Q&A: Interest in Ordering a Package from Abroad
Interest in Ordering a Package from Abroad
Question
I occasionally order packages from abroad, and I wanted to ask:
When ordering a package from abroad, for example via FedEx, and there is VAT to pay
because the package is over $80,
and FedEx pays the VAT in advance for the customer and collects from the customer, in addition to the VAT amount, an additional customs brokerage fee for handling the VAT—
is there any concern of interest here?
In addition to FedEx, there are various fees, for example to transfer the package to the Standards Institute. Is there any concern of interest here as well?
Answer
In my opinion, there is no interest here, because they did not lend you anything. You are paying them for their work. Payment of the customs charges is also a service that one pays for.
Discussion on Answer
It makes no difference when they pay the VAT. You are paying them for their work.
I think it’s possible that they really are lending.
It all depends on whether they pay the VAT in advance, and then in effect they lent us the amount of the VAT.
(I’m not 100% clear on how this works.)
But I was thinking that even in a case where they pay the VAT in advance, one could argue that I am reimbursing them for the VAT,
and the fee they charge for paying the VAT—which can be 100 shekels or more—doesn’t stem from interest, but from the fact that they have to coordinate between us and the authorities, and the charge is for the coordination itself.
What does the Rabbi think? Does my argument hold up halakhically, or does it have no basis?