Categories
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.
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.