Saturday, 25 July 2020

My experience of sending a package from India to the UK

I want to share my experience of sending a package from India to the UK and what I could have done better and paid less fees and charges.

We have been living in the UK for some years now. We used to go to India every year during the school holidays and we bring things like homemade masalas when we return.

Due to Covid-19, we did not go to India this year and all the masalas ran out and the taste of the food was deteriorating day by day😃. So, we have decided to get a shipment from India.

From India

As per my understanding, the cheapest way to send a package from India to UK is via Indian Postal Services. However, Post Office told us that they will not accept any package until the situation becomes normal. So, we have decided to send it via a private courier service.

The shipment weight was 15.5 kg so we paid around ₹10K for the services. When they pick up the shipment, we need to disclose all the items and we need to provide the value of each item. It would be something like the below,


We were given a UPS tracking number to track the shipment.

To the UK

I was tracking the shipment in UPS website and it was moving from one warehouse to another and finally reach the UK after 4 days but all of a sudden, the status was updated as ‘Documentation for personal belongings is missing and is required from the receiver.’

I had no clue about what documentation was missing, and I could not find any details from UPS website as well, so I called them.

Charges for UPS Service

I got the line after holding patiently for 40 minutes (I believed that it was because of less manpower due to Covid-19 so I did not get frustrated) and a Customs Clearance Advisor from one of the UPS Brokerage explained to me that I need to provide details like,
· Commodity Code,
· EORI Number
· Approval to use Deferment Approval Number (DAN), etc.

I told the advisor that this was for personal use and I never had or heard these things. I also informed the advisor that not all the items in the shipment are new and it has some items which we left in India when we were there last year.

The advisor told me that they will send and mail and asked me to provide the details of which items are new and which are old, and they will take care of the customs clearance however I had to pay for the clearance procedure. I had no other choice other than saying yes.

Another important point to note here is that your shipment service provider may apply storage fees (£13 for my shipment) if the package is held in their premises for more than few working days (3 days with UPS) and it was already day 2 for me so I have replied immediately once I have got the e-mail.

After a day, UPS has updated the status that the ‘Import C.O.D. (ICOD) charges are due for this shipment’ and there were two options to pay the amount, cash on delivery or online payment. I paid £32.14 online and in the bill, I found the line items as follows,
· VAT: £5.8
· Brokerage fees: £26.34

Finally, I have got the package after 10 days it was shipped from India and altogether, I had paid approximately £140 (₹13, 000), which is 2.5 times higher than the original value of the items sent in the shipment.

UK Import Tax and Customs
After I got the parcel, out of curiosity, I wanted to know more about the import taxes and found that there are 3 tax and customs we need to pay for goods sent from abroad, VAT, Customs Duty and Excise Duty.
The below details are from gov.uk website (https://www.gov.uk/goods-sent-from-abroad/tax-and-duty) and always refer the link for latest updates.

VAT
You need to pay VAT when
· gifts worth more than £39
· other goods worth more than £15
· alcohol, tobacco products and fragrances of any value
The standard VAT rate is
· 20% for most goods and services
· 5% for some goods and services (e.g., children’s car seats and home energy)
· 0% for most food and children’s clothes.

Customs Duty
You’ll be charged Customs Duty on gifts and other goods sent from outside the EU if they’re above a certain value. The value includes:
· the price paid for the goods
· postage, packaging and insurance
The rate is as follows,
· 0% for anything under £135
· 2.5% for gifts worth £135 — £630
· Different % for gifts above £630 and other goods above £135

Excise Duty
If you are getting alcohol or tobacco, then you need to pay Excise Duty and the rate varies based on the product.

Things I could have done better:
1. Check what would be the cheapest service from India, I believe it is Indian Postal Service, but I may be wrong.
2. Check how the import tax and customs will be cleared in the UK.
3. Contact the shipment service who will deliver the shipment in the UK and check about the customs clearance procedure. UPS website says that routine clearances are free, so it is better to call the shipment service and be clear about the charges and fees you need to pay.
4. We can do the customs clearance on our own, but I guess there would be lot of procedures and paperwork involved.


Monday, 20 March 2017

Power of Attorney from UK to India


Power of Attorney from UK to India

I had sent a Power of Attorney document from UK to India recently and I wanted to share the procedure with all as it was very difficult to find the details online.

Power of Attorney (PoA)

It is a legal document giving a person the power to act for another person in general or financial matters.

There are many scenarios for which we need Power of Attorney but very common are,
  1. Get a loan from a bank in India.
  2. Buy or sell a property in India.
If it is to get a loan from a bank, the bank personnel would normally guide you to prepare the Power of Attorney but if it is for a property registration then you will not get proper information from the Sub-Registrar office.

