Please educate me on European and Asian Fees you need to pay on my gear

[Photobackpacker]

My new P3 backpack includes 14 different SKUs (Stock Keeping Units) and ships in one of 96 possible configurations. That does not include the protective cases that go inside. The good news is there is no other camera backpack on the market that offers the custom fit offered by the P3. The bad news is: no camera store on earth is likely to want to carry the P3 with so many other One-Size-Fits-All options. That means my non-US customers take a disproportional price hit when they buy my system. I am kicking around ideas to see if there is a legitimate way to address this but I need a better understanding of the fees assessed on my non-US customers.

When I send out shipments to customers outside of the US, I know you need to pay customs and duty. What I don't know is how the fees are calculated. Do they use the full value of the items shipped, the discounted value of the items shipped and is the shipping you pay also included in the taxed portion? If it is easier to answer by way of example, please assume:

1. A system equaling $350.00, with $60.00 shipping fee and what would be the impact of a $30.00 discount applied to the value of the items shipped.
2. If you were to buy the same system in a local camera store how would the price be different?

[lbenac]

Bruce,

China would be likely duties on CIF value (eqpt + freight + insurance) + VAT on that total (CIF+Duty).
Duty rates varies but could be something like 15% and VAT should 17%.

Cheers,

Luc

[Sevo]

In Germany, it would amount to duties (maybe 2-3%, if any - YMMV depending on how the item gets classified) on the sales price plus VAT (19%) on price, shipping and any duties applicable, if the taxable value exceeds the minimum thresholds (IIRC something like 30€ for VAT and 150€ for customs).

In any case, all that is handled by the buyer or shipping agent at the German end - all you have to do is fill that green sticker and send by mail, and it will be charged by the postman upon delivery. Beware: US sellers seem to think that they do the purchaser a favour if they omit filling that, or fill it with ridiculously low values. That notion is plain wrong when dealing with EU customs - if the sticker is incompletely or inconsistently filled, it means travel to the associated customs office (which gets picked by routing, and may sometimes turn out to be at some airport or harbour far from the destination) within ten work days, or the item is shipped back. I've lost several purchases when I either could not get a day off in time or the travel cost to the customs exceeded the value of the item...

[Photobackpacker]

So if I applied a $30.00 discount to the items purchased, that would decrease everything from duties to VAT?


In Germany, it would amount to duties (maybe 2-3%, if any - YMMV depending on how the item gets classified) on the sales price plus VAT (19%) on price, shipping and any duties applicable, if the taxable value exceeds the minimum thresholds (IIRC something like 30€ for VAT and 150€ for customs).

In any case, all that is handled by the buyer or shipping agent at the German end - all you have to do is fill that green sticker and send by mail, and it will be charged by the postman upon delivery. Beware: US sellers seem to think that they do the purchaser a favour if they omit filling that, or fill it with ridiculously low values. That notion is plain wrong when dealing with EU customs - if the sticker is incompletely or inconsistently filled, it means travel to the associated customs office (which gets picked by routing, and may sometimes turn out to be at some airport or harbour far from the destination) within ten work days, or the item is shipped back. I've lost several purchases when I either could not get a day off in time or the travel cost to the customs exceeded the value of the item...

[Photobackpacker]

Bruce,

China would be likely duties on CIF value (eqpt + freight + insurance) + VAT on that total (CIF+Duty).
Duty rates varies but could be something like 15% and VAT should 17%.

Cheers,

Luc

How about Canada?

[SergeiR]

Russia: at the moment, when sent via mail (not UPS/DHL/Fedex) aka EMS/USPS/whatever - pretty much anything under 1.000 EUR is not taxed. Above - 30% of exceeding value. DHL/UPS/Fedex using 200 EUR ancient limit and pocketing the change (which is considering how much it costs already - quite a hefty kick in...). Handled by receiving party in either case.

[IanG]

Shipped to the UK the the extra cost in duty and VAT etc would add an additional 29% to the cost of the backpack and shipping.

