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Customs and overseas shipping question - 11/7/2007 5:50:30 AM   
VadFarkas


Posts: 923
Joined: 6/7/2007
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I have a question regarding overseas shipping of items from the USA.
We a small company working and shipping from our home. Every so often a
package will be held at Customs and sometimes the customer has to pay a
very high tax in order to receive his package.

Today I received an email from a customer in the UK that was not happy.
After Customs held the package for over a week, he had to pay $52 tax
on a $110 item. Add the shipping cost of $35 and it almost equals the cost
of the item itself. He did not have to pay on previous shipments.

We pride in shipping same day whenever possible and try to keep our
prices way down but Customs is killing us.

Do any of you have a suggestion as to what we can do to make shipping
overseas a more pleasant and less costly affair?
As always, your input is appreciated and Thank you so much.

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Vad Farkas ~ Ringsmith
See my collars & cuffs at
www.ringofsteel.net
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RE: Customs and overseas shipping question - 11/7/2007 5:58:33 AM   
marieToo


Posts: 3595
Joined: 5/21/2006
From: Jersey
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quote:

ORIGINAL: VadFarkas

I have a question regarding overseas shipping of items from the USA.
We a small company working and shipping from our home. Every so often a
package will be held at Customs and sometimes the customer has to pay a
very high tax in order to receive his package.

Today I received an email from a customer in the UK that was not happy.
After Customs held the package for over a week, he had to pay $52 tax
on a $110 item. Add the shipping cost of $35 and it almost equals the cost
of the item itself. He did not have to pay on previous shipments.

We pride in shipping same day whenever possible and try to keep our
prices way down but Customs is killing us.

Do any of you have a suggestion as to what we can do to make shipping
overseas a more pleasant and less costly affair?
As always, your input is appreciated and Thank you so much.


There are two things you can do that will lower the customs charges for your customers, but I'm not sure if there would be legal ramifications if you get caught.

Number one,  you can simply fill in a lesser value of the item on the customs form, instead of writing the actual sale price in.  In other words, if the sale price was $100.00, you can write the value as $50.00 instead.  Number two, on the customs form you can also check the box that says "gift".  If you choose that option, then of course you don't need to write the sale value in.  That should lower or eliminate the amount that they are charged in their country.

Another thought:  You might be able to lower the shipping cost itself by choosing a less expensive method.  What shipping service do you use and how much do the packages weigh?  If you use the US postal service, opt for Airmail instead of Global Priority--That should lower the shipping cost by about 10-15 dollars.  Airmail is usually about a 7 day delivery wait, as opposed to Global priority which is 2-3 days.  Most people would rather wait the few extra days and pay less for the shipping.

< Message edited by marieToo -- 11/7/2007 6:20:37 AM >


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RE: Customs and overseas shipping question - 11/7/2007 6:29:48 AM   
Elegant


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We have shipped overseas to various contries. Master's boi worked for the post office for a long time (just recently quit to go back to school) and gave us a few hints..the main one being 'mark the item as a gift.'

Also, for both customs and for security against nosey and dishonest postal people in other countries:
  • don't put your business name on the outside package. (We use initials instead of our business name for all shipments).
  • When describing them ite, use generic descriptions: costume jewlery choker, costume jewelry cuff bracelet etc.

For shipping to other countries: the post office website has a great chart for what items are acceptable in the various countries.

Also, be aware of scams especially right now from countries in Africa.


