Import / Customs Fees on German Wheel Shipment?

[AustinL]

Hi Guys,

I found a good deal on new wheels from a retailer in Germany and am trying to understand the fees I'll see to import them. The quote they sent me shows "0% VAT", when I asked the retailer they said, "Please check at your local agent or custom".

I've never imported wheels before. Several years ago when I raced motorcycles I imported a five or six items from Italy, only one time I received a bill many months later for one shipment. There was no rhyme or reason I could figure as to why that shipment was dinged and how they calculated the amount.

Any input greatly appreciated, thanks!

[Bill Verburg]

Originally Posted by AustinL

Hi Guys,

I found a good deal on new wheels from a retailer in Germany and am trying to understand the fees I'll see to import them. The quote they sent me shows "0% VAT", when I asked the retailer they said, "Please check at your local agent or custom".

I've never imported wheels before. Several years ago when I raced motorcycles I imported a five or six items from Italy, only one time I received a bill many months later for one shipment. There was no rhyme or reason I could figure as to why that shipment was dinged and how they calculated the amount.

Any input greatly appreciated, thanks!

VAT is something else , not an import tax. It won't apply in the US

I/'m no expert but from the numerous experiences I've had the import tax seems to be correlated to the value of the goods

For small things up to at least a couple of hundred bucks I've never had to pay an import tax but have had tax on a couple of thousand, no matter what the goods will be held up for at least a few days in customs.

[shoooo32]

I bought a set of SSIs from the UK during Brexit - I got an email from DHL stating the duty was $60 and I needed to pay it to have them released from customs.

[Southbay356]

VAT is the tax a European buyer has to pay , its like a sales tax in Europe .

If the item is getting exported the Non-european does not have to pay VAT ,

You will have to pay USA Import duty and customs fees ,

[spuggy]

Originally Posted by AustinL

There was no rhyme or reason I could figure as to why that shipment was dinged and how they calculated the amount.

It's usually/mostly down to CBP - if they decide to raise a charge for import duty, they will. Luck of the draw. Although I don't think they really bother for personal imports - least, I don't recall them ever charging me anything.

*However* some shipping firms act as customs agents and raise/file the paperwork with CBP. And then act as the intermediary, and collect the money before they'll release it. They also charge you their "agent fees" in the process.

I don't think that this has anything to do with CBP directly, more the carrier you're dealing with.

In which respect, worth mentioning that DHL isn't just a carrier like FedEx or UPS in Germany; DHL Group owns the national mail carrier (Deutsche Post) since privatization. So more like USPS.

Maybe they have some obligation to do the customs thing - or maybe they just like the agent fees....

[Schulisco]

Best using Fedex or UPS as they're US based and thefore routined with that.

https://www.fedex.com/en-de/shipping-channel/ship-to/united-states.html

https://www.ups.com/de/en/smallbusiness/content/international-shipping/shipping-to-usa.page

Concerning the wheels:
Are they used or brand new? Which ones? Fuchs replicas from Maxilite? Maxilite ships worldwide...
https://www.maxilite.ch

Thomas

[Matt Monson]

It’s 3% when it exceeds $1600. It’s that simple. Plus whatever processing fee your carrier charges. None of this luck of the draw arbitrary ridiculousness. It’s very consistent and standardized.

[famoroso]

CA may hit you up for a 10% use tax after the fact.

[AG81]

I believe Matt is correct. I've brought a few things in from Europe during my 72 build, recently. I don't remember having to pay any additional cost to bring stuff over pre-Covid. Now I've been hit a couple of times with with some sort of import duty collected by FedEx and DHL at delivery or predelivery (in route). As discussed the value was over $1,600 both times.

[AustinL]

Originally Posted by Matt Monson

It’s 3% when it exceeds $1600. It’s that simple. Plus whatever processing fee your carrier charges. None of this luck of the draw arbitrary ridiculousness. It’s very consistent and standardized.

Can't tell you how many threads I perused in search of this percentage, thank you, Matt!

Originally Posted by famoroso

CA may hit you up for a 10% use tax after the fact.

Good call, Frank.

I'm looking at a $3,200 order. Same order in the US is $4,300. So even if I'm hit with the 3% Matt mentioned plus 10% CA use tax I'm still in the black at ~$3,616.