The Duty is payable on the Item and shipping cost, that's 5%, then there's the 20% VAT op top of that and finally a charge usually £8-£10 for the post/delivery company in the UK who collect the extra taxes.

Ian

[pasiasty]

So if I applied a $30.00 discount to the items purchased, that would decrease everything from duties to VAT?
Exactly. VAT in EU is calculated on actual price paid including all costs spent to deliver the item up to the custom border of the EU (shipping, insurance) plus customs (I'm not sure about this). Customs duties are uniform in the whole EU, but may differ depending on the source country.

When receiving a shipment from outside, VAT rate of recipient's residence country applies (it might be anything from 15 to 27%). If you have a reseller in the EU, they sell to private clients with VAT rate of the reseller's residence; that's why so many companies are registered in Luxembourg (15%).

Countries may implement Low-value consignment relief, for incoming shipments of low value (can be set between €10 and €22). Sometimes it happens that VAT and customs are not applied even if the value apparently exceeds the threshold, and nobody knows why.

The post or courier may charge for acting as a 'customs agent', usually it's 5-30$ (if single package to a private person is concerned; for three tankers full of crude oil the fee might be higher). Varies depending on country and company.

[lbenac]

It depends on the province. BC would be 12% (GST + HST).
For Canada the killer is if you use a courier like UPS or FedEx as the brokerage fee is very high.
i.e. I will not buy from a vendor that ships UPS
Accordingly I purchase from B+H that has made a deal with Purolator so that freight and brokerage are low but the items are pre-cleared

Cheers,

Luc




How about Canada?

[Regular Rod]

UK at least 20% VAT and possibly some Duty. The really "rise-up-and-kill-them-all" rage comes from being charged by the courier for the "service" of holding onto my goods for several days and then charging me for the service of collecting the taxes for the HMRC. You pay the courier at your end, with my money of course, but the courier wants to get paid twice and so stings me for more money, while they hold onto my kidnapped goods that you have tried to send me. In today's global economy there should be no Duty anywhere on anything but until we do actually get round to trying true "Capitalism" we will have a long wait for tariff free borders...

It was the shipping and knowing the above that stopped me clicking on my cart and buying your P3 and all the trimmings for my Shen Hao 8x10.

As for buying locally, your products are not available so that option is out for us. On that subject, living in "Rip-off Britain" the tendency of importers of anything from the USA is to at least charge £1 for every $1 of value and then they often add more. Film in the UK is twice the price for the same film in America.

I have noticed on eBay a number of vendors from overseas offering a single buy it now price including shipping and taking care of all the taxes. I haven't tried anything from these vendors yet but if it works it may be a way forward.

RR

[Photobackpacker]

UK at least 20% VAT and possibly some Duty. The really "rise-up-and-kill-them-all" rage comes from being charged by the courier for the "service" of holding onto my goods for several days and then charging me for the service of collecting the taxes for the HMRC. You pay the courier at your end, with my money of course, but the courier wants to get paid twice and so stings me for more money, while they hold onto my kidnapped goods that you have tried to send me. In today's global economy there should be no Duty anywhere on anything but until we do actually get round to trying true "Capitalism" we will have a long wait for tariff free borders...

It was the shipping and knowing the above that stopped me clicking on my cart and buying your P3 and all the trimmings for my Shen Hao 8x10.

As for buying locally, your products are not available so that option is out for us. On that subject, living in "Rip-off Britain" the tendency of importers of anything from the USA is to at least charge £1 for every $1 of value and then they often add more. Film in the UK is twice the price for the same film in America.

I have noticed on eBay a number of vendors from overseas offering a single buy it now price including shipping and taking care of all the taxes. I haven't tried anything from these vendors yet but if it works it may be a way forward.

RR

I understand the Free Shipping but "taking care of all taxes" seems to be pretty complicated. I wonder how they would do that?

[IanG]

I understand the Free Shipping but "taking care of all taxes" seems to be pretty complicated. I wonder how they would do that?

