FedEx Problems!


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Mh434
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FedEx Problems!

Postby Mh434 » Mon Sep 07, 2015 1:56 pm



I recently bought a new J&M headset from Cycle Giant/WingStuff. Great service, no issues. I had trouble with the bottom ("P") cord, though - in the end it was found to be a broken wire inside the strain relief at the bike end. I contacted WingStuff, and they fired out a replacement, which I received in two days!! (Fantastic, considering it was coming to Canada!).

Now, the issue comes up with FedEx.

About 2 weeks later, I received a bill from FedEx, for $16.00. I wondered what the heck that was all about, as WingStuff had paid all the shipping etc. up front.

I looked at the bill carefully, and found that FedEx billed me for $5.50 tax, and $10.50 for the privilege of having them assess the tax (no duty involved). I read all the packaging that came with the "P" cord - WingStuff had assessed a total value on the cord at $1.00 (this, on the enclosed tax declaration as well), with a cost to me of $0.00.

It seems interesting to me that, according to my calculations, FedEx has arbitrarily assigned a value to the cord of $33.75CDN, and are trying to get me to pay the tax on that. Either that, or they're assessing a tax value of 550% on the item at its stated value. Items coming into Canada, where the purchaser's cost (actual dollar amount paid by the customer) is under $20 are not subject to ANY tax (this, confirmed by the Federal Government AND FedEx's own website!!), and the item, under NAFTA, is 100% duty exempt.

Okay, clearly an error on FedEx's part.

I contacted FedEx, and their stance is that I have to pay their bill for tax etc. up front, and apply for a refund of the wrongly-assessed taxes from the Canadian government (and taxpayers).

Does this seem wrong to anyone besides me? It's their error and, ultimately, they want to keep the money they billed in error and ask me to have the Canadian taxpayers pay me back for their error. They still, of course, wish to bill me the $10.50 "Advancement Fee" (their fee for wrongly assessing these taxes).

It's much like insurance fraud - "Yeah, we accidentally towed and crushed your car instead of the one next to it by mistake - we won't pay for it, just call your insurance company, tell them it was stolen, and get them to reimburse you. By the way, you owe us for the tow & crush fees."

I know it's not much money, but the principle is important to me. If FedEx is fraudulently assessing people taxes & non-applicable fees, they're probably making millions, and trying to force people to have the taxpayers fund it.

Your thoughts?



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Re: FedEx Problems!

Postby Fiberthree » Mon Sep 07, 2015 6:11 pm

..."I contacted FedEx, and their stance is that I have to pay their bill for tax etc. up front, and apply for a refund of the wrongly-assessed taxes from the Canadian government (and taxpayers)."


Let's see... you still have your money and they said it was their mistake. Did you get it in writing? It sounds like you are even. What happens if you ignore the bill?
Ed

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Re: FedEx Problems!

Postby Mh434 » Mon Sep 07, 2015 7:53 pm

That would be my inclination but they have a reputation for destroying people's credit rating in spite, even on tiny amounts. I guess they count on people paying, rather than chancing that, so they almost always get their money.

I did send another email, advising them I've posted this issue on 2 forums I frequent, with readership of about a quarter of a million people, and the readers are waiting to find out how FedEx deals with this.

While they haven't said, directly, that it's their mistake, when they send you links to apply to get your money back, I take that as an admission of culpability - why would they do that, if they were in the right...right?

Anyway, WingStuff's invoice (included in the FedEx packaging) shows the amount paid as $0.00, on an item valued at a total value of $1.00, so FedEx knew from the outset (before they even picked it up) was duty-free and non-taxable.

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Re: FedEx Problems!

Postby WingAdmin » Mon Sep 07, 2015 7:55 pm

If you don't get the answer from Fedex that you like (which you clearly haven't), don't be afraid to ask to talk to a manager. And to their manager. And so on.

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Re: FedEx Problems!

Postby Mh434 » Mon Sep 07, 2015 8:01 pm

That's my plan. So far, they're sticking to the generic, computer- generated, do-not-reply, "pay us, then figure it out on your own" replies. I'm not going away that easily!

