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Avoiding US import duty on items repaired abroad?

  1. Dan S Sep 14, 2019

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    Sorry if this has been addressed previously, but I wasn't able to find the thread. I am considering sending a watch out of the US for repair/restoration, and I'm concerned that US Customs will want to charge me import duty when it is returned. Does anyone have first-hand advice on how to avoid this?
     
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  2. GandOsDad Sep 14, 2019

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    ::popcorn:: ^^^^^^
     
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  3. connieseamaster Sep 14, 2019

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    Is the insured value required to match the declared value on the CN-22(or whatever the customs declaration form is)? Im sure US watchmakers who regularly receive pieces from outside of the US would have some insight
     
  4. ext1 Sep 14, 2019

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    I seem to have read a post by @Archer on this matter before, and I think the gist of it was that he fills out the paperwork and there are no issues.
     
  5. STANDY schizophrenic pizza orderer and watch collector Sep 14, 2019

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    It’s the other way around....


    Us Customs website has the paperwork needed and rules. ( not that hard to look up or just call them )
    Declaration needed by watchmaker in the other country.
     
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  6. Dan S Sep 14, 2019

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    So you have done this personally? Filled out a US Customs form and had it certified by them before sending the item? Just hoping to get first-hand advice if possible.
     
  7. STANDY schizophrenic pizza orderer and watch collector Sep 14, 2019

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    I’m a Aussie. Seen it done hundreds of times the other way around and had to do it myself. ;)
     
  8. Archer Omega Qualified Watchmaker Sep 14, 2019

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    I service watches from the US and other countries all around the world regularly. When I ship a watch back, there are two values involved - the value of the item (the market value of the watch, which is the value it's insured for), and the value for customs purposes. For an item being returned after repairs or servicing, the value for customs purposes is the value of the repairs only, so the "value added" while it was out of the country.

    So the person servicing the watch and sending it back would need to fill out the appropriate paperwork to ensure that the value for customs purposes is the value of the repairs only, and not the value of the watch as a whole. When I ship watches back using FedEx and ParcelPro, there are 3 forms I fill out (in addition to the commercial invoices and my own invoice) that are sent back detailing all this information. So the watch work sheet breaking down the values, a worksheet showing the values of the watch as received by me, then the value added by the repairs, and then a repaired watch declaration form.

    In the US the value of something you can import without paying duties is I believe $800, so if the value of the repairs is under that, you likely would not pay anything at all.

    Hope this helps.

    Cheers, Al
     
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  9. Dan S Sep 26, 2019

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    OK, I will update this thread, despite the frustration and embarrassment, in the hope that someone else may benefit in the future.

    When the watch arrived in Germany, it was held by customs. They assigned an arbitrary value of 1,000 Euros, despite the fact that it had been declared as broken, for repair and return. I have absolutely no idea where that value came from. The person receiving it made and appeal, and explained the situation, but customs wouldn't release it without payment of 20% duty. For an item that is NOT being imported into Germany!

    So with insured shipping and the import duty, I'm into this for well over $400 USD, before any work has been done on the watch. I'm already starting to regret this, and I can only hope that US Customs doesn't make my life difficult upon the return.
     
  10. oinkitt Sep 26, 2019

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    Germany has particularly tough customs laws according to a collector I know who lives there.
     
  11. Archer Omega Qualified Watchmaker Sep 26, 2019

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    Was any value put on the parcel, even an insurance value?

    Clearly people working in customs know that the watch has value, and if needed they will assign one.

    To be clear, the watch is in fact being imported into Germany. It’s a temporary import for repairs, and depending on the laws of the country the watchmaker is in, they may be required to pay a bond up front that may be equal to the taxes/duty that would be owed if the import was for a sale. This is to make sure that someone isn’t importing under the guise of doing repairs, but then keeping the watches.

    Typically once the item is returned, the repairer can provide proof of this to their government agency, and get the monies refunded.

    Is this the first time this watchmaker is importing a watch for repairs?
     
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  12. Dan S Sep 26, 2019

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    Thank you, Al. This makes a lot of sense. I am going to ask him about this.
     
  13. STANDY schizophrenic pizza orderer and watch collector Sep 27, 2019

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    Correct paperwork makes all these issues go away.

    As Archer mentioned a bond may be payable and refunded once paperwork is processed

    @Dan S did you have paperwork in with the watch besides the declaration.
     
  14. ChrisN Sep 27, 2019

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    I do exactly this as well and have not had any issues. I've shipped watches back to customers in Switzerland in this way and I think they are just as hot as Germany for this sort of thing. I remember reading this which probably has some relevance but seems a naive mistake.

    When people send me watches to UK from outside EU, again I ask them to complete the forms showing the value but with the "repair & return" option. As Al says, you may be asked to pay a bond and can get it back when you export the watch again but UK customs have never asked me for a bond, yet.

    @STANDY has often said words to the effect of fill out the forms correctly and you should be fine. Don't declare a value of $50 as it's not the correct thing to do, although some people recommend this. I also don't bend the rules at all as I suspect it would only be the one time before you are flagged on a computer and it wouldn't be worth it.

    I'm sure this will all work out.

    Cheers, Chris
     
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  15. chronoboy64 Sep 27, 2019

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    That´s really embarrassing, Dan. I am very sorry for you.
    As you know I am German and I can confirm that the customs here are so unprofessional and stubborn.
    I hope it will work out well or at least not cost you more when the watch will be returned to you.
    Best Hajo
     
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  16. Dan S Sep 27, 2019

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    Thanks everyone for the continued advice. And for those of you who have expressed symipathy, thanks for that as well. ;)