Post by addictedtoyouleesungmin on Feb 28, 2014 9:10:15 GMT
Hello, sweeties!
addictedtoyouleesungmin here. After some thinking, I've decided to make a guide about customs! Most of us import our albums and photocards and other various Kpop merchandise from South Korea, Japan, China, Hong Kong, Singapore, and other Asian countries. So, one issue we will all face will be customs and importing (also include exporting for those of you who are sellers).
This guide is going to provide you with basic definitions, some tax rates for various countries, and what to expect when you order something and it has to be processed through your country's customs offices. This guide is meant to be a reference only, as things like shipping costs and import taxes will vary between countries.
Feel free to comment on this guide with your own experiences, and we'll add them into the "experiences" portion of this guide!! ^^
**Please note this guide is going to be constantly under construction, as things like customs fees can change without notice, and member experiences will constantly be added.**
Guide Breakdown
1. Basic Definitions
2. Customs Fees, Import Fees, and Duties
3. Member Experiences
Basic Definitions
[definitions taken from various online sources/my experiences]
Customs Fees, Import Fees, and Duties
These terms are generally synonymous, but you will encounter all of them during your photocard/Kpop merchandise buying sprees.
There are a couple different types of customs fees and taxes, and the amount of each fee varies between different countries. Some countries have fees and taxes that others don't.
General import fees ("duties") are based on what type of item was imported, and are generally a percentage of the cost of that item. Rates for the amount charged for each item are based on a tariff/trade schedule that varies between countries. For example, the fees for CDs may be different than the fees for clothing or other textiles (clothing seem to have some of the highest import fees--I believe the import fee for clothing into Canada is around 18% of the cost of the item). For some countries, this import fee is just a fixed percentage based on the total cost of the package being imported. For example, 10% of the package cost. These fees all vary between countries, and you, as a buyer, are responsible to know what kind of taxes your country charges.
For the US, we do not have a VAT, GST, PST, or HST, so we really only have these general import fees ("duties"). They are based on what types of items imported, and vary from item to item, but the fee is usually a percentage of the declared value of that item. There are WAY too many of these to list (but I will find and post a link to a tariff list for the US, if anyone is interested lol). What I DO know about US import fees are:
Tax Lists and Rates
**This list is incomplete and will be ever-changing, as tax rates can change without notice, and at a country's government's discretion**
VATs by Country
GST Rates (cr: Wikipedia)
PST Rates (Canada Only)
Courier Services, Customs Fees, and Broker Fees
When you have an item shipped via a courier service (or any mailing service actually), they hire people called "brokers" to help your items clear customs if they are over a certain amount; this is called a "formal entry." (all items imported into your country are passed through customs; no exceptions). These brokers inspect packages and charge the appropriate customs fees, VATs, GSTs, and PSTs/HSTs if you live in Canada (all taxes determined from the CN 22 customs form, and declared value(s) on said form), and then the item is sent on its way. The courier service pays those fees/taxes for you so your item can make it into the country, if you were charged fees/taxes.
These courier services then send you a bill for customs fees/taxes you owe. They usually will not release the package until you pay the fees in full, though some times, couriers (FedEx and UPS) will send you your package, and then a bill for customs fees MONTHS after you received the item. The bill will include all customs fees you owe, plus an administration fee for the brokers clearing your package for you.
UPS is really notorious for it's ridiculous broker fees, and is never recommended for international deliveries (especially US to Canada/Canada to US shipments); they are also known for their outrageous "entry fees" and "bond fees", all of which, again, are charged to the buyer. Some times buyers pay UP TO 50% OF THE DECLARED VALUE in fees alone. They also charge you broker fees EVEN IF YOUR PACKAGE IS CONSIDERED DUTY-FREE AND YOU DO NOT OWE YOUR GOVERNMENT ANY TAXES. Fees for UPS Grounds shipments are more than for their Air services (though still ridiculous), and brokerage fees are included in the shipping cost (for UPS Air/some Express services). Broker fees are NOT included in shipping costs for UPS Ground. They ask you to pay any bills/invoices they send you before they release your package.