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Re: FedEx Problems!

Postby NVSB4 » Mon Sep 07, 2015 8:52 pm

Like every other company FedEx has email and a staff that supports complaint emails.
Send an email to the FedEx CEO, Fred Smith (FWSmith@fedex.com) explaining your situation.
I guarantee that you will get further this way than trying to start at the bottom and work your way up.
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Re: FedEx Problems!

Postby Mh434 » Tue Sep 08, 2015 1:01 am

THANK YOU!!!

Finding the name of a real person, AND their contact information, is solid gold!!

I'm feeling more confident now!

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Re: FedEx Problems!

Postby dingdong » Tue Sep 08, 2015 7:03 am

NVSB4 wrote:Like every other company FedEx has email and a staff that supports complaint emails.
Send an email to the FedEx CEO, Fred Smith (FWSmith@fedex.com) explaining your situation.
I guarantee that you will get further this way than trying to start at the bottom and work your way up.


The only way to go. Right to the top.

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Re: FedEx Problems!

Postby NVSB4 » Tue Sep 08, 2015 8:29 am

Mh434 wrote:THANK YOU!!!
Finding the name of a real person, AND their contact information, is solid gold!!
I'm feeling more confident now!

Google is your friend.
I just searched for "FedEx corporate officer email" and looked through the results until I found the CEO.
I've had to do that before for Time Warner Cable.
After not getting a response for 2 weeks locally, I sent the email and received a call the next day.
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Re: FedEx Problems!

Postby themainviking » Tue Sep 08, 2015 9:00 am

That has always been my procedure. Start at the top, to avoid all the frustrations from below. The CEO just wants not to receive these complaints about the companies stupidity and so he will normally just tell someone else to make it go away. I have had this same thing happen to me by both FedEx and DHS. DHS was easier to deal with. I phoned them and they cancelled the bill immediately. FedEx was more difficult till I wrote an email to Fred Smith, the company CEO. I got a letter in the mail telling me that FedEx was going to perform a special customer service favour and cancel the owed bill. If the tax is fraudulently billed and a fee is included, you would never in our lifetimes get the fee back. They do this billing after delivery to avoid customers refusing the package. It is part of their fraudulent behaviour.

Incidentally, I emailed Fred Smith on your behalf, and I hope many others do as well. It will perhaps get FedEx to stop this practice.
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Re: FedEx Problems!

Postby Mh434 » Tue Sep 08, 2015 11:39 am

Wow! You folks are THE GREATEST!!!

I just sent Mr. Smith an email - here's a copy of what I sent:

"Mr. Smith:

Normally, I would not consider writing to you with what must be, to you, a trivial matter. However, the issue in question is one of principle, and knowledge of it has spread to a very large number of people, and I have had no satisfaction or response from people below you, to date, in FedEx.

I will summarize as briefly as I can:

I was sent a small electrical cord from a retailer in California, as a warranty replacement for part of a small package of equipment I had purchased.

The company billed me $0.00, and for taxation and duty purposes, they valued the cord at $1.00. I had no idea they would send it via FedEx (I normally request USPS, but in this case I was not involved in the shipping company decision). The item arrived (a small, padded envelope) a few days later, and I was surprised and pleased with how quick FedEx got it to me.

Several days later, however, I received a bill from FedEx. The invoice (I’m sure it is available to you) shows that FedEx purportedly paid, on my behalf, Canadian Federal and Provincial taxes in the amount of 550% of the item’s value, and charged me an “Advancement Fee” of $10.00 (plus tax) for doing so on my behalf.

I double-checked with the Canadian CBSA and Revenue Canada (Federal) and B.C. Provincial Government, and confirmed that this delivery was not, in any way, taxable (it was also duty-exempt under NAFTA).

Even FedEx’s own tax-calculation web page confirms this delivery was neither taxable nor duty-applicable.