Certain stores (usually with a physical outlet as well as an online/ebay store) do take care of the Duty and VAT on transactions to Europe from the US. There may well be a financial advantage for them, from the EU Tax point of view, it mewans no packages they send getting though without Duty & VAT and a slight saving to customers as they don't get a charge for collecting the taxes.

It's hit and miss when we buy from the US whether our packages get taxed. my experience is many don't, however larger and heavier and items clearly packaged by a store (rather than an ebay/online forum purchase) always get stopped and and the Taxes charged.

Ian

[greitas]

In Lithuania ( Eastern Europe) VAT 21% would be applied.

[Shootar401]

I never knew how much people in the EU and Asia get screwed by their governments by paying duties and VAT.

When I sell stuff on eBay I usually mark the shipment as merchandise, would marking it as a gift allow the non US buyers to get the item without paying duties/VAT?

[pasiasty]

When I sell stuff on eBay I usually mark the shipment as merchandise, would marking it as a gift allow the non US buyers to get the item without paying duties/VAT?
Theoretically not, this should not depend on whether it's merchandise or gift - in EU. Low-value consignment relief may however apply, see my previous post.

[Sevo]

I never knew how much people in the EU and Asia get screwed by their governments by paying duties and VAT.

When I sell stuff on eBay I usually mark the shipment as merchandise, would marking it as a gift allow the non US buyers to get the item without paying duties/VAT?

No - taxation is by value, not by purpose (that is, there is reduced VAT for food and the like). And at least in Germany, if the customs office considers the declaration likely to be wrong the receiver will have to personally collect the item, and present documents as to its value, the relationship to the sender etc. within little more than a week (nominally, ten working days, but counted from the day the customs office sent a low-priority letter of notification). Given the average distance to the rare customs stations (by now only located at major airports, harbours, borders and in state capitals) and them being only open during regular working hours, this usually is a major nuisance involving a day off, provided the buyer can get that at that short notice. So mis-declarations will considerably increase your risk of having to refund the buyer for a parcel that could not be picked up in time.

[Ed Bray]

Sending as a gift to the UK allows the value of up to £36 to not be liable for VAT, Customs Duty or Documentation (collection) Fee, as a normal item (non-gift) the limit is £15.

Excise Duty for Tobacco, Wines and Spirits are payable regardless of how an item is sent.

I buy many items from abroad (outside the EU) and now find that most now get caught for Fees whereas a couple of years ago it was the exception rather than the norm. I suspect the reason for this is that Royal Mail and ParcelForce have a vested interest in policing these items and do so much more vigorously than they did in the past.

[tgtaylor]

How about Canada?

If you are manufacturing here in the states and shipping to Canada, check into the Free Trade Agreement.

Thomas

[gliderbee]

Shipped to the UK the the extra cost in duty and VAT etc would add an additional 29% to the cost of the backpack and shipping.

The Duty is payable on the Item and shipping cost, that's 5%, then there's the 20% VAT op top of that and finally a charge usually £8-£10 for the post/delivery company in the UK who collect the extra taxes.

Ian

About the same in Belgium, but VAT is 21% on the declared value + shipping cost, as long as the declared value is plausible and not contradicted by other enclosed paperwork. Sometimes customs ask proof of payment like a copy of the paypal transaction,

Stefan

[jack_hui]

Hong Kong, tax free.

[Steve Barber]

The issue for me (in Europe, non-EU) is shipping exclusively by USPS Priority Mail International and not by any other means. That eliminates a list of issues and the item is either delivered to my home or, if there is any duty to be paid, can be picked up at the post office. This way, I deal directly with customs and I can insure the least amount of tax. There are no brokerage fees or delivery fees added and I can verify the cost as charged by the USPS with no surcharges added. Also, the manual detailing each country's restrictions and requirements are available on-line along with the calculator for all of the charges and fees.

