Courier Shenanigans or the Way of the World...?
Just before Christmas the English language edition of that worthy newsweekly “Tempo” carried an indignant letter from Mr Gary LaMoshi of Sanur, Bali. In his letter (see below) Mr LaMoshi complains that in addition to the normal “hefty” courier fees, he is being charged anything up to an additional 36% on a single $25.00 non-dutiable item. In this case a single book.
On the face of it, Mr LaMoshi makes a very good point. Who of us here in Bali who have sent similar items into the country and do not resonate with Mr LaMoshi’s very understandable feelings of being stiffed?
Package Woes from Tempo, December 27th, 2004 issue
I’m writing to alert readers about a spreading corrupt practice by international air couriers. Here in Bali, UPS and recently FedEx extort payments from package recipients. The couriers present bills for “facilitation” or “custom clearance” fees. For packages containing a single book valued at less than US$25.00, the couriers demand payments of Rp. 50,000 to - Rp.80,000 (US$5.50 - US$9.00). If you refuse to pay, they take back the package, then, saying the shipment was refused, offer the sender the choice of paying for the return shipment or abandoning the package, letting the courier keep the contents.
Nice scheme.
Local management participates in these schemes, and the regional and global headquarters of FedEx and UPS have kicked back all questions to the local partner, pretending they know nothing about what’s going on and taking no responsibility for defrauding customers who send packages at hefty fees from overseas expecting them to be delivered.
To its credit, DHL does not demand delivery fees from recipients. So, if you are sending packages to Indonesia this holiday season, use DHL. In fact, based on comparative honesty, why not use DHL for all your shipping needs? After all, the number one thing you expect from a courier is responsibility and FedEx and UPS are being completely irresponsible about their local partners’ behavior in Indonesia.
Gary LaMoshi,
Sanur, Bali.
However understandable Mr LaMoshi’s feelings on the matter, is he justified in using some fairly strong language to describe what’s going on? He calls this a “corrupt practice”, he implies courier companies improperly retain goods that are not returned, he suggests UPS, FedEx and their local partners are irresponsible and he says customers are being “defrauded”.
Let’s take a look at what’s going on here. First, no one is claiming that this irregular imposition is “duty”. No, it is described as “facilitation” or a “customs clearance fee”. There is a good reason for this. An item like a single book sent for personal consumption and not for resale is presumably not a dutiable item, at least I hope not. If duties do apply, courier companies are usually very clear, any customs duties not already paid is your, the customer’s, liability.
What is so wrong with charging a “facilitation” fee anyway?
Nothing in principle, but why then is it not included in the normal cost of doing business with the courier company in the originating country? Why is there an additional surcharge on what should be a normal part of the service provided by the courier?
Mr LaMoshi says that DHL does not indulge in the practice of additional local fees and suggests we should all give our business to them. That sounds a pretty good idea, but hang on a moment. What if DHL is more expensive? What if they already include this surcharge in their service? I don’t say they do, but it would be worth checking first to see. Either way, credit to DHL for avoiding an invidious situation in the first place.
Common sense and a rudimentary understanding of the way things are tells us that there may be some “cost” that the courier companies incur in order to do business on a regular basis with the various organisations involved in getting goods through and out of Jakarta’s airport. But that would be a “known”, so again, why is that not covered as a built -in cost and quoted upfront? And another thing, while we’re about it, is it being fairly applied? Is Mr LaMoshi’s $25.00 book being surcharged at 36% when somebody else importing much more valuable items, like laptops worth thousands of dollars on a regular basis say, is paying a much lower percentage? I strongly suspect that may well be the case. In which case UPS and FedEx should lay off swagging the little guy, who just wants his book.
Then again, it would be interesting to know who actually gets this money? Perhaps it is as simple as the “Bali surcharge”, where the local office of FedEx and UPS pocket the impost for their trouble? In which case both the national agent and the courier companies concerned might like to review a practice that is opaque and unattractive, to say the least., and could result in mass defections to DHL.
When it comes to the return of goods, Mr LaMoshi’s ire is very understandable. The additional cost of returning a paperback book back to whence it came does not make much sense. On the other hand, are FedEx and UPS really in the business of pocketing all the various items their enraged clients tell them “go stuff”? I hardly think so. All the same, it is a powerful incentive to get off your principles, bite the bullet and stump up the ten bucks, albeit with ill-grace. After all you went to considerable trouble to get the book in the first place.
Seeking to shed light on some of these questions, I tried ringing an old acquaintance of mine Bill Rising, a FedEx Asian veteran who until recently was the parent company’s “consultant” to FedEx’s Indonesian operation and licensee. In the past when I sought information about the practicality of using courier services on a regular basis or when I had a particular problem I would refer to Bill, who was always very helpful and forthcoming about how things worked. Alas, no go. Bill, I was told, no longer worked for the company and had moved on. I explained I was doing some research for an article on courier services in the light of the recent letter to “Tempo”, and would appreciate any comments the company might care to make. I was told that an appropriate person would call me back on the matter that same day and that, you will no doubt be surprised to learn that to date, was the last I heard of that.
All of which brings me to a larger point. You may feel that Mr LaMoshi is justified in his complaint, even if he makes various assumptions that may or may not be correct and may have overstated his case. On the other hand you may feel that he is a model of restraint and understatement, given the circumstances. Others of us may feel that Mr LaMoshi appears to be forgetting where he lives (if indeed that is Sanur) and may fear for his health and equanimity if such a relatively small occurrence is going to exercise him so.
For myself I am glad that Mr LaMoshi wrote to Tempo as he did and I appreciate the information about DHL, which is news to me. I thought all the courier companies pulled the same stunt. While I hope Mr LaMoshi is a man of patience and composure and wish him long life, I appreciate his tilting against windmills and hope his letter will change things for the better, though I am not holding my breath.
The essential question then is, “why kickest thou against the pricks” as the Lord enquired of St Paul on the Road to Damascus? Or, whether: “ ’tis nobler”, as Hamlet mused “to suffer the slings and arrows, etc......”.
Should we now give all our business to DHL as Mr LaMoshi urges to do? It’s certainly worth checking out.
Or, more prosaically, perhaps we and Mr LaMoshi should send our books by airmail parcel post next time? In my experience it only takes a couple of weeks and always gets through (opened, so don’t tempt fate). There is usually a fee of a couple of thousand rupiah and very rarely, one is asked to pay “duty” equivalent to 8% to 10% of the declared value, and that’s really only around holiday periods, so what the heck?
