Timberbits-Duty Tax

[billspenfactory]

I have ordered a number of times from Timberbits - my last order that was placed in the latter part of Sept was with a shipping company called TNT. They are now sending me a $32.00 invoice for Duty Collections. I have never had any type of Duty Tax on any order that I have placed with them in the pass. Has anyone else had this to happen?

 

[commercialbuilder]

I have not but keep us posted if you would, I would like to know because that changes their prices.

 

[Russianwolf]

TNT is just like Fedex and UPS. They are only passing on to you what they were charged by customs. Customs is hit or miss if they pick your package. I've had about 100 packages imports and paid duties on 1 or 2.

 

[Canadian_Kid]

I have had the same letter from TNT with them wanting to collect a few $$ in tax and like $25 in their fees for collecting the tax. The worst thing is that they send you an invoice a month or two after your package arrives. I called them and explained that I would pay the tax but not their fee (it was like $1.50 in tax and $25-$30 in fees). A few emails went back and forth but in the end they told me not to worry about paying either.

Don.

 

[Kretzky]

I've found it doesn't matter who the carrier is Canada Post, UK Postal Service, USPS or any of the 'private' carriers. If your package is selected by customs for duty the carrier makes a charge for collecting that duty.
I recently sent a birthday gift from Canada to my niece in the UK. It was marked as a gift, valued at $80 (for insurance purposes) my brother had to pay the equivalent of $12 duty plus $12 to the UKPS for collecting that duty! That on top of a $22 postal charge. I guess you win some & you lose some but it kinda takes the joy out of sending presents :frown:

 

[Mack C.]

A parcel received in Ontario Canada from any destination through Canada Post is liable for brokerage charges, and 13% HST.

The CBSA (Canada Services Border Agency) determines the amount of HST owing. It seems in my experience they don't bother with any parcel valued at under $100.00

Their brokerage charges used to be $5.00. This charge has recently been increased to $9.95, still far less than any of the couriers brokerage charge.

 

[OKLAHOMAN]

Being David's (Timberbits) vendor here in the states my orders are in the thousand dollar range and up. TNT has been the shipper and I've been billed for duties and collection twice, both times I called and arranged to pay duties and they dropped the fees. Expect to pay duties on most orders over $100 but feel lucky when your not, it's hit and miss, I've had orders from a vendor over $5,000.00 from and no duties and from the same company in an order for just $1,500 with duties on the same product.

 

[ed4copies]

I am now using the services of a professional shipping expediter. I have learned that all imported goods are subject to Customs (duties). If you don't declare the items, you are breaking the law.

Shipper, receiver and any agents involved are ALL responsible and subject to penalties if the paperwork is not accurately filed. The "duties" on the items we use in penmaking range from Zero to 8 percent. I am told the fines are substantial. So, I choose to pay the Customs, so you don't have to worry about the US Government deciding you are "smuggling" goods.

When I receive goods now, each ITEM is coded for the Customs. SOME of our products (pen kits, acrylic blanks) already have a precedent where one of the known vendors has asked for a ruling--that letter ruling sets the Customs categorization.

So, be aware. If you pay no customs you are taking a risk.

 

[TellicoTurning]

It's been about 7 years since I retired, but my past life was in international shipping... mostly out of the U.S. but did have some contact with the inbound services and customs procedures.... I'm sure by now many of them have changed and since it's been as long as it has, I've probably forgotten some of the steps and procedures.... the duty rates are set forth in the U.S. Code of regulations in the tariff of the TUSSA... I've forgotten the actual name of the acronym... it's a huge book with multiple columns and classifications for duty rates, and nearly impossible to read.
As I remember everything is subject to duties, but under some classifications, the duty rate can be zero... check with the broker you use and explain your products and maybe he can re-classify or at least ask the customs specialist in the U.S. Customs department for a re-classification.
Back when I was working, any order over $250 (commercial orders) were required to be entered by a licensed customs broker... Shipments under $250 can be cleared by the consignee without a broker... that could be changed now... rules were constantly being changed.

