De minimis for US customers

[purecro]

I was reading on Karve that de minimis has been taken off of imports from Canada to the US with a 25% tariff to US customers. I have not been keeping up with the news and do not know but does anyone know if this only applies to Canada. I know there were also things with Mexico and China so I ask does anyone know of the countries which this tariff will be applied to US based customers (say buying stuff from aboard) and at what rate will the tariff be at?

Looking at some soaps and razors to buy maybe now, maybe later from aboard so would like to know what applies to what basically, if anyone knows. Thanks.

 

[walpan]

I was reading on Karve that de minimis has been taken off of imports from Canada to the US with a 25% tariff to US customers. I have not been keeping up with the news and do not know but does anyone know if this only applies to Canada. I know there were also things with Mexico and China so I ask does anyone know of the countries which this tariff will be applied to US based customers (say buying stuff from aboard) and at what rate will the tariff be at?

Looking at some soaps and razors to buy maybe now, maybe later from aboard so would like to know what applies to what basically, if anyone knows. Thanks.

My understanding is that on February 1st, Pres. Trump signed an executive order eliminating the De Minimis rule for China. I have seen nothing about any other country. However, on Feb 7th, Pres Trump reversed that decision and therefore, I believe there is still an De Minimis exemption. So, Not Confusing at All.

 

[purecro]

My understanding is that on February 1st, Pres. Trump signed an executive order eliminating the De Minimis rule for China. I have seen nothing about any other country. However, on Feb 7th, Pres Trump reversed that decision and therefore, I believe there is still an De Minimis exemption. So, Not Confusing at All.

Awesome! Thanks for the quick reply and letting me know. I appreciate it.

 

[tube_guy]

As far as I understand, de minimis exemptions are currently in place for all countries until we have the ability to efficiently collect tariffs on the de minimis parcels. When we have that ability, and supposedly it is being worked on currently, the de minimis exemptions will be removed. So the de minims exemptions could be removed at any time and with little notice. But right now the exemptions are still in place.

 

[alex1921]

As stated above, this is what I found.

How do the EOs handle de minimis shipments and duty drawback?

• The de minimis program allows shipments worth $800 or less to enter the US duty-free and with minimal customs checks.
• The President intends to end duty-free de minimis treatment for all imports from China, Canada, and Mexico covered by the EOs. However, the implementation of this change is delayed because the US government needs to develop adequate systems to process and collect the relevant tariff revenue.

 

[Darth Scandalous]

There are now some rumblings about tariffs on Japanese goods as well. But nothing concrete as of yet.

 

[walpan]

See I TOLD YOU THAT THE DE MINIMIS issue is very clearly defined and understood by all. Just another "I AM THE GOVERNMENT AND I AM HERE TO HELP".

 

[Whisky]

I’m going to put this here as well as in the other thread discussin basically the same thing. Discussing the tariffs and impacts on costs etc is fine. If the discussion devolves into politics the thread will be locked.

 

[alex1921]

There are now some rumblings about tariffs on Japanese goods as well. But nothing concrete as of yet.

That would definitely affect my bids on Yahoo! even though it's not called Yahoo! anymore, JDirect items auctions.

 

[Darth Scandalous]

That would definitely affect my bids on Yahoo! even though it's not called Yahoo! anymore, JDirect items auctions.

Same. Something to keep an eye on.

 

[sidpost]

De Minimis was going into effect, but the USPS and US Customs realized there was no way to assess and collect the tariffs on ~$20 purchases so it was set aside due to that reason initially.

To be blunt, the cost associated with assessing and collecting the tariff on a ~$20 product is a big reason De Minimis came into being in the first place. You can argue the politics and efficacy of this policy, but the optics in today's MASS MEDIA and various political arguments are real.

What does this mean to me? Apparently I have until April 2nd as of the latest news regarding tariffs to make significant purchases from overseas or out of Canada or Mexico.

Am I going to get bent out of shape over a ~$10 100-pack of DE razor blades, no. I will say I have purchase several razors and a pair of Chinese radios recently with one in my hands as of last week, and the other one is in the air out of China today.

For smaller boutique razor makers, we are apt to see some drama due to personal feelings, either good or bad, in addition to actual cost increases due to various tariffs and inflation.

Lastly, inflation may not be a 25%, 50%, or more tariff, but inflation on shave products is really for many products and especially smaller "one man" shops many of us patronize.

