What are the actual costs of buying off shore to US buyers?

Namvet69

"As the buyer, you should be aware of possible:

• delays from customs inspection.
• import duties and taxes which buyers must pay.
• brokerage fees payable at the point of delivery."

The above caveat is in small print on coins offered in Asian countries. Are the duties, taxes and fees based on what one pays or something else? Inquiring minds want to know. Peace Roy

pruebas

Assuming you are in the USA, there are no Customs duties or Federal taxes on numismatic items. You may be liable to pay your state tax on these items via Use Tax, but you would have to declare that on your income tax return and how are the state tax authorities going to audit that?

Any shipment with value over some amount ($2500 per shipment?) will have to go through a process called formal entry. You will need CPB Form 5106 (which requires a SSN/EIN and a physical address) which is kept on file at Customs for a year, so if you import more coins requiring formal entry, it will already be on file. Formal entry has a processing fee due to Customs, a very small percentage of the declared value with a minimum of something like $30. This amount is not a duty and is due at clearance.

In my experience, FedEx will do the formal entry for you for a small surcharge for fronting the money for the Customs processing fee. They send an invoice to your address a few weeks after your parcel is delivered and you pay it online. IMHO it's worth it, but if you use FedEx, you don't have a choice.

I did have a FedEx package delayed a week once due to Customs inspection. Note Customs does NOT re-pack very well, so if your items are fragile, beware. I liken it to a bunch of gorillas going through your shipment and throwing everything back into the box, sealing it with multiple feet of plastic tape.

I have never had any Customs charges/inspections with Registered Mail, though I believe it is subject to the same rules.

bosox

$2500 equals formal entry.

cacheman

What he said.

I was surprised to get a $61 bill from FedEx and just assumed it was for processing my CPB 5106 as I had nothing on record with them for importing, especially for a substantially valued package.

Make sure the sender is applying the correct Harmonizing code and marking the customs sheet as 'NUMISMATIC MATERIAL' and, in my case, a statement that contents were greater than 100 years of age. This is how I handle art medals and medallions at least.

pruebas

That's a good point. Make sure the seller puts the correct HTS code on the commercial invoice (the one on the outside of the package). Customs will also need the weight in grams, the material, and the place of manufacture for each item on the invoice. Yes, bureaucratic, but necessary.

HTS codes 9705.00.0050 or 9705.00.0065 are the most common for me.

If one or more of these is missing, you will have to supply it before Customs will clear it. If FedEx is your shipper, they will generally call you to request the info.

Namvet69

Thanks @pruebas @cacheman @bosox I'm glad I'm paying attention cause there's probably gonna be a quiz later. Peace Roy

jt88

I just bought some coins from SB HK auction. I am expected to pay about 7.5% fee due to the trade war with China. It really sucks. It increase my cost.

MrEureka

Depending on the country the coins are coming from, the buyer may also have to pay an export tax to that country. For example, Spain imposes the following (per item) fees:

Up to 6,000 euros: 5%.
From 6,001 to 60,000 euros: 10%.
From 60,001 to 600,000 euros: 20%.
From 600,001 onwards: 30%.

Ouch.