FedEx Wants Me To Complete A Form 5106

[Evitzee]

gbesq

I generally agree with this. My issue isn’t with paying duty on the watch. I just don’t understand why they need my SSN to accomplish that.

Because the main identifying number for compliance the federal government has for any one person is his/her social security number. It was not supposed to be used for identification purposes when SS was introduced in the 30's but it became the de facto indentifier in the US. Most companies used the SSN as the employee number for years, until theft started being a problem with the rise of the internet, then companies started giving out a discrete employee number instead of using their SSN. Even Medicare used your SSN as your identifying number for years, until they finally changed that some years ago and everyone got a different number/letter sequence. FedEx doesn't need the number for their use, they need it to file YOUR Form 5106, a federal document, on your behalf. That's the only identifier the government has for you for tax compliance purposes as a private citizen.

Edited: Feb 1, 2024

 

[gatorcpa]

Evitzee

It was not supposed to be used for identification purposes when SS was introduced in the 30's but it became the de facto indentifier in the US.

You bet. Back in the dark ages, when dinosaurs ruled the Earth, my university used our SSN for everything. They even posted our final exam scores on a wall listed by SSN’s.

Could you even imagine that happening today?
gatorcpa

 

[pdxleaf]

Evitzee

I've imported six Speedmasters in the last four years and only ONE was flagged for the Form 5106...

I have also purchased several watches from outside the US, as well as sent watches to Canada for servicing several times. I purchased a vehicle from Canada and imported it into the US. It had never been sold here but was eligible for import due to being over 25 years. So I'm not innocent of the customs regulations and practices.

I disagree that the inconsistent application of customs is a positive thing. While it does mean we small potatoes can often slip by unnoticed and unbothered, inconsistent application is harmful to compliance. Besides the fear of being caught and fined, the strongest force for getting people to pay taxes, duties and fees is the belief that everyone is paying their share. As soon as people think the other guy is getting away with not paying their fair share they start to wonder why should they continue to play fair. It's corrosive.

 

[septentrio]

You can say a lot about US customs rules, but at least it’s dead cheap.
The EU is off the charts ridiculous, with its 25 to 35%, and not only on the value but including on the shipping charges. I’ll take filling out a form and providing my SSN any day of the week.

 

[Evitzee]

pdxleaf

I have also purchased several watches from outside the US, as well as sent watches to Canada for servicing several times. I purchased a vehicle from Canada and imported it into the US. It had never been sold here but was eligible for import due to being over 25 years. So I'm not innocent of the customs regulations and practices.

I disagree that the inconsistent application of customs is a positive thing. While it does mean we small potatoes can often slip by unnoticed and unbothered, inconsistent application is harmful to compliance. Besides the fear of being caught and fined, the strongest force for getting people to pay taxes, duties and fees is the belief that everyone is paying their share. As soon as people think the other guy is getting away with not paying their fair share they start to wonder why should they continue to play fair. It's corrosive.

True to a point. If the taxpayer is purposely evading paying taxes, that's illegal (see Capone, Al). But it is the federal government's responsibility to render and collect any custom's duty and they have determined it is not cost efficient to go after every nickel and dime owed them. There are so many rules, regulations, taxes and such on the books that it is impossible for any government to strictly apply them all. If they did nothing would get done commercially. Custom fees and taxes bring in about $100 billion to the US Treasury, that's a lot but the TOTAL tax haul is $4,715 billion, so custom fees are only about 2% of the tax grab. Going after a watch for $50, $100 or $200 from a personal importer is just not cost efficient. They'll flag a shipment occasionally like in @gbesq 's case, but it's just the luck of the draw to keep everybody on their toes. When you come through Customs these days there isn't even anyone on duty or visible if you do have something to claim. Their attentions lie elsewhere.

 

[Larry S]

@gbesq … you don’t need to have a business to set up an EIN ….

 

[gatorcpa]

Evitzee

They'll flag a shipment occasionally like in @gbesq 's case, but it's just the luck of the draw to keep everybody on their toes.

Exactly. But private couriers need to be squeaky clean because they are always under Customs scrutiny. The last thing they need is their business model threatened by failure to follow the rules.

The USPS is a far larger agency than Customs, so they are a lot less stringent on the documentation than a private company would need to be. After all, their job is to move the mail and let Customs deal with the paperwork.
gatorcpa

 

[Dan S]

I have been asked for my SSN by shipping companies in this scenario, but haven't been asked to fill out that form. Still, it doesn't surprise me if CBP is demanding it in this case, since they seem to be very inconsistent in their requests. On the flip side, there have been times where DHL asked me to fill out the watch worksheet but then didn't end up even charging me any duty.

Edited: Feb 1, 2024

 

[Evitzee]

Be like Nike.....Just Do It.....swoosh

 

[gbesq]

Evitzee

Be like Nike.....Just Do It.....swoosh

And that’s just what I did!

 

[Evitzee]

gbesq

And that’s just what I did!

Good man

 

[josiahg52]

I remember now the broker did say it was due to the declared value of the shipment in total and not that any single item in the shipment exceeded some value. The way I retaliated was by only paying the duty and not any part of the broker fees. The fees were many times more than the duty, especially since the shipment required special handling. Yeah, yeah, they're just doing a job but the broker was a complete asshole the entire time, from the very beginning.

 

[watch_my_six]

gbesq

I generally agree with this. My issue isn’t with paying duty on the watch. I just don’t understand why they need my SSN to accomplish that.

In my experience, the reason DHL requires your SSN is because, at least in California, they will report the item for use-tax collection, and it will show up on your tax return. I haven't had that happen with FedEx yet, but perhaps they are enacting similar reporting practices? : (