7 Tips to Avoid Paying US Customs Charge on Your Online Shopping

If you love online shopping, you might have encountered the unpleasant surprise of paying US customs charge on your purchases. This can add a significant amount to your total cost and make your shopping experience less enjoyable. But don’t worry, there are some ways to avoid or reduce the US customs charge and save money on your online shopping. Here are seven tips to help you out.

1. Know the duty-free limit.

The US allows you to import up to $800 worth of goods per day without paying any customs charge. This limit applies to both US residents and visitors. However, if you exceed this limit, you will have to pay a flat rate of 3% on the next $1,000 of goods, and then the regular duty rates on the remaining amount. So, if you want to avoid paying any US customs charge, try to keep your purchases below $800 per day.

2. Shop from US-based websites.

Another way to avoid paying US customs charge is to shop from websites that are based in the US or have warehouses in the US. This way, you can avoid the international shipping fees and the customs charge that apply to imported goods. Some examples of US-based websites are Amazon.com, Walmart.com, Target.com, and BestBuy.com. You can also check the website’s shipping policy or contact their customer service to confirm if they ship from the US or not.

3. Use a package forwarding service.

If you want to shop from websites that are not based in the US or do not ship to the US, you can use a package forwarding service to help you out. A package forwarding service is a company that provides you with a US address where you can ship your purchases, and then they forward them to your actual address in the US or abroad. Some benefits of using a package forwarding service are:

You can consolidate multiple packages into one shipment and save on shipping fees.
You can choose the best shipping option for your needs and budget.
You can avoid paying sales tax on your purchases if you ship them to a state that does not charge sales tax.
You can declare a lower value for your goods and reduce the US customs charge.

Some examples of package forwarding services are MyUS.com, Shipito.com, PlanetExpress.com, and Stackry.com. However, be aware that some package forwarding services may charge additional fees for their services, such as membership fees, handling fees, or insurance fees. So, make sure to compare different options and read their terms and conditions before signing up.

4. Look for free or discounted shipping offers.

Another way to save money on your online shopping is to look for free or discounted shipping offers from the websites you shop from. Many websites offer free or discounted shipping for orders above a certain amount, for first-time customers, for subscribing to their newsletter, or for using a coupon code. You can also use websites like RetailMeNot.com, CouponCabin.com, or Slickdeals.net to find coupon codes and deals for free or discounted shipping.

5. Check the customs charge before you buy.

If you want to know how much US customs charge you will have to pay for your purchases, you can use online calculators or tools to estimate it before you buy. Some examples of online calculators or tools are:

The US Customs and Border Protection (CBP) website: You can use the CBP website (https://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info) to find out the duty rates for different categories of goods, such as clothing, electronics, jewelry, etc. You can also use the CBP app (https://www.cbp.gov/travel/mobile-app) to calculate the duty on your purchases.
The SimplyDuty website: You can use the SimplyDuty website (https://www.simplyduty.com/import-calculator/) to calculate the duty and tax on your purchases from any country to any country. You just need to enter the product description, value, quantity, origin country, destination country, and shipping cost.
The DutyCalculator website: You can use the DutyCalculator website (https://www.dutycalculator.com/) to calculate the duty and tax on your purchases from any country to any country. You just need to enter the product description, value, quantity, origin country, destination country, and shipping method.

However, keep in mind that these online calculators or tools are only estimates and may not reflect the actual amount of US customs charge you will have to pay. The actual amount will depend on various factors such as the exchange rate, the weight and size of your package, the inspection process, etc.

6. Ask for a refund or a waiver of the US customs charge.

If you think that you have been charged too much for US customs charge on your purchases, you can try to ask for a refund or a waiver of the charge. You can do this by:

Contacting the seller or the website you bought from and asking them to refund or waive the US customs charge. Some sellers or websites may be willing to do this as a gesture of goodwill or customer service. However, this is not a guarantee and may depend on their policies and discretion.
Contacting the shipping company or the package forwarding service you used and asking them to refund or waive the US customs charge. Some shipping companies or package forwarding services may be able to do this if they made a mistake in declaring the value or the category of your goods, or if they have a special agreement with the US customs authorities. However, this is also not a guarantee and may depend on their policies and discretion.
Filing a claim with the US Customs and Border Protection (CBP) and asking them to refund or waive the US customs charge. You can do this by filling out a form called CBP Form 19 (https://www.cbp.gov/sites/default/files/assets/documents/2019-Mar/CBP%20Form%2019_0.pdf) and submitting it to the CBP office that processed your package. You will need to provide proof of payment, receipts, invoices, and other supporting documents to justify your claim. You will also need to pay a fee of $25 for filing the claim. The CBP will review your claim and decide whether to approve or deny it. This process may take several weeks or months.