FedEx has similar fees, although not as extreme as UPS. As far as I know, unless you pay customs fees, they do not charge you broker fees. (I need to research them more, as I know the least about them and their fees.) Fees for FedEx Ground shipments are more than for their Air services, and broker fees are included in the shipping costs (FedEx Air/some Express services). Broker fees are NOT include in shipping costs for FedEx Ground. They release your package to you, and then send you a bill/invoice month(s) later for fees owed.
DHL seems like the lesser of the three evils when it comes the the fees, but it still charges you broker fees ONLY if you owed customs fees to your government (the broker fee is typically a flat-rate fee that varies between countries--usually it is a percentage of the fees you paid in to your government). They ask you to pay any bills/invoices they send you before they release your package.
A LOT OF THESE FEES CHARGED ARE NOT MADE PUBLIC KNOWLEDGE TO BUYERS UNLESS YOU KNOW WHERE TO LOOK. AND EVEN THEN, WEBSITE LINGO CAN BE VERY CONFUSING, AND NOT ALL FEES ARE THOROUGHLY EXPLAINED. ALSO, WHEN YOU CONTACT THE COMPANIES, IT TAKES A LOT OF PRYING TO ACTUALLY GET ANY INFORMATION OUT OF THEM (based on Internet reports I've read). It is recommended that you clear the items through customs yourself if you are using UPS, as they WILL charge you for that service.
All invoices sent from courier services include a breakdown of the fees and what you were charged (usually). Some services offer a "Collect on Delivery" service for an additional fee, so you can pay customs fees the day they deliver if you don't choose to prepay them.
Broker fees are not charged if your item is considered "duty-free" (i.e., you don't owe the government any taxes/customs fees for importing that item).
Now, I have received one package from FedEx/DHL (A little confused because it has FedEx labels but is in a DHL-marked box), and as of yet, I have not received a bill from them. Their website states (DHL's website) that they will not release the merchandise until the bill for customs fees and broker fees is paid, but I received mine with no bill. So I feel like I'm safe (though there are reports online of people receiving their bills months after they got their packages from DHL, but these are few and far between). However, if a bill arrives, I will definitely update this guide with the information on it. I do not believe that I will be charged anything, or receive a bill from them, however, because my purchase they delivered is considered "duty-free" (i.e., it was under $200 USD).
Broker fees, again, are only charged IF YOU PAY IN CUSTOMS FEES TO YOUR COUNTRY'S GOVERNMENT. Because the courier service pretty much paid for you upon entry, and this is their fee for paying your customs fees for you (although, you still have to pay them back the customs fees as well). IF YOU DID NOT PAY CUSTOMS FEES TO YOUR COUNTRY, YOU WILL NOT HAVE TO PAY BROKER FEES. (Some courier services are exceptions to this though, i.e., UPS.)
As mentioned before, some times post offices charge you broker fees for clearing your package through customs and paying any fees/taxes you owe. You will receive a bill from them, and be required to pay the fees/taxes before you get your merchandise. These customs fees/taxes and PO broker fees vary by country, once again, and it is your responsibility to know what these fees are.
FedEx Shipping Fees & Broker Fees
UPS Customs & Broker Fees
More UPS Customs & Broker Fees
**I do not guarantee the accuracy of this information, as fees are always subject to change, and there are always "hidden" fees in there somewhere. Experiences would be most helpful here!**
An invoice for customs fees from a courier will generally look like this (except with real numbers):
Package cost: $XXXX
Shipping cost: $XXXX
Customs fees (duties owed) @ XX%: $XXXX
VAT fee @ XX%: $XXXX
GST fee @ XX%: $XXXX
(add any other applicable taxes your country may have)
Disbursement fee (broker fee): $XXXX
Total: $XXXX
I will continue to research this topic, and will add more information as I learn more. Also, member experiences with these couriers would be excellent! So please comment if you have an experience you would like to share!
