Duty | Tax | Customs for International shopping {VAT refund}

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#1,126
lilpebble said:
the US duty fee to the chanel "leather" bag is 8%.(for leather good). I just bought a jumbo and brought it back and paid 8%
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Unfortunately, it's not that simple (much like any US Taxes LOL). US Customs Tax on leather goods/handbags (it varies for other items) is more along the lines of:

i) the first $800 for singles/$1600 four couples is exempt,
ii) the next $1,000 is taxed at a lower rate of 3%, and
iii) anything above that is taxed at the full rate of 6.5%.

Also, the amount you declare should be less the VAT refund (so that helps a little).
 
#1,127
FunBagz said:
Unfortunately, it's not that simple (much like any US Taxes LOL). US Customs Tax on leather goods/handbags (it varies for other items) is more along the lines of:

i) the first $800 for singles/$1600 four couples is exempt,
ii) the next $1,000 is taxed at a lower rate of 3%, and
iii) anything above that is taxed at the full rate of 6.5%.

Also, the amount you declare should be less the VAT refund (so that helps a little).
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that's not my experience - I just returned from Europe and was charged 8% on a leather chanel bag. Yes you receive 8=$800 credit per person but after that you are charged a certain percentage depending on the item type. Leather goods are charged at 8%. I wish it was less :)
 
#1,128
lilpebble said:
that's not my experience - I just returned from Europe and was charged 8% on a leather chanel bag. Yes you receive 8=$800 credit per person but after that you are charged a certain percentage depending on the item type. Leather goods are charged at 8%. I wish it was less :smile:
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I am not sure why you would have been charged a flat 8%. To my knowledge, it's a sliding scale and that has always been my experience. Though I am not sure what the current full individual duty rate is for leather handbags since I waved through when I returned from my last EU trip a couple weeks ago. But the last time I was charged, the full individual duty rate was 6.5% for the amount over the exempt amount and over the first $1,000, which was taxed at 3%. Seems like the amount charged varies depending on the agent you get.

https://www.ricksteves.com/travel-tips/packing-light/clearing-customs

"You are allowed to take home $800 worth of items per person duty-free in your luggage, once every 30 days (family members can combine their individual $800 exemptions on a joint declaration). The next $1,000 is taxed at a flat 3 percent. After that, you pay the individual item's duty rate."
 
#1,129
FunBagz said:
I am not sure why you would have been charged a flat 8%. To my knowledge, it's a sliding scale and that has always been my experience. Though I am not sure what the current full individual duty rate is for leather handbags since I waved through when I returned from my last EU trip a couple weeks ago. But the last time I was charged, the full individual duty rate was 6.5% for the amount over the exempt amount and over the first $1,000, which was taxed at 3%. Seems like the amount charged varies depending on the agent you get.

https://www.ricksteves.com/travel-tips/packing-light/clearing-customs

"You are allowed to take home $800 worth of items per person duty-free in your luggage, once every 30 days (family members can combine their individual $800 exemptions on a joint declaration). The next $1,000 is taxed at a flat 3 percent. After that, you pay the individual item's duty rate."
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yes - Rich Steves needs to update his info :) . there's no sliding scale. I actually called to verify the 8% was correct. I asked what the fees would be and was told that it's 8% on leather goods. there's a web site (below) that lists the rates (i still need to dig through it)
Harmonized Tariff Schedule Search
 
#1,130
lilpebble said:
yes - Rich Steves needs to update his info :smile: . there's no sliding scale. I actually called to verify the 8% was correct. I asked what the fees would be and was told that it's 8% on leather goods. there's a web site (below) that lists the rates (i still need to dig through it)
Harmonized Tariff Schedule Search
Click to expand...

I am familiar with the Harmonized Tariff Schedule; however, my understanding is the rates shown thereon are applicable only to the amount over the exemption ($800 per individual/$1600 per couple) and over the first $1,000 thereafter, which is taxed at 3%. Thus the "sliding scale". The last time I was charged (probably two years ago), that is how my tax was calculated. So perhaps there has been a change since then. I have been lucky enough to have been waved through most times I return (I think most agents would rather not deal with it). An 8% flat tax makes shopping abroad hardly worth it.
 
