Author Topic: 15% import tariff on collector's items from China. Coins included.  (Read 248 times)

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Offline Birdman

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As I was researching auction venues, I found it interesting to read this notification in one of the listing.  I hadn't realized coins were affected.

"NOTE: This lot was manufactured in China and was sourced from outside the United States for this auction after September 1, 2019. Under the new US tariffs on Chinese goods, collector's items from China will be subject to a 15% import tariff. Any clients who wish to take delivery of this item in the United States should be aware of this added charge, and consult their tax adviser with any questions"

https://coins.ha.com/itm/china/kweichow-province/kweichow-republic-auto-dollar-year-17-1928-ms61-pcgs-/p/3077-76001.s?ic=Home-FeaturedItems-071515

Offline panda

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #1 on: October 31, 2019, 06:32:37 PM »
As I was researching auction venues, I found it interesting to read this notification in one of the listing.  I hadn't realized coins were affected.

"NOTE: This lot was manufactured in China and was sourced from outside the United States for this auction after September 1, 2019. Under the new US tariffs on Chinese goods, collector's items from China will be subject to a 15% import tariff. Any clients who wish to take delivery of this item in the United States should be aware of this added charge, and consult their tax adviser with any questions"

https://coins.ha.com/itm/china/kweichow-province/kweichow-republic-auto-dollar-year-17-1928-ms61-pcgs-/p/3077-76001.s?ic=Home-FeaturedItems-071515

MAGA!

Offline bonke

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #2 on: October 31, 2019, 06:42:15 PM »
I plan to attend the coin show and auctions in Kowloon in early December.  With your information, I will be very hesitant to bid on any item in the auctions or to purchase any item at the coin shows.  Apparently, whether Heritage transfers the item to me in Kowloon or sends it to my home address in the USA, I will be required to pay the amount I bid, the 20% Buyer's Premium and an additional 15% on my bid and buyer's premium.  Wow!  With these additional charges/taxes/add-ons, it will be difficult to find anything which I will consider to be reasonably priced.  Definitely, this is very, very helpful information.

Mark Bonke

Offline Birdman

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #3 on: October 31, 2019, 06:53:12 PM »
I plan to attend the coin show and auctions in Kowloon in early December.  With your information, I will be very hesitant to bid on any item in the auctions or to purchase any item at the coin shows.  Apparently, whether Heritage transfers the item to me in Kowloon or sends it to my home address in the USA, I will be required to pay the amount I bid, the 20% Buyer's Premium and an additional 15% on my bid and buyer's premium.  Wow!  With these additional charges/taxes/add-ons, it will be difficult to find anything which I will consider to be reasonably priced.  Definitely, this is very, very helpful information.

Mark Bonke

I wonder if the reverse is true.  If an old china coin is "sourced in the USA" and sold in a USA auction will it be subject to tariffs upon entry to China (did China reciprocate in this tariff).  If not then items sourced in the USA and sold in a prominent US venue might get better bidding action than in Hong Kong?, as prominent US collectors and prominent Asian collectors (through the internet) will bid on all items in the US auction, but prominent US collectors will not bid as high in Hong Kong or mainland China (because they take into account the 15% tariff?).

Offline bonke

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #4 on: October 31, 2019, 07:11:05 PM »
Prior to this trade dispute, the PRC had a 17% duty on coins brought into the PRC through customs.  I do not know if this duty has increased during the trade dispute.  Hopefully, someone who is a member of the coin forum and travels frequently between the USA and the PRC has additional information.

As a collector, I carefully declare all of my purchases as I re-enter the USA and will certainly be impacted by this new tarrif. 

Mark Bonke

Offline Clark Smith

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #5 on: November 01, 2019, 12:12:45 AM »
All the coins coming from the USA for the auction in HK will not have a tariff going back to the USA.

Offline pandamonium

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #6 on: November 01, 2019, 07:42:59 AM »
Why not attend the auction and have a local citizen bid for you.    Pay him a few bucks and escape the tariff....    When you fly out say it was a gift.      I posted earlier that our small cherry crop sells to China.     To avoid tariff the cherrys are sent to another country then to China...

Offline bonke

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #7 on: November 01, 2019, 09:10:57 AM »
Last night, I read a few articles by NGC and various coin magazines.  These authors suggest the duty will apply to chinese coins and currenccy without regard to the country from which they are sent into the USA.  NGC was offering suggestions to avoid the duty when foreigners are submitting coins for authentication and grading servies in Sarasota.  Very interesting.  Each player in this business or hobby has to approach this situation differently.

I wonder what the impact will be on Ebay sellers who will be shipping from Asia, Europe or elsewhere to buyers in the USA.  Will the Ebay sale price be accepted as the value for duty purposes?  Will the value placed on the customs declaration form be accepted as the value? 

Mark Bonke

Offline bonke

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #8 on: November 01, 2019, 09:24:57 AM »
Clark

I just saw your post.  Apparently, Heritage will be listing each individual coin or piece of currency by NGC or PCGS number in the customs declaration form when the items are taken from the USA so that Heritage is able to bring them back into the USA for US buyers without duty.  Apparently, Heritage will also carefully list the origin of the particular items in the catalog or on the website so that a bidder will know whether it is subject to the duty. 

Normally, I take possession of my purchases upon payment in Kowloon.  This will no longer be an option.

Thanks for the clarification. 

Mark Bonke

Offline KeyDate1/2ozPandas

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #9 on: November 01, 2019, 09:52:17 AM »
As a side note to your eBay comment.  eBay is no longer a viable place to sell coins.  They have made several changes to their policies that make it very expensive for collectors to buy coins.

1) They are collecting sales tax on all purchases, even for states that have exemptions for coins
2) They are collecting customs duty on all purchases leaving US, even for countries that have no duty for .9999 gold
3) If buyer pays with PayPal and then returns the item, PayPal will still keep the 3% fee and make the seller take the loss on the fee

All this may allow the show circuit to have a few more years of longevity.

Offline Clark Smith

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Re: 15% import tariff on collector's items from China. Coins included.
« Reply #10 on: November 01, 2019, 12:29:16 PM »
Hi Mark,

Just have Heritage ship it to you when they get back.

- Clark