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Tariff Information for US importers


crake

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FYI - I just spent a significant amount of time talking with both US Customs and FedEx trying to identify the correct codes and tariff charges for geocoins. The history is that the factories by default called them lapel pins and I had several hundred dollars of tariff fees as a result. I then switched to calling them coins 7118, which had 0% tariff, but was challenged since 7118 must have been at one time "under government control for use of legal tender" (see ruling HQ968022 which involves "First Man in Space" medals from the Soviet Union for reference).

 

So I did some research, called Customs, talked with FedEx, and got hold of the ruling. Here's the deal:

 

According to the Customs Bulletin and Decisions, Vol. 40, No. 18, April 26, 2006, "It is now CBP’s position that the base metal medals and medallions are properly classified in subheading 8306.29.0000, HTSUS, which provides for ‘‘. . . Statuettes and other ornaments, of base metal . . . : Statuettes and other ornaments,

and parts therefore: Other.’’

 

Geocoins are considered medallions. All medallions, regardless of base metal, are now classified as either:

 

8306.21.0000 when plated with precious metal (gold or silver) and has a 4.5% tariff

8306.29.0000 when plated with non precious metal and has a 0% tariff

 

Back in 2006 US Customs revoked several rulings to reclassify commemorative coins, medallions, and medals in 8306, so it seems that this has been thoroughly reviewed.

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Just for clarification could you please explain exactly what this means to us?

 

If you import goods manufactured overseas you must classify the items using a standard tariff code and are liable for any tariff if applicable. In the past I've seen all sorts of different classifications being used, resulting in tariff from 0% to 11% being charged. This post attempts to clarify the classification and will hopefully save some from trouble when importing geocoins, as well as point out that gold and silver plated geocoins are subject to 4.5% tariff.

 

This really affects those who work directly with mints (as opposed to working through local companies who interface with the factories on your behalf), but can be useful for anyone who needs the codes for import classification.

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Just for clarification could you please explain exactly what this means to us?

 

If you import goods manufactured overseas you must classify the items using a standard tariff code and are liable for any tariff if applicable. In the past I've seen all sorts of different classifications being used, resulting in tariff from 0% to 11% being charged. This post attempts to clarify the classification and will hopefully save some from trouble when importing geocoins, as well as point out that gold and silver plated geocoins are subject to 4.5% tariff.

 

This really affects those who work directly with mints (as opposed to working through local companies who interface with the factories on your behalf), but can be useful for anyone who needs the codes for import classification.

 

Thank you Chris, you covered my next question in the last paragraph. We as coin buyers will generally never have to deal with this as long as we are using a company as a broker. However the price of the coin can be dictated by what Customs charges?

 

Is there a possibility that the company that is minting your coin could charge you a higher tariff than what it really costs to increase profits? Would we as the consumer ever know?

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Thank you Chris, you covered my next question in the last paragraph. We as coin buyers will generally never have to deal with this as long as we are using a company as a broker. However the price of the coin can be dictated by what Customs charges?

 

Is there a possibility that the company that is minting your coin could charge you a higher tariff than what it really costs to increase profits? Would we as the consumer ever know?

 

Correct - coin buyers who deal with brokers should never see this as tariff is generally included as part of the shipping and handling charges or calculated into the per-piece price. As far as customers knowing, probably not since it is unlikely the charge will be called out as a separate line item. So make sure you compare the total estimate and calculate the final per-piece cost when shopping around.

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Thank you Chris, you covered my next question in the last paragraph. We as coin buyers will generally never have to deal with this as long as we are using a company as a broker. However the price of the coin can be dictated by what Customs charges?

 

Is there a possibility that the company that is minting your coin could charge you a higher tariff than what it really costs to increase profits? Would we as the consumer ever know?

 

Correct - coin buyers who deal with brokers should never see this as tariff is generally included as part of the shipping and handling charges or calculated into the per-piece price. As far as customers knowing, probably not since it is unlikely the charge will be called out as a separate line item. So make sure you compare the total estimate and calculate the final per-piece cost when shopping around.

 

Thank you for doing the research and providing us with an insight for something most of us probably new nothing about.

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8306.21.0000 when plated with precious metal (gold or silver) and has a 4.5% tariff

8306.29.0000 when plated with non precious metal and has a 0% tariff

 

 

At least 8306.21/29 are not too different from 7118, the real changes being you're now hit with a tariff for Silver and not just Gold plating. Do you happen to know what the quantity exemption is? For example, for 1 or 2 or 10 coins clad with silver, in a non-gift shipment, would the tariff be payable?

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Just for clarification could you please explain exactly what this means to us?

 

 

I understood exactly what he meant, I am a manager of procurement for a Fortune 500 company. Crake is referring to the Harmonized Tariff Schedule of the United States (HTSUS) which deals with the import tarriffs assessed on inbound goods shipped from overseas. :D

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Just for clarification could you please explain exactly what this means to us?

 

 

I understood exactly what he meant, I am a manager of procurement for a Fortune 500 company. Crake is referring to the Harmonized Tariff Schedule of the United States (HTSUS) which deals with the import tarriffs assessed on inbound goods shipped from overseas. :D

 

So I am guessing you are copacetic with what he has to say?

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Yes, I have read the judgement Crake mentions in his original post. Believe me, you don't want to have your your shipments incorrectly assigned with the wrong tarriff codes. If US Customs finds documentation irregularities they can levy fines for each occurance going back several years.

This is not only unique to the US it a global phenomenom. Since 9/11 it is as much about Homeland Security as it is the money.

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I don't know what the quantity exemptions are. I imagine its based on total value (are they going to charge you $.40? Probably not). I haven't gotten a tariff bill for a sample shipment yet.

 

I'm not sure what lapel pins should be classified as. I think it is 7113, possibly 7113.20.50 (Articles of jewlery and parts thereof, other) where 7113 is "Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia);"

 

But you should contact US customs and ask (they are actually quite accessible and very helpful).

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