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Old 07-26-2021, 04:32 AM
strat4me strat4me is offline
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Default Import duty on guitars coming INTO USA?

Looking into buying a $6Kish Lowden from the Netherlands. In the past I have not had to pay any import tax for guitars coming INTO the USA from Europe. Things have changed.

Anyone know if we have to pay import tax now?

Many thanks.

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Old 07-26-2021, 04:58 AM
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In the Carbon Fiber subform there have been multiple mentions of "custom fees" imposed in a hit or muss fashion on Emerald guitars from Ireland. I've ordered four Emeralds and was hit with having to pay a "ransom" prior to delivery on one of my ordered Emeralds...
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Old 07-26-2021, 07:21 AM
TheGITM TheGITM is offline
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You might want to read up on import criteria. Looks like it could be a real pain in the whatnot...

https://www.cbp.gov/trade/basic-impo...rnet-purchases
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Old 07-26-2021, 07:33 AM
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I did on my Taran from Scotland and I know of another member who did as well on a guitar from England.
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Old 07-26-2021, 07:38 AM
donlyn donlyn is offline
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Import duty on guitars coming INTO USA?

Quote:
Originally Posted by strat4me View Post
Looking into buying a $6Kish Lowden from the Netherlands. In the past I have not had to pay any import tax for guitars coming INTO the USA from Europe. Things have changed.

Anyone know if we have to pay import tax now?

Many thanks.

Mark W
Any product produced in a foreign country is subject to the tariff (not a tax or a fee) laws upon entry into the United States. There is a world-wide system of classification of products, most of which are subject to duty, and the classification determines the duty. Each country determines its own duty rates to collect for each individual classification. Cost of these duties are factored into the price of the goods and are thus passed along to the consumers. Duties are usually based on the invoiced value (ad valorem), or a specific rate based on weight or piece count, or a compound rate based on both specific and ad valorem.

Once upon a time, the collection of tariffs was the only source of income for the federal government. The rates of duties have been driven steadily down since World War II, thanks to big business so they could move manufacturing to foreign countries for cheaper labor. Among the first industries to suffer were footwear and textiles. (In the vernacular, that would be shoes and clothes.)

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Old 07-26-2021, 11:43 AM
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Quote:
Originally Posted by RP View Post
In the Carbon Fiber subform there have been multiple mentions of "custom fees" imposed in a hit or muss fashion on Emerald guitars from Ireland. I've ordered four Emeralds and was hit with having to pay a "ransom" prior to delivery on one of my ordered Emeralds...
Hardly a "ransom" RP, every country in the world has its Importing rules and in country taxes.
These may be waived if there is a free trade agreement between source nation and importing nation but few of these affect Musical instruments (hardly an essential product)
Importing instruments ffom USA to the UK usualy costs me app 3% excise tax, plus 20% VAT (purchase tax) on Value of item, plus shipping costs, plus excise costs, plus handling charge.

Everything is value added.

With the "change of relationship" between UK and the EU, the sale value of all my instruments have, effectively, reduced by 20% unless sold within Great Britain.
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Old 07-26-2021, 01:14 PM
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Quote:
Originally Posted by Silly Moustache View Post
Hardly a "ransom" RP, every country in the world has its Importing rules and in country taxes.
These may be waived if there is a free trade agreement between source nation and importing nation but few of these affect Musical instruments (hardly an essential product)
Importing instruments ffom USA to the UK usualy costs me app 3% excise tax, plus 20% VAT (purchase tax) on Value of item, plus shipping costs, plus excise costs, plus handling charge.

Everything is value added.

With the "change of relationship" between UK and the EU, the sale value of all my instruments have, effectively, reduced by 20% unless sold within Great Britain.
Guitars from Ireland to the US are supposed to be duty free, but still it has been reported to occur on an intermittent, unpredictable basis that US customers are charged a "customs fee" before delivery will be completed https://www.acousticguitarforum.com/...d.php?t=620965. If it occurred consistently on every Emerald guitar shipped to a US customer, that would be one thing. As it happens inconsistently and contrary to trade laws between Ireland and the US, it sure feels like a ransom payment...
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Old 07-26-2021, 06:15 PM
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Import duty on guitars coming INTO USA?

