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TheOtherGuy

Customs/Duty tax

18 posts in this topic

Hello people of Muv-Luv,

I am having problems understanding how the customs tax can be 30-100%. As this would be classified as toy products and is for personal use, this shipment would not have duty taxes. And as Japan is a Most-Favoured-Nation, which means 'An MFN tariff is the lowest possible tariff a country can assess on another country'. Also if I go online to a tariff calculator, the most I'm getting is 13%??? BTW I live in canada, ontario. So is the Muv-Luv Team only talking about the USA people, or are there crazy add-ons because of the way they are shipping it?

http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2016/html/countries-pays-eng.html

https://www.crossbordershopping.ca/duty-tax-import-guide/canada-customs-duty-rates-tariffs-and-taxes

This says the HST for toy products for canada is 5%. Though I can't find a number for the PST, seems Ontario doesn't have that.

http://www.calculconversion.com/sales-tax-calculator-hst-gst.html http://helpsme.com/tools/free-gst-hst-pst-sales-tax-calculator-canada

From this it seems that tax rate for toys coming from Japan, I would be paying 5% tax on it. Maybe there is something I need to pay for going through the US?

I don't understand where the 30-100% is D:. Though if it really is going to be 100% on teh 33%, I would really rather find a way to get money back D: sad though it is ;(.

Edited by TheOtherGuy

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This should probably go under reward questions.

From what I understand, a few points from @The Muv-Luv Team's post:

-All rewards will be sent and stored to the US prior to shipping out. So if anything, the country of origin will be the US (hence why the KS shipping cost is less for US).

-They also mentioned at the end: "If you're anywhere near US (Canada) we don't there's any at all". It probably meant: "If you're anywhere near US (Canada) we don't think there's any additional shipping costs at all" or something like that.

-The 30-100% estimate is more likely a warning to everyone that they should check the customs tax for their respective countries in case there are any unexpected surprises, since some countries do have ridiculous import taxes or something.

I'm not in Canada though, so I haven't looked into the specifics for that case.

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All they are saying is what it could be, not what it will be. Look up what the customs tax is for your country and go by that instead. For example, I'm in Australia so I'm expecting the tax to be around $0 (I've never had to pay any since its tax free until like over $1000). If your Canadian, then I'd recommend specifically looking up custom tax for things from USA since it might be different being so close. Also, the goods are being shipped from USA not Japan hence why shipping to USA is cheaper.

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Always go for the worst case scenario. 

I'm saving up with the idea of the customs being 100% just in case, if it turns out less than that I'll have some extra cash which is nice.

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6 hours ago, natsucule said:

Always go for the worst case scenario. 

I'm saving up with the idea of the customs being 100% just in case, if it turns out less than that I'll have some extra cash which is nice.

That is something Saitama would say :D and with his deadpan voice saying that makes my day.

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8 hours ago, natsucule said:

Always go for the worst case scenario. 

I'm saving up with the idea of the customs being 100% just in case, if it turns out less than that I'll have some extra cash which is nice.

I'd rather just research it and know.

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Yes. Customs change from country to country, so you have yo be careful.

In my case can be between 50% and 100%....

You have time now, is a good idea to verify how you can do with your country customs and start saving some money.

In most countries when you import something they require a note or invoice to charge you, maybe we can ask for those invoices to be included with a lower value (in the end this is not a purchase but a reward). IF they include something like that, they will help a lot foreign contributors (in some cases we might need also a digital version of such document).

This is something you do when importing goods from Japan, with the help of the seller.

AGAIN, IS EARLY CHECK WITH CUSTOMS AND MAIL SERVICES. IF YOU HAVE FAMILY (AND IN SOME CASES FRIENDS) IN THE US, SOME COUNTRIES MIGHT ALLOW THEM TO SEND YOU STUFF WITHOUT TAXES (in my country there is a weight and cost limit, but we have something like that, sadly they added taxes last year).

Let me use the example of my case:
 

Quote

 

In my country, Ecuador, I'm risking paying $300. Also considering how bad is the mail service here, I would need to use a courier to bring the package safe to Ecuador (they also help with customs) but that would be another $100... soooo $400 in taxes+shipping

I can get a plane ticket to Miami in earlier October at $650 (Luckily I have where to stay in the US) . In  my case I'm thinking on buying some other stuff, and go there. When you bring something with you, to Ecuador, you can avoid taxes (there are limits, of course). I have to point out that the $650 on the ticket already include $200 in taxes...

$400 vs. $650 traveling and bringing more stuff...

Should I have gotten the $500 or $800 traveling to get the goods is a no brainier.

Now it seems they might remove these taxes, so I might be able to import it way cheaper and no travel plans would be required.

 

 

 

Edited by danmarce
Clarifying

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@danmarce About having a invoice that say the item is cheaper, the team have already confirmed that the value they declare for the package is only going to be the production costs of the items and not their sale value. They said that this means that it would only be about 33% of its actual value so if you pledged $300, a 100% custom tax is still going to be only around $100.

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3 hours ago, Nexus said:

I'd rather just research it and know.

