Fedex / customs issue help

OmegaLover · Mar 2, 2017

Tony C.
I read your post, and you are wrong. Both of these assertions:

"this form also delays inbound international shipment"

"FedEx procedure of handling this is low-tech"

are nonsense. Emailing a pdf copy of the form takes one minute.

You are wrong and inadequate!

In OP case yes it does delaying shipment, FedEx procedure of handling missing form is low-tech. The procedure of missing form starts with phone call (multiple customer service reps before you get to the right one) then process of verification and email details. Then you get an email from FedEx with blank form. Print the form hand-write and fill the form up, scan the form and email it back to FedEx. All of this is low-tech.

CajunTiger · Mar 2, 2017

This is how I would suggest you break it down:
80% Movement

15% Case

5% Strap

The case has the highest duties, and honestly should be valued far less than the movement regardless as the movement is the watch.
If you use this formula or similar you will pay lower duties.

CajunTiger · Mar 2, 2017

OmegaLover
You are wrong and inadequate!

In OP case yes it does delaying shipment, FedEx procedure of handling missing form is low-tech. The procedure of missing form starts with phone call (multiple customer service reps before you get to the right one) then process of verification and email details. Then you get an email from FedEx with blank form. Print the form hand-write and fill the form up, scan the form and email it back to FedEx. All of this is low-tech.

It doesn't matter if its low tech or not...if handled properly your shipment won't be delayed. Dont fill out the form and it will be delayed. Fedex typically calls you BEFORE the shipment arrives in the US, so filling out the form happens prior to import and will absolutely speed up the process. Ive filled out hundreds of these forms and not once did it delay a shipment.

CajunTiger · Mar 2, 2017

Here is an example of how the breakdown affects your duties- example is a total value of $2600 using a 87/10/3 Breakdown:

PART - MOVEMENT
HTS NUMBER: 9102294520
% VALUE - 87%
$ VALUE - $2262.00
TARIFF RATE - FLAT RATE
$ AMOUNT DUE: $0.93

CASE
# - 9102294510
10% of value
$260.00 - $ value
4.8% Tariff rate
Amount due: $12.48

STRAP
# - 9102294530
3% of value
$78.00 - $ value
11.2% - Tariff rate
Amount due: $8.74

cristos71 · Mar 2, 2017

CajunTiger
Here is an example of how the breakdown affects your duties- example is a total value of $2600 using a 87/10/3 Breakdown:

PART - MOVEMENT
HTS NUMBER: 9102294520
% VALUE - 87%
$ VALUE - $2262.00
TARIFF RATE - FLAT RATE
$ AMOUNT DUE: $0.93

CASE
# - 9102294510
10% of value
$260.00 - $ value
4.8% Tariff rate
Amount due: $12.48

STRAP
# - 9102294530
3% of value
$78.00 - $ value
11.2% - Tariff rate
Amount due: $8.74

Sounds like a good deal from where I come from, we just get hit with 21% VAT plus about 4% import tax on top of the declared value and the postal costs and then, just to rub it in, a "handling fee" on top of that! 😲🫨🤮

gostang9 · Mar 2, 2017

CajunTiger
Here is an example of how the breakdown affects your duties- example is a total value of $2600 using a 87/10/3 Breakdown:

PART - MOVEMENT
HTS NUMBER: 9102294520
% VALUE - 87%
$ VALUE - $2262.00
TARIFF RATE - FLAT RATE
$ AMOUNT DUE: $0.93

CASE
# - 9102294510
10% of value
$260.00 - $ value
4.8% Tariff rate
Amount due: $12.48

STRAP
# - 9102294530
3% of value
$78.00 - $ value
11.2% - Tariff rate
Amount due: $8.74

Excellent response! I used to work in logistics and as I was reading through this thread I started wondering if I should look up each code and the related tariff rates to explain the breakdown. Then I got to your post and there is was, beautifully laid out and illustrated for anyone not familiar with customs and duty codes.

Well done!

WatchVaultNYC · Mar 2, 2017

CajunTiger
This is how I would suggest you break it down:
80% Movement

15% Case

5% Strap

The case has the highest duties, and honestly should be valued far less than the movement regardless as the movement is the watch.
If you use this formula or similar you will pay lower duties.

This is essentially true, but for OP I would not go overboard in misdeclaring values in order to lower duty.

