US Customs discussion - airports, importing

[Genepi]

Follow-up question for you very well-versed and kind people who have experience:

I read in the 2023 Hermes Bag Prices thread here (in the top "sticky" area) France VAT: 10% (H processes own refunds and after fees, you get 10% back)

However, in this thread and in other threads and various YT videos people have been saying there are companies you can mail your forms to and they will take 5-10% of the xx% VAT refund you get from Hermes; and I have also heard that there are processing companies located at the airport and they will take 5-10% of the xx% VAT refund you get from Hermes; [where xx seems to also be a varying number].

And now I am reading on here that Hermes processes its own refunds. I am tad bit confused, as there seem to be at least 3 different answers to what seems like it should be a very standard process.

Am I missing something?

Hopefully I can address some of these questions. Hermes gives you 10% and they give you the tax back form at the store- every time I have purchased in the last 5 years this has been processed by global blue. The process is now electronic if you exit Europe from CDG. The refund is fast and quick and you should see it in about 2-5 days from leaving Europe. Very quick and easy and US credit card refunds get the full 10% minus a small Euro to USD currency conversion (this will be ~2%) but this is an almost invisible charge. To determine the amount you were charged for the currency conversion you could look up Visa/MC Euro to USD currency conversion charts for that day. Currency conversion charges are common and basically every financial institution charges them, unless you specifically have a cc with no conversion fees as part of your benefit.

Now here is where the really nasty part of the VAT refund comes into play, and were some of the confusion may lie. If you are from Canada and you paid with a Canadian $ card then Global Blue first converts the refund from Euro to USD (taking ~ 2%), then converts from USD to CAD (taking another ~2%to 3%) to determine the amount that is refunded back to your CAD credit card. This is an invisible transaction and is completely unnecessary as they could convert directly from Euro to CAD. It is purely a way for Global Blue to get more of your tax refund.

Many of the Paris stores give you 12% back, such as Galleries Lafayette and LV and they do process their on refunds convert it directly- a net savings to all of ~2% and non USD card holders of ~4% which if you are spending 20K adds up. This is also why purchasing at the DF store in the airport can be to your advantage as the tax is already deducted from the price and you don't have to worry about Global Blue taking 4 to 5% of your refund!

 

[FrenchNewbie]

It’s used to be that all vat refunds were processed through some 3d party company to where you need to mail forms and they took fees. But this year Hermes decided to change it I guess. Now you don’t need to mail forms and you receive full 10% refund and it’s really fast now. I received refund within 4 working days after my departure day

oh wow, so FSH (or one of the other two locations) processed the refund in-store, you took the purchases home with you in your carry-on/checked-luggage, and you didn't have to go thru detax at CGD or go thru customs in the US?

 

[FrenchNewbie]

Hopefully I can address some of these questions. Hermes gives you 10% and they give you the tax back form at the store- every time I have purchased in the last 5 years this has been processed by global blue. The process is now electronic if you exit Europe from CDG. The refund is fast and quick and you should see it in about 2-5 days from leaving Europe. Very quick and easy and US credit card refunds get the full 10% minus a small Euro to USD currency conversion (this will be ~2%) but this is an almost invisible charge. To determine the amount you were charged for the currency conversion you could look up Visa/MC Euro to USD currency conversion charts for that day. Currency conversion charges are common and basically every financial institution charges them, unless you specifically have a cc with no conversion fees as part of your benefit.

Now here is where the really nasty part of the VAT refund comes into play, and were some of the confusion may lie. If you are from Canada and you paid with a Canadian $ card then Global Blue first converts the refund from Euro to USD (taking ~ 2%), then converts from USD to CAD (taking another ~2%to 3%) to determine the amount that is refunded back to your CAD credit card. This is an invisible transaction and is completely unnecessary as they could convert directly from Euro to CAD. It is purely a way for Global Blue to get more of your tax refund.

Many of the Paris stores give you 12% back, such as Galleries Lafayette and LV and they do process their on refunds convert it directly- a net savings to all of ~2% and non USD card holders of ~4% which if you are spending 20K adds up. This is also why purchasing at the DF store in the airport can be to your advantage as the tax is already deducted from the price and you don't have to worry about Global Blue taking 4 to 5% of your refund!

ok, thanks for your response.