I do not expect the shipper to concern themselves with duties and taxes payable other than to be sure that, on the outside of the package in an attached plastic jacket, they enclose a completed declaration and a copy of the invoice showing the amount paid for the goods with the cost of mailing detailed and included in the total.

[Jim Andrada]

Japan has a 5% sales/consumption tax but no VAT. The sales tax is on shipment value plus duty which is 5% for ordinary items under roughly $1000 (100k Yen)

I don't recall whether UPS/FedEx charge exorbitant customs clearance fees but I never hear my friends complaining about them - I'll check.

[Denis Pleic]

Croatia (EU) applies 25% VAT to the combined item value + total shipping cost, in addition to Customs dues, which range from 0% to about 14%, depending on goods - photo items (cameras, lenses) have no Customs dues.
Items of small value (less than about $30) are exempt from VAT and Customs dues.

So, for a shipment of photo items (cameras, lenses, etc.) declared as being of $100 value plus e.g. $30 postage, I need to pay additional 25% VAT (which for the combined value of $130 comes out as about $33), plus usually some small "processing fee", which can range from $8 to about $12...

Which would mean that, if you apply a discount, the total dues I would have to pay on my side would also be discounted, as per above calculation.

HTH,
Denis

[Photobackpacker]

Okay, I am going to try something to celebrate the introduction of the new RPT P3 backpack. Starting today and through the end of 2013, I will ship any order totalling $350.00 or greater anywhere in the world, free. Shipments will go via USPS Priority Mail. This should help to level the playing field.

Bruce

[Regular Rod]

Okay, I am going to try something to celebrate the introduction of the new RPT P3 backpack. Starting today and through the end of 2013, I will ship any order totalling $350.00 or greater anywhere in the world, free. Shipments will go via USPS Priority Mail. This should help to level the playing field.

Bruce

That's great Bruce. I am selling all sorts of stuff on eBay to raise enough anyway, this gesture will be very helpful indeed. You will have to make me a camera case for my Shen Hao FCL810-A though...

RR

[Ginette]

How about Canada?

As your gears are made in USA, there no duties for Canada because of the North American Free Trade Agreement.
Canadians will pay canadians taxes: federal 5% and provincial (varies, Québec is 9.75%) - globally taxes will be between 11-15% - calculated on the value you declared in your custom declaration for the goods, ex. the real value once discounted and no taxes on the shipping if you didn't declare the shipping in the goods values.
Shippers ask some brokerage fees for theirs services when the value is over 20$ CAN, even if no duty on it, just for collecting taxes.
- USPS - Canada Post charged a fixed 9.95$, same for a 30$ value or a 1000$ value. And some low value shipping (20-60$) pass without any problems.
- UPS brokerage fees depend on the items value!!! $20.01 to $40.00 = $7.00 , $1,000.01 to $1,250.00 = $74.25 fees, etc, this is the amount for theirs fees only, not the canadians taxes and theirs fees are taxable. http://www.ups.com/content/ca/en/shipping/cost/zones/customs_clearance.html
And UPS charge for all packages over 20$ CAN, they have a "Low-Value Shipment Amendment" that will cost an additional $15.00 !!
- FEDEX ??, I will see in the next days because I wait for 2 shipments but the online quote for FEDEX ground shipping seems to included their brokerage fees and it look like to be around 40$ for a 1000$ value.
With UPS Ground, the online quote didn't include their brokerage fees, customers have to pay at the delivery. Their UPS Worldwide Express include the fees but this is a much higher final cost.

[Photobackpacker]

UK at least 20% VAT and possibly some Duty. The really "rise-up-and-kill-them-all" rage comes from being charged by the courier for the "service" of holding onto my goods for several days and then charging me for the service of collecting the taxes for the HMRC. You pay the courier at your end, with my money of course, but the courier wants to get paid twice and so stings me for more money, while they hold onto my kidnapped goods that you have tried to send me. In today's global economy there should be no Duty anywhere on anything but until we do actually get round to trying true "Capitalism" we will have a long wait for tariff free borders...