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RE: Customs and overseas shipping question - 11/7/2007 6:54:36 AM   
Lucylastic


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Customs and taxes are the bane of my life Vad, one way or another. First of all, you can do the above as marie has suggested, I know Ive done it myself ahem, but if the parcel gets lost and you can prove that the parcel was sent and they(post office) agree to reimburse you, they will only go by what the declared value is, which is a real bummer, cos then you have to cover the costs all over again. Also...some customs will open packages and if a receipt or invoice is included you can be in trouble that way. I know of people that have done it that way many times, but I get a lot of my packages opened by customs so I prefer to be safe than sorry. Ive only had one lost parcel lost in seven years, but more than a dozen opened and held by them, to me its just not worth it

Dont send out UPS or Fed Ex..their brokerage fees kill on the other end... I just ordered some shoes (for customers) and the order came to 150$,(30$ of that is shipping) and  im gonna be paying 39.95$ broker fees and 17$ in taxes....87$ for shipping, taxes and brokerage for a 120$ order...bastiges ahem anyway, my rant over for now.
The only thing you can do is to let people be aware that you arent responsible for any possible  taxes and duties at their end. You have no say in it at all.

I dont know what the system is in the US regarding package security, tracking availibility, delivery confirmation etc, I know here in Canada it is quite an add on to the price of shipping especially to the UK/Europe but for the peace of mind regarding loss etc its worth it
Just my experiences Vad, others may have different thoughts:)
Best wishes
Lucy

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RE: Customs and overseas shipping question - 11/7/2007 8:28:22 AM   
Maya2001


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From: Woodstock ONT,CANADA
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Look into the prices for postal small packet air for shipping should be insured, as mentioned with UPS and Fedex the brokerage fees are an add on fee an extra fee they charge for their services to get a package thru customs.

anything to UK $20 or less value has no customs charge


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RE: Customs and overseas shipping question - 11/7/2007 9:54:46 AM   
MisPandora


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We always emailed them an invoice, and sent it to them as a gift on the shipping claim forms.  Very rarely did we encounter any hassles for a customer.  (Now us on the other hand, buying from Canada and the UK, our merchandise would get hung up with customs from time to time and yes, they'd charge us an arm and a leg to get the package!)

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RE: Customs and overseas shipping question - 11/7/2007 11:51:31 AM   
Lucylastic


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OK thats another reason I get such a kick out of this site...ya learn something new every day, Thanks  Pandora, I dont know why that hadnt occured to me before.
Lucy  

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RE: Customs and overseas shipping question - 11/7/2007 12:44:17 PM   
VadFarkas


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Thanks for the replies and suggestions.We ship overseas with USPS Express Mail International and use ourpersonal name and home address, no business reference at all.
My wife is the shipping department and is going crazy. We just shipped a
set of ankle and wrist cuffs to Canada. They are a freebie and a gift but
she still had to list the value, weight and content, so listed them at 1/4 of the normal cost and marked them as a gift. I told her to list them as
stage props this time. Normally she ships as pet supplies/collars.All customer get an invoice by email at least twice, I confirm all orders.
It seems Canada and the UK are the worst with Customs. Although the
worst time was to France but that was a very large order. We had to send
Customs a fax of the inventory even though it was on the label. The
customer paid about $125 tax. It was his idea to combine the orders to
save on postage. Guess that backfired. He still owes me 75% of the
money. I haven't asked for it because his wife died in a car accident
shortly after that. Now that I type this out it does sound bad but he
was a regular customer and I made many custom items for him.
Anyway I'm rambling....
Thanks for the feedback, I'll have the shipping department go over all
the replies when she gets home. But bottom line seems that Big Brother wins.

_____________________________

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See my collars & cuffs at
www.ringofsteel.net

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RE: Customs and overseas shipping question - 11/7/2007 1:42:47 PM   
latexbarbiets


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You can also put on the declaration that its a item being sent for repair. That might help also. I had to do that with a polymorphe dress that needed fixing.

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RE: Customs and overseas shipping question - 11/8/2007 11:09:11 PM   
Termyn8or


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Vad;

The first thing I would like to say is that you don't ship anything to anyone you don't know without full, or near full payment. And yes I would make it a point to make them aware that they are responsible for any costs of import.

The first rule of business is that the customer pays everything, to that there are no exceptions. If you lose money, you cannot make it up in volume. The big computer that tracks our lives completely is not yet fully in place. So get your payment and then ship a gift with a stated value, and of course a description which will be costume jewelry or something like that.