Sorry now I am confused again...the person above said it's all electronic and Hermes processes it for you in-store; but you are saying Hermes gives you the form and you have to process it at CGD, albeit electronically?

 

[Genepi]

oh wow, so FSH (or one of the other two locations) processed the refund in-store, you took the purchases home with you in your carry-on/checked-luggage, and you didn't have to go thru detax at CGD or go thru customs in the US?

No it used to be that you went through detax and a customs officer would stamp your paper forms that you would then deposit into a collection box and/or mail. Then you would wait for weeks/months for them to be processed. Now you scan your forms and you get either a green light- no need to see and officer and you are good to go or red light and you have to wait to see an officer where they will check to make sure you have the item. You see your refund very quickly and is much improved over the mailing of items. I am sure it is also great for customs as they get a list of all the items you have purchased.

 

[mmvv22]

oh wow, so FSH (or one of the other two locations) processed the refund in-store, you took the purchases home with you in your carry-on/checked-luggage, and you didn't have to go thru detax at CGD or go thru customs in the US?

You still have to go kiosk and scan it. If it’s green light you just can go, if it’s a red light you present an item to a custom officer. But an officer just process it on computer and doesn’t stamp refund form and you don’t need to send it as I did last year leaving from Amsterdam. I had to go to officer, they stamped form and then I had to put it in a mail box. This year officer at CDG said I don’t need to mail it. So I kept all forms

 

[Genepi]

ok, thanks for your response.

Sorry now I am confused again...the person above said it's all electronic and Hermes processes it for you in-store; but you are saying Hermes gives you the form and you have to process it at CGD, albeit electronically?

Hermes processes the detaxe form for you in the store- all stores do as you need the form to claim your VAT. You then scan the bar codes on the forms at the detaxe office at CDG- green light good to go, red light see an officer. No need to mail forms and the actual refund to your CC is done by Global Blue.

For all VAT refunds you must scan your forms or see a customs officer before leaving the EU- if you don't then no refund even though you have the paperwork. Step 1 - get form from store- Step 2 customs on departure where they confirm the goods are leaving the EU. Skip step 2 NO REFUND!

If you want you can select cash back and then you have to wait in line at the detaxe office- which some may prefer for a variety of reasons.

 

[FrenchNewbie]

Hermes processes the detaxe form for you in the store- all stores do as you need the form to claim your VAT. You then scan the bar codes on the forms at the detaxe office at CDG- green light good to go, red light see an officer. No need to mail forms and the actual refund to your CC is done by Global Blue.

For all VAT refunds you must scan your forms or see a customs officer before leaving the EU- if you don't then no refund even though you have the paperwork. Step 1 - get form from store- Step 2 customs on departure where they confirm the goods are leaving the EU. Skip step 2 NO REFUND!

If you want you can select cash back and then you have to wait in line at the detaxe office- which some may prefer for a variety of reasons.

ok, thank you so much for clarifying.

So all in all, the net amount of the VAT refund for Hermes is 10% and for LV it's 12% (and varies for Chanel/Goyard/Moynat), as long as your credit card has no foreign transaction fees?

 

[Genepi]

ok, thank you so much for clarifying.

So all in all, the net amount of the VAT refund for Hermes is 10% and for LV it's 12% (and varies for Chanel/Goyard/Moynat), as long as your credit card has no foreign transaction fees?

The refund will be 10% but GB will charge ~2% conversion fee to exchange from EUD to USD- again to see exactly how much you will need to check Visa/MC exchange rates for the day GB processed your refund. All financial institutions charge transaction fees and this is how GB makes it's money! It is almost invisible to the consumer because GB does the conversion but does not provide you with the conversion rate but you can work it out. Then if you check table what the current day's conversion rate from Visa/MC would be you will see that the conversion rate was ~ 2 to 3% which goes to GB and this how they get paid- they don't provide a free service! To see this you have to do the math and you have to be experienced enough to know about currency conversions and how to find the daily going rate.