The documentation, included in the packaging, as provided to FedEx PRIOR to shipping, shows the item is valued at only $1.00 (I paid $0.00, as it was a warranty replacement piece), and was, as such, non-taxable and duty-exempt.

When I emailed FedEx to have them correct the error and cancel the invoice, I simply received a computer-generated (“Do-Not-Reply”), generic email, telling me to pay the bill and apply to the Canadian and Federal governments for reimbursement.

At best, this is an error by FedEx, and it is wholly inappropriate to demand that I pay for FedEx’s error. Worse yet, advising me to recoup the funds from the Canadian taxpayers after paying them to FedEx (for their error) is outrageous.

I have posted this issue on forums that I am actively engaged in. At this point, there are approximately a quarter of a million readers awaiting FedEx’s decision on this issue. The response from these readers, so far, has been outrage at the audacity of the demands made of me by FedEx, and the utter lack of consideration shown.

I would appreciate your assistance in clearing this matter up on my behalf, both for righting the wrong that has been done, and re-establishing the good name of FedEx.

Thank you in advance,"

I'll keep you posted!!

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Re: FedEx Problems!

Postby redial » Tue Sep 08, 2015 11:41 pm

Well put to the CEO. That should get a positive response.
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Re: FedEx Problems!

Postby Mh434 » Wed Sep 09, 2015 3:04 am

Well, within a couple of hours of sending that email I got two phone messages, one from the Executive Secretary in the FedEx head office, giving her name & phone number, and asking for a call back ASAP. Of course, due to time zone differences, they were closed for the day by the time I got the message, but it seems like progress.

I'll call back in the morning, and report back here.

I guess what bugged me the most was FedEx's initial disrespectful, arrogant, dismissive response to my complaint. Hopefully, things will change in the morning.

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Re: FedEx Problems!

Postby NVSB4 » Wed Sep 09, 2015 6:51 am

:D :D :D
Glad we were able to help.
Hope you get satisfaction.
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Re: FedEx Problems!

Postby Mh434 » Wed Sep 09, 2015 12:37 pm

Well. Here's the end result -

FedEx somehow determined the value of the cord at $36.00 (plus $30.00 shipping), and says they've paid tax on that on my behalf.

Their Executive offices advise they CATEGORICALLY WILL NOT reduce or retract the bill, and demand that I pay it. They're blaming it on Canadian Government rules. :x :x :x

Nice, eh?

In the end, it would have been far cheaper for me to have just foregone the warranty issue, and bought another one, paying full freight for it. Thanks to FedEx (they kept me waiting for 1/2 hour on the phone, at long-distance rates, too), I'm into the warranty replacement cord for about $30.00.

CycleGiant/WingStuff went to a lot of trouble to fix my issue, and I am VERY pleased with them! FedEx, however, not only dropped the ball, but kicked it into the sewer.

For those who ship to Canada (and also to those retailers who read these threads), BEWARE FEDEX!!!

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Re: FedEx Problems!

Postby NVSB4 » Wed Sep 09, 2015 4:03 pm

Mh434 wrote:FedEx somehow determined the value of the cord at $36.00 (plus $30.00 shipping), and says they've paid tax on that on my behalf.

I would still go back to them and fight it some more.
You said that it was a warranty replacement, so there should be no value to replace.
I would bet Rick at Wingstuff would back you up on that and as much business as they do with FedEx could pull some weight.
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Re: FedEx Problems!

Postby Wayne » Wed Sep 09, 2015 4:24 pm

This problem is very common with both Fedex and UPS. This is why every Canadian order we process we make sure to call or e-mail the customer and inform them that we only ship parcel post on all export orders unless the customer requires otherwise.

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Re: FedEx Problems!

