Toys and Tariffs (US customers)

[thomasw100]

Does anyone know if gifts will be taxed? My friend from the UK and I exchange care packages bi-annually, mostly containing figurines.

It's a common trick to label things "gift ' but they still need HS codes and values.
So you can devalue items, but if an insurance claim is required, that will be your maximum.

And if they randomly search and assess the parcel...suffice to say, it will cost more.

Customs workers know how much power they have!

There is absolutely nothing wrong with purchasing a figure for a friend, taking this out of the box and then sending it (and then technically used) as a gift to this friend. If the new tariff laws even do not let you do this any more without having to pay all sorts of dues and being at risk of the content being confiscated by customs then this very much reminds me of the situation how it was with sending gifts to family and friends in former Eastern Germany. People would send gifts wrapped in toilet paper rolls hoping that the customs would not find them.

[RobinGoodfellow]

..I think it's the reason why Everything Dinosaur decided to temporarely stop selling to US : to avoid having buyers with Customs issues .

I do wonder if I'm going to hear from Lana Time about the paid for, but not yet shipped, Showanna Scottyrex...

Lana had said they were going to do their bust to absorb some of the fees as I recall.  I have pricey sculptures from them I've paid over time to get. If I paid 500.00 for it and I have to pay 550.00 more to get here is pretty ridiculous. I'm curious how it will play out. I have several preorders via Lana. 
 

[Primeval12]

Not to get super political, but some people from the majority party in congress are indicating that they don't agree with the tariffs. There was a vote to question them two-ish days ago and it passed. I hope that our checks and balances system can block them... If not, I think I will be collecting used figures for a while.

[Blade-of-the-Moon]

Not to get super political, but some people from the majority party in congress are indicating that they don't agree with the tariffs. There was a vote to question them two-ish days ago and it passed. I hope that our checks and balances system can block them... If not, I think I will be collecting used figures for a while.

Even used figures would dry up as no new ones are purchased though. It's a lose/lose situation. Even though it might help with older toy appreciation.

[andrewsaurus rex]

Does anyone know if gifts will be taxed? My friend from the UK and I exchange care packages bi-annually, mostly containing figurines.

It's a common trick to label things "gift ' but they still need HS codes and values.
So you can devalue items, but if an insurance claim is required, that will be your maximum.

And if they randomly search and assess the parcel...suffice to say, it will cost more.

Customs workers know how much power they have!

There is absolutely nothing wrong with purchasing a figure for a friend, taking this out of the box and then sending it (and then technically used) as a gift to this friend. If the new tariff laws even do not let you do this any more without having to pay all sorts of dues and being at risk of the content being confiscated by customs then this very much reminds me of the situation how it was with sending gifts to family and friends in former Eastern Germany. People would send gifts wrapped in toilet paper rolls hoping that the customs would not find them.

That will not work. It would be a 'scam' that almost everyone would pull to avoid their friend or family member paying tariffs.  Used items will be tariffed just the same as new items.

The only way i can think of is to call it used and then lowball the value.  That way tariffs should at least be reduced.  So long as the good's declared value is still reasonably reasonable then it should still get through Customs, albeit with some tariffs still having to be paid (unless the declared value is below the new deminimus...if there is still a deminimus any more).

I'm not recommending or endorsing this idea, mind you.  As it is illegal.

[andrewsaurus rex]

Not to get super political, but some people from the majority party in congress are indicating that they don't agree with the tariffs. There was a vote to question them two-ish days ago and it passed. I hope that our checks and balances system can block them... If not, I think I will be collecting used figures for a while.

Even used figures would dry up as no new ones are purchased though. It's a lose/lose situation. Even though it might help with older toy appreciation.

And used figures would soar in price, similar to how the price of used cars soared in the early days of the pandemic.  They were in high demand because new cars were in very short supply.  Same thing would happen with used dinosaur figures/toys.

[stargatedalek]

If you open something you decrease its value. Representing that on the declared value is not illegal.

[Primeval12]

Not to get super political, but some people from the majority party in congress are indicating that they don't agree with the tariffs. There was a vote to question them two-ish days ago and it passed. I hope that our checks and balances system can block them... If not, I think I will be collecting used figures for a while.

Even used figures would dry up as no new ones are purchased though. It's a lose/lose situation. Even though it might help with older toy appreciation.

I'm an avid thriftier so I have hope.

