Have you had to pay hefty customs fees when buying from Japan?

[acrobatic_citron]

In the UK many times

[WiHardfo]

It is illegal for a seller to "collect" sales tax unless the seller has a certificate of authority to collect sales tax from the sales tax authority in the state they are selling in or shipping the product to. They would also need to have the authority from the state they're sending the item to as that state is the state that charges the buyer the sales tax.

Ebay and other big companies like B&H Photo have authorities from all 50 states. So they send the tax collected monthly or quarterly to each of the states for items shipped to those states. If as a purchaser you don't pay sales tax because of a private purchase, normally you are required to pay what's call a Use Tax equal to the sales tax for the state you live in, assuming they have sales taxes. Some states don't have sales tax. Most people fail to pay this Use Tax for obvious reasons. Now everyone is saying that some kind of implementation is constantly being applied, which should simplify the payment system. I don't know how easy this can be for the end user. For example guide for banks and fis says that at first it may be difficult to get used to the new system. Although ISO 20022 migration should make life easier for accountants. If a seller says they're charging sales tax, make sure it's listed on the bill of sale as a separate item and not included in the full price unless the bill so states that. That way you avoid owing a Use Tax. Once the sales tax is listed on the bill, the seller is responsible for reimbursing the state where the sales tax is owed. If they fail to do so, it;s on them. You're not responsible if they fail to reimburse the state.

I hope they don't get to private sales. I don't want to pay anything extra if I sell on Facebook. Although, as they say, "don't give them ideas"

[nolindan]

If the purchase is under $800 there are no customs fees. Even over, there are often no fees.

[phdgent]

Yes, and with the VAT, import taxes and custom handeling fee, a purchase in Japan for 18.000 YEN (= € 116,28) ended up to a total of about € 142.-
The same happend with a purchase made in the UK for 84,28 GBP (= € 101,99) ended up to a total of about € 138.- thanks to the Brexit.

I know, these where rather small purchases, but the taxes and fees will always be the same percentage on the the basic amount.

I have learnt my lesson and will now restrict my purchasing to the Eurozone, although smaler then the EEC (27 countries), but which still consists of 19 countries.
When buying in the Eurozone: no extra VAT (21%), no Import taxes and no custom handling fee.

And when I can't find it in the Eurozone, I will have to wipe it out of my GAS and do without...

[B.S.Kumar]

Yes, and with the VAT, import taxes and custom handeling fee, a purchase in Japan for 18.000 YEN (= € 116,28) ended up to a total of about € 142.-
The same happend with a purchase made in the UK for 84,28 GBP (= € 101,99) ended up to a total of about € 138.- thanks to the Brexit.

I know, these where rather small purchases, but the taxes and fees will always be the same percentage on the the basic amount.

I have learnt my lesson and will now restrict my purchasing to the Eurozone, although smaler then the EEC (27 countries), but which still consists of 19 countries.
When buying in the Eurozone: no extra VAT (21%), no Import taxes and no custom handling fee.

And when I can't find it in the Eurozone, I will have to wipe it out of my GAS and do without...

I think this approach does not take into account:

1. Prices in Europe, even from private sellers, are generally higher than in Japan, and to a certain extent the US. Anyone who is selling something naturally wants to recover as much of his cost as possible, which would include the VAT and import duties he paid earlier. It is safe to say that import duties were higher earlier than now.
2. Import or customs duties are not much - 4~5% on average.
3. Customs handling fees are usually a fixed amount per package, not ad valorem. In some countries (e.g. Canada), it is possible to avoid these fees by paying the customs duties on your own, before the package reaches the courier.
4. VAT is unavoidable on imports. But this is the same as purchasing from a shop within Europe.
5. Packages shipped from Japan (at least the way I ship) are always insured. I do not know if the cheaper shipping in the Eurozone always includes insurance.
6. International shipping costs from Japan and China are among the lowest in the world.
7. The very favorable exchange rates for the Japanese Yen vs the Euro and USD make overseas purchases far cheaper than at any time in the past.

So, it is important to consider the following:
a. Is the item available in the Eurozone?
b. If the item is available within the Eurozone what is the total cost of the purchase vs. purchasing from overseas?

I believe my customers in Europe (and other countries where duties are levied) understand this. In 2023, my sales to countries where import duties and VAT are levied (Europe, Australia, Canada, South Africa, Brazil) were around 60% of total sales - meaning those customers found it better to buy from me rather than locally.

Kumar

[phdgent]

I think this approach does not take into account:

1. Prices in Europe, even from private sellers, are generally higher than in Japan, and to a certain extent the US. Anyone who is selling something naturally wants to recover as much of his cost as possible, which would include the VAT and import duties he paid earlier. It is safe to say that import duties were higher earlier than now.
2. Import or customs duties are not much - 4~5% on average.
3. Customs handling fees are usually a fixed amount per package, not ad valorem. In some countries (e.g. Canada), it is possible to avoid these fees by paying the customs duties on your own, before the package reaches the courier.
4. VAT is unavoidable on imports. But this is the same as purchasing from a shop within Europe.
5. Packages shipped from Japan (at least the way I ship) are always insured. I do not know if the cheaper shipping in the Eurozone always includes insurance.
6. International shipping costs from Japan and China are among the lowest in the world.
7. The very favorable exchange rates for the Japanese Yen vs the Euro and USD make overseas purchases far cheaper than at any time in the past.