Originally Posted by AG81

I believe Matt is correct.

Thanks for your feedback, AG81!

[spuggy]

Originally Posted by Matt Monson

It’s 3% when it exceeds $1600. It’s that simple. Plus whatever processing fee your carrier charges. None of this luck of the draw arbitrary ridiculousness. It’s very consistent and standardized.

I don't think it's as simple as you think..

$1600 looks to be the duty-free limit for goods personally (eg in your possession when re-entering the country) imported from an IP (insular possession) for personal/household use/gifts after an overseas stay of at least 48 hours. Duty-free exemption

Or, in other words, importing goods such as vehicle parts from another country isn't covered by the same rules as a few bottles of booze you bring back from vacation.

Rate of import duty is set according to the HTUS code, a version of the HTS extended & used by the US Harmonized Tariff Schedule that defines rates according to the goods being imported - it may also vary according to the country of origin, or whatever additional agreements/treaties may apply.

I'd SWAG that chapter 87 "VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND PARTS AND ACCESSORIES THEREOF" applies. And $2500 looks to be the threshold for duty, according to Import/Export - Internet Purchases

[Matt Monson]

Spuggy,
I was not saying everything is 3%. I was specifically saying that the wheels would be. He asked a very specific question about wheels. There are some non-automotive tariff protected goods that you’d pay a 100% duty on. But they aren’t wheels.

You’re right, I did confuse the hand carry limit versus import threshold.

[spuggy]

Originally Posted by AustinL

Can't tell you how many threads I perused in search of this percentage, thank you, Matt!

Actually, I think you'll find cars (non-tractor, non-motor home, to carry less than 10 persons) look to be class 8703, and "road wheels" fall under 8708.70.45.



Which would make the duty 2.5%, given that EU countries fall under the "General" (sub)section of column 1, as they aren't one of the:

• "Special" origins covered by Free Trade agreements
• embargoed countries (Belarus, Cuba, North Korea, Russian Federation) listed in column 2

As defined in General Notes 3 Rates of Duty

[AustinL]

Originally Posted by spuggy

Actually, I think you'll find cars (non-tractor, non-motor home, to carry less than 10 persons) look to be class 8703, and "road wheels" fall under 8708.70.45.

Thank you, Spuggy!

Any idea what "Rate of Duty" Column 2 defines? That column ranges from 25 - 27.5%. Those percentages would not warrant the order.

The 2.5% you mentioned would definitely warrant the order

[Matt Monson]

Belarus, Russia, etc are column 2. Places with sanctions.

[spuggy]

Originally Posted by AustinL

Any idea what "Rate of Duty" Column 2 defines? That column ranges from 25 - 27.5%. Those percentages would not warrant the order.

The 2.5% you mentioned would definitely warrant the order

Yeh, M^2 nailed that explanation.

I seem to recall that import duty is charged on the value of the goods + shipping costs, but I think that tax is charged only on the value of the goods themselves? Not 100% on that - or even if was/is still true, as looked it up more than a dozen years ago in a different context.

famoroso mentions a CA "use tax" of 10%, not familiar with that at all.

There may be local taxes - eg state/county/city sales taxes - that also apply; some states define evasion of sales tax as a felony. Just sayin'.

[spuggy]

Oh, and something that occurs to me; 3200/4 == $800.

Why not order two pairs of wheels, say a week or two apart? Each order of $1600 + shipping would come in under the $2500 limit for import duty?

Disclaimer: this seems like "avoidance" rather than "evasion" (two terms which seem almost synonymous, but one of which is apparently fine - while the other tends to get professionals very agitated) to me.

Just a thought; I really don't know if that's not a good idea for some reason.

[Jonny H]

To all you good citizens of the USA (as we say in the UK), "You don't know you're born!"

The USA has (I expect) the lowest import taxes in the world.

In nearly every other country the import duty/local tax is AT LEAST 20% and then you pay some 'fees' which seem to vary somewhat.

So, if I orders parts from the USA for $1000 then I pay another $250 to get them into the UK!

We sometimes have USA customers complain that they got an import bill for $50 on a purchase of $4000+. Makes me laugh!

Count your blessings that you don't live in Taiwan. We had a guy buy an AC kit from us for $4000, the import tax there on luxury goods is 368%, another $14,720!