#1,131
FunBagz said:
I am familiar with the Harmonized Tariff Schedule; however, my understanding is the rates shown thereon are applicable only to the amount over the exemption ($800 per individual/$1600 per couple) and over the first $1,000 thereafter, which is taxed at 3%. Thus the "sliding scale". The last time I was charged (probably two years ago), that is how my tax was calculated. So perhaps there has been a change since then. I have been lucky enough to have been waved through most times I return (I think most agents would rather not deal with it). An 8% flat tax makes shopping abroad hardly worth it.
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yes the fee is high. Maybe someone can point us to the documentation describing the sliding scale and the 3%. If they made a mistake maybe i can get my money back :)
 
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#1,133
I did my tax refund via Premier Tax Free back in May... and noticed that my refund (my credit card doesn't charge FX fees) was at a much lower exchange rate (1.44 CAD/EUR) than when I bought my Chanel at FX (1.514 CAD/EUR)... anyone else had come across the same issue?
 
#1,134
choco30 said:
I did my tax refund via Premier Tax Free back in May... and noticed that my refund (my credit card doesn't charge FX fees) was at a much lower exchange rate (1.44 CAD/EUR) than when I bought my Chanel at FX (1.514 CAD/EUR)... anyone else had come across the same issue?
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Yes, I havent run into a significant problem with this before, but I was told that the refund is issued in Euro and then you bank will convert it back to your local currency, so the refund is based on the exchange rate at the time the refund is processed by your CC company.
 
#1,135
I just went to Paris and made 4 separate purchases at Hermes and one at Moncler. I only have two credits so far but wondering if maybe two of the Hermes purchases (on separate receipts) were combined. Has anyone had that experience where multiple transactions were combined in one refund? And Moncler who hand writes the cc number was delayed? thanks in advance.
 
#1,136
I have an upcoming trip to both London and Berlin from the U.S. in January and was hoping someone could help me in regards to declaring customs.
I'm flying to London first, then Berlin, and then BACK to London before returning to the U.S.
I was hoping to purchase a Chanel bag in Berlin but wasn't sure if I would have to declare customs and pay the fee at both London (since it's outside of the EU) and on my return to the U.S.
I also can't purchase it in London during my second trip there since I arrive late at night and fly out to the U.S. the next morning.
Any help would be appreciated!!
 
#1,137
mpark94 said:
I have an upcoming trip to both London and Berlin from the U.S. in January and was hoping someone could help me in regards to declaring customs.
I'm flying to London first, then Berlin, and then BACK to London before returning to the U.S.
I was hoping to purchase a Chanel bag in Berlin but wasn't sure if I would have to declare customs and pay the fee at both London (since it's outside of the EU) and on my return to the U.S.
I also can't purchase it in London during my second trip there since I arrive late at night and fly out to the U.S. the next morning.
Any help would be appreciated!!
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No - https://www.gov.uk/duty-free-goods/arrivals-from-eu-countries

Keep us posted on how things go. I'd still suggest going to the boutique at LHR if you can...
 
#1,138
dbcelly said:
No - https://www.gov.uk/duty-free-goods/arrivals-from-eu-countries

Keep us posted on how things go. I'd still suggest going to the boutique at LHR if you can...
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I saw that link, but it says you don't pay duty or tax as long as you "have paid duty and tax in the country where you bought them." I was hoping to get a VAT refund so I don't this applies to me. I also specifically wanted a Chanel boy bag, but I heard this is not sold in the Heathrow airport? Do you know if this is still true?
 
#1,140
I’ll be flying out to taiwan and then to HK and fly back to the US from Taiwan. If I buy the bag in HK, do I declare it when I fly to taiwan? And declare it again when I fly back to the states from taiwan?
Thanks in advance!
 
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