Clearing up the mess

I purchased my new mini-excavator via the Alibaba Chinese internet platform because having been scammed once when I paid the supplier direct for the first machine I ordered, it was worth paying the additional small premium demanded by Alibaba to insure the payment I made for the second. However, now there’s a snag. At the time of making the payment Alibaba said that by law, as I am not VAT/TVA registered in France (I was while in business in the UK), it had to charge 20% VAT on behalf of France on top of the purchase price including the CIF delivery cost.

As mentioned previously, I originally wanted to handle the customs clearance of the excavator myself but for reasons I explained in my previous post it hasn’t been possible. So I’ve had to appoint an agent. I made contact with several and have been working with four before making a decision about which one to go ahead with. The problem I have is that one quoted me a figure for clearing the goods ready for me to collect in Marseille while the other three have been reluctant to do so as they say that they have not yet been provided with all of the relevant charges, notably from the logistics company who will be responsible for removing the container containing my machine from the port and unloading it for me to collect.

But there’s also the question of the VAT/TVA. The other three agents have all said that Alibaba should NOT have charged VAT/TVA in China as the French authorities have no interest in collecting it from them and have no system for doing so. They are saying that I will have to pay the 20% TVA again for the excavator to enter France and I’ll have to recover the amount I paid in China from Alibaba.

So now I have a dilemma. If I do not appoint an agent today further problems and potential costs will arise because the goods will have arrived in Marseille with no means for them to be processed. One of the agents, whose honesty and communication I respect, has told me roughly what their fee is (and it’s not a lot) and that all of the other charges that arise will just be passed on to me in the total bill in due course as and when they know them, which seems fair enough.

So I’ve had to make a decision. If the agent who has already given me a quote is confused over the VAT/TVA position (although they say they’re not but are maybe covering themself by quoting high) and causes delay, the whole thing could become very messy. So in the end I’ve decided to go with the ‘honest’ agent even though it may involve me double-paying the TVA and then having to recover what I paid previously from Alibaba because at least I know things will then run smoothly in France and customs clearance will be quick and trouble-free.

Did I make the right choice? Only time will tell.