Another rule (when I was in the business) was that every shipment had to have a customs bond.... either a one time bond for that shipment, a single entry bond.... or a term bond which was sort of a revolving bond for all your shipments and usually good for a year... sometimes it was cheaper to get a term bond than to use the single entry...
Shipments from some countries were not subject to duties... i.e., when I was in the business, China was considered a "most favorable nation" and many shipments were not subject to duties... wearing apparel always had a duty rate, but other things may not.... I would think pen kits from China would fall under the not subject.. I may be wrong.
Shipments that come through the post office are subject to customs, but generally were auto cleared by the post office...any duties were subject and collected by the post office.
Any time they came by courier, (TNT is a courier company based in The Netherlands, I think... Fedex, DHL, MSAS and UPS are courier companies... DHL is owned by the German post, and I've forgotten who owns UPS... I seem to remember it was also sold some years back.... FEDEX is US company and based in Memphis...MSAS is the old McGregory Squire Air Service and it's also foreign but I forget whether British or Australian although I think it's Australian), the shipment will be subject to their courier charges, often paid by the shipper, and customs clearance and duties paid by the consignee.

As said, I did mostly exports shipping out of the country, but worked for a number of companies that did have import departments and even took the customs brokerage exam once myself and only missed by 5 points... it's an 8 hour exam and designed to pass less than 5% of the applicants at any one time.... the exam cost $300 when I took it, if you passed it cost you the $300.... if you failed to pass, you were refunded $200... I didn't pursue the license as I preferred the export side of the business.

 

[ed4copies]

Chuck,
I WISH you were right. But, there is a very specific ruling letter issued to Woodnwhimsies (public record) that establishes what part of the code will pertain to acrylic pen blanks. There is another letter to another vendor, establishing what needs to be done with pen parts.

Letter openers, springs, mag glasses, key chains---each one has a different code and a different rate. And NOTHING is exempt.

Here is the short version of the "Customs procedures", but if you want to know what category your product should be in, you need to browse through this little wonder:
http://www.usitc.gov/publications/docs/tata/hts/bychapter/1211htsa.pdf
The "Harmonized Tariff Schedule" (3500+ pages of specific information)---good luck reading it. I did and found out my interpretation was in direct contradiction to the letter to WNW---so, my interpretation would have been violating the law and, like most such instances, "ignorance is no excuse"--I chose to be an importer, I better LEARN the law.

If you buy ANYTHING from outside the USA, you are, by definition an importer and expected to adhere to the "Harmonized Tariff Schedule".

This is especially pertinent if you are buying for resale, like buying kits and making and selling the pens---you ARE commercial.


Some short information is here: Internet Purchases - CBP.gov

 

[billspenfactory]

Thank you all for all the information " I PAID THE INVOICE" Iam a little slow but I know when it time to run.

 

[Smitty37]

I have ordered a number of times from Timberbits - my last order that was placed in the latter part of Sept was with a shipping company called TNT. They are now sending me a $32.00 invoice for Duty Collections. I have never had any type of Duty Tax on any order that I have placed with them in the pass. Has anyone else had this to happen?

Sometimes you get lucky and they don't collect any duty....Other times you're not so lucky. I'm not sure what triggers it it is based on what value the shipment is given. I think US customs is looking closer than they used to...for 3 years I never got charged customs now there is a charge for almost every shipment.

 

[ed4copies]

I have ordered a number of times from Timberbits - my last order that was placed in the latter part of Sept was with a shipping company called TNT. They are now sending me a $32.00 invoice for Duty Collections. I have never had any type of Duty Tax on any order that I have placed with them in the pass. Has anyone else had this to happen?

Sometimes you get lucky and they don't collect any duty....Other times you're not so lucky. I'm not sure what triggers it it is based on what value the shipment is given. I think US customs is looking closer than they used to...for 3 years I never got charged customs now there is a charge for almost every shipment.

As I understand it, YOU are responsible for the paperwork, as the importer.
IF you get overlooked, you have nonetheless failed to comply with the law.
Which means you are subject to the penalties if or when they DO find you.

