Help with Import tax/duties? Shipment from Germany to New Jersey

[lego89]

Looking to buy around $700 worth of hard to find parts from Germany.

 

Can anyone tell me what I can expect to pay in import duties for a shipment to New Jersey?

 

I tried using some online tools but wanted to hear from people who have actually done it.

 

Als, I don't want to pull any "gift" stuff or otherwise; I just want to be prepared and include it in my overall project budget.

 

 

[justafrog]

I don't know the answer - imports are something I'm woefully ignorant on - but when all is said and done will you let the rest of us know how it turned out? There's always the possibility I might make big overseas parts orders myself sometime. Good luck! :-)

[Jeff Mack]

Here check this out.  I can add this calculator to the site:

http://www.dutycalculator.com/new-import-duty-and-tax-calculation/

 

 

 

Import duty & taxes when importing into the United States
 

Overview

Import duty and taxes are due when importing goods into the United States whether by a private individual or a commercial entity.  The valuation method is FOB (Free on Board), which means that the import duty and taxes payable are calculated exclusively on the value of the imported goods.  However, some duties are based part in value and part in quantity.  In addition to duty, imports may be subject to a Merchandise Processing Fee, and in some cases to sales tax, and Internal Revenue Tax.

Duty Rates

Duty rates in the US can be ad valorem (as a percentage of value) or specific (dollars/cents per unit).  Duty rates vary from 0% to 37.5%, with the average duty rate being 5.63%.  Some goods are not subject to duty (e.g. some electronic products, or original paintings and antiques over 100 years old). 

Sales Tax

Sales tax is not automatically charged on imported goods.  However, Customs and Border Protection (CBP) declarations are made available to state tax representatives that may occasionally claim state taxes from the importer. 

Minimum thresholds

Duty is not charged if the value of the imported goods is up to US$200.

Other taxes and custom fees

CBP collects federal taxes and fees on behalf of other federal agencies, like the Internal Revenue Service, depending on the commodity being imported.  User fees depend on the type of entry and mode of transportation.

-       Federal Excise tax is imposed on imports of alcoholic beverages and tobacco.

-       Merchandise Processing Fee (MPF) is charged on formal and informal entries:

-       MPF on informal entries is either US$2, US$6, or US$9 per shipment.

-       MPF on formal entries (for imports of goods valued over US$2500) is set at 0.3464% of the value of the goods with a minimum charge of US$25 and a maximum of US$485.

Duty refunds

In case of overpayment of duty or returns of imported products to the seller, the importer might be entitled to a duty refund.  The relevant information and requirements can be found here.
 

Local Customs office and contacts

More information on import declaration procedures and import restrictions can be found atU.S. Customs and Border Protection.  

[lego89]

@Jeff-

 

Thanks for the link.  I tried that site before posting a question, but it wasn't working (at least for me).

 

Regarding various (possible) tax liabilities, it would be good if I can get a first-hand report.

 

I don't want to skirt any taxes but if my total tax liabilies are something like 30% of my purchase price, I need to re-think about purchasing from overseas.

[Guest brickcrazyhouse]

Have you asked the seller for at least an approximate amount for the additional charges?

[lego89]

Have you asked the seller for at least an approximate amount for the additional charges?

 

yes and the seller was honest in saying that he really did not know of any USA import tax liabilities.

[lego89]

I don't know the answer - imports are something I'm woefully ignorant on - but when all is said and done will you let the rest of us know how it turned out? There's always the possibility I might make big overseas parts orders myself sometime. Good luck! :-)

will do.

[dr_teng]

I've yet to have a single overseas order get hit with import fees but I may have been lucky in that regard.

[justafrog]

I've yet to have a single overseas order get hit with import fees but I may have been lucky in that regard.

 

Can you give us an idea of dollar amounts you've worked with?

 

I do know, from working at a tax office, that U.S. customs does share higher dollar import figures with any given state's sales tax offices (where applicable). A client of ours received a friendly note from the California SBE requiring he pay his use tax on some furniture he bought in Canada and had shipped to his California address. I don't know at what amount of money they report, but worth keeping in mind as well.

[Deez_Brickz]

I once ordered 20 sets off brick link from a seller in the UK. Total with shipping was $2500. I was not charged any extra duty or import tax. The seller used ups to ship from UK to USA.

[lego89]

Alright, here is the update:

 

1.  Some sellers will request payments to be made in EURO.  Please keep in mind that you, the payment sender, will incur additional fees from Paypal.

 

2.  Paypal has their own exchange rate which adds $30-50 to the payment being sent.  Much better option is to instruct Paypal to use Visa/Mastercard's exchange rate (the option is on the final screen before you click "send payment" button).  Paypal tries to scare you into their rate because the exchange rate fluctuates slightly throughout the day, there is a small chance that you will pay higher rate than Paypal's exchange rate.  But I believe that risk is rather small because of such high markup from Paypal.

 

3.  You need to instruct the seller to clearly indicate the Harmonized Tariff Schedule (HTS#) 9503000090 in the manifest, along with new/used conditions and accurate financials (make sure to ask for all discounts).  This HTS # is for plastic (LEGO) toys which will allow you to import up to $2500 USD duty-free.  Although there is no import tax, your state may send you a sales tax invoice later (though I haven't received any yet).  By the way, you do not want to invite the IRS and/or Custom's by asking sellers to mark the items as gift or artificially lower the price. You just don't want that kind of a headache down the road.

 

4.  Most German sellers use DHL.  Unfortunately, once the shipment leaves Germany, DHL tracking number is pretty much useless.  I have heard conflicting information as to whether or not DHL-US or USPS will deliver the package,  but at least in my case, USPS was the one who delivered my package.  Expect around 10-12 business days.

 

Hope this information is to useful.