Also, my friend and I are talking out solutions. Right now, sending gifts looks to be safe. Especially considering that the items are wrapped in wrapping paper and a card is included. Hopefully we will get more clarity in the coming weeks.

[andrewsaurus rex]

If you open something you decrease its value. Representing that on the declared value is not illegal.

Right.  But as we collectors know, many used items can go for a lot of money.  The tendency with Customs forms would be to put too low a price on it ie below or well below market value.  Hence me using the term 'lowball' the price in my original post; 'lowball' means to put a value on something that is below what it is really worth.. 

That is illegal to do on a Customs form.

[thomasw100]

Does anyone know if gifts will be taxed? My friend from the UK and I exchange care packages bi-annually, mostly containing figurines.

It's a common trick to label things "gift ' but they still need HS codes and values.
So you can devalue items, but if an insurance claim is required, that will be your maximum.

And if they randomly search and assess the parcel...suffice to say, it will cost more.

Customs workers know how much power they have!

There is absolutely nothing wrong with purchasing a figure for a friend, taking this out of the box and then sending it (and then technically used) as a gift to this friend. If the new tariff laws even do not let you do this any more without having to pay all sorts of dues and being at risk of the content being confiscated by customs then this very much reminds me of the situation how it was with sending gifts to family and friends in former Eastern Germany. People would send gifts wrapped in toilet paper rolls hoping that the customs would not find them.

That will not work. It would be a 'scam' that almost everyone would pull to avoid their friend or family member paying tariffs.  Used items will be tariffed just the same as new items.

The only way i can think of is to call it used and then lowball the value.  That way tariffs should at least be reduced.  So long as the good's declared value is still reasonably reasonable then it should still get through Customs, albeit with some tariffs still having to be paid (unless the declared value is below the new deminimus...if there is still a deminimus any more).

I'm not recommending or endorsing this idea, mind you.  As it is illegal.

According to your logic then, sending any gift would be illegal. Therefore, I refute your accusation that I would suggest something that is illegal.

[andrewsaurus rex]

huh?  Why would sending any gift be illegal?  It's knowingly declaring a value for it that is too low, is what is illegal.

[Primeval12]

huh?  Why would sending any gift be illegal?  It's knowingly declaring a value for it that is too low, is what is illegal.

Cause it's do dodge import fees. Anyways, they just paused tariffs for every country except China so I'm expecting one of a few scenarios.

1) He who shall not be named will back down, at least a little bit

2) China and the US will come to an agreement and lower tariffs again

3) Congress will step in and stop this nonsense.

4) People will get creative and find ways around this.

[Totoro]

90 day pause...except China...for now...I cannot keep up!   

[Over9K]

huh?  Why would sending any gift be illegal?  It's knowingly declaring a value for it that is too low, is what is illegal.

Cause it's do dodge import fees. Anyways, they just paused tariffs for every country except China so I'm expecting one of a few scenarios.

1) He who shall not be named will back down, at least a little bit

2) China and the US will come to an agreement and lower tariffs again

3) Congress will step in and stop this nonsense.

4) People will get creative and find ways around this.

There is a 5th possibility; The yuan continues to crater in value and China capitulates.

EDIT: This not option 2, BTW... in option 2 the negotiation would be much closer to equal. If China waits too long, falls too far, the US will take advantage, and require much more than just an equalization of tariffs for an agreement to be made.

[Over9K]

90 day pause...except China...for now...I cannot keep up!   

Note that China is the only country not asking to negotiate with the US at this point.

[DinoToyForum]

Let's please keep the focus on "Toys and Tariffs" and put the broader politics and speculation aside. 

[Over9K]

Let's please keep the focus on "Toys and Tariffs" and put the broader politics and speculation aside. 

Trying very hard to keep the discussion on the fiscal side of things, but certain aspects of this situation make that very difficult.

[Primeval12]

I feel like facts should be allowed to be shared, but not opinions. My speculation veered into the latter category so I apologize.

[DinoToyForum]

Let's please keep the focus on "Toys and Tariffs" and put the broader politics and speculation aside. 

Trying very hard to keep the discussion on the fiscal side of things, but certain aspects of this situation make that very difficult.

Difficult, but not impossible. 

[Halichoeres]

I'm trying to put myself in the shoes of a company who has commissioned a factory in China to make me ten thousand units of some toy. I might, in anticipation of having to charge higher prices for them in the US, divert a lot more of them to other markets.