US Customs discussion - airports, importing

[QuelleFromage]

Hi trishaluvslv and sorry for the late reply!
Now sorry for the long post but....
Here is my experience:

In general when I have purchased H leather bags from Japan into the US (which I have done several times) I have been charged 10% duty. Sometimes nothing, but usually 10% of whatever the seller declared, usually what I paid (if the seller overdeclares you can notify Customs and they'll knock it down). Generally this is billed after the fact by the carrier but sometimes the shipper will demand cash on delivery.

However, last time the Paris boutique shipped me something into the US (I ordered it in Paris and had it sent from another European store, to Paris, to me) the duty was 20% and I was told by US Customs that that was standard for "quality leather items". They would not deliver until I paid up. OUCH!!! :rain:
The boutique had knocked off 10% VAT for me already but I am wondering, if they had charged me VAT, would I not have had duty? The general rule in shipping from overseas is you should not have to pay tax twice, but it is not always the case.

Shipping within the EU is fine as you've already paid VAT. However I shipped Hong Kong to the EU once and was dinged 20% again!

Compare to bringing an item into the US physically - you are usually charged 10% on the amount ABOVE $1K, which is quite a bit better.

One more caution: most states with high sales tax also have "use tax" so if somehow an item comes into the state from out of the country without import duty the state will charge you use tax on it, usually exactly same as sales tax, so for instance in Cali and NY, nearly 10%. Unless the item is going somewhere else to be "used" within 90 days, you will owe this amount. This is the states' way of getting you back for somehow avoiding duty, even if it was luck.

I have never bought H from a European reseller and had it shipped, but I have bought plenty of other fashion items (new) from the EU and usually the duty has been about 10% (usually rolled into the price already). However for a not-new item I would want to hear others' experience.

I have never had an expensive item shipped to the UAE but my understanding is that although Dubai at least is a zone with limited to no import tax, it can vary and I have had friends charged at least 5-10%.

So...the short answer for the US is count on 10% and be pleasantly surprised if it does not happen, but when shipping direct from an H boutique be wary of the 20% possibility. I personally would not have a very high-ticket item shipped to the US from a foreign store again unless there were no other option.

I am sure someone can point us to countless regulations that state what "should" happen, but this is what actually happens in my personal experience.

 

[Falnangel]

Hi trishaluvslv and sorry for the late reply!
Now sorry for the long post but....
Here is my experience:

In general when I have purchased H leather bags from Japan into the US (which I have done several times) I have been charged 10% duty. Sometimes nothing, but usually 10% of whatever the seller declared, usually what I paid (if the seller overdeclares you can notify Customs and they'll knock it down). Generally this is billed after the fact by the carrier but sometimes the shipper will demand cash on delivery.

However, last time the Paris boutique shipped me something into the US (I ordered it in Paris and had it sent from another European store, to Paris, to me) the duty was 20% and I was told by US Customs that that was standard for "quality leather items". They would not deliver until I paid up. OUCH!!! :rain:
The boutique had knocked off 10% VAT for me already but I am wondering, if they had charged me VAT, would I not have had duty? The general rule in shipping from overseas is you should not have to pay tax twice, but it is not always the case.

Shipping within the EU is fine as you've already paid VAT. However I shipped Hong Kong to the EU once and was dinged 20% again!

Compare to bringing an item into the US physically - you are usually charged 10% on the amount ABOVE $1K, which is quite a bit better.

One more caution: most states with high sales tax also have "use tax" so if somehow an item comes into the state from out of the country without import duty the state will charge you use tax on it, usually exactly same as sales tax, so for instance in Cali and NY, nearly 10%. Unless the item is going somewhere else to be "used" within 90 days, you will owe this amount. This is the states' way of getting you back for somehow avoiding duty, even if it was luck.

I have never bought H from a European reseller and had it shipped, but I have bought plenty of other fashion items (new) from the EU and usually the duty has been about 10% (usually rolled into the price already). However for a not-new item I would want to hear others' experience.

I have never had an expensive item shipped to the UAE but my understanding is that although Dubai at least is a zone with limited to no import tax, it can vary and I have had friends charged at least 5-10%.

So...the short answer for the US is count on 10% and be pleasantly surprised if it does not happen, but when shipping direct from an H boutique be wary of the 20% possibility. I personally would not have a very high-ticket item shipped to the US from a foreign store again unless there were no other option.

I am sure someone can point us to countless regulations that state what "should" happen, but this is what actually happens in my personal experience.

Hi,

Very insightful information. Do you mind sharing the customs process upon arriving the US for declaring items more than $1K? I'm going to Europe next month will probably do some shopping. Is this a long process that may take hours or if I be specific on the customs form and have receipts ready, will that expedite the process? My husband will be traveling with me so if the customs process takes too long then he probably will not have the patience for it. Thanks!

 

[QuelleFromage]

Hi,

Very insightful information. Do you mind sharing the customs process upon arriving the US for declaring items more than $1K? I'm going to Europe next month will probably do some shopping. Is this a long process that may take hours or if I be specific on the customs form and have receipts ready, will that expedite the process? My husband will be traveling with me so if the customs process takes too long then he probably will not have the patience for it. Thanks!