Member Experiences
Share your customs experiences here to help inform other members!!
addictedtoyouleesungmin here. After some thinking, I've decided to make a guide about customs! Most of us import our albums and photocards and other various Kpop merchandise from South Korea, Japan, China, Hong Kong, Singapore, and other Asian countries. So, one issue we will all face will be customs and importing (also include exporting for those of you who are sellers).
This guide is going to provide you with basic definitions, some tax rates for various countries, and what to expect when you order something and it has to be processed through your country's customs offices. This guide is meant to be a reference only, as things like shipping costs and import taxes will vary between countries.
Feel free to comment on this guide with your own experiences, and we'll add them into the "experiences" portion of this guide!! ^^
**Please note this guide is going to be constantly under construction, as things like customs fees can change without notice, and member experiences will constantly be added.**
Guide Breakdown
1. Basic Definitions
2. Customs Fees, Import Fees, and Duties
3. Member Experiences
Basic Definitions
[definitions taken from various online sources/my experiences]
- Broker/brokerage fees: fees you pay a mailing service for clearing your package through customs. You only pay this fee if you are charged customs fees by your government. The fee is kept by the mailing service, and it can be a flat-rate, or based on the cost of your package. This fee is not a tax imposed on you, the buyer, by your government, but rather by the courier service you used, and the receive this money, not customs.
- Courier & Courier Services: a mailing service that delivers items to a buyer, and who also has brokers that help the ordered merchandise clear customs. All courier services are generally trackable, and shipping times are faster, albeit at a steeper postage cost. For this guide, I do not include local post offices as "couriers."
- Customs: the official department that administers and collects the duties levied by a government on imported goods. For the US, they are called Customs and Borders Protection (CBP). All imported and export packages will be processed through customs.
- Customs broker: a person who "clears" goods through customs barriers for both importers and exporters.
- Customs fees: also known as "import fees" or "custom duties" or just "duties"; these are fees charged on imported items based on a tariff/tax system. Fees are always the responsibility of the buyer.
- Customs fees threshold: also called a "duties threshold" or "duty-free threshold"; the point where items you import start to accrue customs fees. For the US, it is any package valued greater than $200 USD (commercial) or $100 USD (gifts). Varies by country.
- Customs form: a form attached to all internationally mailed items; includes things like description of merchandise, quantity of items, weight of package, value of items enclosed. Also known as a CN 22 form.
- Declared Value: the value of merchandise as reported on the customs form. Typically, sellers should put whatever the buyer paid for the item, as that is the items "value" to the buyer (ex., declared value of $10 USD).
- Description of merchandise: pretty self-explanatory; a short description of whatever is enclosed in the package (ex., CD).
- Duty-free: when your item does not accrue customs fees, it is considered a duty-free item. All items are subject to taxes, but most governments don't start charging taxes until packages reach a certain threshold (called "customs fees threshold" or "duties threshold" in this guide). There are very few items, such as antiques over 100 years of age, that are automatically duty-free regardless of the cost.
- DHL: a courier service that seems to be based in the European Union.
- EMS: Express Mailing Service; a type of shipping offered by post offices (NOT courier services). All mail comes through a country's local post office. EMS is usually trackable.
- Exporting: the act of selling merchandise to a buyer outside of one's country, and having it shipped ("exported") to that buyer's country of residence.
- FedEx: a courier service that is based in the United States.
- GST: "Goods and Services Tax"; according to Google, it is a broad-based, very visible consumption tax; the charge is usually a percentage based on the declared value of an imported item (ex., a GST of 10%).
- HST: "Harmonized Sales Tax"; a consumption tax present only within the country of Canada. Usually charged based on the declared value of goods imported. It is used when the federal GST and the regional PST have been combined into a single value-added sales tax.
- Importing: the act of buying merchandise from outside of one's country, and having it shipped ("imported") into their country of residence.
- Insurance: insurance placed on a package being mailed, which will cover the cost of it in case it becomes lost and the buyer is refunded for it (meaning the seller will still get their money). Typically adds to the total shipping cost.
- Post Office: a place where items are mailed obviously, but in this guide, this term is being used to differentiate post offices from courier services (ex., USPS in the United States, Japan Post in Japan, etc. are examples of "post offices").
