Import Tax - to the US?

[kestrou]

Gang,

I'm working out details on purchasing an EBMM (guess what kind? ) from a fellow knucklehead who's in Europe and the topic of import taxes came up.

I'm aware of the VAT tax when importing a US made guitar to Europe, but I'm *not* aware of anything similar when sending that guitar back to the US - anybody know anything?

I'm thinking that since the US doesn't have VAT taxes, and the guitar was originally made in the US (so it's not really being "imported" from a different country of manufacture where those VAT taxes would have been captured) that there's nothing to be done in this regards - but I'm willing to be educated if that's not the case!

Kevin

 

[mikeller]

Kevin - it may result in a Duty Tax. Check out this article:

Customs Duty Information | U.S. Customs and Border Protection

EDITED: perhaps not. This is on that article:

Household Effects & Personal Effects - Customs Duty Guidance

Household effects conditionally included are duty-free. These include such items as furniture, carpets, paintings, tableware, stereos, linens, and similar household furnishings; tools of the trade, professional books, implements, and instruments.

 

[dibart77]

I recently bought a Mojave Ampworks Dirty Boy from a guy in Canada. Got hit with import duty of $130. Even though the amp was made in California.

​

 

[kestrou]

Mike - thanks for the info - I've e-mailed our FedEx account representative to see if he can provide any info.

Jeff - you're busting my BALLS here, buddy! Appreciate the info - but how did you get hit with that import duty - and what was the declared value of the amp?

Kevin

 

[mikeller]

I am really glad this came up. Was looking at a used Silhouette in Canada and never thought about that as a possible extra cost to purchase it.

 

[kestrou]

I am really glad this came up. Was looking at a used Silhouette in Canada and never thought about that as a possible extra cost to purchase it.

I've bought a few guitars from Canada and been blissfully unaware of any import duty - which doesn't mean it doesn't exist, just that I likely screwed up and didn't pay it!

Kevin

 

[mikeller]

I would think they would collect it before or on delivery?

 

[dibart77]

Jeff - you're busting my BALLS here, buddy! Appreciate the info - but how did you get hit with that import duty - and what was the declared value of the amp?

Don't have the paperwork in front of me but I think the value was listed as around $3000 (the insured value). It was shipped via FedEx, and I think that was a big part of the problem. So it was about 5%.

I filled out a declaration that said "this is a USA made product so I should not pay an import tax" and 2 weeks lateran invoice came in the mail saying "too bad, PAY."

Avoid FedEx?

FWIW I still plan to dispute it.

-J

​

 

[sanderhermans]

You guys should be gratefull that tax is only 5% shipping anny item from us to belgium you pay 30% taxes and added costs for customs handling. So unfair...

 

[DrKev]

When I bought my Silo Special from Slav and shipped it to France, 4% import duty + 20% VAT, and that was on the total value instrument PLUS shipping charges.

 

[kestrou]

This appears to be answer: https://help.cbp.gov/app/answers/detail/a_id/374/kw/duty+rates

Kevin

 

[dibart77]

Kevin:

That link does not address a key issue here: Why should I pay an import tax on an item that was produced in the U.S.? Made in San Luis Obispo, CA! Why is our government charging me to import it? You're supposed to pay a duty to import an item is a penalty for not buying American. This item IS American! According to the article, countries with Normalized Trade Relations is "free to 6%". Do we not have Normalized Trade Relations with ourselves? Should be free, I think. Will let you know if I win the fight against the man.

​

 

[kestrou]

Kevin:

That link does not address a key issue here: Why should I pay an import tax on an item that was produced in the U.S.? Made in San Luis Obispo, CA! Why is our government charging me to import it? You're supposed to pay a duty to import an item is a penalty for not buying American. This item IS American! According to the article, countries with Normalized Trade Relations is "free to 6%". Do we not have Normalized Trade Relations with ourselves? Should be free, I think. Will let you know if I win the fight against the man.

​

I agree with you, Jeff - and PROMISE I'm no fan of paying taxes

I'll be raising exactly the same issues if/when I get hit with the fee...

Updates to follow from my end as well!

Kevin

 

[3Balls2Love]

Hi Kevin, I just came across this thread and was recently faced with a similar situation when purchasing a JP 15 from Japan. Basically, you should NOT have to pay any import duties in this case. But it would be very helpful if the seller provides as much documentation (original invoice, catalog, specs, etc) as possible to the shipping company that shows that the guitar was made in the USA. It would also help to clearly indicate on the invoice that the guitar was made in the USA and is for personal use only. This is what the guy from Japan did (in addition to an absolutely phenomenal job of packing and protecting the guitar) and I did not have to pay any duties. However, he did say that the level of success in avoiding duties can depend on the port of entry it passes through as, apparently, the customs officers in the Chicago customs office can be "problematic". Luckily, my guitar went through Los Angeles and didn't have any issues whatsoever. I hope this is helpful and good luck!

 

[kestrou]

Hey 3Balls - thanks for the info - appreciate the tip!

Kevin

 

[3Balls2Love]

You're welcome. I just noticed you're in Illinois but hopefully your guitar can avoid the Chicago port-of-entry!

BTW... nice Ball collection!

 

[Spudmurphy]

VAT I thought is a UK tax and is not levied on non UK residents - for example my US relatives could claim a refund of VAT tax paid on goods on their return to the USA.

FWIW, when/if I import a Delorean from the USA back to the UK - the country of manufacture, I will not have to pay the full 20% it will be either 5 or 10%. Also there should be no duty to pay. I would have thought that an enquiry to your IRS will resolve this?

 

[Jeong]

I think it also depends on how the item is labeled. Items labeled as a gift are not usually subjected to import tax. However items coming in from Canada seem to be taxed more strictly.

 

[Jeong]

I've sent plenty of stuff back and forth from the US to Japan without any problems!

 

[Spudmurphy]

I think it also depends on how the item is labeled. Items labeled as a gift are not usually subjected to import tax. However items coming in from Canada seem to be taxed more strictly.

in this country there is a limit on the value of what can be constituted as a gift - so it's not as clear cut as that. I work for HMRC (IRS) in the UK and we have all this info available to the public via our internet supplemented by .... dare I say it .... customer service helplines.

Taxes are different in each country so we (outside the us) can't surmise what the full implications are .... well, apart from the VAT aspect of course.