Re: [CR] Customs charges on imported items

(Example: Framebuilders:Doug Fattic)

Date: Wed, 11 Mar 2009 12:14:25 -0700
From: <mrrabbit@mrrabbit.net>
To: Steven Maasland <themaaslands@comcast.net>
References: <36B84B894F484BCBB062013DFADFA97A@ToshibaLaptop>
In-Reply-To: <36B84B894F484BCBB062013DFADFA97A@ToshibaLaptop>
Cc: CR <Classicrendezvous@bikelist.org>
Subject: Re: [CR] Customs charges on imported items


Thanks Steve...

I too wanted to step in and correct a lot of erroneous info that has been posted...you beat me to it.

The Harmonized Tariff Schedule at first seems intimidating - but actually it's not.

I encourage folks to actually use it...I do...

In general for bicycles and bicycle parts...and thats "IN GENERAL" the rawer the product being imported - the higher the tariff. The more finished the product is - the lower the tariff.

...as can be seen in the spokes, rims, and hubs example below...

I too have experienced small packages coming in without assessment thru the USPS - BUT - I keep the paperwork. My customs broker has informed me that it is not unusual for customs to follow up 3-6 months or even a year later with a bill for duties and such.

CYA is the rule basically...

Robert Shackelford San Jose, CA USA

Quoting Steven Maasland <themaaslands@comcast.net>:
> 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
>
> _______________________________________________
>
>
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