 

[Smitty37]

Being David's (Timberbits) vendor here in the states my orders are in the thousand dollar range and up. TNT has been the shipper and I've been billed for duties and collection twice, both times I called and arranged to pay duties and they dropped the fees. Expect to pay duties on most orders over $100 but feel lucky when your not, it's hit and miss, I've had orders from a vendor over $5,000.00 from and no duties and from the same company in an order for just $1,500 with duties on the same product.

Look at the customs invoices - I'd almost bet they used different numbers/names for the items. Some pen parts are duty free - others are not and some items can honestly be called either way. You can also have to provide a Toxic Substance Control Act statement if the shipment has any chemicals (including ink) if that's needed you will always be charged because ink is not duty free.

 

[ed4copies]

By the way, I am now learning that seashells open a whole new "can of crud". EVEN IF they are cast in resin, you need a special "Fish and Wildlife" license to receive them in the USA. $100 here, $100 there and the blanks become a LOT more EXPENSIVE!!

 

[ed4copies]

Being David's (Timberbits) vendor here in the states my orders are in the thousand dollar range and up. TNT has been the shipper and I've been billed for duties and collection twice, both times I called and arranged to pay duties and they dropped the fees. Expect to pay duties on most orders over $100 but feel lucky when your not, it's hit and miss, I've had orders from a vendor over $5,000.00 from and no duties and from the same company in an order for just $1,500 with duties on the same product.

Look at the customs invoices - I'd almost bet they used different numbers/names for the items. Some pen parts are duty free - others are not and some items can honestly be called either way. You can also have to provide a Toxic Substance Control Act statement if the shipment has any chemicals (including ink) if that's needed you will always be charged because ink is not duty free.

Actually, that is not true either. This year I have used a professional import service (to avoid making mistakes). In many cases, Customs has already ruled on our products. It is NOT debatable (I think it IS appealable, but that will only help the future, not the past). Once again, "ignorance" is no excuse---you import, you are expected to KNOW the law. This is true if you buy one kit from Australia or China or 10,000---you ARE an IMPORTER! The customs may choose not to bill you, but the paperwork better be correct (My version would have been wrong).

 

[Smitty37]

Maybe

Being David's (Timberbits) vendor here in the states my orders are in the thousand dollar range and up. TNT has been the shipper and I've been billed for duties and collection twice, both times I called and arranged to pay duties and they dropped the fees. Expect to pay duties on most orders over $100 but feel lucky when your not, it's hit and miss, I've had orders from a vendor over $5,000.00 from and no duties and from the same company in an order for just $1,500 with duties on the same product.

Look at the customs invoices - I'd almost bet they used different numbers/names for the items. Some pen parts are duty free - others are not and some items can honestly be called either way. You can also have to provide a Toxic Substance Control Act statement if the shipment has any chemicals (including ink) if that's needed you will always be charged because ink is not duty free.

Actually, that is not true either. This year I have used a professional import service (to avoid making mistakes). In many cases, Customs has already ruled on our products. It is NOT debatable (I think it IS appealable, but that will only help the future, not the past). Once again, "ignorance" is no excuse---you import, you are expected to KNOW the law. This is true if you buy one kit from Australia or China or 10,000---you ARE an IMPORTER! The customs may choose not to bill you, but the paperwork better be correct (My version would have been wrong).

At the customs website where you find the codes there is a whole section devoted to pens and pen parts some are duty free and some are not....in addition, the amount of duty charged varies depending on what the item is.

There is also a minimum value below which there is no charge (just like there is if you are coming back from a trip abroad) - but that is a bit confusing because I think there is a time frame during which imports are cumulative for that purpose.

There are also ways to ship that shipments are not likely to be pulled - where the shipping country post has agreements with USPS for delivery once the item has landed - and you're not likely to be charged.

Prior to this year, only 1 of my shipments got customs charged - this year nearly all of them have. The US Customs seems to be cracking down on shipments coming from China (including Taiwan) this year.

At any rate, you are absolutely correct in pointing out that if you are going to import you better figure on paying duty.

One other point....if you are going to import and resell you'd probably be better off if you have the items you are going to sell labeled "Made in Outer Slobovia" or wherever, at the package size that you intend to sell. Lest you enjoy making labels and putting them on packages.