An Update on Tariffs from CNG, LLC
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An Update on Tariffs from CNG, LLC
Perhaps no word has caused more frustration and confusion in the coin marketplace than “tariffs.” This subject has continued to be a point of discussion and contention for almost everyone who buys or sells from outside and then into the United States. Facebook posts are filled with comments daily on this very subject. So, after a delay of several months, I would like you to get an update from CNG LLC and how we are seeing and handling imports to the US.
CNG is Receiving all Imports of Coins Tariff Free in the US
I am pleased to report that all coins we are importing from overseas directly are coming into the United States “Tariff Free”! We are experiencing no tariffs on coins that remain under our control when we do the shipping via a licensed and trained shipping broker. This includes the services of Malca Amit, Ferrari, and Federal Express. It took us some time to develop these services as we had to work with specific brokers who understand the tariff exemptions which relate to coins. We have all these relationships in place now and are experiencing no issues with our imports. But please note, this is when we handle the pickup of a consignment or purchase and send the coins directly to CNG in Lancaster, Pennsylvania. This means our offices in the US, London, or The Hague are the ones coordinating the pickup and delivery of the coins. That is the good news. And it is indeed very good news. You can be totally confident that all consignments (and purchases via CNG) coming into the US from abroad are completely tariff-free. We guarantee that!
Fighting Misapplied Import Tariffs
The bad news is, many collectors are finding that deliveries they are having sent directly to them from European (and other) auction houses are arriving in the US with a “tariff due” notice. This is because the generic Federal Express (and other) delivery services are not prepared to deal with import tariff exemption codes and just apply tariffs to everything as that is the easiest way to deal with an import. You can fight the tariff (after it is paid) and with proper paperwork you will get a refund. That is also good news. However, besides the hassle of completing the paperwork and the time it takes, there is also a $90 fee for filing this claim and many small purchases just don’t warrant this expense. It may actually be cheaper to pay the tariff and be done with it, even though the tariff was incorrectly applied in the first place.
Consider Commission Bidding
For some of you there are alternatives. Working with a US dealer who will accept commission bids is one alternative. Most US dealers bidding abroad have also developed working relationships with the various import services and are able to import your purchases made through them via commission bids tariff free. CNG offers this service for auctions where we attend in person or are available to advance view the coins in the auction (but bid remotely). We charge a 5% commission fee for this service. Other dealers of note that offer a similar service as a large part of their business models are Shanna Schmidt and Ed Waddell. If you are buying important and valuable coins I can’t recommend this approach strongly enough. The pre-auction lot viewing can make a huge difference in buying a great coin or getting stuck with a dog that had hidden and undescribed defects.
The End of “de minimis” exemptions.
The latest move by the Trump administration which eliminated the “de minimis” exemption from tariffs for packages valued at under $800 has hit some collectors hard. These are specifically the low-valued imports that aren’t worth fighting the tariff fee on. As an example, if your purchase had a value of $700, the import tariff might be $105 (15% of the sale price). If it costs $90 to file the tariff refund claim, is it really worth it to fight to save $15 (the difference between the tariff charge and the filing fee)? The problem with these low-value purchases, at the moment, is that much of the international postal community has paused deliveries into the US until a normalized tariff payment process is figured out. So, some small-value purchases may be completely stalled in their source countries. I am sure this will get worked out, but the short-term chaos is significant.
Will the Recent Court Ruling Calling Most Trump Tariffs Illegal Change Things?
A recent US Court of Appeals ruled that most of the Trump-imposed tariffs are illegal under the authority he claimed (National Security). The case is now moving to the US Supreme Court for a final ruling. Unfortunately, the lower court did not pause tariffs, so any Trump-imposed tariffs still stand. Will the Supreme Court rule for or against the tariffs? Who knows. And should they rule the tariffs were illegally applied, what will be the process for generating refunds? You can imagine the nightmare this might cause the US government. For now, all we can do is wait and see how the Supreme Court rules. When that might actually happen remains anybody’s guess.
