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Dec 24

On The Two Phase Ordering Procedure


What customer paid for products ordered does not include customs duty tax of the recipient's country and the related FedEx processing fee. For some country it's duty-free below some higher threshold amount such as $800; for other countries the threshold can be much lower and there is additional customs duty tax, the tax percentage varying with different country.

We've come across numerous cases of: (1) customers having encountered absurd 100% customs duty taxation for a particular country, (2) some customers asking to under declare, but unluckily being selected to inspect by customs officer, unable to provide proof of payment on under declared amount and proof of the item sold at under declared price, thus gotten penalized with over twice the purchase price plus 100% customs duty tax.

To avoid the above bad customer experience from happening, a 2-phase ordering procedure is implemented. In the 1st phase, the basic meter-level accuracy L1/L2 receiver is to be ordered and shipped at a low price. After receiving the item, in the 2nd phase, license activation is to be ordered to enable full feature of the product; the license key is sent over email. With this approach, even if encountering 100% customs duty taxation for phase 1 delivery for a particular country, the total amount to pay for customs duty fee and FedEx processing fee will be roughly 33% ($1599 order option) ~ 52% ($499 order option) of the total product price to pay, eliminating the need for asking under declared value taking any risks. 

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