Some points...
1. The transportation carrier is not the shipper. As I mentioned for common carriers like UPS, FedEx, etc. they will collect the tariffs from the buyer. Shipper is not responsible for our tariffs. Postal shipments are not the same as shipments by common carrier.
2. What the country of origin is will be entered by the shipper. If they send a shipment by Common Carrier (UPS, FedEx, etc.), the shipper is responsible for listing the country of origin on the commercial invoice. If it comes by mail the shipper will enter the country of origin on the mailing document (which is not an invoice) stuck to the side of the package. Whatever they decide to put on that document is up to them. Note. I'm not suggesting that anyone ask suppliers to put anything other than the country of origin. They could list the country of origin as their own, or manufacturer which I suspect we'll see both of. The kit I received from China through another country had the other country listed as country of origin. My guess it will be a combination of both.
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DDP: Read this section, please:
"Sec. 3. Duty Rates for International Postal Shipments. (a) Transportation carriers delivering shipments to the United States through the international postal network, or other parties if qualified in lieu of such transportation carriers, must collect and remit duties to CBP using the methodology described in either subsection (b) or (c) of this section. Each transportation carrier shall apply the same methodology across all covered shipments during any given period but may change its methodology no more than once per calendar month, or on another schedule determined to be appropriate by CBP, upon providing at least 24 hours’ notice to CBP.
(b) A duty equal to the effective IEEPA tariff rate applicable to the country of origin of the product shall be assessed on the value of each dutiable postal item (package) containing goods entered for consumption.
(c) A specific duty shall be assessed on each package containing goods entered for consumption, based on the effective IEEPA tariff rate applicable to the country of origin of the product as follows:
(i) Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per item;
(ii) Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive): $160 per item; and
(iii) Countries with an effective IEEPA rate above 25 percent: $200 per item.
(d) For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP.
(e) The specific duty methodology provided for in subsection (c) of this section shall be available for transportation carriers to select for a period of 6 months from the effective date of this order. After such time all shipments to the United States through the international postal network must comply with the ad valorem duty methodology in subsection (b) of this section."
Transportation carriers must collect and remit duty to CBP, and this is for postal shipments. That makes it DDP. As I wrote, seller collects duty from buyer, then pays it to their transportation carrier, who must remit it to CBP. That is mandatory DDP.
Whether foreign postal service, or common carrier, the above is now the rule from August 29th onward. See the part about using the postal network, and other carriers if qualified, etc. In item (e) note that the transportation carriers may select the payment method (thus, how they charge you) so, yes...exactly. Your friend was given no choice. It is not the buyer's choice. It is the transportation carrier's. Which is what I wrote... Obviously, the common carriers are jumping the gun, and doing this already. It has been in effect for China since May 2nd; they've been doing this with those shipments already. It looks like they have then just started applying it to others in advance.
Shipper declaring country of origin:
"(d) For all international postal shipments subject to the methodologies described in subsections (b) and (c) of this section, the country of origin of the article must be declared to CBP."
As I wrote, with de minimis, no country of origin was required. Now, it is required on the form, and will be used to assess the tariff.
So, there is a lot to unpack. It is complicated, thus confusing, then easily garbled. However, one starts by reading what is written. While I appreciate your previous experiences, things have changed now, so what is written is what will be happening. Section 3 alone covers the bulk of what I earlier posted.
Yes, this will reduce buying direct from overseas. I agree with you there.
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Wow, there's a lot to unpack there.
Deliver Duty Paid (DDP) and Delivery Duty Unpaid (DDU) . These are terms negotiated between buyer and seller. I have not found any requirement that says all shipments coming into the US MUST BE DDP. In my logistics career I find most contracts were negotiated DDU. These aren't the only terms, but are the most common terms based on mail and common carrier/courier shipments.
Postal (USPS, etc.) vs Common Carrier/courier (UPS, DHL, FedEx) . Mail and Common Carriers/couriers are not the same thing. USPS has been following De Minimus rules with China being the exception. Common Carriers had in the past followed De Minimus but are no longer doing so, even before Aug 28th. For example a friend recently had delivered $200 goods from the UK. It came via UPS. UPS charged them a customs clearance fee plus government fees (tariff) of about $50. It is my understanding that with shipments via common carrier the buyer has the choice of a flat rate or Ad Valorem. But my friends who have imported via UPS have not been given any choice. They've been presented with a bill and if you want your goods you will pay the bill.
Shippers declaring country of origin.
Postal: Postal customs declarations already state "Country of Origin" on them. That said it's up to the shipper to fill this out correctly. In my experience the shippers always put their own country. I find it hard to believe that the USPS or Department of Homeland Security/Customs are going to rifle through every box that comes into the US trying to determine country of manufacture. Will they do spot inspections? Yes, but when was the last time you got a parcel marked inspected by customs? I never have.