If it bites you in the ass, you corresponded with this person and times were tough and they sent you a few quid, or whatever they call it. You, in turn have decided to give them a gift. They just happened to have the extra money when you needed it, and you happen to have a gift for them.

But always get payment up front, unless you might want it to really become a gift. It is simply not practical to sue somebody in bumfukt Egypt somewhere. This person owes you what 75 % of the money ? Hmm, send me a few things. I'll even include you in my bankruptcy if it happens. The thing is, get your money now. Taking payments is for a bank. Banks generally do not make collars and cuffs, so I assume you are not a bank.

So get the money first, ship it as a gift and declare the real value. That's the only way I see to do it, unless you want to go big.

If you don't want to go big there are still options, as long as you get the money first, and insure it yourself. This is all stealth, and if you can't handle it do not do it. This is to put the return address of a company that ships internationally all the time and go with a complete different description. You could print up a logo of a company I know and describe the item as a special Oring and gasket set. You have to think on your feet. This company ships worldwide and has daily pickups, they will know this and give you priority.

Remember this would be a masquerade, when they ask you say, no, I missed the pickup but this stuff has to go out today. Pay cash for the shipping. Otherwise it will show up on that company's bill. Another description to use is electronic components, fragile. We can make up a company name for that. Actually I can find one, not even have to make it up.

You have many options, but if you want to grow the business the best way is to be on the up and up, at least with shipping. The fact is, if you go throught the time and trouble, you can prove that since you were born in the US you are not required to pay taxes. I do not want to get into that right now. But to grow as a company, get on the registers, become known, you can do that. But just like an auto title, when you put down gift, you raise flags. Possibly not red ones, but flags nonetheless. And people in other countries do not have the rights that we have forgotten.

In this Man's opinion, you would be better off with a company name. If you intend to do business overseas, just pick a name. If you do, that is the easiest route that I think may accomplish what you want. Every airport in the world does not have a Thomas Register, they do not know if you are legit or not. When they see it is from a company they are more likely to ignore it.

I can help choose the name of the fake company, and before we even go there, Vad's ammunition, Vad's guns, Vad's ICBMs are not good choices. But there are other things.

There are many things they will simply overlook. Vad's publications. Vad's flatware. Vad's iron collars for that matter. And "This package may be opened for postal inspection" almost guarantees that it won't. The trick is in the packaging. Vad's books. Take any fifteen cent paperback you can find and ship it with it. Make a sealed envelope and put the paperback in it, then throw in the collar. Then put on the package with the book, "Do not read this until you put the collar on". Something like that.

There are an illion ways to be dishonest but yet not. (invented a word again). It all depends on which direction you want to go. I could handle international shipping for you if you want, but that might not be what you want. I could probably get your stuff shipped from an international company that does it all the time. But I wouldn't use the gasket company, although they would be a good choice. I am a bit too hooked up with them right now and I would not do it without their knowledge.

So it is a $400 book that comes with a free gift. It is a package deal. Lose the package the insurance pays. This would not be the first time such a tactic was used. Nor the last.

The way I read you is that you are still in the creating stage, you do not want to go into production now, if ever. You like to come up with new shit, get creative on our asses. That is fine. Even if you have things that sell regularly, you want to create. If I am reading you wrong, say so. I think you are not ready, or possibly not willing to go to the production stage.

In that, if true, you remind me of my Father. He was a jobshop machinist and worked closely with the engineers. I mean he would be in there after seeing the print for a prototype and say "This can't be done", and when he said it they listened. They asked him what the problem was and he explained it. Stuff like, you simply can't do this, this bore intersects with this bore which will cause a leakage of coolant, that causes a loss of coolant to segment five. We have no way to plug this, so another way must be found. Actually he said "we gotta find another way". But this is not the point, the point is he did find another way. The point is they offered him many times, positions of authority in those job shops. He always turned them down.

