ParcelPro, International Shipments & Tax ID/EIN Numbers

I recently opened an account with ParcelPro based on the positive feedback that I had read here, as well as a recent transaction where the buyer sent me a shipping label which included insurance as part of our deal. All cool.

I decided to open an account as I am considering a purchase from a friend overseas, and wanted to make sure the piece carried reliable insurance while in transit. ParcelPro only uses FedEx for international, but before you can use, you must apply for a Tax ID/EIN number?

This is what they sent me:

All who currently report an SSN while filing in the AES must provide an Employer Identification Number (EIN). All U.S. authorized agents who currently report a SSN when filing in the AES must provide an EIN or Dun and Bradstreet Number (DUNS) for identification purposes.

An EIN is available to both businesses and individuals and can be obtained by registering with the Internal Revenue Service at http://www.irs.gov/businesses/small/article/0,,id=102767,00.html or by calling (800) 829-4933 and following the instructions. A DUNS number is available only to business entities and can be obtained by registering with Dun and Bradstreet at www.dnb.com/us.

The rule is effective March 24th, 2010. However, the provision eliminating the SSN was implemented December 3, 2009. The rule can be found in its entirely at http://www.census.gov/foreign-trade/regulations/fedregnotices/index.htmlor www.gpoaccess.gov/fr .

What are your thoughts here. I have no issue claiming actual purchased value and paying any Customs due. I had already intended that based on wanting to cover the piece for its value. I am not sure I am crazy about having to have a EIN number for one shipment and having imported values reported to gov't!?

I welcome any input from experienced ParcelPro users who may use the service for international shipments into the US. Thanks! Jeff

Any reason for concern having an EIN for a watch purchase? Sounds like the import value gets reported to IRS? Again, I am not trying to avoid customs, which I assume I will pay prior to delivery, but why the reporting of such via the EIN?

@gatorcpa - I appreciate the feedback, and agree about the FEIN vs. SSN. I was more curious about the possible ramifications or tax implications if asset values were reported to IRS. Seems low.

@abrod520 - Thanks. I was on the phone with them when they sent the message, but that was CS. I'll double check with their sales group. I don't have an issue with getting an EIN, was more curious about what's and why's as to the need for one.

I spoke to ParcelPro sales. They indicated the same as CS. You now have to apply for and get an EIN # before you can purchase international shipping & insurance.

Import duty is due regardless of what number you use...for that matter they charge the import duty on your Fedex invoice. So giving your EIN number wont change anything in this regard.

There is no way to avoid import duties. You can reduce the duty by following the instructions found in another thread (which is simply using the correct import codes).

@CajunTiger Thanks. Was not worried so much about the duty as if somehow there may be other tax implications later. That seems unlikely based on research. Appreciate the feedback!

Let me know if you need the instructions on how to properly classify a watch for import into US

You may get bill from your state for sales tax you have to pay from imports if you do not have vendor license. Bill may come 1-2 years later. Be aware