US Import Taxes

[electronic_dist_intl]

I have a buyer from Nevada that made a purchase of a US made item. I shipped the item from Canada and it appears that they're being charged import tax. According to the buyer they shouldn't be charged an import tax due to EAR-99. I'm not a tax expert on what taxes should be paid. Does anyone have any insight? I'm sure CBP is applying appropriate taxes.

[dbfolks166mt]

What was the item and how much did the buyer pay? Is the item currently being held in customs? 

[electronic_dist_intl]

NVM. Just checked and it appears to be brokerage fees with very little actual taxes being applicable.

[ms.rodriguez*]

It's their responsibility to pay for import taxes.  Tell the buyer that they must pay the taxes or they void their MBG. Remind them that sellers are never responsible for import taxes nor are they responsible to know the import tax laws of the entire world.

[dbfolks166mt]

NVM. Just checked and it appears to be brokerage fees with very little actual taxes being applicable.

Are these UPS brokerage fees by chance? These may be bogus depending on the item you sold and the value but it is one of those surcharges from UPS that they tack on anyway. Not sure which carrier you used or how it was handed off from the Canadian postal system. 

[electronic_dist_intl]

Brokerage fees are from UPS in this case. It's just clearing the item and that's what the whole import charge is for. I know they tend to be higher than most other couriers for that and it's based on the customs value. Item value was $2K+.

[dbfolks166mt]

Brokerage fees are from UPS in this case. It's just clearing the item and that's what the whole import charge is for. I know they tend to be higher than most other couriers for that and it's based on the customs value. Item value was $2K+.

     To the best of my knowledge UPS is the only US courier that charges brokerage fees but in this case the item was over $2K and depending on what it was there may actually be custom/import fees due on the package. 

[slippinjimmy · Accepted solution]

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@dbfolks166mt wrote:

Brokerage fees are from UPS in this case. It's just clearing the item and that's what the whole import charge is for. I know they tend to be higher than most other couriers for that and it's based on the customs value. Item value was $2K+.

     To the best of my knowledge UPS is the only US courier that charges brokerage fees but in this case the item was over $2K and depending on what it was there may actually be custom/import fees due on the package. 

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All private carriers charge brokerage fees on shipments that exceed the $800 free limit. UPS charge them and require payment at delivery, FedEx charge them and send the recipient a bill weeks after delivery.

USPS (or anything sent through a National Postal System) does not charge any fees unless duty is applicable AND actually charged by US Customs. This usually only applies to shipments valued at higher than US$2500 (requires a formal customs entry).

Most of the time anything between $800 - $2500 slid right through when sent through the postal system while with private carriers the $800 is absolutely firm.

One exception, generally if the shipping method is an Express or Overnight service the brokerage charges are included in the shipping charge as opposed to being an add on.

[prestigeautoparts1]

IF the value is over $800 there is broker fees and tax. Anything under $800 has no issue going into the USA.

[hshahhshd-0]

Hi there,

This situation sounds complicated. It is Important to make sure that all taxes and fees are paid correctly to avoid any issues. It may be best to contact CBP or a tax expert for advice on this matter.