Really good analysis, thanks Bobby. What I think will be interesting is to see what impact is made on all if this if the duty-free limit drops or is eliminated as is being proposed:
https://apnews.com/article/congress-china-duty-free-packages-trade-imports-b288d61dd3030db3c07567b68d86c536
Not sure it would necessarily help American retailers as much as it might hurt 3rd Party companies.
2023-07-02 15:07:53 +0000 UTC
Yup, the HTS system has been internationalized for ease of commerce but you are right that the percentages differ. There are also the political trade agreements that happen. For example any clothing made in Nepal is duty free into Europe. I know Nepal was seeking to get duty free in the U.S. I haven’t kept up with it since I stopped importing from Nepal back in 2013. But it would have been huge for us as we paid 32% for any fleece we imported.
2023-07-02 02:11:32 +0000 UTC
For the record: The tarif groups are an international standard. We use the same categories and numbers in Germany. Only the percentages vary from country to country.
And the cap off for duty was is currently around $160 but is planned to be cut to 0 sometime in the future. I'm curious whether this will have an effect down the line when it comes to ShowZ shipments.
The most important component is VAT though. Should be 19% on import, but ShowZ packages don't get charged with it, although there's no threshold on VAT. So I really wonder would ShowZ (and Bombusbee also) do due to avoid the VAT here.
