- Action: To Do List item A0078 – Obtain 1 1/4 inch BSP threaded bronze ball valve galley sink discharge seacock.
- Action: To Do List item A0079 – Obtain 1 1/4 inch BSP threaded to 1 1/2 inch bronze hose barb adapter for galley sink discharge seacock.
- Completed: 19 May 2016
- Cost: $228.60
The galley sink discharge hose was attached to a 1 1/4 inch thru hull that was also the heat exchanger for the Isotherm 3751 ASU SP sea water cooled refrigeration system aboard. No seacock was installed for this under the water line location, which is the reason for these To Do List action items. The Isotherm 3751 ASU SP installation and operating manual from the Indel Webasto Marine website was reviewed and installation instructions recommended the installation of an optional 1 1/4 inch ball valve seacock and 1 1/2 inch hose adapter.
Ordered and received a Groco IBV-1250 Series Full Flow Inline Ball Valve Thread Size: 1-1/4" Female NPT ($49.49) and a Groco FF-1250 Straight Full Flow Pipe to Hose Adapter 1-1/4" NPT x 1-1/2" ID Hose ($17.99). When the ball valve seacock was attempted to be screwed on the thru hull, could not get more than two turns before it locked in place. An email question sent to the manufacture Indel Webasto Marine located in Italy identified the thru hull threads as BSP (British Standard Pipe) which does not match the National Pipe Thread (NPT) of the new Groco ball valve seacock. Would need to reorder the seacock and adapter, but this time with BSP threads.
A search on the internet for BSP threaded seacock and adapter located a viable source for these items, ASAP Supplies located in the United Kingdom. Ordered a Seaflow Bronze Body Ball Valve 1.25" BSP Female Stainless Steel Handle for GBP 43.33 ($62.40) and a Seaflow DZR Straight Hose Tail (1-1/4" BSP Male to 38mm Hose) for GBP 8.98 ($12.93) with 3 to 4 day DHL International Delivery for GBP 32.95 ($47.45) for total order cost of GBP 85.26 ($122.78).
These items were ordered 10 May 2016 and DHL email tracking notifications provided the following status:
11 May 16 7:37 PM - Customs status updated - HONG KONG,HONG KONG
12 May 16 12:40 AM - Clearance processing complete - HONG KONG,HONG KONG
12 May 16 5:34 AM - Customs status updated - CEBU,PHILIPPINES, THE
-- Second day of transit and in Cebu, less than 30km from destination. Is it possible they make the 3-4 day delivery?
12 May 16 12:00 PM - Clearance delay - CEBU,PHILIPPINES, THE
12 May 16 12:00 PM - Processed for clearance - CEBU,PHILIPPINES, THE
12 May 16 8:31 PM - Clearance delay - CEBU,PHILIPPINES, THE
13 May 16 11:35 AM - Customs status updated - CEBU,PHILIPPINES, THE
13 May 16 6:08 PM - Clearance processing complete - CEBU,PHILIPPINES, THE
13 May 16 10:53 PM - Forwarded for delivery - details expected - CEBU,PHILIPPINES, THE
14 May 16 12:21 AM - Forwarded for delivery - details expected - MANILA,PHILIPPINES, THE
16 May 16 10:26 AM - Forwarded for delivery - details expected - MANILA,PHILIPPINES, THE
16 May 16 2:10 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
-- The "Recipient refused delivery" status from DHL irritated me to no end, resulting in the following email exchange.
18 May 16 4:15 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
19 May 16 7:56 AM - Forwarded for delivery - details expected - MANILA,PHILIPPINES, THE
19 May 16 9:00 PM - Shipment arrived at incorrect facility. Sent to correct destination - CEBU,PHILIPPINES, THE
-- Package was delivered today and had to pay P1,749.80 pesos ($38.04) in custom duties and fees.
-- The following DHL tracking statuses continued to be output each morning.
20 May 16 6:15 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
21 May 16 11:10 AM - Recipient refused delivery - CEBU,PHILIPPINES, THE
23 May 16 2:20 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
24 May 16 5:30 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
25 May 16 1:50 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
31 May 16 12:00 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
-- ASAP Supplies concerned about DHL status sent the following email.
02 Jun 16 2:00 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
03 Jun 16 1:25 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
06 Jun 16 1:45 PM - Recipient refused delivery - CEBU,PHILIPPINES, THE
Problems With Order, Shipment, and Philippine Customs.
Internet research on Philippine customs revealed a few answers at websites: Computation of Duties and Taxes for Imported Goods and Philippine Tariff Finder (PTF).
The first problems with this shipment is caused by errors on the ASAP Supplies shipping invoice.
- The invoice reflects actual charges paid in US dollars, however the invoice form itself, in the heading states the entries are in GBP (British Pounds). Shows total as US $75.33 which should be GBP 51.90.
- The shipping charges on the invoice are identified as GBP 0.0 and should be US $47.45 and listed on invoice as GBP 32.69.
The next set of problems are due to DHL's customs broker.
As indicated on Philippine Custom's BOC Form No. 177, the custom broker converted the printed invoice value of GBP 75.33 to US $108.68. Keep in mind the printed invoice value of GBP 75.33 is actually in US dollars. This error is really not customs fault, but caused by the errors on the invoice entries. It is Philippine Custom's standard practice and regulation that if the declared value is less than US $100.00 it bypasses these formalities and is accessed a standard rate of P112 pesos on delivery. This is the path this parcel should have followed, but the errors compounded into more end costs.