OK, I've been out of the import/export field for a while, but the tariff classification for a guitar over $100 in value appears to be 9202.90.40, 'free' for some countries, but otherwise dutiable at 8.7% of the value. On the list of countries with free duty is "IL" which is the country code for Israel. The country code for Ireland is "IE", which is not on that list of duty free countries for that classification.

I may have it wrong, but certainly some current expert advice should be sought if it really matters. Like from U.S. Customs, or a licensed Customhouse Broker. Just because duty has not always been assessed does not mean that no duty is due.

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Old 07-26-2021, 08:11 PM
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I'm getting a custom from the guys at Brook in Devon sometime towards the end of the year. I reached out directly to US Customs regarding import duty and was told that the duty amount would be 8.7% of the value of the instrument (example: $3500 USD x .087 = $304.50). They'll be shipping using my Fedex account and Fedex will act as import broker on the transaction and bill me for the fees. There's also a possibility that you could get hit with state sales tax but I've heard of some getting hit with it and some not so that falls in the 'iffy' category. I know states are trying to get out of state sellers to collect sales tax for them but not sure how it would work with an overseas transaction. I guess I'll deal with that when it happens. There might be a way around the import brokerage fees but I seem to recall that with a shipment over a certain dollar amount, it is required.

Would like to hear from anyone who has rec'd an instrument from England recently with any further info.
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Old 07-27-2021, 01:59 AM
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Quote:
Originally Posted by Silly Moustache View Post
Hardly a "ransom" RP, every country in the world has its Importing rules and in country taxes.
What SM said.

It’s worth remembering that one of the purposes and effects of import tariffs is to protect the interests of businesses in the home country (i.e. the country imposing the tariff). It’s an encouragement to ‘buy local’ from home-country manufacturers.

Unless I’m misunderstanding, the problem here seems to arise not from import tariffs per se, but from the apparently lackadaisical manner in which the US authorities deal with imports in terms of the application of duty due under those import tariffs. It seems to be something of a crap-shoot whether the tariff is applied or not, and I can understand the frustration at the unfairness of not knowing in advance how much duty will be due, or whether it will even be applied at all.
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Old 07-27-2021, 02:42 AM
AZLiberty AZLiberty is offline
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Quote:
Originally Posted by donlyn View Post
Import duty on guitars coming INTO USA?

OK, I've been out of the import/export field for a while, but the tariff classification for a guitar over $100 in value appears to be 9202.90.40, 'free' for some countries, but otherwise dutiable at 8.7% of the value.
Don
.
The Free Countries for 9202.90.40 are:
Free (A,AU,BH,CA,CL,E,IL,J,JO,MA,MX,OM,P,PE,SG)

I have no idea how to look up the codes though.

AU = Australia (Free Trade Agreement)
CA = Canada (NAFTA/whatever replaced it)
MX = Mexico (NAFTA/replacement)
IL = Israel
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Old 07-27-2021, 05:07 AM
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Quote:
Originally Posted by JayBee1404 View Post
...Unless I’m misunderstanding, the problem here seems to arise not from import tariffs per se, but from the apparently lackadaisical manner in which the US authorities deal with imports in terms of the application of duty due under those import tariffs. It seems to be something of a crap-shoot whether the tariff is applied or not, and I can understand the frustration at the unfairness of not knowing in advance how much duty will be due, or whether it will even be applied at all.
You're exactly right. If I went into any guitar shop in Virginia, I would pay state taxes. I know that going into the transaction. If (or when) I purchase a guitar from a US dealer, they will tell me upfront whether they will charge me shipping and Virginia taxes. However, when I've purchased four Emerald guitars from Ireland, there's been a 1 in 4 chance of being required to pay custom fees. Is it up to the out-of-US dealer/manufacturer/builder to let the US customer know that he may or may not be responsible for paying customs fees upon delivery? One of the reasons that I used the term ransom was that the one (of four) Emeralds that required an unexpected fee was also held in customs for three weeks longer than the three Emeralds which were not socked with the customs fees...
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Last edited by RP; 07-27-2021 at 08:13 AM.
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Old 07-27-2021, 06:22 AM
donlyn donlyn is offline
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Import duty on guitars coming INTO USA?

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Originally Posted by AZLiberty View Post
The Free Countries for 9202.90.40 are:
Free (A,AU,BH,CA,CL,E,IL,J,JO,MA,MX,OM,P,PE,SG)

I have no idea how to look up the codes though.

