Customs/Duty tax ?

[carwashchris]

I'm in the US and want to purchase a watch in Germany valued at $11,000. USD. What kind of fees should I expect to pay ?

Thanks Chris

[fsprow]

Go to the Customs and Border Protection site and info is there. My experience is that duty is often not charged. If it is, the carrier (eg Fedex, DHL....) will bill you.

[carwashchris]

Originally Posted by fsprow

Go to the Customs and Border Protection site and info is there. My experience is that duty is often not charged. If it is, the carrier (eg Fedex, DHL....) will bill you.

Thanks for the reply.

Yes Fed-ex will bill me, but how much ? The federal site lacks any definitive answer. C24 says anywhere between 5-30 % The seller says 7-10

I was hopeful someone here had been through the process and could tell me what their experience was.

I just bought some watch stuff from HK $800. usd and paid no fees. Weird

[fsprow]

I have indeed been through the process several times and been charged anywhere from 0% to 20%. Seems to be up to the agent handling it. I've found that if I have the watch and take it through customs noting the watch, the agent usually says "go on through".

[DtownRRS]

Not a watch but I have bought my wife Fauré Le Page bags that ship from France via FedEx and they have been a consistent 10% invoice sent from FedEx weeks after receipt. That's all based on the paperwork filled out and declared from the shipper.

[carwashchris]

Originally Posted by fsprow

I have indeed been through the process several times and been charged anywhere from 0% to 20%. Seems to be up to the agent handling it. I've found that if I have the watch and take it through customs noting the watch, the agent usually says "go on through".

Thanks for all the reply's. I think I will proceed on a worst case scenario.

I have read that too, it's up to the agent's discretion. What a way to run the border. LOL

[beshannon]

Originally Posted by carwashchris

Thanks for the reply.

Yes Fed-ex will bill me, but how much ? The federal site lacks any definitive answer. C24 says anywhere between 5-30 % The seller says 7-10

I was hopeful someone here had been through the process and could tell me what their experience was.

I just bought some watch stuff from HK $800. usd and paid no fees. Weird

It will depend on what the item is and what the duty is based on the Harmonized Tarriff Schedule

https://www.usitc.gov/glossary/term/...ted-states-hts

Originally Posted by carwashchris

Thanks for all the reply's. I think I will proceed on a worst case scenario.

I have read that too, it's up to the agent's discretion. What a way to run the border. LOL

I am not sure what importation of trade goods has to do with "the border"?

[CFR]

This is mostly taken from a previous piece I wrote about Customs duties.

When purchasing a watch from outside the US, consider telling the seller EXACTLY what you to put on the Customs paperwork to ensure you pay the correct duties. This involves breaking down the watch into valuations for each of the 3 or 4 component parts (movement, case, strap/bracelet, and battery if any), along with descriptions of each component. The key is to include the Harmonized Tariff number/code for each component part along with its valuation. This removes the uncertainty from the Customs duty calculation so that you don't get charged $40 in Customs duties for a $1 battery that happens to be inside a quartz watch (yes, it happens).

The shipper should write the itemized description and component breakdown on the form (probably a CN23 form) that goes in the plastic pouch affixed to the box. The shipper should include a copy inside the box too, so you have it when it arrives. The outside description is most important because Customs rarely opens the boxes, so your shipper is on their honor to provide an accurate description and valuation, and penalties for undervaluing can be severe. Your declared value should equal the price you actually paid, in case you're asked to prove it.

To figure out which Harmonized Tariff codes to use and how much you'll pay in duties for your watch, you'll need to look up the items in Chapter 91 of the Harmonized Tariff Schedule (HTS). The PDF for Chapter 91 is easier to read/decipher than the online manual.

Finding the correct codes can be confusing at first, but it becomes easier once you've done it a few times. Here's general guidance:

(1) Codes for wristwatches are 10 digits long, formatted as 910x.xx.xxx0

(2) 9101 codes are for watches made of gold, platinum, or gold-plated (precious metal or precious metal-clad); 9102 codes for other watches, such as stainless steel.

