New Duty Law for International Shipments Into US

[gerryvz]

FYI Folks,

Starting on August 29th, all shipments from abroad will be subject to differing tariffs based on the country where the package originated. This means that small packages (for example, E500E parts coming into the US from abroad) will now be scrutinized by US Customs and tariffs/duties will be applied based on the value of the item inside.

It's also probable that packages will be delayed once they reach US shores, because of extra US Customs processing times to analyze and then levy the tariffs. Different countries also will have different tariff amounts levied.

Previously, all small packages with total value under USD $800 were exempt from US Customs tariffs/duties.

If you have any pending parts orders from abroad, it would be a good idea to make them ASAP so that they get through US Customs ahead of August 29th.

Just wanted to give folks a heads up about this.

More info is here:

https://www.hoganlovells.com/en/publications/de-minimis-customs-exception-for-small-packages-entered-into-the-united-states-to-end-in-august-2025

 

[gsxr]

Thanks for the tip, Gerry!

Does anyone know how the duty will be paid? For example, let's say someone orders a Fox exhaust from Germany and it's valued at $1000. Assuming a 15% tariff, there would be a $150 USD duty to be paid by the recipient. Who collects this? Does the parcel delivery service (UPS, DHL, etc) deliver and we get a (separate) bill in the mail from the gub'mint for $150? Or will the package not be delivered until the duty is paid? Etc...

 

[JC220]

+1 to Dave's questions and also there must still be some allowance for "Gift" declared items? Used quite alot when sending items oversees and generally on low value items which go on through.

 

[The G320 Driver]

Does anyone know how the duty will be paid? For example, let's say someone orders a Fox exhaust from Germany and it's valued at $1000. Assuming a 15% tariff, there would be a $150 USD duty to be paid by the recipient. Who collects this? Does the parcel delivery service (UPS, DHL, etc) deliver and we get a (separate) bill in the mail from the gub'mint for $150? Or will the package not be delivered until the duty is paid? Etc...

As far I know, there is two or three ways. By my last order I received a mail from ups to pay the customs. In Germany the company’s can do it till the border then it’s done. If the custom office see the goods and the price is not matching to the item may you need to par the difference on top. Also the custom office can order you to pay duty at the office.

 

[alabbasi]

Does anyone know how the duty will be paid?

When I've made big orders in the past that were shipped by UPS or DHL, they will collect the tax while the item is in transit.

For any of you UROparts fans, China is excluded from this rule. Time to stack those flex discs high.

 

[JC220]

Looking at Royal Mail now I tested what happens RE items going from here (UK) to USA.

If I put in a £100 item value as sale of goods to test it comes up with +£10 customs fee + +50p handling fee.

So £10.50 added to the postage cost to cover USA import duties.

So in an amount like that (I'm thinking about my engine lock tools to be posted in October) its not bad and paid up front to avoid issues on Royal Mail platform. USPS will deliver as normal on USA side.

Going between GIFT or SALE OF GOODS makes no difference by the way. Used to be Gift was no fees.

 

[daantjie]

I can totally see the "TACO" approach being followed here on the De Minimis. Unfortunately it has been politicized without much foresight (as usual). It will have far reaching consequences from making goods into US more expensive to reducing package volumes for already struggling USPS. Talk about penny wise pound foolish. Ugh...

 

[daantjie]

Further to this, and this may or may not help you...full disclosure I work in the Logistics industry but I am NOT a licenced Customs broker so take this advice as you wish.

There is an exemption for vehicles (and this "should" also apply to parts for said vehicles) over 25 years old, to enable these parts and vehicles to enter the US duty free:

9903.94.04

These are the "Harmonized Tarriff Schedule codes" used to classify imports for duty purposes.

Worth a try and again this may or may not work. We have to realize that these border control agencies (not just in US) have enormous discretionary powers, and your goods may get held up if the customs agent feels like it pretty much unfortunately.

Further, you may want to also stipulate the Incoterms when shipping in general, this can help you a lot not getting shafted on duties, but you need to agree this with the buyer/receiver:

DDU - Delivery duty unpaid - receiver must pay for all duties, taxes and brokerage fee
DDP - delivery duty paid, sender pays for all costs including duties, taxes and brokerage, basically all costs to get it to receiver's door.

There are many other Incoterms and it gets very detailed so I'll spare you the gory details...

There is a reason why customs brokerage houses charge so much guys, these can be very complex issues and can cost you a bloody fortune, not to speak of the time wasted and frustration.

A good career option if you can handle the drudgery and monotony of this type of work

 

[duuder]

Thanks for the tip, Gerry!

Does anyone know how the duty will be paid? For example, let's say someone orders a Fox exhaust from Germany and it's valued at $1000. Assuming a 15% tariff, there would be a $150 USD duty to be paid by the recipient. Who collects this? Does the parcel delivery service (UPS, DHL, etc) deliver and we get a (separate) bill in the mail from the gub'mint for $150? Or will the package not be delivered until the duty is paid? Etc...

I've had an experience with DHL from Europe, if there is a duty, they will send you an invoice via email.

 

[036]

It´s already long time like this in Germany. EVERYTHING coming not from EU gets horrendes tax. I payed last time for some parts for Lexus from US around 30 percent on top.

 

[steve h]

I've had an experience with DHL from Europe, if there is a duty, they will send you an invoice via email.

I always wonder what guarantee you have that DHL actually pay it.......

 

[duuder]

I always wonder what guarantee you have that DHL actually pay it.......

They send you the invoice, even before tariffs, if there was some sort of duty that needed paying, the major carriers send you the bill

 

[036]

I always wonder what guarantee you have that DHL actually pay it.......

None. Sometimes they do, sometimes your´ll get an invoice later, sometimes you have to pay it at post office to be able to get it.

 

[JC220]

None. Sometimes they do, sometimes your´ll get an invoice later, sometimes you have to pay it at post office to be able to get it.

I once had DHL overcharge duties amazingly high. Something like £150 duties on a £120 item. They sent the invoice after the item was delivered. Then when I was raising queries on it they went ahead and threatened debt collector agencies against me if I didn't pay. So I had to pay and still chase it. Took about 6 months for them to agree to a partial refund after the fact. Total session, after that for USA I use USPS international and don't have those problems.

 

[GRAEME JOHNSON]

I had the same with FedEx I bought a wood veneer part from a seller in Turkey via E- bay
E bay charged me the duty at the time of purchase
FedEx billed me again after delivery and despite being sent copies of the invoice and a letter
explaining I had paid they threatened me with debt collectors court etc
I ended up paying duty twice
Graeme Johnson

 

[duuder]

I once had DHL overcharge duties amazingly high. Something like £150 duties on a £120 item. They sent the invoice after the item was delivered. Then when I was raising queries on it they went ahead and threatened debt collector agencies against me if I didn't pay. So I had to pay and still chase it. Took about 6 months for them to agree to a partial refund after the fact. Total session, after that for USA I use USPS international and don't have those problems.

USPS and DHL workers are all quiet quiting... I've seen a USPS van that specifically delivers packages just drop a tag and not even buzz while waiting for DHL outside my complex waiting for my own delivery as they don't even get out of their truck to even drop a missed delivery tag