Subcontracted courier svc adds extra handling fees at the destination

[jgombos]

What is the name of your state (only U.S. law)? FL

USPS was hired to take a package to a particular address overseas. As usual, shipping cost was prepaid. Foreign customs opens package, and decides it's not enough value to bother charging VAT, so they give the package back to the foreign courier (which is not USPS at this point, but whoever USPS subcontracted the shipping to).

The foreign courier does not deliver the package to the destination, but delivers an invoice to the recipient instead. The invoice is for a "clearance fee" (a fee to compensate the local courier for the effort of interfacing with customs). So the recipient then must go to a pickup point and bring cash to pay for this "extra service".

From my standpoint, this looks like a breach of contract on the part of USPS. USPS was contracted to get the package from point A to point B for a fixed quoted amount. Instead, they seemed to have subcontracted the service to someone who did not complete the service at the negotiated price. Isn't this USPS's problem?

The package was also small enough to go in the mail slot at the destination. By holding the package instead, the subcontractor failed to deliver. And then they charged more.

Is this actionable?

 

[JETX]

From my standpoint, this looks like a breach of contract on the part of USPS. USPS was contracted to get the package from point A to point B for a fixed quoted amount. Instead, they seemed to have subcontracted the service to someone who did not complete the service at the negotiated price. Isn't this USPS's problem?

Based solely on the information in your post, no.
USPS does not 'guarantee' customs clearance or customs fees.

The package was also small enough to go in the mail slot at the destination. By holding the package instead, the subcontractor failed to deliver. And then they charged more. Is this actionable?

See above.
However, even if it WERE 'actionable', you would have to pursue that claim in the other country since that is where the fee was incurred.

 

[jgombos]

Based solely on the information in your post, no.
USPS does not 'guarantee' customs clearance or customs fees.

I hired a company to do a job. There may not be a specific guarantee from USPS that they actually do the job they were hired for, but isn't it implied that they do the job that was ordered at the price that was invoiced and paid? Seems like a breech of contract to deviate from this.

It would be like hiring a company to paint the whole exterior of a house for $1k, and then half way through they ask for another $1k (or maybe they subcontract to another company that asks for $1k). Would a request for money in order to go further on the original job be considered legal if there were no explicit guarantee that they finish the job? (ie. the work order simply states "paint all exterior walls and trim on house: $1k")

Companies could make a fortune by collecting for any kind of job up front, and then subcontracting the job to another company, and then telling that other company to collect directly from the client.

See above.
However, even if it WERE 'actionable', you would have to pursue that claim in the other country since that is where the fee was incurred.

My contract is with USPS. It doesn't make sense to me that I would have to go after some company that I don't have a direct contract with. I'm no lawyer, but I would expect the subcontractor to have to answer to who hired them, and who I hire would have to answer to me. Is that incorrect?

A more typical scenario: suppose someone buys a product from <some shop>.com, where shipping and handling are advertised as free. They pay for the product, and supply the shop with the delivery address. The buyer might not even be told which courier will be used. Some foreign couriers have higher clearance fees than others, and sometimes these fees exceed the cost of the product itself. The buyer then gets a second bill from a company they don't have a contract with demanding some arbitrary amount of money to recover package -- quite possibly more than the product is worth. The buyer is told if they don't pay, and don't pick up the product, that they forfeit the product. They way I understand this, the forfeited product is not returned to the merchant -- it becomes the property of the foreign courier. So push come to shove, I suspect the seller must take the loss, because how can the seller prove that they delivered product to the destination? They can only prove to have attempted to ship it.

 

[tranquility]

You didn't "hire" them to deliver a package, you gave them a package and some fees along with it. Are you thinking the USPS will anticipate all issues related to your international delivery?

Next time, "hire" a company who will give you advice as to the costs.

As JETX said, your complaint lies in another country, if there.

 

[jgombos]

Are you thinking the USPS will anticipate all issues related to your international delivery?

If USPS operates in the destination region, I expect them to be aware of all but the most obscure issues. If they don't operate in the destination region, my expectation is that they will subcontract the job to a company who does, and is aware of local issues, and that they will specify the terms of the subcontract in a way that enables UPSP to comply with their contract with the client. If the client pays USPS a fixed price to get the package delivered somewhere, USPS is expected to hire a subcontractor who can complete the remaining part of the job at the internally negotiated fixed price.