In addition to GB you will be charged currency conversion fees on your purchases by your CC if you do not have a CC with no foreign transaction fees as one of the benefits. This is going to be another 2 to 3%.

 

[stephbb9]

ok, thank you so much for clarifying.

So all in all, the net amount of the VAT refund for Hermes is 10% and for LV it's 12% (and varies for Chanel/Goyard/Moynat), as long as your credit card has no foreign transaction fees?

I will add that some stores process refunds through Planet Free (not H).
The refund is 12% however they take a pretty big cut on the currency exchange. To my opinion and what I have seen, it’s a bigger fee than Global Blue.
And sometimes it takes more than 3 months to get the refund from Planet Free to your credit card.
Global Blue is extremely fast.
Dior uses Global Blue too.
Now maybe if you get the cash back at the airport it’s better but the currency exchange rate they use won’t be good at all either…
Personally I wouldn’t want to be traveling back with over $1000 cash for example if I buy something expensive…

 

[a_b_c]

I will add that some stores process refunds through Planet Free (not H).
The refund is 12% however they take a pretty big cut on the currency exchange. To my opinion and what I have seen, it’s a bigger fee than Global Blue.
And sometimes it takes more than 3 months to get the refund from Planet Free to your credit card.
Global Blue is extremely fast.
Dior uses Global Blue too.
Now maybe if you get the cash back at the airport it’s better but the currency exchange rate they use won’t be good at all either…
Personally I wouldn’t want to be traveling back with over $1000 cash for example if I buy something expensive…

I will co-sign your comment, Global Blue is significantly faster than Planet. I transited through CDG on Sunday and have already received all of my Global Blue refunds. I don’t expect I’ll see the others for weeks, at best, if not a month or two.

 

[papertiger]

Follow-up question for you very well-versed and kind people who have experience:

I read in the 2023 Hermes Bag Prices thread here (in the top "sticky" area) France VAT: 10% (H processes own refunds and after fees, you get 10% back)

However, in this thread and in other threads and various YT videos people have been saying there are companies you can mail your forms to and they will take 5-10% of the xx% VAT refund you get from Hermes; and I have also heard that there are processing companies located at the airport and they will take 5-10% of the xx% VAT refund you get from Hermes; [where xx seems to also be a varying number].

And now I am reading on here that Hermes processes its own refunds. I am tad bit confused, as there seem to be at least 3 different answers to what seems like it should be a very standard process.

Am I missing something?

Discussed here: https://forum.purseblog.com/threads/tax-back-from-paris.481320/

 

[klobo]

I can attest that Chanel Paris uses Planet Free, not global blue. I got my VAT back within 2 days with GB.....crickets with PF

 

[QuelleFromage]

Never ever ever use a CC that charges foreign transaction fees. There’s no need. Call your CC if they do and they should waive it - it’s an antiquated way of skimming off another few percent.

 

[888Bee]

Global Entry has started to shift (I believe it started at JFK or Newark) to a facial recognition system where you do not even need your passport nor to fill out anything. So, depending where you enter the US and whether you have GE, you may or may not have a) an entry card b) a questionnaire in the kiosk. I mainly enter the US in NYC and haven't used my passport nor had a questionnaire in a couple years (I am a US citizen even though I reside in the EU).
All that aside...
You are still required to declare purchases over the exemption whether asked or not.
CBP does receive notice of detaxe filings.
If you don't declare (whether asked to or not) you may receive a bill or a summons from CBP as noted many times earlier in this thread. No idea if "no one asked me" would fly or not !

Global Entry at LAX has shifted to facial recognition system as well. Walk up to a GE kiosk, it takes your photo, then an officer calls out your name to clear you through.

 

[QuelleFromage]

Global Entry at LAX has shifted to facial recognition system as well. Walk up to a GE kiosk, it takes your photo, then an officer calls out your name to clear you through.

Yes, I said it started in NYC, not that it is only in NYC. It's everywhere I've entered the US on a scheduled flight recently, including DFW, LAX, MIA, etc.