(3) 9101.1 and 9102.1 codes are for electrically-operated (battery) watches; 9101.21 and 9102.21 codes are for "automatic winding" watches; and 9101.29 and 9102.29 codes are for handwinds (considered "other").

(4) The number of jewels matters -- different codes and duty rates.

(5) The last 2 digits of the 10-digit codes refer to movement (10), case (20), strap/bracelet (30), and battery (40).

(6) Duties on watch movements are often a very low, flat fee (e.g., $1 per movement), whereas duties on the case, strap/bracelet, and battery are often assessed on a percentage basis (anywhere from, say, 4%-14%). [For many high-end watches, as well as for many vintage watches, the movement legitimately comprises much of the purchase price/value compared to the precious metal case -- a good thing, for Customs duty purposes!]

(7) Don't ship certain strap materials (alligator, croc, etc.) that are considered endangered species and are subject to various CITES rules/import-export restrictions. They're barred from entry without all sorts of additional paperwork. Everything else (metal bracelets, straps made from rubber, calf leather, cloth, and synthetics) should be fine.

(8) Customs doesn't care about the brand name of the watch, so you needn't list it anywhere.

(9) Check with the shipping company to see what additional fees they'll charge you (Customers brokerage fees, etc.).

(10) The government might ask you for personal info to register as an "importer" (or some such thing) if a watch is shipped to you. Customs may hold the package until you do that. It's normal, and I think you have to do it only once. Not sure if that's still a thing.

(11) Be aware that in many US states, you need to pay Use Tax (like Sales Tax) on imported items when you file your annual tax returns, and it's easy to get caught and penalized for not paying your state's Use Tax. It's easy to get caught because many state governments want to collect their share of the pie and so they've entered into information-sharing agreements with US Customs to obtain import data for high-dollar items. The wheels of government can turn pretty slowly, too, so here's what can happen: Several years after you've received your watch and are enjoying it, your state government taxing authority might surprise you with evidence from US Customs of your prior import and a big fat bill (due to the accrued penalties) that they want you to pay.

Anyway, here are two examples of how a shipper/exporter might complete the Customs paperwork (CN23 or whatever) to ensure accurate duties are assessed to the receiver/importer:

Example #1, using a quartz watch:

Let's say I bought from an overseas seller a stainless steel vintage Omega quartz watch with a rare movement, metal bracelet, and 1 jewel.

Because it has no precious metal, we use the "9102" code and not the "9101" code.

Because it has a mechanical display, and not an opto-electronic display, we'll use code "9102.11" and not "9102.12."

Because it has a stainless steel (not plated) case, only 1 jewel, and a metal bracelet, we're using the "9102.11.25" code. We'd use "9102.11.10" if the case was plated (all other things being equal); we'd use "9102.11.45" if the watch had a leather or rubber strap (all other things being equal); we'd use "9102.11.65" if the watch had 2 or more jewels (all other things being equal); etc.

So here are the Harmonized Tariff codes, descriptions, and valuations that one might use for this watch:

9102.11.2510 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - movement) - $2098

9102.11.2520 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - case) - $50

9102.11.2530 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - bracelet) - $25

9102.11.2540 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - battery) - $2

TOTAL DECLARED VALUE - $2175 USD

Per the HTS, duties on the nearly $2100 movement are a flat 40 cents. Duties on the other components are 5.3% on the battery, 8.5% on the case, and 14% on the bracelet. Our total Customs duties are $8.26. If the seller had provided only the $2175 total value with description "battery-operated steel watch" on the Customs documentation, without putting the component breakdown on the paperwork, then duties might be anywhere from 5.3% to 14% of $2175 (remember, they have no other information about the item). This would lead to Customs duties of anywhere between $115-$305, which is much more than $8.26.


