Usually no USA Duty on Purchases Less Than $150
Duty is levied by the USA on some, but not all, imported goods as they enter the country and is paid by the recipient of the shipment.

"The appropriate duty is due on all goods, regardless of value," stated the United States Custom Service to our inquiry. "But as a practical matter, duty is rarely levied on goods sent to individuals that cost less than $150." That echoes what the USA Embassy in London tells UK vendors when they inquire. In fact, the Embassy actually sets the duty threshold at $200.

The rate of duty varies depending on the goods. Here are a few examples: 16.4% on wool sweaters; 12.8% on Stilton cheese; 6.5% on jewelry of precious stones over $40; 4.5% on leather cases; 2.2% on strawberry jam; 3.3% on bone china statuettes; 0% on original engravings, prints and lithographs; 0% on books and smoked fish. For further rate information see the U.S. International Trade Commission's Tariff Database. Be advised, however, that this is arcane stuff with different rates for hundreds of different types of goods.

No Value Added Tax for Canada and USA
Good news for North Americans. When you purchase goods in the UK, you save 17.5% over UK residents because you pay no Value Added Tax (VAT). VAT is a tax collected from the purchaser, similar to our sales tax. It is collected on goods that are purchased and delivered within the UK, Ireland or the European Community. Goods delivered outside the European Community are not subject to VAT.

• The actual price paid by a North America is usually 17.5% less that the quoted price because prices quoted on UK/Irish sites usually include VAT.
  
  
• Some shopping sites offer "free shipping to North America". But this sometimes is not be what it appears. Because some e-commerce software does not allow vendors to distinguish between VAT and non-VAT customers the vendors merely take the 17.5% they collect for VAT and apply it to shipping. In effect, one pays a shipping rate of 17.5% at these sites. ...Which still often is a pretty good deal.

Credit Card Fees  
When you pay a UK or Irish vendor with you credit card, the vendor's bank pays the vender and submits your billing to the international MasterCard or Visa network. The network converts the bill into dollars at that day's going wholesale rate, adds a 1% fee, and passes the resulting dollar charge along to your bank, which adds it to your bill.

The international networks have been adding that 1% fee for years, and it's low. That's why charge cards have been by far the most efficient way for ordinary consumers to convert currency.

But about two years ago, card issuing banks started to add their own fees to the foreign charges, according to ED PERKINS ON TRAVEL. It's not for conversion; the international networks do that before your bank ever sees the transaction. It's simply another source of revenue to your bank. Not all banks and card issuing companies add the additional fee. American Express and Diners Club, which do their own conversions, assess a total of 2% on foreign billings.

Further the credit card statement you receive often fails to tell the whole story: You may be expecting to be billed $100 plus fee--if you've even done the math--but instead are billed $103 without any breakdown. To the uninformed it appears that $103 was the result of the currency conversion only and there was no fee.

No Sales Tax  
No state sales tax due on purchases from the UK or Ireland, just as with any mail order or Internet purchase outside your state.

Credit Card Security  
We at Surf the Isles believe that your risk of theft of credit card information for purchases from the UK or Ireland is no higher than with USA purchases, nor is it necessary to limit your purchases to secure sites. While it's for the better that a site encripts credit card numbers, shopping at one which doesn't is not an invitation to disaster. Read more about credit card security at www.internetarchitects.com/credit.htm.

In fact, Credit card purchases are better than cash or check because should you have a dispute with a vendor, you can report it to the credit card company. If after some investigation, the company agrees with you it will return your money to you by charging it back to the vendor. Further, your liability is limited should your card number be fraudulently used.