South Africa Law
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The client is liable to the customs broker and procedure for imprtation enters on their VAT registration etc. I have paid all charges to the broker. So it is embarassing for me also that this client has turn out to be tircky to deal with. The client has also been telling the broker that he is going to pay but no payment comes through when he says. The broker was also at the point to have the goods destroyed as it seems the only way for them to be refunded for the duty and VAT paid out on the clients behalf.
The product if quite unique and when customs entry was made with the classification used from the exporting country and the same code I use for importation into Europe and Australia, South African customs querried it and and claimed it should be another classification with much higher duty rate and thus VAT. My broker lodged an appeal which after nearly six month came back negative so the higher rate had to be used. I always told the client if we lost the appeal I would reimburse / give discount so that the total amount payable for his duty and VAT would be the same as if the lower rate. I issued amended invoices with discount after South African customs made their final classification.
I am not responsible for how South African Customs makes final classification. It should also be noted that if the shipment had been sent from Europe the duty rate would have been zero, however I looked into the added freight cost of this and other additional expenses and there was no saving to the initial expected classification rate if it went directly from the country of origin. There was no possible saving.
There does not seem to be any problem with the amount to be paid by the client. It is just I am fed up with being lied to about when payment is going to be made. The customs broker also. My trust has been exhausted and this guy is just irresponsible and won't communicate or explain what is going on.
I have read through you answer and that is what I sort of expected but I belive I need to get onto things because time is ticking by. So would you suggest I hastle him any more or just launch a letter of demand with an attorney? Should I make my intension to launch a letter of demand or just do it? Maybe please pay within the next 2 week otherwise I will launch proceedings. Finally can you please inform me of the intial cost to made a letter of demand? and what the general court charges etc will come to as I need to find out what this proceedure will cost
Can court cost and attorney fees be claimed too?
Sorry to keep asking about the costs involved. I understand that initially it will be about 3000 R. Is this just the court charges or would this include the atterney fees as well? Once I know this I think I am right to proceed. Thanks for your help.
It is not a problem. Ask as many questions as you like.
There are no court charges. Only attorneys fees. Our courts have done away with charging an administration fee to start legal proceedings.