Example #2, using a solid gold vintage handwind w/10 jewels with leather strap, rare movement, and fairly lightweight case:

9101.29.5010 (watch, precious metal case, non-automatic winding, 10 jewels - movement) - $1920

9101.29.5020 (watch, precious metal case, non-automatic winding, 10 jewels - case) - $70

9101.29.5030 (watch, precious metal case, non-automatic winding, 10 jewels - leather strap) - $10

TOTAL DECLARED VALUE - $2000 USD

If you look at duties for 9101.29.50 on the Harmonized Tariff Schedule, you'll see that duties are 90 cents (movement) + 4.4% on the case and strap/bracelet, so our total duties in this example are $4.42. But if the seller doesn't provide the breakdown on the Customs paperwork, then duties may be 4.4% of the total declared value ($2000), or $88.00, which is considerably more than $4.42.


Hope this helps -- and others who find flaws/errors in what I wrote should definitely point them out because I don't claim to be an expert here.

[carwashchris]

Originally Posted by CFR

This is mostly taken from a previous piece I wrote about Customs duties.

When purchasing a watch from outside the US, consider telling the seller EXACTLY what you to put on the Customs paperwork to ensure you pay the correct duties. This involves breaking down the watch into valuations for each of the 3 or 4 component parts (movement, case, strap/bracelet, and battery if any), along with descriptions of each component. The key is to include the Harmonized Tariff number/code for each component part along with its valuation. This removes the uncertainty from the Customs duty calculation so that you don't get charged $40 in Customs duties for a $1 battery that happens to be inside a quartz watch (yes, it happens).

The shipper should write the itemized description and component breakdown on the form (probably a CN23 form) that goes in the plastic pouch affixed to the box. The shipper should include a copy inside the box too, so you have it when it arrives. The outside description is most important because Customs rarely opens the boxes, so your shipper is on their honor to provide an accurate description and valuation, and penalties for undervaluing can be severe. Your declared value should equal the price you actually paid, in case you're asked to prove it.

To figure out which Harmonized Tariff codes to use and how much you'll pay in duties for your watch, you'll need to look up the items in Chapter 91 of the Harmonized Tariff Schedule (HTS). The PDF for Chapter 91 is easier to read/decipher than the online manual.

Finding the correct codes can be confusing at first, but it becomes easier once you've done it a few times. Here's general guidance:

(1) Codes for wristwatches are 10 digits long, formatted as 910x.xx.xxx0

(2) 9101 codes are for watches made of gold, platinum, or gold-plated (precious metal or precious metal-clad); 9102 codes for other watches, such as stainless steel.

(3) 9101.1 and 9102.1 codes are for electrically-operated (battery) watches; 9101.21 and 9102.21 codes are for "automatic winding" watches; and 9101.29 and 9102.29 codes are for handwinds (considered "other").

(4) The number of jewels matters -- different codes and duty rates.

(5) The last 2 digits of the 10-digit codes refer to movement (10), case (20), strap/bracelet (30), and battery (40).

(6) Duties on watch movements are often a very low, flat fee (e.g., $1 per movement), whereas duties on the case, strap/bracelet, and battery are often assessed on a percentage basis (anywhere from, say, 4%-14%). [For many high-end watches, as well as for many vintage watches, the movement legitimately comprises much of the purchase price/value compared to the precious metal case -- a good thing, for Customs duty purposes!]

(7) Don't ship certain strap materials (alligator, croc, etc.) that are considered endangered species and are subject to various CITES rules/import-export restrictions. They're barred from entry without all sorts of additional paperwork. Everything else (metal bracelets, straps made from rubber, calf leather, cloth, and synthetics) should be fine.

(8) Customs doesn't care about the brand name of the watch, so you needn't list it anywhere.

(9) Check with the shipping company to see what additional fees they'll charge you (Customers brokerage fees, etc.).

(10) The government might ask you for personal info to register as an "importer" (or some such thing) if a watch is shipped to you. Customs may hold the package until you do that. It's normal, and I think you have to do it only once. Not sure if that's still a thing.

(11) Be aware that in many US states, you need to pay Use Tax (like Sales Tax) on imported items when you file your annual tax returns, and it's easy to get caught and penalized for not paying your state's Use Tax. It's easy to get caught because many state governments want to collect their share of the pie and so they've entered into information-sharing agreements with US Customs to obtain import data for high-dollar items. The wheels of government can turn pretty slowly, too, so here's what can happen: Several years after you've received your watch and are enjoying it, your state government taxing authority might surprise you with evidence from US Customs of your prior import and a big fat bill (due to the accrued penalties) that they want you to pay.