 

[pwill112]

WASHINGTON, April 2 (Reuters) - U.S. President Donald Trump signed an executive order on Wednesday that closes a trade loophole known as "de minimis" that has allowed low-value packages from China and Hong Kong to enter the United States free of duties.
Trump signed the order, which takes effect at 12:01 a.m. Eastern Time (0401 GMT) May 2, in the Rose Garden of the White House after announcing sweeping new tariffs on global trading partners.

 

[jesseix]

 

[blade08]

De minimis or not, a free trade nation like Switzerland gets 31%, a very protectionist nation like Argentina gets 10%.

Was this decided after a night of heavy drinking one wonders...

 

[madmedic]

I think this answers the question with regard to Chinese products at least. Reported by AP.

No more cheap skirts: Trump ends tax exemption for low-value Chinese imports

A notice to customers dazzled by the low-priced products on Chinese shopping apps: the days of getting trendy clothing, tools and gag gifts that cost less than lunch delivered to your door in 10 days are probably numbered.

apnews.com

 

[Mr. Shavington]

I think this answers the question with regard to Chinese products at least. Reported by AP.

No more cheap skirts: Trump ends tax exemption for low-value Chinese imports

A notice to customers dazzled by the low-priced products on Chinese shopping apps: the days of getting trendy clothing, tools and gag gifts that cost less than lunch delivered to your door in 10 days are probably numbered.

apnews.com

I think this will have a big effect on buying habits for us since we’re used to choosing our purchases from everything that is available worldwide, and much of what we buy has previously not been taxed on arrival. This is a hobby for us and we tend to buy specific items from specific manufacturers - another razor model that is made locally is not the same thing for us.

The article seems to say that the onus for collecting import taxes will be on the shipping company, so it is effectively outsourced by the government. It means the costs of processing the import and collecting the taxes will all be borne by the buyer. The shipping company will invoice you for the import tax and the admin charges that the shipping company and US Customs charges for the process. There might be local sales tax as well, which could be calculated on the total value (goods + shipping + Customs admin fee + shipper‘s admin fee + import tax), and if so this can be the largest portion of the charge you receive.

It also means you won’t know what the cost will be until after your purchase lands, it is inspected by US Customs, and they calculate the charges. And there will be delays as your shipment is held until all this is processed and paid from you to the shipper to Customs.

As I posted recently in another thread, we recently bought some plates and dishes from Germany (€260 plus €40 shipping, which was over the UK’s £135 de minimis limit). The UK import tax rate for these goods is 12%, so you might expect something like a €30 charge. The invoice we received from the shipper was €170, including this import tax as well as sales tax and admin fees. We aren’t going to do that again, when the cost of receiving a €260 purchase is €210 (€40 shipping and €170 import costs).

So brace yourselves! Probably you will stop buying goods from overseas unless you want something so much that you don’t care what the cost is. Otherwise it is irrational to pay so much in taxes and admin fees compared to the actual price of the thing you’re buying.

 

[spacemonkey42]

I think this will have a big effect on buying habits for us since we’re used to choosing our purchases from everything that is available worldwide,

This part is extremely important. We are living in a global economy that did not exist in the early 1900s. Decades ago, the US, and many countries, outsourced manufacturing of many things to other countries. That's why we have cheaper prices and the trade deficits that go with that. This can not be easily reversed, it would take decades, would radically change countries and the world, and would hugely raise prices to bring production internal.

 

[CapnPanther]

Ordered a $20 flashlight from a Chinese seller earlier this week. Item has been shipped, but hasn't yet departed China. Should arrive in the US well before 2 May, but if it doesn't I'll have a first-hand report of its treatment under the new regime.

 

[Mr. Shavington]

Ordered a $20 flashlight from a Chinese seller earlier this week. Item has been shipped, but hasn't yet departed China. Should arrive in the US well before 2 May, but if it doesn't I'll have a first-hand report of its treatment under the new regime.

I think it will be very helpful if people can share their experiences with orders around and after the change, and disclose any import charges they receive. Might avoid some bad costly surprises, or give some reassurance if the charges aren’t as bad as feared.

 

[AshleyC]

My prediction is that we'll soon be seeing Xi Jinping traveling to the White House. He will come to us, and that has a symbolic power that will be obvious to everyone.

I've read that America consumes 80% of what it produces. China cannot consume 80% of what it produces. And frankly, there are a lot of bizarre, alarming rumors and news coming out of China lately. Speculation about their actual population size. Unemployment numbers. Sketchy banking stability. And it doesn't stop there.

The de minimis stuff on China won't last long. That's my prediction. But I also think that lifting won't stop China's decline.