- PST: "Provincial Sales Tax"; another type of tax on imported goods collected in some provinces of Canada.
- Registered Shipping: trackable shipping service offered through a country's local post offices.
- Seizure: also known as a "customs hold" or "customs inspection"; some times, customs chooses packages to inspect if they find the package suspicious. But most of the time, this inspection is random, and not because the package is suspicious. Expect delays up to 1 month if customs seizes your package. The package is generally released to the buyer after it is inspected by an official.
- Shipping cost: how much it costs to ship an item (varies between countries, and a lot of factors influence this cost, such as weight, rigidness, and size; different mailing services offer different prices).
- UPS: a courier service that is based in the United States.
- VAT: "value-added tax"; a type of customs fee/consumption tax imposed by certain countries. Usually charged based on declared value of goods imported, and prices are based off a percentage of that cost. or off a countries sales tax (ex., a VAT of 10%).
Customs Fees, Import Fees, and Duties
These terms are generally synonymous, but you will encounter all of them during your photocard/Kpop merchandise buying sprees.
There are a couple different types of customs fees and taxes, and the amount of each fee varies between different countries. Some countries have fees and taxes that others don't.
- General import fees/taxes (also known as "duties" or "customs duties" in the US)
- VAT ("value-added tax")
- GST ("goods and services tax")
- HST ("harmonized sales tax") (Canada Only)
- PST ("provincial sales tax") (Canada Only)
**There are more types of taxes, and I am currently researching them.**
General import fees ("duties") are based on what type of item was imported, and are generally a percentage of the cost of that item. Rates for the amount charged for each item are based on a tariff/trade schedule that varies between countries. For example, the fees for CDs may be different than the fees for clothing or other textiles (clothing seem to have some of the highest import fees--I believe the import fee for clothing into Canada is around 18% of the cost of the item). For some countries, this import fee is just a fixed percentage based on the total cost of the package being imported. For example, 10% of the package cost. These fees all vary between countries, and you, as a buyer, are responsible to know what kind of taxes your country charges.
For the US, we do not have a VAT, GST, PST, or HST, so we really only have these general import fees ("duties"). They are based on what types of items imported, and vary from item to item, but the fee is usually a percentage of the declared value of that item. There are WAY too many of these to list (but I will find and post a link to a tariff list for the US, if anyone is interested lol). What I DO know about US import fees are:
- For purchases under $200 USD, all items are considered "duty-free" and do not accrue import fees. This is for PURCHASES ONLY.
- For gifts under $100 USD, all items are considered "duty-free" and do not accrue import fees. Things like alcohol, beer, cigarettes, cigars, and perfume are EXCLUDED.
- There are no VATs, GSTs, PSTs, or HSTs charged (so just "duties" only).
Kinda messed up that the gifts customs fees threshold is LOWER than the merchandise threshold. But hey! That's CBP for you! Also, to further screw this up, if you get multiple packages in a day processed through customs, it's not $200 USD duty-free per package, it is $200 USD for THAT DAY. So if you have three packages that come through customs on the same day, one at $50 USD, one at $100 USD, and one at $75 USD, YOU WILL BE CHARGED DUTIES ON THEM. Because the total amount of your packages processed that day exceeds the $200 USD duty-free threshold (they were $225 USD together).
Some countries have VAT and GST taxes, which are taxes piled ON TOP OF import fees (they're pretty much a form a sales tax).
Canada has two additional taxes that other countries do not have: PSTs and HSTs.
If you have any information at all, feel free to comment and I can add that kind of stuff here! Also, specific duty-free thresholds would be super helpful!
Customs Fees, Duty-Free Thresholds, and Other Taxes (listed by Country)
Some countries have VAT and GST taxes, which are taxes piled ON TOP OF import fees (they're pretty much a form a sales tax).
Canada has two additional taxes that other countries do not have: PSTs and HSTs.
If you have any information at all, feel free to comment and I can add that kind of stuff here! Also, specific duty-free thresholds would be super helpful!