Postby Mh434 » Wed Sep 09, 2015 5:17 pm

Well, I just got an email from the Global Trade Services Broker at FedEx. They advise that if I have WingStuff send them a revised invoice, showing that the item was a no-cost warranty replacement, they will re-visit the file. I've sent them a scanned copy of the original invoice from WingStuff (in the Ziploc bag on the outside of the FedEx envelope) which clearly states, in capital letters & in bold font, "P-Style Lower Headset Cords WARRANTY REPLACEMENT", with the invoice total = $1.00, the "payment received" = $1.00, and the Balance Due = $0.00

Apparently, this wasn't clear enough for FedEx. It seems that WingStuff declared the actual (new purchase) value of the cord at $34.99, and it appears that no one at FedEx looked beyond that, to the no-cost, warranty-replacement part.

We'll see. If they don't accept the scanned copy of the invoice I sent, I'll contact Rick. I hate to do that, as they went out of their way for me already, but if the alternative is for FedEx to win this one, well, I may have to.

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Re: FedEx Problems!

Postby WingAdmin » Thu Sep 10, 2015 8:14 am

Wayne wrote:This problem is very common with both Fedex and UPS. This is why every Canadian order we process we make sure to call or e-mail the customer and inform them that we only ship parcel post on all export orders unless the customer requires otherwise.


I agree. I choose to not offer UPS or Fedex shipping for exactly this reason. Having lived in Canada for many years, and having been on the receiving end of ridiculous "value assessed taxes" and "customs brokerage fees" that frequently exceed the value of the item shipped by several times over, I know the pain that foreign customers experience with being gouged by these carriers. Fedex is bad, but UPS is by far the worst at this. I can recall being charged a $40 customs brokerage fee (i.e. extra profit fee) by UPS on an item shipped from the US that cost under $10.

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Re: FedEx Problems!

Postby Mh434 » Thu Sep 10, 2015 1:17 pm

**UPDATE**

I'm sitting here, with egg on my face. :oops:

The invoice that FedEx sent me does not say what shipment the invoice refers to. It doesn't specify what the item's cost was, when it was shipped, what its original tracking number was, etc. It's simply a bill (with only its own invoice number, and an amount owing), with no other information.

As it happens, in addition to the warranty-replacement shipment, I had also ordered a large rack bag from WingStuff at approximately the same time. Unfortunately, I received the invoice from FedEx before I received the rack bag and, without any information whatsoever on the FedEx invoice, I could only conclude that it referred to the warranty item I had already received.

And then, the fight started!

Anyway, in the end, it was the great folks at WingStuff/CycleGiant who finally cleared up the confusion, apparently by checking through their FedEx receipts, and learning the source of the problem.

I've contacted the affected parties, and cleared the mess up.

In my own defense, though, I've also contacted the CEO of FedEx and suggested it might be a good idea to have these tax invoices specify what shipment they're referring to. Clearly, in cases of multiple shipments (particularly those of similar value), it's important to know what shipment you're being billed for, especially when one of them is a non-taxable item. Even the original tracking number of the shipment would have allowed me to determine what I was being billed for.

Anyway, I thank you all for your forbearance and advice!

Now, I have to sit down & pay the FedEx bill....

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Re: FedEx Problems!

Postby NVSB4 » Thu Sep 10, 2015 1:43 pm

At least you have a resolution and everyone has learned something. :D
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Re: FedEx Problems!

Postby Mh434 » Thu Sep 10, 2015 1:47 pm

I have, indeed! I've always prided myself on maintaining what I like to refer to as the "moral high ground"...in this case, however, I've clearly thrown myself fully into the ditch & find myself looking up at the high ground from afar.

To give credit where it's due, FedEx has been quite gracious since the error was discovered & rectified.

*Sigh*

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Re: FedEx Problems!

Postby themainviking » Thu Sep 10, 2015 2:53 pm

Oh, poop.... do you suppose I should email Fred Smith and apologise also ....................................... NOT
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Re: FedEx Problems!

Postby Mh434 » Thu Sep 10, 2015 6:05 pm

I don't imagine so - I've sent him an email (with an apology), detailing how the problem arose. Judging my the response I got in the first instance, his secretary reads & filters his emails, so he probably hasn't seen any of this himself. She, however, is aware, so it shouldn't be a problem.

And for the record, I REALLY appreciate your assistance!! It's always nice to know you have wonderful folks like you in your corner!




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