I knew another guy, in my business, but dead now. He turned down the most lucrative phases of the business. He did not want to deal with it. So the point is, just how much shit do you want to deal with ?

But this all comes in steps. If you actually do want to go into production, even on a few items, you have to figure out what parts others can do, cutting stock, who knows ? Actually you do. Even if you got an apprentice or two, that is your chance to make money. But then it behooves you to get this international thing straightened out on your own. If you want to stay a family business, that is fine.

If international orders are rare, then concentrate on the domestic market for now. Deal with that later. If alot of your orders are international, that is different. I would have to know which it is to advise competently on that. I have resouces on which to draw for some really good advice, but what then would I ask them ?

Without knowing your intentions for the future of the business I can't give valid advice. I can't even seek valid advice because that is the first thing they would ask me. "Does this guy want a real business or stay a Mom and Pop shop ?". And that is almost exactly what they would ask. I did learn a few things over the years, and my experience is varied, and though it has not gone much into international shipping, I can figure something out. All I need to know is, do you want to expand or stay the same ?

I mean on a case by case basis, you can make the return address Asti Magnetics, or Fiat Motor Company. But if you want to grow, a different path is required. I can do alot, and say alot, but I don't know what to say. You tell me. Get big or stay small, your choice.

T

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RE: Customs and overseas shipping question - 11/9/2007 12:08:07 AM   
beeble


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From: UK
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quote:

VadFarkas wrote: Do any of you have a suggestion as to what we can do to make shipping overseas a more pleasant and less costly affair?

Taxes and import duty are not optional.  If you ship something commercially overseas and lie about its value, you are probably committing an offence.  If the recipient does not declare the full value and pay the appropriate taxes and duty, regardless of what value you quote on the shipping forms, they are certainly committing an offence.

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RE: Customs and overseas shipping question - 11/9/2007 12:30:01 AM   
beeble


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quote:

latexbarbiets wrote: You can also put on the declaration that its a item being sent for repair.

You could but, again, unless that is actually true, the shipper is probably committing a crime and the recipient certainly is if they do not declare the full value of the received goods.

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RE: Customs and overseas shipping question - 11/9/2007 1:31:21 AM   
VadFarkas


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Thank you once again Termyn8or and also beeble.
First let me say, my wife and I had a long meeting with our taxman last
night on other matters related to our new business. I also talked with
my Gorean friend that happens to be a lawyer. After talking with my
friend and before going to see the taxman, I made an edit to my webpage
and added a paragraph on shipping and Customs.
As far as growth, I do not want to get very big and take on help or an
apprentice. I was working toward retirement from the company I worked
for and only decided to do this full time due to them going out of
business just before I got to that point. I do however want this new
company to become successful and doing something illegal is not the way
I choose to go. That is why I decided to add the disclaimer on my front
page making the customer aware of the possible duties and time delays
involved.
And yes Termyn8tor, you are right, your father and I are very similar as
far as careers go. I have contributed to many new products over the
years and my name is on a dozen or more patents. However I was not born in the USA.
So before I go back to bed, it's 3 AM, I'll say that I got an education here
and I appreciate the advice and offers of help.
Like Lucy said, "you learn something new every day".

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Vad Farkas ~ Ringsmith
See my collars & cuffs at
www.ringofsteel.net

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RE: Customs and overseas shipping question - 11/10/2007 9:45:31 AM   
PainCompliant


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Joined: 11/15/2006
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Homeland Security. 

This is not the time to screw with customs declarations.

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RE: Customs and overseas shipping question - 11/10/2007 8:43:02 PM   
BootBlackBlast


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As an employee at Leatherpost.com and someone who does major major international shipping to places some people have never heard of, these are our recommendations. Declare only a portion of the total value. We generally declare our cost to cover our butts in case it gets lost or what have you. We use as generic a description as possible. If the package is opened, most customs agents aren't stupid, they've seen this shit before over time. We do use descriptions like metal jewelery rings, leather garment, anything along those lines.

