Customs Duty Tax Charged For CD Japan Order

They supplied that with the invoice. See first post.

 

I think it may be random so I've decided to just pay it and see what happens.

 

I've been trying to get educated on this, understand it better.

I do not claim to know for sure what the rules are etc, but so far I found this site, a "customs duty calculator", that lets you figure out how much customs "duty" (IE: charges) you will pay depending on the countries involved, the type of item(s), the price paid, even the shipping/insurance paid as well.

http://www.dutycalculator.com

And I tried a test using Japan to USA, buying CDs, price $100 total, $15 shipping, and no insurance fee, and it told me this:

.......................
Notes on duty & taxes rates and compliance

• CD is duty free Media as well as unconstitutional publications deemed to be offensive, immoral, contrary or/and likely to harm minors are prohibited from importation.

Notes on import taxes due

• Please note that your shipping provider may add an additional handling fee

........................


I then followed the link for the "handling fee" text which is this:

http://www.dutycalculator.com/help_...any-extra-charges-from-the-shipping-provider/

and it says:


......................

Will there be any extra charges from the shipping provider?
Additional charges will vary from company to company, however the shipping provider may charge:

• a customs clearance fee, or customs handling fee for processing the import declaration
• an advancement fee for paying the duty and VAT on behalf of the recipient
• an airline handling fee for loading and unloading the goods
• a security fee for screening or x-raying the goods
• a fee for preparing the customs declaration

See below some examples of additional charges:

• Import handling fees by Royal Mail: £8 per parcel liable for customs charges.
• Import handling fees by DHL for import to UK: £1.25, or 2% of the import duty & taxes due, whichever is higher.
• Import ancillary service fees by FedEx vary on the country of import.
• UPS charges include a disbursement fee of minimum $5, a transportation handling fee and a pre-release notification fee for import shipment.
• In Canada, to process goods imported as mail that are subject to duty and/or tax, Canada Post charges the recipient CAN$9.95.

...............




So it sounds to me that CDs are not supposed to be hit with a customs import fee, HOWEVER some shippers (like Fedex) may charge you "Import ancillary service fees".


Also, I believe that there is some kind of minimum allowance for customs in the US, regardless of what it is you are bringing in. I don't recall the exact amount but think it is around $200 (??). If CDs are truly duty free then that doesn't matter though.


It seems to me that if a customs form properly indicates "CDs" it shouldn't be opened by an inspector but I guess they can open anything they want. Maybe what happened in this case is that the OP's package was opened by customs - or for example the inspector told the Fedex folks "hey stop the conveyer belt I want to open that box" - then it is opened and determined to be duty free, but Fedex then hit him with a "ancillary service fee" to make up for their inconvenience of stopping a belt and picking up a package (or whatever the scenario was).

I definitely want to learn more about this. It could be a Fedex thing only - does the USPS charge "ancillary fees" if packages are opened by customs? I don't think so, because there have been times I have gotten packages sent via USPS and they have tape on them that says something like "opened by customs", but I've never been charged anything.

Bears further looking into, so we understand what the issue is, and if possible can avoid it in the future!

 

I've read a lot of complaints about UPS in particular. Something about a large service fee in top of the VAT.

 

FedEx did that to me one time on a order from Japan because they used "optical media" as a description on the invoice. I called them and told the rep in customer service that they were music cds and not subject to any fees and they removed them right there. I used to import cds from Japan from 2006 to '09 and I was never hit with any fees or service charges. Some of the orders hovered around $7-8 K. There are no fees on any music media imported into the U.S.

 

Thanks for that info. If it happens to me I am going to try calling Fedex & do like you did. It seems to me that this may have been a mistake by Fedex that bit the OP.

 

Technically, any packages sent from outside the U.S. are subject to customs duties and fees:

https://help.cbp.gov/app/answers/de...o-import-goods-into-the-u.s.,-other-than-duty

Obviously, lack of manpower dictates that this "looks" random when it does happen. My advice would be to consider yourself lucky when it doesn't happen.

And oh yeah, when state governments finally get "smart" enough to get out of their own way, we'll all be paying sales tax on every internet purchase we make.

 

Technically, Music software is NOT subject to customs duties and fees. LPs, CDs, Cassettes, etc. are duty free. I was extremely well versed on what was subject to duties and what wasn't. Most electronics are exempt too.

 

Yeah, I'm afraid that is inevitable. Except of course for states like Delaware that don't charge sales tax even for local purchases.

 

Can't wait to read all the complaints then. The upside though is that people will no longer be able to blame it on Amazon.

 

Definitely worse with courier, plus we get "handling charges" on top of the taxes with regular mail

 

Thanks for your excellent investigation. The customs form on my package did not say "CDs" or "Blu-ray Discs," rather something odd like "laser-read media" or some such nonsense. I paid the $16.06 FedEx billed me for and just hope this doesn't happen anymore. We'll see when my next CD Japan order ships around September 25th.

In the meantime, I may just give FedEx's customer service department a call ...

 

Please report back if you have a conversation with them. Would be nice to know the full scoop on this.

I've got a CDJapan fedex order still "in shipping process" but once I get it I will makes sure to read how they filled out the customs form & make note back here what happens etc. I got two orders from them already this year via Fedex but can't find the paperwork, must have tossed it.

 

I just got a Fedex shipment from CDJapan - no problems.

It was three albums (multiple CDs and two also had associated DVDs with them). Description on the shipping form for all three is "Music CD". Total value declared is 8322 yen (about $75). Sailed right through Customs (only took 2 days to get here).

 

Just got off the phone with FedEx.
Payment refunded.

 

Sweet! Way to go. Sure seemed like a possible screwup to me.

rstamberg - 1, fedex/customs people trying to rip him off - 0

 

I just got charged for a CDJapan order by Fedex and did the same as the op and got a refund. The lady on the phone did not seem happy. They also labeled mine as Laser disc etc.

Are Live music BluRay discs exempt from customs?
I had previously paid $39 on another order and would like to get that refunded.

 

So what exactly does "DISC F/LASER READ SYSTEMS" include?
My DVD and blue rays were placed in that category.


Harmonized tariff code for Blu-ray/DVD is 8523.4940.00 which should be tax free according to http://www.usitc.gov/tata/hts/bychapter/index.htm. Someone on this forum even mentioned that music media should not be taxed. It seems like a grey area where a lot is subject to interpretation.

Did I interpret correctly?


If I am correct then what they are doing is wrong. They are categorizing non taxable as taxable. They only give credit if the consumer is aware.
It seems like its beneficial for them to interpret certain items as another category because

1) they get service/brokerage fee

2) They give revenue to the customs inspectors and build relation with them

 

I would assume that it is "all about the money". It benefits someone to miscategorize, people/agencies make $$. If called out on it then they will give a refund but probably there are many people who just accept it without realizing they are being taken advantage of, thus there is a profit to be made.

Btw, I just got another CDJapan order, CDs again, Fedex again, no customs charge (as it should be). My next order is for a big boxset of CDs/DVDs that was cheaper to get via Postal Service EMS so that one is coming that way later this month/next.