AU = Australia (Free Trade Agreement)
CA = Canada (NAFTA/whatever replaced it)
MX = Mexico (NAFTA/replacement)
IL = Israel
AZLiberty,

A 'net search on "tariff country code" yields:

https://www.cbp.gov/sites/default/fi...42021_508C.pdf

Don
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*The Heard:
85 Gibson J-200 sitka/rosewood Jumbo
99 Taylor 355 sitka/sapele 12 string Jmbo
06 Alvarez AJ60S englmn/mpl lam med Jmbo
14 Taylor 818e sitka/rosewood Grand Orchestra
05 Taylor 512ce L10 all mahogany Grand Concert
09 Taylor all walnut Jmbo
16 Taylor 412e-R sitka/rw GC
16 Taylor 458e-R s/rw 12 string GO
21 Epiphone IBG J-200 sitka/maple Jmbo
22 Guild F-1512 s/rw 12 string Jmbo
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Old 07-27-2021, 06:36 AM
donlyn donlyn is offline
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Import duty on guitars coming INTO USA?

Quote:
Originally Posted by JayBee1404 View Post

* *

It’s worth remembering that one of the purposes and effects of import tariffs is to protect the interests of businesses in the home country (i.e. the country imposing the tariff). It’s an encouragement to ‘buy local’ from home-country manufacturers.

* *
Not anymore, at least in the U.S.; my post #5 follows:

Quote:
Originally Posted by donlyn View Post
Import duty on guitars coming INTO USA?

Any product produced in a foreign country is subject to the tariff (not a tax or a fee) laws upon entry into the United States. There is a world-wide system of classification of products, most of which are subject to duty, and the classification determines the duty. Each country determines its own duty rates to collect for each individual classification. Cost of these duties are factored into the price of the goods and are thus passed along to the consumers. Duties are usually based on the invoiced value (ad valorem), or a specific rate based on weight or piece count, or a compound rate based on both specific and ad valorem.

Once upon a time, the collection of tariffs was the only source of income for the federal government. The rates of duties have been driven steadily down since World War II, thanks to big business so they could move manufacturing to foreign countries for cheaper labor. Among the first industries to suffer were footwear and textiles. (In the vernacular, that would be shoes and clothes.)

Don
.
If you look up the rates of duty, you will see a "column 2" rate of duty of 40% for guitars. That was the rate of duty at the end of WWII for all countries. There is a column 2 rate for all classifications. Still applies to some countries.

Don
.
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*The Heard:
85 Gibson J-200 sitka/rosewood Jumbo
99 Taylor 355 sitka/sapele 12 string Jmbo
06 Alvarez AJ60S englmn/mpl lam med Jmbo
14 Taylor 818e sitka/rosewood Grand Orchestra
05 Taylor 512ce L10 all mahogany Grand Concert
09 Taylor all walnut Jmbo
16 Taylor 412e-R sitka/rw GC
16 Taylor 458e-R s/rw 12 string GO
21 Epiphone IBG J-200 sitka/maple Jmbo
22 Guild F-1512 s/rw 12 string Jmbo

Last edited by donlyn; 07-27-2021 at 06:47 AM.
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Old 07-27-2021, 09:56 AM
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Quote:
Originally Posted by RP View Post
Is it up to the out-of-US dealer/manufacturer/builder to let the US customer know that he may or may not be responsible for paying customs fees upon delivery? One of the reasons that I used the term ransom was that the one (of four) Emeralds that required an unexpected fee was also held in customs for three weeks longer than the three Emeralds which were not socked with the customs fees...
Import taxes and duty are nothing to do with the out-of-country seller IMHO, they are charged by customs/IR in the purchaser’s country and are completely out of the seller’s control. I also believe it would be unreasonable to expect a seller to have a detailed knowledge of tax regimes in countries other than the one in which his business is based.

However, I believe that it is good customer service for the out-of-country seller to draw the purchaser’s attention to the possibility of import taxes and duties being charged by customs/IR when the goods arrive in the purchaser’s country. That is exactly what my experience has been as a non-US customer when purchasing guitars from MFG and accessories from, e.g., Stew-Mac, Elderly, etc. in the US. (although, having worked for fifty years as an accountant in U.K. companies involved in international trade, I’m well aware of import taxes and duties here!).

The usual disclaimers apply......IMHO, YMMV etc.
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