I had to do this a while back, and computed the ratio based on the value as parts. The tariff savings if you ratio to save some $$$ is not worth the hassle if you get audited. At least have some real numbers to fall back on if someone comes back to you and asks "why was this computed this way"

FWIW, when I get dutied for watches my customs broker does case = 9%, bracelet = 7% and the balance was the movement (84%)

CajunTiger · Mar 2, 2017

WatchVaultNYC
This is essentially true, but for OP I would not go overboard in misdeclaring values in order to lower duty.

I had to do this a while back, and computed the ratio based on the value as parts. The tariff savings if you ratio to save some $$$ is not worth the hassle if you get audited. At least have some real numbers to fall back on if someone comes back to you and asks "why was this computed this way"

Absolutely
My numbers vary watch to watch

My point is be aware of the way it works and don't just arbitrarily assign 50% to case and 50% to movement. Rarely is the case worth more the they movement which btw includes the dial and hands.
I don't own a watch where the case value is more than 20% compared to dial, hands and movement.

Larry S · Mar 2, 2017

@CajunTiger I'm following your recipe from here on in.

gemini4 · Mar 2, 2017

If it's a steel watch, go heavy on the movement value.

Slipstreamer · Mar 2, 2017

My experience with FedEx was different. I got a call and email from FedEx telling me that US customs was holding my watch and needed valuation. So I gave them some valuations (converted from Euro to US$).

Then I received another call+email that the valuation did not match ("Clearance delay: Shipment documentation indicates value discrepancy. Correct value of shipment is required").

Obviously, it turns out that US customs had a valuation from the seller and the conversion rate did not match. After I explained to FedEx for the discrepancy for the conversion factor, I got my watch the following working day (they released the watch Friday but got it on Monday).

I do not know if Customs didn't look for the commercial invoice (which is always attached to the parcel anyway). Obviously after I got the documentation via email, the valuations were so much apart.

Larry S · Mar 2, 2017

Adjust the formula to a little more case weight for gold?

Slipstreamer · Mar 2, 2017

I did 79% for gold case; 20% for movement, 1% for leather band (duties was assessed only on the leather band).

OmegaLover · Mar 2, 2017

CajunTiger
It doesn't matter if its low tech or not...if handled properly your shipment won't be delayed. Dont fill out the form and it will be delayed. Fedex typically calls you BEFORE the shipment arrives in the US, so filling out the form happens prior to import and will absolutely speed up the process. Ive filled out hundreds of these forms and not once did it delay a shipment.

Its taboo doing hundreds this way. I see why you are so edgy now.

CajunTiger · Mar 2, 2017

OmegaLover
Its taboo doing hundreds this way. I see why you are so edgy now.

lol...yes shocking isn't it. #wtf

CajunTiger · Mar 2, 2017

gostang9
Excellent response! I used to work in logistics and as I was reading through this thread I started wondering if I should look up each code and the related tariff rates to explain the breakdown. Then I got to your post and there is was, beautifully laid out and illustrated for anyone not familiar with customs and duty codes.

Well done!

Thanks, I wish I could take all the credit...but I learned this all here on the forum. Great community.

OmegaLover · Mar 2, 2017

CajunTiger
lol...yes shocking isn't it. #wtf

At least I made you laugh.

Archer · Mar 4, 2017

OmegaLover
Its taboo doing hundreds this way. I see why you are so edgy now.

I've done thousands and I fill them out as I send the watches back to the US - it's not a big deal. Sometimes FedEx loses this paper (send multiple copies with a shipment is my advice) and so I keep a pdf copy on hand, and when I get a phone call I just send it in an email.

Fost · Mar 4, 2017

The watch was released yesterday and on its way! Thankd all very appreciated!

JimInOz · Mar 4, 2017

Holy Crap!

What an arcane archaic tax system. How can a tax "auditor" possibly assess the value of a used movement, case and bracelet.

What do they use as their reference, or do they just pluck a figure out of their arse.

Still, I suppose it keeps people in work, thank heavens it's not like this here.

Fedex / customs issue help

OmegaLover

CajunTiger

CajunTiger

CajunTiger

cristos71

gostang9

WatchVaultNYC

CajunTiger

Larry S

gemini4

Slipstreamer

Larry S

Slipstreamer

OmegaLover

CajunTiger

CajunTiger

OmegaLover

Archer

Fost

JimInOz

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