[CR] Customs charges on imported items

(Example: Component Manufacturers:Chater-Lea)

From: "Steven Maasland" <themaaslands@comcast.net>
To: CR <Classicrendezvous@bikelist.org>
Date: Wed, 11 Mar 2009 13:00:19 -0400
Subject: [CR] Customs charges on imported items


There has been a bit of misinformation given in earlier posts that could lead to costly mistakes.

ALL CR-list time period bicycle items, whether new or used, are subject to duties. This is inescapable! Luckily for many of us, the post office rarely if ever collects the duty due on small packages shipped through the mail. I suppose that the treasury and the post office have decided that the cost of collecting the duty isn't sufficiently cost effective. Couriers on the other hand, with UPS at the head of the class, invariably do collect the duty, tacking on a nominal brokerage fee (generally something like $ 5.50 or 1% of the item value). The declared value is generally accepted for the calculation of the duty owed, however if customs deems the declared value to be overly low, it lies within their right to declare the value to be higher than the value declared by the shipper. As importer, one would then have the right to appeal this new assessed value put on the item (unfortunately, I have been told by some people in the know that appealing an assessed value will then likely put you in customs' group of watched "importers".) Please also note that to declare a lower than truthful value is not only illegal, but it also impacts insurance value in the case of an eventual claim and it is possible that you might encounter somebody in customs who is aware of market values of the items that interest us.

The employees of customs who do the assessing cannot obviously be overly knowledgeable about every single category of item being imported, so they use data-bases to determine whether the declared values fall within their "ranges." If your declared value falls below the "range" of the item classified under a specific "Harmonized tariff code", you might automatically be granted an exemption if the customs declaration states "used" or "old" in the description. Apart from in such a case, there is no advantage to write "used" or "old", however it is likewise true that it never hurts either, so I would recommend that you always ask the shipper to indicate this in the customs declaration.

As far as the duty goes, this varies tremendously in accordance with what type of product is being imported. You can see all the tariff codes by going to this web page: http://hotdocs.usitc.gov/docs/tata/hts/bychapter/0901c87.pdf This is chapter 87 of the harmonized tariff schedule. From this chapter, you can see the following tariff rates:

8712.00.15 Bicycles having both wheels not exceeding 63.5 cm in diameter . . . . . . . . . 11% duty

However if the wheel size is greater than 63.5 cm in diameter and the bike weighs less than 16.3 kg which would apply to your average bike of concern the CR-list, you can import under the tariff code 8712.00.25 00 which is assessed a . . . . . . . . . . . . . . . . . . . . . . . 5.5% duty

Funny bikes (also known as delta TT bikes) with smaller front wheel and bigger rear wheel can also be imported at 5.5% duty under the tariff code 8712.00.44 00.

Other tariff classifications used by your average vintage bike collector are: Frames and forks, and parts thereof valued over $600 each : code 8714.91.20 00 . . . . 3.9% duty

Other frames and forks and parts thereof: code 8714.91.30 00 . . . . 3.9% duty

Sets of steel tubing cut to exact length and each set having the number of tubes needed for the assembly (with other parts) into the frame and fork of one bicycle: Code 8714.91.50 00 . . . . . . 6% duty

8714.92.10 00 Wheel rims . . . . . . . . . . . . 5% duty

8714.92.50 00 Spokes . . . . . . . . . . . . . . . 10% duty

8714.93.05 00 Aluminum alloy hubs with a hollow axle and lever-operated quick release mechanism . . .No.duty

8714.93.70 Free-wheel sprocket-wheels . . . . . . . . . . . . . .No duty

8714.94.30 Drum brakes, caliper and cantilever bicycle brakes, and coaster brakes; parts thereof (including cable or inner wire therefore, fitted with fittings) . . . . . . . . No duty

8714.95.00 00 Saddles . . . . . . . . . . . . . . .8 % duty

8714.96.50 00 Cotterless-type crank sets and parts thereof . .No duty (However cottered cranks are assessed 8% duty)

8714.99.50 00 Derailleurs and parts thereof . . . . . . . .no duty

8714.99.60 00 bicycle handlebar stems wholly of aluminum alloy (including their hardware of any material), valued over $2.15 each . . . . . .no Duty

the tariff code: 8714.99.80 00 is used for other undefined items relating to bikes and is charged duty at a rate of 10%

If you are aware of all of this information and use it wisely, you can minimize your duty costs.

Steven Maasland
Moorestown, NJ
USA