Customs Fees, Duty-Free Thresholds, and Other Taxes (listed by Country)
Duty-free Thresholds for Australia:
- Under $1,000 AUD is duty-free for commercial purchases (merchandise)
- Australia has a GST of 10%
Duty-free Thresholds for Canada:
- Under $20 CAD is duty-free for commercial purchases (merchandise)
- Canadians are charged a VAT of 5% +0-10% for items
- Some provinces do charge PSTs and GSTs, or the combined HST (PST & GST combined into a single tax); see lists below for rates for different provinces
- Canada Post charges a flat-rate handling fee of $9.95 CAD if you are required to pay in taxes on your purchase (in addition to other taxes/duties owed).
VAT-free & Duty-free Thresholds for the United Kingdom
- Under £15 GBP orders from outside the EU are VAT-free for commercial purchases (merchandise)
- Under £36 GBP orders from outside the EU are VAT-free for gifts
- Over £135 GBP orders (commercial and gift) may require duties to be paid. If the amount of duty due is less than £9 GBP, duties will not be charged.
- Standard VAT rate - 20%
- Royal Mail charges a £8 GBP handling fee if VAT/Duties are due (in addition to VAT/Duties owed).
- VAT/Duties are assessed based on: the value of the items in the package AND the costs of shipping/insurance.
Duty-free Thresholds for the United States:
- Under $200 USD is duty-free for commercial purchases (merchandise)
- Under $100 USD is duty-free for items marked as GIFT
- Both of these are a "per day" rate, and not a "per package" rate.
- The US has no VAT, GST, PST, or HST.
- Duties are assessed based on: the value of the items in the package (although sometimes based on the quantity for certain imports) EXCLUDING costs of shipping/insurance.
- FUN FACT: "Trading Cards" are considered duty-free.
Tax Lists and Rates
**This list is incomplete and will be ever-changing, as tax rates can change without notice, and at a country's government's discretion**
VATs by Country
GST Rates (cr: Wikipedia)
- Australia: 10%
- Canada: 5%
- New Zealand: 15%
- Singapore: 7%
PST Rates (Canada Only)
Courier Services, Customs Fees, and Broker Fees
When you have an item shipped via a courier service (or any mailing service actually), they hire people called "brokers" to help your items clear customs if they are over a certain amount; this is called a "formal entry." (all items imported into your country are passed through customs; no exceptions). These brokers inspect packages and charge the appropriate customs fees, VATs, GSTs, and PSTs/HSTs if you live in Canada (all taxes determined from the CN 22 customs form, and declared value(s) on said form), and then the item is sent on its way. The courier service pays those fees/taxes for you so your item can make it into the country, if you were charged fees/taxes.
These courier services then send you a bill for customs fees/taxes you owe. They usually will not release the package until you pay the fees in full, though some times, couriers (FedEx and UPS) will send you your package, and then a bill for customs fees MONTHS after you received the item. The bill will include all customs fees you owe, plus an administration fee for the brokers clearing your package for you.
UPS is really notorious for it's ridiculous broker fees, and is never recommended for international deliveries (especially US to Canada/Canada to US shipments); they are also known for their outrageous "entry fees" and "bond fees", all of which, again, are charged to the buyer. Some times buyers pay UP TO 50% OF THE DECLARED VALUE in fees alone. They also charge you broker fees EVEN IF YOUR PACKAGE IS CONSIDERED DUTY-FREE AND YOU DO NOT OWE YOUR GOVERNMENT ANY TAXES. Fees for UPS Grounds shipments are more than for their Air services (though still ridiculous), and brokerage fees are included in the shipping cost (for UPS Air/some Express services). Broker fees are NOT included in shipping costs for UPS Ground. They ask you to pay any bills/invoices they send you before they release your package.
FedEx has similar fees, although not as extreme as UPS. As far as I know, unless you pay customs fees, they do not charge you broker fees. (I need to research them more, as I know the least about them and their fees.) Fees for FedEx Ground shipments are more than for their Air services, and broker fees are included in the shipping costs (FedEx Air/some Express services). Broker fees are NOT include in shipping costs for FedEx Ground. They release your package to you, and then send you a bill/invoice month(s) later for fees owed.