It was the shipping and knowing the above that stopped me clicking on my cart and buying your P3 and all the trimmings for my Shen Hao 8x10.

As for buying locally, your products are not available so that option is out for us. On that subject, living in "Rip-off Britain" the tendency of importers of anything from the USA is to at least charge £1 for every $1 of value and then they often add more. Film in the UK is twice the price for the same film in America.

I have noticed on eBay a number of vendors from overseas offering a single buy it now price including shipping and taking care of all the taxes. I haven't tried anything from these vendors yet but if it works it may be a way forward.

RR

My products are sewn in Asia - the cases in China, the P1 and P2 packs were made in the Philippines and the P3 is made in Vietnam.

Bruce

[Ginette]

My products are sewn in Asia - the cases in China, the P1 and P2 packs were made in the Philippines and the P3 is made in Vietnam.

Bruce

Ah, maybe in this case, it is not the "Made in USA" but the Classication number (9006919000 - Cameras parts/accessories) the real reason I don't have duty on my last purchase from you. On the discounted total of 159.41$ US (total before shipping) (=162,01$ CAN) I paid 0$ Duty, 8.10$ Federal Tax, 16.16$ Provincial Québec Tax and 9.95$ handling fee for Canada Border Services Agency for a total of 34.21$.

[mamypoko]

Singapore, 7% charged on goods entering Singapore worth $400SGD or more, shipping price is included in the calculation.

[Jim Andrada]

1 SGP dollar = 0.78 US Dollar today

[Deepak Kumar]

In India I have to pay duty on landed price i.e. Value+shipping+Insurance and duty for photographic goods is
around 35-37 % after including cess etc. This has made it difficult to purchase backpack & cascading holders
from Photobackpacker.

[Jim Andrada]

Country of origin is a very tricky thing when parts are made globally. There are several criteria including the amount of value added in the final assembly operation and the final change in the Harmonized code from "parts" to "product".

We're in the middle of looking into a Mexican assembly operation for assembling parts from China, Korea, Japan, Singapore, Malaysia, and Thailand into a single product.

Some companies say they can't say "made in Mexico" because a very low percentage of total value is added in Mexico, others tell us "no problem" because the finished product will have a new 8 digit code. Who's right??? Beats us at this point.

[polyglot]

In Australia, the landed price (item price including any foreign taxes paid, plus actual shipping cost) is what matters. If it's under AUD1000 (about USD900 at the moment) then you pay nothing. Over AUD1000 and the recipient pays 10% GST (which is a VAT) and often a customs clearance fee of about $70 in order for customs to release the package. Splitting packages will not help you; they're all over that and will fine you if they think you're trying to dodge customs duties.

Shipping via UPS or FedEx is pernicious because they will often charge the $70 clearance fee (plus their own fee on top) even when the item does not require clearance. Therefore, shipping individual sales to Australia is often best via the national postal systems (USPS etc) and the courier companies are best avoided.

[Regular Rod]

In Australia, the landed price (item price including any foreign taxes paid, plus actual shipping cost) is what matters. If it's under AUD1000 (about USD900 at the moment) then you pay nothing. Over AUD1000 and the recipient pays 10% GST (which is a VAT) and often a customs clearance fee of about $70 in order for customs to release the package. Splitting packages will not help you; they're all over that and will fine you if they think you're trying to dodge customs duties.

Shipping via UPS or FedEx is pernicious because they will often charge the $70 clearance fee (plus their own fee on top) even when the item does not require clearance. Therefore, shipping individual sales to Australia is often best via the national postal systems (USPS etc) and the courier companies are best avoided.

The same goes for couriers in the UK. USPS is better as they work with Royal Mail so the fee is lower...

RR

[ndavid813]

I bought a P2 from you to be shipped to me in Japan. I do not recall paying any duties, and consumption tax of 5% (raising to 8%) next year did not apply to international purchases. I only paid the extra shipping that you charged.

All in all a very smooth transaction with no surprises.