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RE: Customs and overseas shipping question - 11/12/2007 5:39:00 AM   
VadFarkas


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Thank you both PC and Blast, I agree and just having traveled, don't want to wind up on big brother's radar.
We have always struggled with how to list our items and tried to stay away from any jewelry references thinking that might cause Customs to look more closely. We don't want to do anything illegal just make things easier and less costly for everyone. I think it is terrible to have to pay $52 VAT on a $110 item. Anyway we have shipped as pet supplies / collar in the past and that would describe the item accurately but have decided to try stage props and see what happens.
It seems everyone has it in for the little guy but I assume the big guys have their share of problems also.

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See my collars & cuffs at
www.ringofsteel.net

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Profile   Post #: 16
RE: Customs and overseas shipping question - 11/12/2007 8:01:49 AM   
EclipseAbove


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Perhaps I've been lucky, but I've bought many items from overseas vendors and have never had a problem or a delay.  All the packages have customs labels on them and I don't know if the vendors had to pay anything for customs and any customs costs they did pay didn't appear to be passed on to me through the shipping costs - perhaps they were but the shippping seemed fairly reasonable compared to shipping within the US.  There must be a proper way to handle customs without breaking or bending the law - international trade and commerce has been around and thriving ever since there was more than one country on this planet.

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RE: Customs and overseas shipping question - 11/12/2007 2:18:54 PM   
beeble


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quote:

VadFarkas wrote: I think it is terrible to have to pay $52 VAT on a $110 item.

Yeah, I'm not entirely sure what's going on there, since the UK VAT rate is 17.5%.

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RE: Customs and overseas shipping question - 11/13/2007 5:40:40 AM   
VadFarkas


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EclipsAbove and beeble, thanks for your input.We and most of our customers normally don't have problems so maybe it's just a random situation? In regards to International Trade and Commerce.Although I wasn't involved, I do remember there was a Tea Party in Boston.....  I sent this thread to our customer, who was so kind as to answer his case specifically. His explanation is below.Let me just add that charging tax on shipping charges by adding that to the value of the package is Bull#*%!   Hey Guys,

let me just clarify the amounts - I had to pay $110 for the cuffs and
$35 shipping = $145converted into GB pounds = £72.50 value of the package !! as customs see it (which I think is incorrect)
this is subject to VAT at 17.5% = £12.68 VAT and £13.50 Handling fees !!
= £26 or $52 approx.

Maybe using the regular mail (longer delivery time) would avoid the
handling charge at this end ?

and not forgetting - if the value is greater than £18 (goods purchased)
or £38 (gift from one person to another) then VAT is charged and the
delivery agent is tasked by the government to collect this thus the
handling fee...

Regards, Leon


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Vad Farkas ~ Ringsmith
See my collars & cuffs at
www.ringofsteel.net

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Profile   Post #: 19
RE: Customs and overseas shipping question - 11/13/2007 10:00:17 AM   
Lucylastic


Posts: 40310
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hey Vad, I dunno how it works there, but its only "supposed" to have the actual price of the goods as taxable by the import/customs people, and the handling fee is their "brokerage" amount.Still bloody ridiculous if you ask me, but its just as bad in canada. customs are funny buggers, but when it comes down to it, you have absolutely nooooooooo way of knowing what they do or charge. If a parcel gets lost, then the posting company will reimburse you the cost of the package, plus the shipping.
As for labelling, I use, Theatrical props, Adult novelties, Leather clothing or  clothing, trying to keep it as generic as possible (for customer discretion purposes) and no, in these days of heightened security, ya really dont need them lookin at stuff.
Lucy

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(•_•)
<) )╯SUCH
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\(•_•)
( (> A NASTY
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(•_•)
<) )> WOMAN
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(in reply to VadFarkas)
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