I don't think it makes any sense for a courier to make a hand-off to a company that cannot complete the job for whatever split they're offered. USPS would then need to hire a different courier who can satisfy the contract, or raise their up-front prices to create enough margin.

This business of showing the customer one price, and then another price a week later with their investment in limbo is obviously a scam, legal or not. I'm surprised it's legal. And I'm surprised to hear USPS is not legally liable.

I'm not understanding to your objection to my use of the word "hire". Is that some not so obvious legal term? If I task someone to do something for money, even if it's a one-off job, I call it hiring them. Eg. I hire a cab driver to take me somewhere.

 

[ShyCat]

If USPS operates in the destination region, I expect them to be aware of all but the most obscure issues.

What overseas foreign destination region is the United States Postal Service (USPS) operating in?

 

[jgombos]

What overseas foreign destination region is the United States Postal Service (USPS) operating in?

Potentially various islands (eg. Virgin Islands), as well as military bases on foreign soil, presumably. It's also the same issue with UPS. UPS has a presence in Europe as well as the US, and they also implement the same scam.

 

[ShyCat]

Potentially various islands (eg. Virgin Islands), as well as military bases on foreign soil, presumably.

The U.S. Virgin Islands and other U.S. possessions or territories are not foreign. Mail sent there is domestic, at domestic mail rates (not international) and with no customs involvement.

Mail to U.S. military bases in foreign countries may go through customs but the bases are served by an Army Post Office (APO) or Fleet Post Office (FPO), not a U.S. Post Office.

The USPS does not operate in foreign countries and they aren't responsible for the procedures or policies of other postal services.

 

[jgombos]

The U.S. Virgin Islands and other U.S. possessions or territories are not foreign. Mail sent there is domestic, at domestic mail rates (not international) and with no customs involvement.

Are you saying USPS therefore operates in these cases? It doesn't change my answer to tranquility. In this case I still expect USPS to honor the contract, and deliver the package to the destination.

Mail to U.S. military bases in foreign countries may go through customs but the bases are served by an Army Post Office (APO) or Fleet Post Office (FPO), not a U.S. Post Office.

This doesn't change my answer either. I would still say that I expect USPS to contract the remaining bit of the job to APO under terms that enables the package to arrive at the destination at no extra cost to the client.

The USPS does not operate in foreign countries and they aren't responsible for the procedures or policies of other postal services.

In this case, I expect USPS to hire a subcontractor who can meet the terms of the original contract. I expect anyone hired to do a job to see that the terms of the contract are complied with. I don't care if they subcontract the job to another company in a foreign country, but I expect the first hired company to craft a contract that is compatible with the contract they were hired to satisfy. Otherwise, they could simply subcontract the job to a company that dumps the parcels in the ocean, and USPS can say "we did our job - the other company is your problem". I'm not buying into this claim that the company under the original contract has no responsibility for broken contracts (undelivered packages).

My claim is against USPS, because that's who I paid to do the job, and that's who the contract is with. If the subcontractor did not comply with their contract with USPS, then it's for USPS to make a claim against them.

 

[ShyCat]

Then feel free to take your checkbook and expectations to an attorney.

 

[racer72]

I ship items I sell on eBay overseas on an occasion, I always inform potential buyers that there may be additional fees associated with the delivery in the buyer's home country. Other than Canada, there is no way to anticipate all the costs and fees when it comes to shipping to foreign countries.

 

[jgombos]

I ship items I sell on eBay overseas on an occasion, I always inform potential buyers that there may be additional fees associated with the delivery in the buyer's home country.

I applaud you for doing that.. it's the responsible thing to do.

You could also go the extra mile, and disambiguate what you mean by "additional fees", and specifically inform them that your shipping fee is not necessarily the full amount. Otherwise buyers may only think that "additional fees" is purely VAT.

Other than Canada, there is no way to anticipate all the costs and fees when it comes to shipping to foreign countries.

That's only because of broken contracts.

It actually would be possible to anticipate all costs with properly written contracts. If the courier writes a legitimate subcontract, there's no reason for any unanticipated courier fees.

VAT can also be anticipated. Merchants can withhold VAT and put a VAT number on the package, so the buyer doesn't have to guess what customs will charge them. This may be too much to expect from John Doe ebaying his used widget, but it's appalling that international businesses with large warehouses are not more competent.