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Import tax?

Author: stevensfo
Date: 2008-03-10 16:17

Most items I purchase and get sent to Italy are music accessories and never come near the threshold for import tax.
A few times when I have bought instruments, I've always paid the import tax when requested. Since I always budget for this anyway, it's no big deal. Though it's a nice surprise when our P.O. accidentally let's it slip through!

A few months ago, a seller in the USA offered to write a lower price on the customs declaration form in order to save me money. In the event, I didn't purchase the instrument, but I was left wondering about the legality issues.

IF the seller declares a lower price so that I pay less import duty, is he liable for prosecution by the US authorities?

IF he does this without me knowing about it, could I be in trouble?

IF he keeps the price very low, but charges a huge amount for p&p, is duty payable on this? (I ask because this use to happen years ago in the UK to reduce sales tax).

Steve

PS Disclaimer: Questions are academic only. I have no intention of setting up a billion dollar woodwind import-export agency or risking a visit from the dreaded italian 'Garda Finanza'. ;-)

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Re: Import tax?

Author: tictactux ★2017
Date: 2008-03-10 16:45

I am neither expert on US or Italian tax laws. But from experience I can say that our (Swiss) authorities

- put tax and VAT on both merchandise *AND* S&H.

- sometimes ask for evidence (eg eBay winning-bid mails) about the pricing. If the declaration is fishy or insufficient, the parcel will be held back until you produce sufficient evidence or refuse to accept the shipment.

- don't hold the sender liable for incorrect declaration, but you as the buyer may face an <cough>administration fee whether you know about the "creative accounting" or not.
- usually don't touch merchandise below 50$ of value, provided it's correctly declared.

I don't know wether or not they keep records about suspicious senders (so that the alarm bell goes off when a parcel lands on an inspector's table).

Just keep the receipt for your morning coffee... ;-)

--
Ben

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Re: Import tax?

Author: stevensfo
Date: 2008-03-10 20:55

Thanks Ben.

I must stress that I'm not so much interested in what happens this end, as the potential legal implications for the seller the other end, and how the law actually works.

I have no problem with the import tax. It exists and we know about it. That's why I always budget for it. Re. the administration charge, well, that's not too much.

-- "If the declaration is fishy or insufficient, the parcel will be held back until you produce sufficient evidence or refuse to accept the shipment." --

I once had a package held for about two months. Nothing to do with any tax. They just wanted me to confirm that it WAS a clarinet and that I had ordered it. This was at the time of the Iraq WMD hysteria, so perhaps they thought it may explode, which, given my reaction when I saw the state it was in, wasn't far from the truth! ;-)

Steve

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Re: Import tax?

Author: Joseph Brenner, Jr.
Date: 2008-03-11 16:57

Steve,

It's good that you are thinking about potential risk. You may not be aware that not just one law or body of law may apply: the law of where you are, the law where the other person or company is, any international law, and the law that regulates how to apply a law when each of two parties is under different jurisdiction. You may need to consult with counsel who is competent in international commercial transaction law so that you do not, however unwittingly, run afoul of law. Best wishes in dealing with your can of worms.

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