Ordering M10-R from UK to US: Import Duties?

[eyeheartny]

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I’m considering purchasing a new M10-R body from a UK dealer and having it shipped to the US. The currency arbitrage ends up working in our favor here in the states. I’m concerned about whether the order would be subject to import duties and if so, at what rate. Can anyone comment on whether I will have to pay duties and if so, what the rate would likely be? Any strategies to minimize the duty hit? Thanks! 

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[andybarton]

Try this

 

https://hts.usitc.gov/view/Chapter 90?release=2020HTSARev23

[robsonj]

Would importing it effect your warranty also? 

[eyeheartny]

3 minutes ago, andybarton said:

Try this

 

https://hts.usitc.gov/view/Chapter 90?release=2020HTSARev23

Thanks Andy. That seems to indicate that only film is subject to import duties. Am I reading that correctly? 

[eyeheartny]

3 minutes ago, robsonj said:

Would importing it effect your warranty also? 

Not according to Leica’s warranty page. It just makes reference to purchasing from an authorized dealer. 

[andybarton]

19 minutes ago, eyeheartny said:

Thanks Andy. That seems to indicate that only film is subject to import duties. Am I reading that correctly? 

It covers film cameras but not digital ones. Sorry, you will have to google it yourself. It must be on that US Gov site somewhere.

[andybarton]

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https://customsdutyfree.com/customs-or-import-duty-for-digital-camera-body-to-united-states/

 

[andybarton]

I think it might be 35%

 

The heading you want to search for is 8525.80.30 in this document (which is >4,000 pages long)

 

https://hts.usitc.gov/view/finalCopy?release=2020HTSARev23

[Mikep996]

My personal experience with such things is, unfortunately, it seems that sometimes customs duty is charged and sometimes it's not!  On one occasion, the duty was so high that I chose not to accept the parcel and got a refund on the item's return to the shipper.

I guess what I'm saying is that there is no way of knowing for sure until the item shows up.

[eyeheartny]

1 minute ago, Mikep996 said:

My personal experience with such things is, unfortunately, it seems that sometimes customs duty is charged and sometimes it's not!  On one occasion, the duty was so high that I chose not to accept the parcel and got a refund on the item's return to the shipper.

I guess what I'm saying is that there is no way of knowing for sure until the item shows up.

Ugh that’s frustrating. If there are no duties the price ordering from UK is outstanding. Huge savings on lenses and bodies. I guess if I can just refuse and get refunded that lowers the risk. Have you seen any pattern as to when duties were assessed from specific vendors? 

[andybarton]

If you have a seller in mind in the UK, it might be worth asking them. They will probably know, especially if VAT free prices are attractive to overseas buyers.

I would say that the chances of there being no duty at all is zero.

I would counsel that they are going to get pissed off if you order expensive kit from them, get them to ship half way round the world, then refuse to accept the goods when they arrive at your door because you don't want to pay the duty. It's your responsibility to fully understand what the cost of the goods on your doorstep are (or even might be, depending upon whether someone bothers to charge the duty or not).

Bear in mind that the UK will be out of any duty / tariff agreement via the EU on 31/12/20, and no one knows what will happen to taxes, duties, tariff or trade on 1/1/21.

[eyeheartny]

Well the plot thickens. This is quite interesting actually. The dealer claimed a 25% fee assessed on goods arriving in the states, but that's not what the duty calculators indicate. @andybarton indicated that 8525.80.30 is the duty code, which seems correct based on my research. Using this calculator, I get the output below for the item. That shows only 0.5%, which is $37.50. 

I'm not at all sure how to figure this out as it seems like the vendor doesn't know. @Mikep996, any thoughts? 

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[Mikep996]

NO, not really.  As I said, it seems to vary regardless.  FOR example: I ordered 1400 USD worth of motorcycle parts from the UK a few years back.  There was no duty charged; I ordered another 1200USD of motorcycle parts from the same supplier in the UK and paid almost $300 in duty.  I ordered a small electronic item from France and the duty was EQUAL to the price of the product!  I ordered.

