Import fees/taxes from EU to US

[Bowie]

Originally Posted by RJVB

Nothing wrong with that in itself, and nowadays I actually prefer a shipping solution that adds these costs to the actual shipping cost.

Well, it's amazing to know that one person in the world enjoys the courier fees. I frequently get customers checking to make sure I'm not shipping with Fedex or UPS because of the outrageous courier fees. I've even had some who asked for UPS anyway, despite my warning, and were very angry when they saw just how much UPS was taking on top of the shipping cost.

[Skip Ellis]

In 2022 , I had a custom Brook built in the UK. Shipping to me in Florida was $200 (DHL shipped Tues - I got it Thurs). US Customs import duty on acoustic guitars over a certain value (low as I recall) is 8.7% of the value of the guitar converted to USD. DHL paid it and notified me for reimbursement which I did immediately. Some of the carriers will try to charge you a ridiculous 'brokerage' fee for walking the box from one side of a warehouse to the other - do some research and try to avoid that. DHL didn't charge me that fee. As far as taxes, I've heard of some folks being charged state sales tax after the fact - didn't happen to me but it may be a possibility in some cases.

[Merlemantel]

What kind of a Lowden? Have you looked over here?

[Jimi2]

Originally Posted by Skip Ellis

In 2022 , I had a custom Brook built in the UK. Shipping to me in Florida was $200 (DHL shipped Tues - I got it Thurs). US Customs import duty on acoustic guitars over a certain value (low as I recall) is 8.7% of the value of the guitar converted to USD. DHL paid it and notified me for reimbursement which I did immediately. Some of the carriers will try to charge you a ridiculous 'brokerage' fee for walking the box from one side of a warehouse to the other - do some research and try to avoid that. DHL didn't charge me that fee. As far as taxes, I've heard of some folks being charged state sales tax after the fact - didn't happen to me but it may be a possibility in some cases.

I’m going to keep looking, but googling is so far not coming up with anything on how much UPS will charge me. They list UPS and GLS as their shippers, but it sounds like GLS is just a European service.

[Jimi2]

Originally Posted by Merlemantel

What kind of a Lowden? Have you looked over here?

It’s an F23 (cedar/walnut) fan fret. So already pretty rare; and I doubt I could find another one anywhere for $3500. It’s a 2013, so not new, but not terribly old either. Thought I should jump on it.

[LAPlayer]

All of the guitars I've seen advertised in the U.S. from various UK, German and other sellers is "unusually" low because they've already deducted the VAT. You should contact US Customs and inquire what the import fees, taxes (which can include your state and federal, duties and shipper "add on" fees are. Remember there are no free rides and you'll likely pay more than you anticipate in total fees. What Deliberate1 said sounds correct. HOWEVER, re-importing a U.S. made instrument back into the U.S. will mitigate some of the fees.

[Mocha Joe]

Originally Posted by Deliberate1

In the future, I would be hard pressed to purchase another guitar from beyond US borders, unless it was a guitar built here. In that instance, there is no duty charged for repatriated goods.

According to Fed Ex, even US made guitars purchased in the secondary market overseas are subject to duty when being imported back to the US. There is a limited exception for returned items where US made goods returned to the US can be exempt but doing so requires submitting additional paperwork, including declarations from the manufacturer and the overseas shipper (in addition to the importer).

[Deliberate1]

Originally Posted by Mocha Joe

According to Fed Ex, even US made guitars purchased in the secondary market overseas are subject to duty when being imported back to the US. There is a limited exception for returned items where US made goods returned to the US can be exempt but doing so requires submitting additional paperwork, including declarations from the manufacturer and the overseas shipper (in addition to the importer).

This from the US Customs and Broder Protection site:

American Goods Returned (AGR) do not have to be declared, but you must be prepared to prove to U.S. Customs and Border Protection the articles are AGR or pay Customs duty.

The form you must complete is CBP 3311.

I have not had the occasion to jump into this rabbit hole, but have come close, with American-made guitars sold in Japan that interest me.

Anybody done it?

David

[Mocha Joe]

Originally Posted by Deliberate1

This from the US Customs and Broder Protection site:

American Goods Returned (AGR) do not have to be declared, but you must be prepared to prove to U.S. Customs and Border Protection the articles are AGR or pay Customs duty.

The form you must complete is CBP 3311.