Anyway, here are two examples of how a shipper/exporter might complete the Customs paperwork (CN23 or whatever) to ensure accurate duties are assessed to the receiver/importer:

Example #1, using a quartz watch:

Let's say I bought from an overseas seller a stainless steel vintage Omega quartz watch with a rare movement, metal bracelet, and 1 jewel.

Because it has no precious metal, we use the "9102" code and not the "9101" code.

Because it has a mechanical display, and not an opto-electronic display, we'll use code "9102.11" and not "9102.12."

Because it has a stainless steel (not plated) case, only 1 jewel, and a metal bracelet, we're using the "9102.11.25" code. We'd use "9102.11.10" if the case was plated (all other things being equal); we'd use "9102.11.45" if the watch had a leather or rubber strap (all other things being equal); we'd use "9102.11.65" if the watch had 2 or more jewels (all other things being equal); etc.

So here are the Harmonized Tariff codes, descriptions, and valuations that one might use for this watch:

9102.11.2510 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - movement) - $2098

9102.11.2520 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - case) - $50

9102.11.2530 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - bracelet) - $25

9102.11.2540 (watch, steel/no precious metal, elect. operated w/mechanical display, 1 jewel - battery) - $2

TOTAL DECLARED VALUE - $2175 USD

Per the HTS, duties on the nearly $2100 movement are a flat 40 cents. Duties on the other components are 5.3% on the battery, 8.5% on the case, and 14% on the bracelet. Our total Customs duties are $8.26. If the seller had provided only the $2175 total value with description "battery-operated steel watch" on the Customs documentation, without putting the component breakdown on the paperwork, then duties might be anywhere from 5.3% to 14% of $2175 (remember, they have no other information about the item). This would lead to Customs duties of anywhere between $115-$305, which is much more than $8.26.


Example #2, using a solid gold vintage handwind w/10 jewels with leather strap, rare movement, and fairly lightweight case:

9101.29.5010 (watch, precious metal case, non-automatic winding, 10 jewels - movement) - $1920

9101.29.5020 (watch, precious metal case, non-automatic winding, 10 jewels - case) - $70

9101.29.5030 (watch, precious metal case, non-automatic winding, 10 jewels - leather strap) - $10

TOTAL DECLARED VALUE - $2000 USD

If you look at duties for 9101.29.50 on the Harmonized Tariff Schedule, you'll see that duties are 90 cents (movement) + 4.4% on the case and strap/bracelet, so our total duties in this example are $4.42. But if the seller doesn't provide the breakdown on the Customs paperwork, then duties may be 4.4% of the total declared value ($2000), or $88.00, which is considerably more than $4.42.


Hope this helps -- and others who find flaws/errors in what I wrote should definitely point them out because I don't claim to be an expert here.

Very Helpful !! Thanks Chris

[Mifune]

It's my understanding the 'tax' is state based... I have never been charged any fee.

[Terpcpa]

I purchased a watch while in Aruba. Am I able to use a similar breakdown when going through customs or is this only for shipping purposes? The dealer provided a breakdown for me.

Thanks

[beshannon]

Originally Posted by Terpcpa

I purchased a watch while in Aruba. Am I able to use a similar breakdown when going through customs or is this only for shipping purposes? The dealer provided a breakdown for me.

Thanks

https://www.cbp.gov/travel/us-citize...hen-you-return

[Terpcpa]

Do you know if the apply the HTF rates by component when you are carrying it?

[donas]

I have only purchased two watches from overseas. When I did, I received two forms to fill out for customs and they broke down the watches value by movement, case, and band and were taxed at 1.53% on the movements; 4.2% on the case, and 2% on the straps. It seemed very odd to me, the contents were listed properly on the shipping invoice, as in 2 Oris watches, not parts.

I thought I made it through the process with no fees, but got an invoice from Fed Ex about 4 months after I received the watches.