Tuesday, March 19, 2019

Fedex (India) - expectation vs reality

Documenting my experience with Fedex. Plenty of lessons here for everyone, I think. My takeaway was, avoid Fedex (at least in India) whenever possible, if you are an individual, and not a corporate with a Fedex account. Perhaps they treat corporates better - who knows. But the level of miscommunication and lack of communication would indicate otherwise. Even our University had requested us a couple of years ago to avoid Fedex when importing.

1. I get a phone call on Saturday, 23 Feb 2019, that my shipment is due to arrive the next day, and I need to submit the required documents. Since I had already submitted my "one time only" Know Your Customer (KYC) documents last year, I thought this would be a breeze. I was wrong.

2. The form I had to fill in this year was different from last year's. (My printer was on the blink, so I had to trek all the way to another office, 15 minutes away, in order to print all the new documentation that had been requested.) The documents requested would probably change again, so it may not be worthwhile documenting them, but just for completeness:


·        KYC Form along with supporting documents – DULY SELF ATTESTED {signed & stamped}  (KYC is mandatory and is a 1 time requirement)

·         PAN copy,

·         Aadhar Card & Voter ID card

·         Address proof. (Telephone /Electricity Bill/Bank Statement/ Rental Agreement )

·         AD code ( Authorized dealer code from Bank)

·         DUMMY IEC LETTER

·         Gatt and DGFT declaration ( Attached )

·         Technical write up & INDIVIDUAL NET WEIGHT FOR ALL ITEM to prepare Advance checklist

3. At first, the Fedex rep on the phone told me that "since the item has come in cargo mode" it was mandatory that I have an IEC code - which is an Import-Export code for importers. She told me to find out from my organisation if I can import under their IEC, saying that individuals cannot import. Though I tried telling her that I had imported items in the past, she said it was impossible. Luckily, as it turns out, there was a delay in getting hold of the head of operations at our institution. In the meantime, Fedex called me again, saying that it would be possible, using something known as a dummy IEC, the request for which was listed in the above list.

4. Then there was Sunday - a day of rest - and no communications from Fedex.

5. On Monday, there were a flurry of 17 emails. Fedex did not accept my Voter ID as address proof. Only one of the items listed above. And AD code - I thought that since I am not an authorized dealer, I need not submit. But I was wrong. Apparently this is the AD code of the forex section of the bank. Even the bank manager did not know this, and this led to another day of delays.
Expectation - if someone from Fedex had explained this to me, I would have done it immediately.
Reality - I got the same "form" email from Fedex which I received earlier, so I just wrote back saying that I have already submitted the documents. So, this led to a one-day delay in filing the Bill of Entry (BoE) and thus a Rs. 5000 fine. Which has to be paid by me, of course. And even after receiving the AD code, there was some confusion - I got an email saying that the AD code is not valid. I again contacted the bank. The bank said it was valid. Then Fedex confirmed that the AD code was valid, it was the wait for permission to use dummy IEC which was causing the delay.

6. On Tuesday, I got an email with approval list for BoE filing, from jeena.co.in, Fedex India's clearing agents. I filled it up and returned it within 15 minutes. Then came the long wait, 26 Feb to 1 Mar. No intimation from Fedex or Jeena as to what is happening. I tried calling all the numbers available. No one picks up. Calling the toll-free numbers gets me an agent who speaks very soothingly, saying that Mr. (name) is in charge of clearing this package, they will inform him to get in touch with me. But Mr. (name) does not contact me. At all. Ever.
Expectation - if someone from Fedex or Jeena had explained that it would take a week or two for customs to clear it, I would have waited patiently. At the very least, someone should pick up the phone.
Reality - Either the staff are so over-worked and harassed by customers that they cannot bear to pick up calls, or they just stopped caring long ago.

7. On 1st March, I was asked to submit any or all of the following, for value evidence:
1) Internet price
2) Supplier price list
3) Previous BOE,which cleared earlier with same Item
4) If payment is made Bank remittance.

I did so.

8. Again a looong silence. On Mar 7, late in the evening, I get an email, asking for technical writeup. Technical writeup had been submitted in the first batch of documents. Anyway, I again edit that writeup, add a couple of lines, and submit along with all the SLED documentation in the supplier's website.

9. Silence again, till 13 Mar. Now, I am asked to pay the customs duty directly using the ICEGATE website, and to provide "E-way bill". Since I am an individual and not a company, I was not sure if I could do these things. Called up the toll-free. They said they will ask their people to call me and guide me. They never called. I googled, found the ICEGATE website, paid using the details like Challan number supplied by Jeena. But according to various internet sources, individuals need not file E-way bill unless they are transporting high-value goods in their own vehicle. Again write to Fedex, no reply. Again call toll-free. Again they tell me that they will ask their rep to contact me. They do not do so.
Expectation - when the customer asks for help, someone tries to help.
Reality - The toll-free operators either are not allowed to, or not able to, help. The customs clearance people are either overworked or not bothered.

10. 14 Mar - called up Jeena - the executive picked up! That itself was half the battle won. I mentioned that I'm an individual, not a company. Immediately he said, in that case, just send me a letter saying so, no E-way bill required. So, again I sent an email saying just that. And that evening, I get the automated Fedex tracking email, shipment released for delivery.

11. I thought I had paid all that was necessary, but wanted to make sure. Called Fedex toll-free to check. On 15th morning, they said please call back by 15th evening, because some documents may take time to be uploaded into their system. On 15th evening, I call, they say nothing to be paid. On 16th morning, I get a call from Fedex delivery agent, saying I need to pay Rs. 7000 for delivery. Again I call the toll-free number. They tell me that though it is not yet mentioned on their system, it is possible that the clearance charges are what I am expected to pay.
Expectation - clear intimation of what is to be paid, with an emailed invoice in advance.
Reality - confused signals. Nobody knows anything.

12. Part of the problem is the expectation. With services like India Post, you know that there is no one to call to ask for updates, you expect delays, you don't expect any email updates. But then Fedex is more than twice as expensive, so maybe the expectations are warranted. Especially when they put up pages like
http://www.fedex.com/in/why-ship-with-fedex/money-back-guarantee.html
and then completely renege on the delivery date. Like what happened last night - item still not delivered, so delivery status was shifted from "by 8.00 pm" to "pending".

Edit: The item was finally delivered on 20th March, after being shipped on 22 Feb. Even if you discount all the customs clearance delays, it took 8 days. With "Fedex International Priority" shipping. Now compare this with another similar package, sent via Royal Mail and India Post, which took a total of 10 days to reach me from Aberdeen, Scotland.  

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