Quote:
Originally Posted by Dbone
Are you talking about the anti-Temu/Shein thing? Where they will tax packages coming from China even if they are under $800.
That seems like a good thing doesn't it?
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Yes. That was the sensationalist headline.
BUT all packages worldwide are also affected. The complete elimination of the de minimis (section 321, entry type 86) exemption previously allowed businesses in Canada to ship packages into the US tax & duty free. I know that it shouldn't be taken for granted, but businesses can't just bake it into the selling price at a click of a button - especially if there are preorders or long term contracts that had been planned out at least 6-9 mo in advance.
At my last job, I discovered this loophole and implemented a strategy to split shipments over $800. So for a $1200 order, I would send $600 on Monday and then another $600 on Friday. We'd have to eat the shipping cost ($60-70) but it was way cheaper than eating the cost of duty + taxes if it was a single shipment. This method was the only way we could keep operating in the US - the taxes + duties on a $1200 order iirc added up to $400-$500 or smt. It was ridiculous. If you do the math, the tax rate seems quite high. But it was because CBP charged an amount, UPS marked it up and charged Purolator, and then Purolator marked up and charged us lol
TLDR: The unexpected removal of Section 321 has a direct effect on all US sales from Canadian companies, who are not prepared to take this hit. It is likely that Canadian companies will lose money by fulfilling the shipment.
https://dclcorp.com/blog/shipping/se...-global-trade/
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