Need help with a broker

jrf

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Jan 9, 2005
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I have some goods that were shipped in with UPS and are waiting in the warehouse for customs clearance.
I had forwarded the invoice prior to the goods being shipped and got a percentage to be paid for taxes and clearance for their services.
The goods are here and was given a price and told now they know the cost of the taxes.
There was now a question of for sure how much it was going to be.
Now the price has changed again and the original tax rate that is even listed within the Impuestos 'guide' Book has changed.
I am not only waiting for my product but for a reasonable price as well - at least a clear answer from them.
I can easily just send the product back to Canada but would like to try another broker first.
The broker was recommended however I had spoken to two other offices as well and this broker seemed to be acceptable to me but it is obvious that even outside of the 'hidden taxes' they just don't know what they are doing.

Can someone please provide a contact name or two of a broker on the North Coast that you have had experience that might be able to help me?

Thanks in advance.
 

cobraboy

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Jul 24, 2004
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Did you engage the services of a broker prior to the goods being shipped?
 

Tarheel

Well-known member
Dec 19, 2005
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DR Customs can charge what they want to

It may not be your customs broker but DR Customs has decided on a different tariff rate. Happens all the time in the DR. You choices are to talk to Customs personally, pay what they say or ship it back.

If you need more advice PM me. I deal with these types of situations all the time.
 

jrf

Bronze
Jan 9, 2005
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cobraboy, yes I engaged the services of a broker and was given a quote before shipping the goods.

Tarheel, the issue does of course seem to be the tarrif rate. The goods were shipped with UPS to Puerto Plata but apparently are being held in Santiago until cleared.
This is bothersome since we paid for delivery to PoP and also the 'broker' is located here.

I am still trying to find out what is really going on and thank you I will pm.
 

Chris

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Oct 21, 2002
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We once had a situation where it was cheaper to have a vessel lie off and not even come into port until aduana came to their senses. Their initial estimate for what the vessel contained, which was a routine shipment, was almost 1,000% above normal. This standoff was heading into its 2nd week when the brokers got aduana to 'revise' their estimates. OchoA was relieved.

And then of course was the doozie where I had a shipment hanging around for almost 6 months .. where I stamped my feet and cried real tears in the head of custom's office in SD at the time, etc etc., Many of us can tell the stories.

If it is reasonable, pay. It is just too hard otherwise.
 

jrf

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Jan 9, 2005
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I do understand that there are times when the shipments will come in with the impuestos higher and at other times lower.
I am not expecting total reason and order however the issue of the brokers office giving a number of quotes then not standing by them is frustrating.
They just don't know how to do their job.
Now they were referred by a lawyer's office that has used them and I am willing to pay an acceptable amount but if too high it just won't work to bring in the goods.

These are not personal items but goods that I have actually sold already. As mentioned am willing to balance out the profits and work on different pricing as I feel happens here.

We will see if UPS will forward to PoP and maybe that will help.
 

fightfish

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Jan 11, 2008
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Yep, I?ve had some aduana experiences while picking up various marine parts for myself and others. They often stall and do the run around I think just to wear a guy down to point of him giving in and paying their price. I?ve never used a broker though, as the parts were single items and not containers.
 

jrf

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Jan 9, 2005
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Well if the goods were here in P Plata it would be easier.
Not sure why UPS sent them to Santiago to be held.
Fun.
 

fightfish

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Jan 11, 2008
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STI is the landing spot for Fedex. Those guys will drag their feet, lose paperwork, walk around, etc. You?l have to pay them anyway, so I?d say, offer them something right away, and be done. JMHO
 

cobraboy

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Jul 24, 2004
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jrf, could you be more specific about the details? The costs you were told, etc? How things changed?
 

jrf

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Jan 9, 2005
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The broker said:

One price based on the HS Code (Harmonized number system for products used World Wide). Problem is up to date numbers are not always in the DR 'book'.

There are two taxes paid on some items and three on others. The original product code was for two taxes then the price changed to three - which in my case is more than double the original quote.

Then there is the 'service charge' for going back and forth to Santiago to deal with this. I don't believe this charge but ....

Now they are saying that you pay tax on the amount you paid for shipping.

** Is this true? Do you pay tax on your shipping costs?

Now they are saying we need to pay UPS for 'holding' the goods for so long.

** Is this true?

I think it is best to go to Santiago and get the goods from UPS. (which now we need a trace on the goods since UPS is not sure where they are).
Then I need to deal with the broker's costs and fight with them.

If anyone can answer the two questions above I would greatly appreciate it.
 

Chris

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Oct 21, 2002
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They're giving you the normal runaround. Offer and pay and get done with it. It is not worth while going through every permutation. Like someone on the board once said, it is their book and they will not show it to you.
 

jrf

Bronze
Jan 9, 2005
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I understand that and yes I have seen the book.

Do you pay taxes on the amount you paid for shipping?

Does UPS or the shipping company charge for holding time while the issue of impuestos is sorted out?

This is one of the times that I would actually like people to respond since I need the help (at least have the courtesy to read the questions and try to respond).

Thanks
 

Chris

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Oct 21, 2002
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Do you pay taxes on the amount you paid for shipping?

Yes, a whole slew of taxes on the amount that you paid for shipping. And if you become too much a problem, they will quickly add on a luxury tax as well.

Does UPS or the shipping company charge for holding time while the issue of impuestos is sorted out?

Yes, they may do so. There are rules and I cannot recall exactly what they are, but they may start charging you for demurrage.
 

Tarheel

Well-known member
Dec 19, 2005
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Taxes on air freight

Unfortunately for you there is a tax on air freight charges. If it hasn't changed it is $.02 per pound. And UPS will charge storage if you leave goods in their warehouse too long (normally 3-4 days free and charges after that).

Storage is the result that the clearance issues are not UPS' fault and your goods are taking up space in their warehouse.

You need to go to Santiago and negotiate directly with customs and have your broker with you when you do this. Your broker cannot and will not argue your case with customs as forcefully and clearly as you can.
 

cobraboy

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Jul 24, 2004
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Yes, they may do so. There are rules and I cannot recall exactly what they are, but they may start charging you for demurrage.
I was told one week. Then they charge as much as US$100 a day on a container.
 

Chris

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Oct 21, 2002
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I want to reiterate, what anyone is 'told' is most probably only valid for that moment in time. We've had a shipment sit there for 6 months while I was disputing everything ... and we never paid anything in demurrage, for the complete 6 months.

This aduana thing is a tightrope. Sometimes you walk it nicely and sometimes you fall off. As I've said a number of times, we estimate that they mess us up every 4th shipment - this is for 2 businesses importing for almost 7 years now. Both technical stuff and raw materials. Actually the last year and a half I've brought no raw materials into the country. The last shipment for the body care products, aduana opened a complete shipment with sterile solutions in the buckets. I threw the whole shipment out. I now manufacture the body care products in the US as it got just too silly in the DR.