I have not had the occasion to jump into this rabbit hole, but have come close, with American-made guitars sold in Japan that interest me.

Anybody done it?

David

I went down this path with FedEx. That provision is intended to apply to goods that are exported out of the US and then returned to the manufacturer. To qualify, you need to provide a declaration from the manufacturer showing the goods were originally made in the US; and a declaration from the person doing the return attesting that the goods were not altered or repaired in any way. If the item was sold by the US manufacturer overseas and is being purchased on the secondary market for re-import back to the US, customs will charge duty. Just went round and round with Fed Ex on this because I had always thought that US goods were not subject to duty when being repatriated. Again, this is all according to the FedEx Customs Brokers. I finally just gave up and paid the duty.

[67goat]

Originally Posted by Jimi2

Thanks guys. I found an online calculator that estimates I’ll owe around $150. I guess there’s no US sales tax, so that’s really a wash.

There is no US sales tax, but if your state has sales tax, then you will be responsible for that (though it is usually called a Use tax when bringing something from out of state).

Use taxes are self reported. The EU retailer is not sending a form to your state tax board. That being said, US states can (and some do) request a report on all Customs imports for residents in their state. So your state is less likely to figure out you bought a TV in another state than they are to find out about your overseas purchase.

Whether you chose to report it on your taxes for next year is up to you, but technically speaking, you may owe additional taxes. Now, if you live in a state with no sales tax then this is probably not an issue at all.

[Deliberate1]

Originally Posted by Mocha Joe

I went down this path with FedEx.

MJ, that is very interesting, and troubling. If there is no value-added to the US-made good while beyond our borders, and it returns to these shores in the same status as it left, I think the assessment of duties - treating it as a product made extra-territorially - is indefensible. If the justification for duties is to protect domestic industries from foreign (and "unfair") competition, then the rationale fails for repatriated US goods. However, if it just another way for the government to raise money, then it works perfectly.

Sorry you got dinged. I had been looking at some US guitars from Japan, with the assumption that there would be no import tax. No more....

David

[Mocha Joe]

Originally Posted by Deliberate1

MJ, that is very interesting, and troubling. If there is no value-added to the US-made good while beyond our borders, and it returns to these shores in the same status as it left, I think the assessment of duties - treating it as a product made extra-territorially - is indefensible. If the justification for duties is to protect domestic industries from foreign (and "unfair") completion, then the rationale fails for repatriated US goods. However, if it just another way for the government to raise money, then it works perfectly.

Sorry you got dinged. I had been looking at some US guitars from Japan, with the assumption that there would be no import tax. No more....

David

Thanks. The other thing to be careful of is state excise tax. CA, in particular, is aggressive about reviewing import records and assessing an excise tax, which may not arrive until months later. I think they only do it for items over a certain price point but, on one occasion, I got hit for both customs duties and then a state tax excise bill about a year later. I no longer live in CA so hopefully that doesn't happen on my most-recent import but I did factor in the possibility when I made my purchase decision. It was worth it to me because the builder has a multi-year long waitlist so I was ok paying a premium to get one of their guitars without the wait.

[pcf]

Originally Posted by Silly Moustache

Hi, for a start in the EU all prices include local "Value Added Tax" which is 21% - so they will reduce the price by that. Shipping will be about $200.

They pack well and know what they are doing.

The costs you will face upon landing in the USA depends on your local Customs and Excise (or equivalent).

Once your item ships you are in the hands of your carriers, who when yuor item lands in US will inform you of excise and any other costs to pay before the item can be delivered. They also also add a handling charge.

As TFOA say on their site : Do I have to pay import duties?

"When you place an order with us outside the EU, you may be subject to import duties. These costs are not included with us and will be invoiced to you by the carrier. The amount of these costs depends on your location. Please visit the relevant websites of your country and/or state to view these costs".

You should be able to find out more from your local customs office.

Hope that helps.

will they reduce the price by 21% bc it is built in or do you mean they won't add it to the total?

[btc5865]

I have a guitar inbound from the UK as we speak; I will find out hopefully this week how much everything will be. Will report back once the dust settles.

[Jimi2]

Originally Posted by pcf

will they reduce the price by 21% bc it is built in or do you mean they won't add it to the total?

I’m not sure about this, but there are actually two different prices on the TFOA website, so it may be that VAT is built in, but they reduce the price for non-EU buyers.