Summary
Rest assured your consignments from abroad to CNG will get into the US tariff free if you have us manage the shipment. US collectors should consider commission bidding for overseas bids. The “de minimis” exemption termination will have an impact on small value bidders from the US for an indeterminate period of time until postal processes are worked out. Do not assume FedEx or DHL will solve this problem for direct deliveries from dealers abroad to your home. Their generic processes are not set up to qualify shipments for tariff exemptions. The only consistent way to get imports in tariff free is to use a qualified broker. And, with some effort, you can fight, and win, a tariff dispute if needed.
If you have any questions, all of us at CNG who are involved with the consignment process are ready, willing, and able to answer your questions. Please give us a call, and remember, we are currently accepting consignments for our flagship Triton auction as well as our ongoing Electronic Auctions.
Thank you for your continued support and “Happy collecting.”
Mike Gasvoda
Managing Director CNG LLC
Comments
A good review of the current situation.
Is the chaos that has been created the result of incompetence or is it actually part of the plan?
A great review, I got the email yesterday as well. Clear and a nice Q&A format.
Yes.
Ed. S.
(EJS)
That's terrible that you have to pay $90 to file a claim. Totally unjustified. I was aggrieved that in the UK we have to pay for a stamp and envelope to send in any claims!
Does anyone have an update on the application of tariffs to coins being shipped from Europe to the USA? I know the Supreme Court ruled against the tariffs, but I think the president then imposed some other kind of tariff. So are tariff fees still being applied by sellers or shippers to coins shipped from Europe to the USA? ChatGPT says "no", but I thought I would ask here about recent experiences.
Within the last 2 weeks FedEx has imposed tariffs of 20%-35% on
three packages from Germany and Belgium. Had to pay in full before
the packages were released to me. Package values were from Euro
2000 to Euro 3500.
The USPS charged $90 for a package from Austria. Value $450. Had to
pay before it was released to me.
So, why did you not send it back??
OR perhaps you should have given shipping instruction with whom NOT to ship.
everyone know about Fedex charging, regardless of circumstances. USPS, I do not know...But it surely was not sent vis USPS from either of these two countries. And, I believe the majority of these charges were not levied by the shipping co, but the US Gov. and the shipper was only the collector BY LAW.
your accompanying DOCS will show exactly who charged what.
I think the shipping company collects, what they believe, to be what they have to collect under the law. So not levied by the shipper but collected on behalf of the USG based on their interpretation of the law. They are indifferent if they are right or wrong since it is not their money and they collect a processing fee.
My French FedEx tariff was 15% on $760 of French coins. They had not collected it from me yet and I have appealed their interpretation. I will pay if they press the issue.
@YQQ " Why not send them back?" Your future opportunities in future auctions becomes limited.
You don't give shipping instructions to auction houses, they tell you what your options are.
They initially ship with local postal companies ie. DHL or the prevailing countries postal
service which is turned over to the USPS when it enters the U.S.
And while the shipping companies do not set the amount of tariffs, why are they collecting
tariffs and the companies that CNG LLC deals do not.?
Why didn't I send back the coins? I don't like looking at empty spots. It's what you have in
your collection, not the "wish I had that one"
when a shipment comes into a country, Federal import Customs sees it first and makes a decision on tariffs.
if the right tariff is on the declaration it will be used. With coins it usually ZERO either way, export or import.
That does not mean there will not be any State or provincial taxes applicable at your port of entry OR at your final destination state or province. These will, often and depending on the amounts at the officers discretion, be applied at the port of entry and collected by the respective postal service delivering the goods to you. For this service there is usually a fee applicable for each shipment which is being paid to your local mail service when it is delivered.
properly and accurately declared Tariff numbers will get you an advantage during import. Tariff numbers of goods are the same worldwide and are recognized by respective customs.