreement then no it doesn't, if you are not keeping up with the agreement then your no longer under the agreement then it will affect your credit score, download clearscore and check your credit rating

        • Also just curious if cant pay utilities and claim financial hardship does it still affect credit score

          Once the hardship arrangements have been agreed to they cant because you have effectively mutually agreed to change the terms of the contract.

          However, the credit provider can list any payment default once it is 14 days past its due date, so best to keep communication channels open as soon as possible rather than just decide to put off paying or delaying paying.

      • of course it can, there is no magical amount that is ignored

        • I think that you will find that $150 is the sweet spot.

          However, whilst this debt is currently only $130, this is so close to the threshold that once they apply any eligible penalties, interest or costs of recovery, it won't take too long to reach that amount.

          • @Muppet Detector: Surely the $150 rule has to be before any penalty's or cost of recovery?

            • @Brick50: No, if they are eligible, those additional expenses are added to the defaulted amount.

  • +2

    What were the T&Cs of your contract with Fedex? Were they supposed to hold onto the parcel until the buyer paid the taxes/duties? Did they breach contract?

  • +1

    Just pay and take the lesson

    • +2

      … that people are scum?

      • +1

        Yes buyer knew they could get away with it with zero downside

    • +1

      …. Don’t sneeze when someone is cutting your hair?

      • Close… it's; "Dont cough during a vasectomy…"

        • +1

          Vasectomies save cents. Cheers

        • +1

          Trueeee

          When I got mine you best believe I was trying to hold as still as possible. I’ve never breathed so slowly in my life.

  • +1

    FedEx have sent it to a collections agency, and the said agency is now asking me to pay.

    Tell them to stuff it up their a***. The only thing they can do is threaten. Best to ignore them.

    I have a similar experience with DHL and now their debt collection agency sends me a letter and SMS once every six months that i usually ignore

  • +1

    surely this sort of thing undermines chrono24's entire operating model if this can happen, and i'm guessing has happened.

    Why wouldn't chrono24 hold the amount in escrow and release it back to the buyer when everyone is happy

  • What is it worth in terms of hassle and anxiety?
    It is pretty likely ignoring it won't result in you missing out on a loan or similar. I suppose FedEx could bar you.
    It doesn't seem you can do much to make the buyer pay or feel bad, but maybe it is worth your time to pursue them out of justice/spite.

    It is a bad system, but it doesn't seem like you have much redress, which is a shame.
    If it were me, I would probably pay, but also write to the buyer advising your demand for payment, with appropriate details to pay, and be a bit annoying.
    You could certainly call them, for example, or send a postcard to the address on either side advising they have not paid their bills and you are trying to contact them.
    How petty do you wish to be?
    Mentally, I feel karma comes round, and if you accept this one, you might attribute your next bit of luck to a just universe!

  • The collection agency has bought the debt from FedEx. They have tried and proven process's to pursue recalcitrant debtors and you will not shake them off easily.

    • -1

      you will not shake them off easily

      Just pull a swifty.

    • -1

      If a collections agency has bought the debt then OP doesn't have any liability to FedEx. Say the agency is harassing you or tell them to piss off. Their fault for making a bad business decision in purchasing flimsy debt.

  • It’s under $150, therefore even if referred to debt collectors a default cannot be left on your name.

    I’d ignore it.

    1. Go to the debt collector under a pseudonym and offer to buy the debt at a sharp discount.
    2. Forgive the debt.
    • do you think I can do that with my mortgage?

  • start a go fund me, trust me its win win

  • -1

    I have never shipped anything as a seller,

    But as a Buyer
    FedEx are scumbags
    I have never had an issue with duties when it is shipped with DHL.

  • -2

    AFAIK - Only debts of $150 or more can be listed on your crediit score and thus negatively affect you.
    As the balance is under $132 you have no negative credit score concerns for now but if there are non-payment fees etc. that are added over time and these combine with your $131+ default balance to reach $150 your credit score will be affected as this amount can be added, so be aware of this if its a concern to you

    • +2

      It is not credit so it cannot go on a credit file.

      • +2

        Apparently he owes them (FedEx or debt collector) money. This makes them (FedEx or debt collector) a creditor.

        The creditor can create a default listing by reporting the payment default of minimum $150, once it is 60 days overdue. This default stays on your credit report for five years (Seven years for serious credit infringement), even if you eventually pay off the debt.

        Disclaimer, for general credit products, if you miss a payment by 14 days, this can be recorded and stays on your record for two years.

        Payment Default : How they Impact your Credit Report

        10 ways you could be hurting your credit score

      • +1

        Utilities manage to default people all the time - I guess you could argue that they provide credit in that the service is provided upfront with a post payment due.

  • -4

    Watch out. As soon a debt goes to collections you have a default on your credit report. No new credit for five years. Check your report right now.

    • +3

      Well if that's true then the damage is already done and they shouldn't bother paying up.

    • It is not credit so it cannot go on a credit file.

      • -1

        "Even though a utility or phone bill isn't a "credit product" like a loan, these providers are legally classified as credit providers under the Privacy Act 1988 because they provide services first and allow you to pay more than seven days later"

        What is a credit provider?

        • an organisation or small business operator that supplies goods and services where payment is deferred for 7 days or more, such as a telecommunications carriers and energy and water utilities

        • certain organisations or small business operators that provide credit in connection with the hiring, leasing or renting of goods

        • Other businesses like debt collectors may also be considered credit providers.

        • a bank

        • an organisation or small business operator if a substantial part of its business is the provision of credit, such as a building society, finance company or a credit union

        • a retailer that issues credit cards in connection with the sale of goods or services

        About credit reporting

        "A business that supplies goods or services, or is in the business of leasing goods, and provides credit for a period of at least seven days is also considered to be a credit provider under the Act."

        Privacy and Credit Reporting

      • -2

        Apparently OP owes FedEx (or the debt collection agency) some money which makes them (FedEx) a creditor.

        Payment Default : How they Impact your Credit Report

        10 ways you could be hurting your credit score

        • The NCCP Act regulates the provision of credit and consumer protections in Australia. Specifically, Part 3-2CA provides the rules regarding a licensee (holders of an Australian credit licence) and a credit provider (defined in section 6G of the Privacy Act 1988 (Cth)), only sharing accurate and necessary information with credit reporting agencies. The NCCP Act helps to safeguard consumer rights.

          A creditor maybe, but FedEx would not be a credit provider.

          • @happydude: Did you read the links?

            It is not credit so it cannot go on a credit file.

            That was the post that I responded to

            Nice of you to neg factual information supported by two credible sources. That's just being a bad sport or poor loser.

            "1. Missing BNPL, credit or loan repayments, and paying bills late"

            10 ways you could be hurting your credit score

            "A payment default occurs when an individual or business fails to meet a financial obligation, such as paying off a loan or invoice."

            Payment Default : How they Impact your Credit Report

          • -1

            @happydude:

            (defined in section 6G of the Privacy Act 1988 (Cth)),

            Did you even bother to read the legislation that you quoted or did you just cut and paste your Google search results without verifying your source?

            PRIVACY ACT 1988 - SECT 6G Meaning of credit provider

            Meaning of credit provider:

            (2) If:

            (a) an organisation or small business operator (the supplier ) carries on a business or undertaking in the course of which the supplier provides credit in connection with the sale of goods, or the supply of services, by the supplier; and

            (b) the repayment, in full or in part, of the amount of credit is deferred for at least 7 days; and

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