If anybody can find the logic that supports those three examples, they are way smarter than me.  Frankly I think you get charged whatever some guy or gal feels like charging on the day the item happens to come through customs.  I just don't know...

 

Heck, I'm not sure that everything that comes in gets checked - maybe it's random.  Beats the heck out of me.  Generally, I don't do it at all anymore, just order it through US companies.  At least that way there are no possible surprises.  Re Leica, I have been checking prices in the UK and with the current dollar/pound exchange, to my calculation a new Leica is less expensive in the US then it is in the UK even if you are visiting and the VAT is refunded!  

Edited October 8, 2020 by Mikep996

[eyeheartny]

39 minutes ago, Mikep996 said:

 Re Leica, I have been checking prices in the UK and with the current dollar/pound exchange, to my calculation a new Leica is less expensive in the US then it is in the UK even if you are visiting and the VAT is refunded!  

You're likely not removing VAT, which takes off 17%. An M10-R is $7600 shipped from the UK. I just got off the phone with DHL and will post a comprehensive writeup of what I learned about import duties once I finish a work meeting in the next hour. The news is good. If the shipper correctly puts down the right HTS code, there is a very small duty of 0.5% applied. 

[Mikep996]

That's great!  I figured the price in the UK MINUS VAT at approx £3900 which is 5000+ USD.  The Price at Leica UK is £4500.

[jaapv]

4 hours ago, robsonj said:

Would importing it effect your warranty also? 

Yes, Leica USA will regard it as grey import and not extend warranty. However Leica Wetlzar will give full factory warranty.

[NigelG]

From my experience, as others have noted, UK- US (and equally US-UK) duty payments seem a crapshoot. I mentally add a notional 10% just in case and then see if I think it’s worth the drawbacks.

M10-R lists c £5920 excluding tax (VAT IS 20%)which is about $7650 at mid market rates ( if you get them) against $8295 plus tax (from say Leica Miami) but as Jaap says you will have to send the camera to Germany for service. The $64k question is what actual duty demand you will get on top of the UK price + shipping...

Bear in mind that lenses are a different story based on the current US 25% super-tariff on German made ones (hence the new Made-in-Portugal range). I also thought there was an upper per item value limit on the duty rates but that might have been when I was importing an M from HK to the US 

[eyeheartny]

2 minutes ago, NigelG said:

Bear in mind that lenses are a different story based on the current US 25% super-tariff on German made ones (hence the new Made-in-Portugal range). I also thought there was an upper per item value limit on the duty rates but that might have been when I was importing an M from HK to the US 

That directly contradicts what a DHL customs agent told me today as I tried to investigate this. I spoke with their customs rep who indicated that HTS code 9002.19.00.00 is exempt from the German-made goods super-tariff. That is a lens type "other" and does not have a tariff on it. They also told me that code 8525.80.30.10 is exempt for the body itself. He and I spent 30 minutes going through the HTS code book for 2020 from the US government. The entire trick appears to be how the shipper codes the shipment. 

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[NigelG]

5 minutes ago, eyeheartny said:

That directly contradicts what a DHL customs agent told me today as I tried to investigate this. I spoke with their customs rep who indicated that HTS code 9002.19.00.00 is exempt from the German-made goods super-tariff. That is a lens type "other" and does not have a tariff on it. They also told me that code 8525.80.30.10 is exempt for the body itself. He and I spent 30 minutes going through the HTS code book for 2020 from the US government. The entire trick appears to be how the shipper codes the shipment. 

Maybe DHL should tell Leica so they can ease back their new Portuguese production line 🤔

[eyeheartny]

3 minutes ago, NigelG said:

Maybe DHL should tell Leica so they can ease back their new Portuguese production line 🤔

I'm not sure what to say. If the shop is willing to code the invoice that way there are no tariffs on it. DHL indicates that the store is the one responsible for applying the correct tariff code. If you'd like to research the HTS codes I can point you to the relevant chapter and footnotes on it. 

Edited October 8, 2020 by eyeheartny