Yeah, deadpan voice saying that is still funny, though Saitama would probably just wait till no one is around, and then punch the boarder into nothingness! (What boarder, I don't see no boarder, there's just a patch of nothingness hehee :D)

@The Muv-Luv Team As different items have different taxes associated with them. When the note is made will it have the break down of ex. clothes $~ figurine $~ and so on, or will it just have the overall price of 33%?

Edited by TheOtherGuy

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The rewards will be in a box with an overall price of 33% :)

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Just now, The Muv-Luv Team said:

The rewards will be in a box with an overall price of 33% :)

Sooo...an example would be 33% of £150 【Muv-Luv Trilogy Collector's Box】 may potentially make the customs tax be around £50 if shipped to UK?

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The customs tax will be a portion of the £50, depending on the rates set by the country. As for information regarding the percentage per country, it's beyond our coverage. If we do dive deeper into it, it would look like we're encouraging ways to avoid tax and will put us in a dangerous position. :(

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I truly wish for more clarification though: A shipping cost of $50+ is downright crazy and honestly, I am not sure if I really want to backe that kind of money. $200-210 is a insane difference to my backed $150 after all. I backed for $150 + $10 shipping cost, not for $200. Were that the case, I would have backed MUCH less, if any at all.

Edit:

Did some research, and for my fellow dutchman who may come to this forum with questions:

Duty is not charged if : the FOB value, i.e. the value of the goods excluding shipping and insurance cost, does not exceed €150 

so it seems like those who live in the Netherlands should be alright

Edited by Nekololi-chan
Extra info for fellow dutch

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4 hours ago, Nekololi-chan said:

I truly wish for more clarification though: A shipping cost of $50+ is downright crazy and honestly, I am not sure if I really want to backe that kind of money.

The $50 is only the specified value of the packet, it is not what you end up paying. Say the duty is 20 % you will end up having to pay $10. AFAIK the idea is to promote local goods to avoid that work places move out of the country. They added a digital only tier towards the end of the kickstarter, so if you didn't want to back your government you had that option. ; )

Note that duty is not the only kind of fee you can encounter. In Denmark there is no "duty" when it is under 1,150 DKK ($168) excluding shipping, but there is still a 25 % value-added tax when ordering outside EU unless the value is less than 80 DKK ($11). (The fees apply to shipping as well, and they all stack so you pay fees of the fees.) And they note that the shipping company usually takes a fee for handling the customs process as well. Bottom line is, prepare for random extra costs and hope for the best.

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I was once shafted by a shipping company who shall remain nameless...they expressed stuff non federal like.. >_>... for a small product I paid around $110 for.  They charged "customs handling and shipping tax: $40" on top of it all, charged me at the door...then billed me after I paid for it! 

Moral of the story....you won't know what they do until you have it in hand.

Edited by sonsaku

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Ok so let me see if I got this straight:

In a country with 0% Duty Tax, but 21% VAT, the specified Price of the $150 package would be $150 x 0.33 = $49.5

The extra VAT costs would then be 0.21 x $49.5 = $10.395

If this would be the case, is this extra cost that should be covered sometime somehow in the future, or is (some of) it already covered/included in the $10 shipping cost we included in the backed amount?

If my way of calculating is correct however, it is not that horrible either way: $10-$20 extra cost isn't that big of a deal. Would still be nice if everyone is informed about it in clear terms, especially since it was not explicitly made clear when we backed the project, and it seems like there is still some confusing going on.

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1 hour ago, Nekololi-chan said:

In a country with 0% Duty Tax, but 21% VAT, the specified Price of the $150 package would be $150 x 0.33 = $49.5

I think Canada uses harmonizing tax instead of VAT (basically is though). But in that, different items would either have duty and/or have differing customs taxes as well. in your $150, does that include different types of items? or is your VAT a flat rate?

For higher tier payers, this would be a harder question as the whole pledge is counted under one cost, they won't know what items cost what and we won't know how that cost will be looked at. As we don't even know what the package will be labelled under.

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Each country has it's own way to do it, but what the Muv Luv Team is saying is as simple as the value declared will be the production cost of the things you are receiving, which is in general a 33% of what you payed, so when customs ask you "pay me a % of this" it will be a % of 1/3 of what you payed in the kickstarter, not a % of what you payed in the KS.

 

Example:

 

You put 300 dollars for the KS.

Normally, if they put this as cost of the things you are receiving, if your country is gonna charge you taxes, it would be calculated from those 300 dollars. Because the Muv Luv team thinked, and being a KS and all that, it is possible to put as cost the production cost, which is generally a 33% of the amount pledged. That means the taxes are gonna be calculated at 1/3 of the cost of your pledge, being SIGNIFICALLY lower.

In my case, it means that it is not being automatically stopped. And if they do stop it, it means I will pay 25€+20% of the value of the product. As I pledged 300(rounding 1 dollar = 1 €)but a 33% is 100,  it means I will pay 25€+20, instead of 25€+60.

 

A considerable saving.

 

But I pray to all gods that customs doesn't stop it, they have a tendency to retain things for months or not know where they are and it's impossible contacting them.

 

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