7. Shop wisely and plan ahead.

The last tip to avoid paying US customs charge on your online shopping is to shop wisely and plan ahead. Here are some things you can do:

Compare prices and shipping costs from different websites and sellers before you buy. You may find that some websites or sellers offer lower prices or shipping costs than others, even after adding the US customs charge.
Shop during sales, promotions, or holidays when websites or sellers may offer discounts, free shipping, or other incentives for online shopping.
Shop in bulk or with friends and family to save on shipping costs and US customs charge. You can split the cost and the goods among yourselves and enjoy more savings.
Shop early and allow enough time for your purchases to arrive. This way, you can avoid paying extra fees for expedited or express shipping, which may also increase the US customs charge.

By following these tips, you can avoid paying US customs charge on your online shopping and enjoy more savings and convenience. Happy shopping!

US Customs Charge and Global Demand

The US customs charge is the amount of duty, taxes, and fees that importers have to pay when they bring goods into the United States. The US customs charge depends on various factors, such as the value, quantity, origin, and classification of the imported goods, as well as the applicable trade agreements and tariff programs. The US customs charge affects the price and competitiveness of imported goods in the US market, and thus influences the global demand for these goods.

Trends in US Customs Charge and Trade Value

According to the data from the US Customs and Border Protection (CBP), the total duty, taxes, and fees collected by CBP increased from $41.6 billion in fiscal year (FY) 2018 to $111.8 billion in FY 2022, a growth of 169%. This increase was mainly driven by the implementation of trade remedies, such as Section 201, 232, and 301 duties, on certain imported products from various countries, especially China. These trade remedies were imposed to protect the US domestic industries from unfair trade practices, such as dumping, subsidization, and intellectual property theft.

The total import value for goods also increased from $2.64 trillion in FY 2018 to $3.35 trillion in FY 2022, a growth of 27%. This indicates that despite the higher US customs charge, the demand for imported goods in the US market remained strong. However, the growth rate of import value was lower than that of duty collection, implying that the average effective tariff rate increased over time.

Effects of US Customs Charge on Global Demand

The effects of US customs charge on global demand for imported goods depend on various factors, such as the price elasticity of demand, the availability of substitutes, and the degree of competition. In general, a higher US customs charge would reduce the demand for imported goods in the US market, as it would make them more expensive relative to domestic or other foreign goods. This would reduce the profits and market share of foreign exporters, and potentially induce them to lower their prices or shift their production to other countries.

However, some imported goods may have a low price elasticity of demand, meaning that consumers are less sensitive to changes in price. For example, some luxury goods, specialty products, or essential items may have a loyal or niche customer base that is willing to pay a higher price. In this case, a higher US customs charge would have a smaller effect on the demand for these goods.

Moreover, some imported goods may have few or no substitutes in the US market, meaning that consumers have limited or no alternatives. For example, some raw materials, intermediate goods, or final products may be unique or scarce in terms of quality, quantity, or availability. In this case, a higher US customs charge would have a larger effect on the supply rather than the demand for these goods.

Finally, some imported goods may face a high degree of competition in the US market, meaning that consumers have many options to choose from. For example, some consumer goods, electronics, or clothing may have similar or identical features or functions across different brands or countries. In this case, a higher US customs charge would increase the relative attractiveness of other foreign or domestic goods that have a lower or no tariff.

References:

http://www.cbp.gov/linkhandler/cgov/newsroom/publications/trade/iius.ctt/iius.pdf

https://www.wto.org/english/res_e/booksp_e/tariff_profiles19_e.pdf

https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf

https://www.cbp.gov/newsroom/stats/trade

https://dataweb.usitc.gov/

https://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info

https://www.dutycalculator.com/

https://www.cbp.gov/sites/default/files/assets/documents/2019-Mar/CBP%20Form%2019_0.pdf