How do US tariffs work for small UK car part businesses

[geeman237]

This may be a stupid question but in the following situation how does the US tariff system work?

Scenario
There is a small UK business making and selling car parts for a lesser UK marque, eg Alvis. Or maybe consider Rimmer Bros.

A US owner of an Alvis needs a part (new/reman, not used/secondhand) from the UK supplier and places an order online for delivery direct to the buyers US address.

UK business ships the part using Royal Mail or perhaps UPS or DHL.

Who by, how and when is the tariff cost calculated, and how does the money actually find its way into the US 'coffers'?

[gotoPzero]

For single items that are considered personal imports then the end customer will get an invoice to pay with a surcharge of course, then once paid the package is sent onto the customer. Much like the UK when they add duty, vat, handling charges, processing fee, insurance fee, repackaging fee... etc....

(some of that I might have made up)

I cant say for 100% sure as I have not done it under the new system but you fill in a CN form as usual but then you put the tariff codes down on the form and thats basically it.

[geeman237]

gotoPzero said:

For single items that are considered personal imports then the end customer will get an invoice to pay with a surcharge of course, then once paid the package is sent onto the customer. Much like the UK when they add duty, vat, handling charges, processing fee, insurance fee, repackaging fee... etc....

(some of that I might have made up)

I cant say for 100% sure as I have not done it under the new system but you fill in a CN form as usual but then you put the tariff codes down on the form and thats basically it.

But who’s generating and the invoice for the customer?

[GCH]

Tariffs are paid either to the carrier on behalf of CBP (customs & border protection) or directly to CBP, depending on who they are being shipped to, and the quantity. For consumer imports such as your example, usually the carrier will invoice the recipient, who has to pay it to the carrier, often plus an (in)'convenience' fee for the carrier collecting it on behalf of CBP, and in most cases this has to be paid before it will be delivered. The carrier will then settle their bill with CBP, usually in bulk payments.

The tariffs are set as a % of the declared value of the imported items, with the % being determined by the country of manufacture (not the country being sent from) and the tariff code of the specific item(s) being imported...as different things have different rates.

I can speak on this as a consumer as above, and also as a large scale importer. In the latter case, I have it setup so that CBP take the money directly from the bank account at the time our full containers clear customs (again, as % of the declared value and the applicable item codes), then send us a receipt. Doing it this way saves time and reduces delays for our customs broker having to invoice and pay it, plus our broker doesn't want the hassle and outlay of paying large amounts on customers behalf and having to invoice it back, so ot is just far easier for it to be paid directly.

Edited by GCH on Saturday 24th January 22:14

[geeman237]

GCH said:

Tariffs are paid either to the carrier on behalf of CBP (customs & border protection) or directly to CBP, depending on who they are being shipped to, and the quantity. For consumer imports such as your example, usually the carrier will invoice the recipient, who has to pay it to the carrier, often plus an (in)'convenience' fee for the carrier collecting it on behalf of CBP, and in most cases this has to be paid before it will be delivered. The carrier will then settle their bill with CBP, usually in bulk payments.

The tariffs are set as a % of the declared value of the imported items, with the % being determined by the country of manufacture (not the country being sent from) and the tariff code of the specific item(s) being imported...as different things have different rates.

I can speak on this as a consumer as above, and also as a large scale importer. In the latter case, I have it setup so that CBP take the money directly from the bank account at the time our full containers clear customs (again, as % of the declared value and the applicable item codes), then send us a receipt. Doing it this way saves time and reduces delays for our customs broker having to invoice and pay it, plus our broker doesn't want the hassle and outlay of paying large amounts on customers behalf and having to invoice it back, so ot is just far easier for it to be paid directly.

Edited by GCH on Saturday 24th January 22:14

Thank you for that. I live in the U.S. and I have heard through various forums and FB classic car groups in the U.S. that the tariffs are hurting the enthusiasts wallets and some overseas suppliers are simply stopping selling to the U.S. market. Lose lose all round for the hobby.

[J6542]

Blame the idiot in charge.