Content

The first thing you have to decide the content you have to put in the Power of Attorney document. You can do one of the below to get the content,
  • If it is for a bank then mostly the bank will give you the content.
  • Contact a lawyer in India who will prepare the document for you.
  • Go to a vendor who sell stamp paper or people who prepares bond papers. They would normally have the content and they would give it for a small fee.
  • Select a template available online.

Stamp Paper vs Plain Paper

Both are acceptable but the stamp paper would be more formal than the plain paper. 

If you decide to go for stamp paper then ask someone to get a ₹50 or 100 stamp paper in your name and get the content typed and couriered to you.

Notary Public or High Commission?

Once you have the content ready in a document then you have to get it attested.

There are two ways you can get the attestation, from a Notary Public or from the Indian High Commission.

I think all Power of Attorney documents need to be registered in the Sub-Registrar office to become valid in India so check with the Sub-Registrar office where you have to register whether they would accept attestation from a Notary Public. 

First, I have got the attestation from a Notary Public along with an apostille certificate. But the Sub-Registrar office rejected the document and told that I should get it attested only from the Indian High Commission.

I have given procedure to get attestation from both then High Commission and a Notary Public and it is always better to confirm it with the Sub-Registrar office before you decide where to go.

I would say it would be better to get the attestation from the Indian High Commission than from a Notary Public as the probability of rejection is less.

Witnesses

PoA document should be witnessed by two people who are residing in the UK. They do not have to be UK citizens, people who are in work permit and in dependent visa can also sign.

Your spouse can sign as 1 witness, though it is legally acceptable, it is better to ask two friends to sign it for you. 

Attestation from Indian High Commission

Once you decide to go to the Indian High Commission for your attestation, you have to follow the following procedure,

Appointment: 
  • Gone are the days when you have to go early in the morning to get the token from the High Commission for your consular services. You can now book an appointment in the website Indian High Commission Appointment.
  • The appointment slots are available till 11 AM and then the open day starts. But it is better to book an appointment than waiting for open day. 
  • While scheduling the appointment, you can give the no of applicants as 1 and enter your details alone or you can enter the no of applicants as 3 and your can give your witnesses detail as well. It does not matter. All you need is an appointment and you can take an many people you want inside the the Embassy. 
Documents for Primary Applicant
  • Appointment letter.
  • Duly filled Miscellaneous application form for Consular Services. You can download the same here.
  • Original and 1 photocopy of the Power of Attorney document. A photo should be affixed in the first page and your UK address should be there in the content, mostly in the first paragraph. You should sign only in front of the Consular Officer.
  • Current passport and a self attested photocopy of first and last page.
  • BRP card and a self attested photocopy of the same.
  • Current address proof and self attested photocopy of it.
Documents for Witnesses

  • Current passport and a self attested photocopy of first and last page.
  • BRP card and a self attested photocopy of the same.
  • Current address proof and self attested photocopy of it. It is not mandatory but sometimes the officer would ask for it. The officer asked my witnesses how long they have been staying here. When they said it is more than a year she said address proofs are not required for them.
  • You can also provide notarised copies of the all the above documents but it should be notarized by a solicitor who also practices as a notary public, not from a doctor or a librarian. The officer had rejected an application because the witness documents were notarised by a doctor.

Action Day:

They will let you in even if you go 30 minutes earlier so I would suggest to go there as early as possible. In the entrance, you have to hand over the appointment letter.

The officer will call your name (yes, no digital display) so you have to pay close attention.

The officer will ask for all the documents mentioned above and he will ask you to sign in the first page and in the last page of your PoA document. Then he will ask your witnesses to sign with their address details in-front of him.

You have to pay £19 in cash or crossed postal order drawn in favour of 'High Commission of India, London'. No card payments are accepted so just go with £19 cash.

If you have all the documents ready then it would not take more than 15 minutes to do all the signings. Then the officer will give you a receipt and will ask you to come back in the evening (4.30 PM) to collect the document. You have to produce the receipt to get your document.

The High Commission seal will be stamped in all the pages and the High Commissioner or Asst. High Commissioner would have signed it in the last page.

Attestation from a Notary Public

If you decide to go to a Notary Public then search in google for your nearest notary public. You may have to book an appointment with him and normally for a 15 minute appointment, it would cast around £80 (it may vary for each notary public). 

Notary public would normally inform you all the documents you need to produce but they are almost same as the above. 

You can also get an apostille certificate from the notary public which would cost another £50. Though India is a member of the Hague Convention, it doesn't seem like our Government officers know about this. Check with your bank or Sub-Registrar office whether you need an apostille certificate.

Registering PoA in India

Once you get the attestation, you have to register your PoA in the Sub-Registrar office in your area in India. 

You should only courier or post the document from UK to India to the person to whom you are giving the power. And the envelope should be opened only in front of the Sub Registrar. Do not hand over to a friend who is travelling to India. Most of the rejection happens because of this.

If everything goes fine and if the Sub Registrar is happy with your document then he will sign and give to your attorney.