So, it is important to consider the following:
a. Is the item available in the Eurozone?
b. If the item is available within the Eurozone what is the total cost of the purchase vs. purchasing from overseas?

I believe my customers in Europe (and other countries where duties are levied) understand this. In 2023, my sales to countries where import duties and VAT are levied (Europe, Australia, Canada, South Africa, Brazil) were around 60% of total sales - meaning those customers found it better to buy from me rather than locally.

Kumar

Dear Kumar,

I do understand your argumentation and yes the item I bought from you was good, at a right price and wan't easy to find over here.
And your service was perfect

But my vex ins't against you at all, by far, but I am rather annoyed by the instances who are pleading for a world without borders, unchecked global economy, but do everything to take advantage of these borders (even reinstalling them) and by this 'restraining' their adored wishful thinking.

I do agree with taxes, without them the public authorities wouldn't be able to fulfil their functions and duties, but some rationality could be at it's place here...

I wish you all the best for your business (and reasonable taxes).

[Joseph Kashi]

I think this approach does not take into account:

...
...

I believe my customers in Europe (and other countries where duties are levied) understand this. In 2023, my sales to countries where import duties and VAT are levied (Europe, Australia, Canada, South Africa, Brazil) were around 60% of total sales - meaning those customers found it better to buy from me rather than locally.

Kumar

I've bought a lot of lenses and a number of fairly large, "expensivish" items out of Japan, many from Kumar. I've never had to pay any sort of customs nor fees bringing them into the US and have invariably had honest, excellent service when buying out of Japan.

[B.S.Kumar]

phdgent and Joseph Kashi,

Thank you for the kind words. "A world without borders" - I have much to say on this, but not here...

I had not intended my post to be a "personal" statement. It was meant to provide a purely logical reasoning as to why someone would buy something from overseas (specifically Japan) rather than locally. In my case, I am occasionally tempted by offerings from the US, but I rarely buy, because:

a. insured shipping from the US to Japan is horrendously expensive;
b. many US sellers are reluctant to ship overseas (though they frequently buy from overseas).

Kumar

[darr]

Shipping overseas from the US has cost a lot more since 9/11. Shipping internationally definitely changed after that.

I have an online business that ships lithographs. I will be in business for 25 years next year, so I am established, have many repeat customers, and have been shipping for decades. My items are light, most fitting between cut sheets of 11x14-inch double-faced cardboard. I stopped shipping to everywhere except the continental US and Canada a few years ago when I grew tired of having to read emails complaining about the international shipping fees.

Last week, I shipped three lithographs from one order to Canada. Two were much smaller than 11x14 inches, and the third was about 10x12 inches. The total order fits in the lightweight, plastic bag-style envelopes I use when US Priority Mail Tyvek envelopes are not an option. The customer chose the cheapest mailing rate, First Class Mail International. The package weight was 11oz. The cost was $23.54 for three small pieces of paper in one envelope from Florida to Canada, which is a discounted rate!

Then, there are the shipping supplies to buy, and time & fuel costs to the post office due to customs forms, and the customer may have to pay tax on top, but I do not know.
Yes, it is the cost of doing business, but it all has to be added somewhere back to the consumer, or you are not running a business but a hobby!

[Alan Klein]

Darlene I don;t know if lithographs qualify for Media Mail Service which is cheaper postage. You could call them or check with your local postmaster. Only for domestic serivce.

https://about.usps.com/notices/not121/not121.htm
Media Mail Service
Media Mail® service has special eligibility requirements for permissible contents. Media Mail rates are limited to the items listed below:

Books (at least 8 pages).
Sound recordings and video recordings, such as CDs and DVDs.
Playscripts and manuscripts for books, periodicals, and music.
Printed music.
Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media.
Sixteen millimeter or narrower width films.
Printed objective test materials and their accessories.
Printed educational reference charts.
Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students.
Media Mail Packages may not contain advertising except that books may contain incidental announcements of other books and sound recordings may contain incidental announcements of other sound recordings. In accordance

with standards in the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM 300) 173.3.2, Media Mail Packages are subject to inspection by the Postal Service™. Upon such inspection, matter not eligible for the Media Mail rate may be assessed at the proper rate and sent to the recipient postage due, or the sender may be contacted for additional postage (DMM 604.8.1).

For more information about Media Mail service, please visit www.usps.com or call 1-800-ASK-USPS (1-800-275-8777). Complete explanations of qualified items may be found in DMM 173.3.2.

Notice 121

July 2008

PSN 7610-07-000-4037