Common Carrier/Courier: Shipments moving this way generally require a shipping document (Bill of lading) and commercial invoice. My friend who purchased an item that shipped UPS had the clearance go straight to UPS brokerage department. No option to clear himself or use his broker was an option. I would expect the same from other common carriers. If the shipper correctly identifies the country of origin on their paperwork, yea, it will be assessed the tariff for that origin country.
Customs Form 7501 : This is an import document completed by customs brokers in the US. For us that can be UPS, FedEx, etc. This is not completed by an exporter.
I expect that buying direct from overseas will be drastically reduced. I've been asking myself lately, do I want to buy a $55 kit, knowing that I'm going to have to fork over $80, $160, or $200 depending on what the tariff of the day is for that particular country? Previous Message
No tariffs were applied to your two Chinese kits from outside of China because of de minimis. Since no tariff charge is "planned" for a de minimis item, the country of origin is not required to be declared. You are apparently misunderstanding the language regarding formal clearances. All international mail entering the US goes through customs. USPS hands it over to CBP (Customs Border Protection) who inspect it, then hand it back to USPS for delivery. De minimis items are handled differently by CBP than larger shipments. CBP is concerned with whether it is a prohibited item (food, drugs, firearms, etc.) not with where it originated from. If it is not prohibited, it clears. Starting August 29th, there will be no de minimis for any country, and you will notice in the link Ed originally posted that the country of origin will now have to be declared. Steve is correct; items will then be tariffed according to where they originated from.
Again, if you read the link Ed originally posted, for the next six months the courier may choose to pay by either Ad Valorem or by flate rate, and it is the courier who chooses, not the sender nor the receiver, since they are now required to remit the payments. After that six months, all couriers must use Ad Valorem, and again it is not up to the seller or receiver. With the country of origin now on the paperwork, tariffs will be assessed based on that, not where the item is mailed from. Since all international mail does go through customs, and they can (and routinely do) open items up for inspection, where it was manufactured will be definitely determined if CBP desires. USPS indeed don't have that ability, but it is CBP doing customs, not USPS.
What has changed that you should understand is that there are two ways to ship items into this country...Delivery Duty Paid (DDP) or Delivery Duty Unpaid (DDU.) And that was up to the person who shipped the item. With de minimis, things were mailed DDU since there was no duty to pay. Now, without de minimis, a duty must be paid, and the new regulations force all incoming mail (this is only for mail, if you read up on it) to be sent DDP, meaning the seller must collect the duty from the buyer and hand it to their courier who pays the duty to CBP upon the shipment arriving in this country at customs. For internationally mailed items, DDP is now mandatory, and DDP shipments are a specific category within CBP, with their own specific rules.
It is complicated, thus confusing, therefore understandingly easily garbled. After it gets put into effect, many things will become clearer. Previous Message
That's not what happens in the USPS. I've imported two kits of Chinese manufacture from outside China and no tariff has been applied. Until Aug 29th (except for shipment originating from China) a shipment valued over $800 (the De Minimus limit in the USPS) will have to pay tariffs. Shipments over $2500 value have to go through a Formal Customs Clearance and generally a licensed customs broker is required to do that.
What happens after Aug 29th? For the next six months shipments will be assessed a flat fee based on what tariff our government has applied. For example a shipment originating from the European Union (15% tariff rate) will be assessed a flat fee of $80. A shipment originating from Canada (35% tariff rate) will be assessed a flat fee of $200. If the value exceeds $2500 it has to go through a formal customs clearance. Where the product is manufactured below that $2500 threshold is of no matter. The USPS isn't going to start opening packages to see where it was manufactured. They don't have the ability to do that.
Apparently after six months all shipments arriving into the US by postal service will go through the normal Informal/Formal clearance process and will be liable for whatever the tariff is going to be. Better for most modelers than paying a flat fee of $80 to $200.
Also be aware that common carriers such as UPS, FedEx, DHL, etc. no longer follow the De Minimus rules. Today they will charge you a clearance fee (often noted as a government fee) and a tariff rate. Both are based on the value of the goods. A friend recently ordered about $1200 in goods from the Czech Republic and paid about $333 in clearance fees and tariffs. Previous Message
Under US law, if you buy a kit from Trumpeter that was manufactured in China, normally the value of the tariff applied to the kit would be assessed according to the tariff applied to China regardless of the country of export.
Exporters are supposed to identify country of manufacture on the customs label (Customs Form 7501) in addition to country of export.
Under US law, it doesn't matter where you bought the kit. It only matters where the kit was made.
Here's one good explanation:
https://aomeara.com/country-of-origin-vs-country-of-export/
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