Let me note that I am not in customs so perhaps other tPFers can answer in more detail, but this is my experience. I am a US citizen with my main residence here, so my customs process is only germane to those in the same situation.
It's pretty easy: just fill out the customs card (given on the airline) when returning to the States and hand your card to the customs officer - ask where to go - you will probably be told to go through "Goods to Declare" when you exit. (If you use Global Entry, you have a special customs lane and will have to ask an officer as you don't need the customs card to re enter the US.)
Note that just because the first 1K is exempt from duty does NOT mean declare all spending over 1K. If you exceeded the duty free limit, declare it ALL.
You will experience any of a range of actions from:
"Great, thanks for declaring, go on your merry way, don't need to pay"
to
"Please show me everything you bought and the receipts" so be prepared to unpack (it is fine to be wearing items).
The only times I have been assessed duty are at airports that take credit cards on the spot but some I understand bill after the fact.
It should not take long at all if you have 2-3 items - maybe 10-15 minutes. If you have 10 expensive items, especially if they are similar, you may be in for a lot of questions about why so much and are you a reseller etc.
So few people declare at all that if you've spent a couple thousand dollars they are quite likely to just be happy you declared and send you out the "green" door.
It's the brand new croc B, etc., or severals Bs, that will get duties assessed and questions asked. A spend over 100K will usually get you delayed big time. ANYTHING endangered or exotic outside of a small bracelet/wallet will generally get a pause (although I've never been asked for CITES).
Most of all research the laws of your state. It's not applicable to H but I have seen so many python items confiscated at LAX and SFO as python is illegal in California.

 

[Harpertoo]

I just want to clarify a point disucussed above. Getting a VAT refund, or not, in no way changes your tax/duty obligation to the country you are living in/exporting to.
The VAT is the EU tax for it's citizens only - you will owe whatever your country of residence sets.

 

[Txoceangirl]

I traveled in June and brought back two H bags. I have global entry and declared all my items. The customs agent was super friendly, asked the value but didn't want to see bags or receipts. I just told him about xx$ thinking we would go through the receipts together. The agent looked up leather bags and charged me 8% (beyond the exemptions and 3% on the first 2k) that made me really happy as I've read others have been hit with 20%. Paid by Amex (get points by paying duties).

 

[lmac408]

Hi trishaluvslv and sorry for the late reply!
Now sorry for the long post but....
Here is my experience:

In general when I have purchased H leather bags from Japan into the US (which I have done several times) I have been charged 10% duty. Sometimes nothing, but usually 10% of whatever the seller declared, usually what I paid (if the seller overdeclares you can notify Customs and they'll knock it down). Generally this is billed after the fact by the carrier but sometimes the shipper will demand cash on delivery.

However, last time the Paris boutique shipped me something into the US (I ordered it in Paris and had it sent from another European store, to Paris, to me) the duty was 20% and I was told by US Customs that that was standard for "quality leather items". They would not deliver until I paid up. OUCH!!! :rain:
The boutique had knocked off 10% VAT for me already but I am wondering, if they had charged me VAT, would I not have had duty? The general rule in shipping from overseas is you should not have to pay tax twice, but it is not always the case.

Shipping within the EU is fine as you've already paid VAT. However I shipped Hong Kong to the EU once and was dinged 20% again!

Compare to bringing an item into the US physically - you are usually charged 10% on the amount ABOVE $1K, which is quite a bit better.

One more caution: most states with high sales tax also have "use tax" so if somehow an item comes into the state from out of the country without import duty the state will charge you use tax on it, usually exactly same as sales tax, so for instance in Cali and NY, nearly 10%. Unless the item is going somewhere else to be "used" within 90 days, you will owe this amount. This is the states' way of getting you back for somehow avoiding duty, even if it was luck.

I have never bought H from a European reseller and had it shipped, but I have bought plenty of other fashion items (new) from the EU and usually the duty has been about 10% (usually rolled into the price already). However for a not-new item I would want to hear others' experience.

I have never had an expensive item shipped to the UAE but my understanding is that although Dubai at least is a zone with limited to no import tax, it can vary and I have had friends charged at least 5-10%.

So...the short answer for the US is count on 10% and be pleasantly surprised if it does not happen, but when shipping direct from an H boutique be wary of the 20% possibility. I personally would not have a very high-ticket item shipped to the US from a foreign store again unless there were no other option.

I am sure someone can point us to countless regulations that state what "should" happen, but this is what actually happens in my personal experience.

Thanks so much for this - super helpful.

A question on "use tax" as I live in NY. Do you know how this works? I'm assuming if you declare your purchases when coming back into the US you get a bill from NY at a later date? Or do you get a bill when you file your taxes? I recently made a purchase in Paris and declared, so I'm just trying to get a sense of the bill I should expect haha.

Thanks again.

 

[afsweet]

I received a bill for use tax for my state more than a year after my purchase.

Thanks so much for this - super helpful.

A question on "use tax" as I live in NY. Do you know how this works? I'm assuming if you declare your purchases when coming back into the US you get a bill from NY at a later date? Or do you get a bill when you file your taxes? I recently made a purchase in Paris and declared, so I'm just trying to get a sense of the bill I should expect haha.

