Compensation for a parcel seized by overseas customs authority

Namita* sent a parcel overseas with Extra Cover, which is optional protection sold by Australia Post for items of more than $100 value. The tracking information showed the parcel was delivered to the destination country but had been held by the destination country’s customs authority for several months.

Namita contacted Australia Post and asked what options were available. Australia Post said it would seek to have the parcel returned and if the parcel could not be returned, it would pay the value of the item to the complainant because they had purchased Extra Cover.

Australia Post traced the parcel and confirmed it had been seized by the overseas customs authority. Australia Post advised the customer that because the parcel was seized by an overseas customs authority and had not been lost or damaged, it considered that compensation was not payable.

Namita contacted our Office as the PIO to lodge a complaint and we investigated the matter. In response to our enquiries, Australia Post advised the overseas customs authority had held the parcel for 5 months but then destroyed it because the applicable customs duties were not paid. Australia Post explained it is the sender’s responsibility to check whether duties apply when sending items overseas.

Upon review, Australia Post agreed that it should have advised Namita to contact the overseas customs authority. It acknowledged that Namita likely did not contact the overseas customs authority because of Australia Post’s advice that its staff would take steps to assist.

On this basis, Australia Post agreed to provide full compensation of $3,200 covering both the value of the item and the cost of postage.

*This case study has been de-identified to protect the privacy of the complainant.

Posted February 2024