Import duties

[startrolexendrolex]

I'm buying a watch from a shop in Switzerland, do I pay taxes if they ship it to me in the USA and if yes who or how I pay it? Any experiences are appreciated.

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[themast]

Assuming it is new, it should work like this. Upon importing it you will have to pay some custom duties calculated based on specific aspects of the watch (case materials, number of jewels, and other parameters that make more or less sense at first sight).
These should be calculated by the shipping carrier.

Then things may change depending on your state but you are generally required to report it on your tax forms and pay your state sales tax rate. If the amount due will significantly increase your tax liability I think you have to report it and pay taxes immediately to avoid penalties later on but I am not 100%.

This is based on my experience a few years ago. I am not an expert on the matter.

[themast]

Double post

[enjoythemusic]

The timepiece retailer will have all the import paperwork done, so when it arrives to you FedEx or ??? will send you an import duty invoice.

[Jay (Eire)]

What Steven has indicated has been my experience. The courier / delivery service will provide the invoice and collect duties. Just ensure the seller completes the necessary forms in full otherwise your watch might be sitting in customs for a while.

[77T]

I agree with the above. The key point for OP to ask: does the shop has a lot of export experience?

If so no worries.


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[beshannon]

Originally Posted by startrolexendrolex

I'm buying a watch from a shop in Switzerland, do I pay taxes if they ship it to me in the USA and if yes who or how I pay it? Any experiences are appreciated.

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https://www.cbp.gov/trade/basic-impo...rnet-purchases

[startrolexendrolex]

Appreciate everyone, so duties and sale tax is too different things I'm assuming?

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[beshannon]

Originally Posted by startrolexendrolex

Appreciate everyone, so duties and sale tax is too different things I'm assuming?

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Yes

[CFR]

Originally Posted by startrolexendrolex

Appreciate everyone, so duties and sale tax is too different things I'm assuming?

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It'd likely be "use tax," not "sales tax." It's your responsibility to report the imported watch and pay this use tax on your own, on your tax return. Nobody will be collecting the use tax from you (at first). But if you don't pay it, then your state taxing authority may come after you several years later for the tax due along with substantial penalties. US Customs shares import info with many states. That's how the states find out about it.

I speak from experience. I hadn't heard of use tax until that happened to me.

[CFR]

Originally Posted by startrolexendrolex

Appreciate everyone, so duties and sale tax is too different things I'm assuming?

Sent from my SM-G988U using Tapatalk

It'd likely be "use tax," not "sales tax." It's your responsibility to report the imported watch and pay this use tax on your own, on your tax return. Nobody will be collecting the use tax from you (at first). But if you don't pay it, then your state taxing authority may come after you several years later for the tax due along with substantial penalties. US Customs shares import info with many states. That's how the states find out about it.

I speak from experience. I hadn't heard of use tax until that happened to me.

[Nathan_]

you should be able to google search import tax for your country. As an example its 10% goods and services tax & 5% customs tax in Australia, calculated on the declared amount incl shipping if over $1,000 local currency value. Be careful asking a seller to under declare the item (outside of commiting fraud) as you most likely won't be able to insure it for the true value.

[samson66]

If under $800 value you won't have to pay duties. Sales tax is separate. Some places collect it, others do not. My wonderful state sent me a bill for sales tax on a watch I imported. They have access to customs records aparently.

[daveo5]

Don’t try to import a Rolex into the States. Customs will seize it.


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[Incroyable12]

Any savvy dealer who does a lot of international orders will know how to fill out the customs form.

[llngoc]

Originally Posted by CFR

It'd likely be "use tax," not "sales tax." It's your responsibility to report the imported watch and pay this use tax on your own, on your tax return. Nobody will be collecting the use tax from you (at first). But if you don't pay it, then your state taxing authority may come after you several years later for the tax due along with substantial penalties. US Customs shares import info with many states. That's how the states find out about it.

I speak from experience. I hadn't heard of use tax until that happened to me.

If you live in CA, this is reported automatically and you can expect a bill from the FTB. You can pay online or elect to report on the state tax return.

This is one of the very few things which the California government is fully automated and being very efficient at.

[Incroyable12]

Originally Posted by llngoc

If you live in CA, this is reported automatically and you can expect a bill from the FTB. You can pay online or elect to report on the state tax return.

This is one of the very few things which the California government is fully automated and being very efficient at.

Ship expensive stuff to a package forwarder in Oregon which doesn't charge sales tax. Oregon and Delaware specialize in this kind of business.

[gliazzurri]

Originally Posted by Incroyable12

Ship expensive stuff to a package forwarder in Oregon which doesn't charge sales tax. Oregon and Delaware specialize in this kind of business.

Is that a common thing?

[aseksr]

What if you buy from somewhere like Chrono24 and pay the sales tax already? Do you still have to report it on your taxes?


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[sportsfan0704]

Originally Posted by aseksr

What if you buy from somewhere like Chrono24 and pay the sales tax already? Do you still have to report it on your taxes?


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I wouldn't because that IS the sales tax. What is there to report? Use tax is different. You pay a use tax when you're not subject to sales tax for importing from another state, thought this has become wayyyyy less common since the Wayfair decision.

[aseksr]

Originally Posted by sportsfan0704

I wouldn't because that IS the sales tax. What is there to report? Use tax is different. You pay a use tax when you're not subject to sales tax for importing from another state, thought this has become wayyyyy less common since the Wayfair decision.

Thank you I get it now.


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[llngoc]

Originally Posted by CFR

It'd likely be "use tax," not "sales tax." It's your responsibility to report the imported watch and pay this use tax on your own, on your tax return. Nobody will be collecting the use tax from you (at first). But if you don't pay it, then your state taxing authority may come after you several years later for the tax due along with substantial penalties. US Customs shares import info with many states. That's how the states find out about it.

I speak from experience. I hadn't heard of use tax until that happened to me.

State of California actually sends you a bill shortly after the item passes through the US Customs. That seems to be one thing which CA is really efficient at.

[llngoc]

One of my out-of-country AD actually can pay the custom duty on his end with his agent. He does a lot of business with clients all over the world so I think the agency he uses is very experienced with the custom rules of all the country.

In most cases, the watch duty is around 2-3% since if you are getting a high end watch, most of the value can be attributed to the movement which is at a very low tax rate. PM case would cost more.

[llngoc]

Originally Posted by Incroyable12

Ship expensive stuff to a package forwarder in Oregon which doesn't charge sales tax. Oregon and Delaware specialize in this kind of business.

I checked a couple of Oregon shipping forwarder and there is a limit on the value of item. Most is around $50k which may not work well with watches.

Do you know anyone with a higher limit which is reliable?