The next step the custom broker performed are revealed in the calculations below:
In the custom broker's calculations picture above:
- First line indicates "C" (C term = Cost of Items) with dutiable value of US $108.68 with Tariff Rate of 3% per rule 7307.2290 and Value Added Tax (VAT) rate of 12%.
- Second line indicates "F" (F term = Freight) with dutiable value of US $70.00. Actual shipping charges were US $47.45 (GBP 32.69), the value of US $70.00 was falsely created.
- Third line indicates "I" (I term = Insurance) with dutiable value of US $2.17. The value of US $2.17 was falsely created, as no insurance was purchased on this shipment.
- Forth line totals each dutiable value item C+F+I which equals $180.85 and indicates it is to be multiplied by Peso 47.205 to US $1.00 exchange rate.
- Fifth line indicates "DV" (DV term = Dutiable Value) in Pesos of 8,537.19 ($180.85 x Peso 47.205) and indicates it is to be multiplied by Tariff Rate of 3% per rule 7307.2290.
- Sixth line indicates "CD" (CD term = Customs Duty) in Pesos of 256.12 (Peso 8,537.19 x 3%)
- Seventh line indicates "BF" ( BF term = Brokers Fee) in Pesos of 700.00.
- Eighth line indicates "OC" (OC term = Other Costs) in Pesos of 15.00.
- Ninth line indicates "LC" (LC term = Total Landing Cost) and totals each item DV+CD+BF+OC which equals Peso 9,508.31 and indicates it is to be multiplied by tax rate of 12%.
- Tenth line indicates "VAT" (VAT term = Value Added Tax) in Pesos of 1,141.00 (Peso 9,508.31 x 12%).
- The Summary section identifies the Customs Duty of Peso 256.00 and VAT of Peso 1,141.00 for a total of custom charge due of Peso 1,397.00.
Besides the falsely created Freight and Insurance charges, the non-defined Other Costs, the Brokers Fee stands out as excessive - Peso 700.00 to process one item when the average Filipino minimum full day wage here is 300-350 Pesos is a unrealistic charge.
The accumulation of costs does not stop as DHL makes their Inbound Charges Invoice with the following charges:
The DHL invoice reflects charges as follows:
- Custom charges of Peso 1,397.00.
- Advance Payment Fee of Peso 250.00 with VAT of Peso 30.00. This charge is corrupt – they are charging DHL customers a fee for payment of the custom charges for its release for delivery. So for an investment of Peso 1,397.00 to get a return of Peso 280 for a short time transaction is outrageous – 20% return in this case for about a day’s time investment.
- Informal Entry Declaration Form of Peso 30.00 with VAT of Peso 3.60 – This is a “standard” charge for the BOC Form No. 177 – however even this “minor” charge is inflated – corrupt.
- Customs Documentary Stamps – This is a “standard” local customs charge.
- Notarial Fee – This is a “standard” local customs charge.
- Add the items up and the amount due upon delivery is Peso 1,749.80 ($38.04).
As the purchase cost for the bronze ball valve ($62.40) and adapter ($12.93) totaled $75.33; the shipping charge ($47.75) with customs ($38.04) totaled $85.79; this was not a cost effective purchase and will not be repeated.
It is clearly evident that the charges derived are out of line and excessive. Any objective and ethical review of this process could only conclude that this process is corrupt, provides unfair advantage to the members of the process (i.e. the good old boy network, cronyism), and is a disservice to the public that are constrained to use it.
DHL International did an exceptional service of shipping the package to arrive in Mactan, Cebu and clear Philippine customs at their brokerage facility in two days. DHL Philippines service was unsatisfactory as it took them seven days to deliver to a location only 30 kilometers away when 3-4 day delivery was paid for but not fulfilled.
Conclusions:
- ASAP Supplies (and any other retailor) invoices need to accurately reflect in the correct currency what any countries customs personnel are looking for – accurate entries for Cost, Freight, and Insurance in the correct currency as stated on the invoice.
- It would be prudent, as a customer, to request and review the shipping invoice before the item is shipped to avoid errors or omissions.
- DHL International needs to re-evaluate their brokerage/customs agreements and overall charges that are being fleeced from their customers.
- DHL International needs to hold to account their designated partners in different countries for lack of performance.
- As advised by other foreign yachters here, order items, and have the items consolidated and shipped here via the Philippine Balikbayan method – positives: incurs no customs tariffs/duties/taxes – negatives: Balikbayan shipment via ocean freight takes 2-3 months for delivery.
- As advised by other foreign yachters here, move on to a foreign yacht friendly country that exempts customs, duties, and taxes on purchases for temporary visitors.
As this was our ninth shipment delivered by DHL in the Philippines, and each one was similar to the situation above, we do not recommend DHL for any shipment headed to the Philippines. The shipment options and couriers that a retailer offers will now be used as a deciding factor on whether to purchase from a particular retailer. Sad to say, but sometimes, you have no choice in the selection of shipping company.
Regardless of the DHL and Philippine custom issues, the parts were recieved. Now they needed to installed.
Added to the To Do List:
- A0274 - Install galley sink discharge seacock, hose adapter, new hose and clamps.