DHL seems like the lesser of the three evils when it comes the the fees, but it still charges you broker fees ONLY if you owed customs fees to your government (the broker fee is typically a flat-rate fee that varies between countries--usually it is a percentage of the fees you paid in to your government). They ask you to pay any bills/invoices they send you before they release your package.
A LOT OF THESE FEES CHARGED ARE NOT MADE PUBLIC KNOWLEDGE TO BUYERS UNLESS YOU KNOW WHERE TO LOOK. AND EVEN THEN, WEBSITE LINGO CAN BE VERY CONFUSING, AND NOT ALL FEES ARE THOROUGHLY EXPLAINED. ALSO, WHEN YOU CONTACT THE COMPANIES, IT TAKES A LOT OF PRYING TO ACTUALLY GET ANY INFORMATION OUT OF THEM (based on Internet reports I've read). It is recommended that you clear the items through customs yourself if you are using UPS, as they WILL charge you for that service.
All invoices sent from courier services include a breakdown of the fees and what you were charged (usually). Some services offer a "Collect on Delivery" service for an additional fee, so you can pay customs fees the day they deliver if you don't choose to prepay them.
Broker fees are not charged if your item is considered "duty-free" (i.e., you don't owe the government any taxes/customs fees for importing that item).
Now, I have received one package from FedEx/DHL (A little confused because it has FedEx labels but is in a DHL-marked box), and as of yet, I have not received a bill from them. Their website states (DHL's website) that they will not release the merchandise until the bill for customs fees and broker fees is paid, but I received mine with no bill. So I feel like I'm safe (though there are reports online of people receiving their bills months after they got their packages from DHL, but these are few and far between). However, if a bill arrives, I will definitely update this guide with the information on it. I do not believe that I will be charged anything, or receive a bill from them, however, because my purchase they delivered is considered "duty-free" (i.e., it was under $200 USD).
Broker fees, again, are only charged IF YOU PAY IN CUSTOMS FEES TO YOUR COUNTRY'S GOVERNMENT. Because the courier service pretty much paid for you upon entry, and this is their fee for paying your customs fees for you (although, you still have to pay them back the customs fees as well). IF YOU DID NOT PAY CUSTOMS FEES TO YOUR COUNTRY, YOU WILL NOT HAVE TO PAY BROKER FEES. (Some courier services are exceptions to this though, i.e., UPS.)
As mentioned before, some times post offices charge you broker fees for clearing your package through customs and paying any fees/taxes you owe. You will receive a bill from them, and be required to pay the fees/taxes before you get your merchandise. These customs fees/taxes and PO broker fees vary by country, once again, and it is your responsibility to know what these fees are.
FedEx Shipping Fees & Broker Fees
UPS Customs & Broker Fees
More UPS Customs & Broker Fees
**I do not guarantee the accuracy of this information, as fees are always subject to change, and there are always "hidden" fees in there somewhere. Experiences would be most helpful here!**
An invoice for customs fees from a courier will generally look like this (except with real numbers):
Package cost: $XXXX
Shipping cost: $XXXX
Customs fees (duties owed) @ XX%: $XXXX
VAT fee @ XX%: $XXXX
GST fee @ XX%: $XXXX
(add any other applicable taxes your country may have)
Disbursement fee (broker fee): $XXXX
Total: $XXXX
I will continue to research this topic, and will add more information as I learn more. Also, member experiences with these couriers would be excellent! So please comment if you have an experience you would like to share!
Member Experiences
Share your customs experiences here to help inform other members!!
addictedtoyouleesungmin - I have never been charged US customs fees, and I have been buying from overseas for 2+ years. I am always careful with package costs though, and never order more than $200 USD in one go. USPS has never sent me bills about how I owe customs/duties, and I have never received bills for broker fees from them. As of right now, I have not received a bill for customs/broker fees from DHL/FedEx.