Thanks again.

 

[lmac408]

I received a bill for use tax for my state more than a year after my purchase.

Interesting, thanks! How were they (the state) informed? Did you declare the purchase at the airport or when you filed your taxes?

 

[kat99]

Interesting, thanks! How were they (the state) informed? Did you declare the purchase at the airport or when you filed your taxes?

Not Steph, but this typically happens when the boutique actually mails the item to your address in the US, not when you hand carry it back. I think the carrier files something directly with the state.

 

[Falnangel]

Let me note that I am not in customs so perhaps other tPFers can answer in more detail, but this is my experience. I am a US citizen with my main residence here, so my customs process is only germane to those in the same situation.
It's pretty easy: just fill out the customs card (given on the airline) when returning to the States and hand your card to the customs officer - ask where to go - you will probably be told to go through "Goods to Declare" when you exit. (If you use Global Entry, you have a special customs lane and will have to ask an officer as you don't need the customs card to re enter the US.)
Note that just because the first 1K is exempt from duty does NOT mean declare all spending over 1K. If you exceeded the duty free limit, declare it ALL.
You will experience any of a range of actions from:
"Great, thanks for declaring, go on your merry way, don't need to pay"
to
"Please show me everything you bought and the receipts" so be prepared to unpack (it is fine to be wearing items).
The only times I have been assessed duty are at airports that take credit cards on the spot but some I understand bill after the fact.
It should not take long at all if you have 2-3 items - maybe 10-15 minutes. If you have 10 expensive items, especially if they are similar, you may be in for a lot of questions about why so much and are you a reseller etc.
So few people declare at all that if you've spent a couple thousand dollars they are quite likely to just be happy you declared and send you out the "green" door.
It's the brand new croc B, etc., or severals Bs, that will get duties assessed and questions asked. A spend over 100K will usually get you delayed big time. ANYTHING endangered or exotic outside of a small bracelet/wallet will generally get a pause (although I've never been asked for CITES).
Most of all research the laws of your state. It's not applicable to H but I have seen so many python items confiscated at LAX and SFO as python is illegal in California.

Thank you so much! I'm also a US citizen living in the US just traveling to Europe for vacation. I'll probably look for a couple of brackets or scarves and if I'm lucky maybe a bag, but nothing crazy and definitely no exotics. So this makes me feel better because my husband will have no patience after an international flight so if this is a long process I may not do anything shopping beyond the exempted amount...Now I'm happy! Thank you!

 

[afsweet]

Interesting, thanks! How were they (the state) informed? Did you declare the purchase at the airport or when you filed your taxes?

I bought my items from FSH in Paris and had everything shipped, so I did not declare any of that at the airport, and the VAT was already deducted since it was being shipped to a non-EU country. After receiving my goods, I was also sent a bill from DHL for custom/duty fees. A year later my state billed me the use tax. I'm not sure if the state knew about my purchase from H or DHL.

 

[crazyforbag]

I bought my items from FSH in Paris and had everything shipped, so I did not declare any of that at the airport, and the VAT was already deducted since it was being shipped to a non-EU country. After receiving my goods, I was also sent a bill from DHL for custom/duty fees. A year later my state billed me the use tax. I'm not sure if the state knew about my purchase from H or DHL.

how much did you end up paying for tax? What was the % in total?

 

[QuelleFromage]

I bought my items from FSH in Paris and had everything shipped, so I did not declare any of that at the airport, and the VAT was already deducted since it was being shipped to a non-EU country. After receiving my goods, I was also sent a bill from DHL for custom/duty fees. A year later my state billed me the use tax. I'm not sure if the state knew about my purchase from H or DHL.

It's the carrier that files with the state for use tax. I got a use tax bill for art purchases THREE YEARS after the purchase. FedEx had filed it. Since the purchases had actually gone out of Cali to our other home in a no-sales-tax state, I tried to prove this but to no avail. They charged me 10% which in this case was nearly $1K.
It's basically a state's way of saying "You thought you could get away tax-free, haha, we are going to charge you for USING the item". I am not usually one to complain a lot about taxation but it seems ridiculous.

I did think that if you paid duty, you would not be subject to use tax, but apparently I was wrong which seems even worse...

 

[Harpertoo]

It's the carrier that files with the state for use tax. I got a use tax bill for art purchases THREE YEARS after the purchase. FedEx had filed it. Since the purchases had actually gone out of Cali to our other home in a no-sales-tax state, I tried to prove this but to no avail. They charged me 10% which in this case was nearly $1K.
It's basically a state's way of saying "You thought you could get away tax-free, haha, we are going to charge you for USING the item". I am not usually one to complain a lot about taxation but it seems ridiculous.

I did think that if you paid duty, you would not be subject to use tax, but apparently I was wrong which seems even worse...

I think the difference is the Duty/Customs is a federal tax, the use tax is levied by the state to capture sales tax.
I feel fortunate to never have encountered use tax. Not a welcome surprise.

 

[lmac408]

Thanks all for chiming in re: use tax! Helpful info.