Buying in one country, selling in another?
#31
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#32
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We will just have to agree to disagree whether importing items with the intent to resell it on the market is a commercial use. In common parlance personal use means "use by you" not "for sale by you." Personal use and commercial use are indeed the terms appropriately used here. Are you suggesting that "placing for sale to generate a profit" is not "commercial"?
It is strange that would use the term "dump" on the local market, as that is classic verbiage to describe activity that is generally subject to duties.
It is strange that would use the term "dump" on the local market, as that is classic verbiage to describe activity that is generally subject to duties.
When the import is occasional -- as in bringing in a new, single item on a personal trip for someone you know -- and of a permitted electronics good with a value of well less than €400, good luck trying to pay import duty for it when entering a EU country.
And about resale/use tax, if the annual sales revenue of the individual person is below some amount (as determined at the national level), then resale taxes may be zero.
Last edited by GUWonder; Apr 13, 2016 at 6:28 pm
#33
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Placing for sale to generate a loss may be commercial too, and that's what I consider to be "dumping" when it's intended to grab market share. But good luck getting some national customs officials within the EU to collect import duty on a personal use item of sub-€430 value in the form of branded electronics that is being imported and then may be re-sold -- whether for a profit or for a loss, who knows. To have a commercial character, they may expect a quantity of commercial scale and not attribute that to a singular electronics good valued at well under €400.
When the import is occasional -- as in bringing in a new, single item on a personal trip for someone you know -- and of a permitted electronics good with a value of well less than €400, good luck trying to pay import duty for it when entering a EU country.
And about resale/use tax, if the annual sales revenue of the individual person is below some amount (as determined at the national level), then resale taxes may be zero.
When the import is occasional -- as in bringing in a new, single item on a personal trip for someone you know -- and of a permitted electronics good with a value of well less than €400, good luck trying to pay import duty for it when entering a EU country.
And about resale/use tax, if the annual sales revenue of the individual person is below some amount (as determined at the national level), then resale taxes may be zero.
I think there is a distinction between "customs officials won't catch you" and "it's legal." We of course have no idea how frequently the poster imported goods for resale. But more importantly, I think it's important that people are not misled to think that buying electronics in county X in order to resell in country Y is somehow exempt from duties. It is not.
Thankfully, we don't have to rely on your speculation as to what EU customs law considers to be commercial character, as the helpful EU defines it as follows:
"In ths context, imports are regarded as having no commercial character if they take place occasionally and consist of goods for the personal or family use of the travellers, or of goods intended as presents."
Note the conjunctive and. Even a singular import for resale has a commercial character. And there is not a monetary value threshold.
Bottom line: people should educate themselves as to what the law actually is before either importing goods for resale, opining on what the law may be, or accusing fellow FTers of not knowing what they are talking about.
#34
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I think there is a distinction between "customs officials won't catch you" and "it's legal." We of course have no idea how frequently the poster imported goods for resale. But more importantly, I think it's important that people are not misled to think that buying electronics in county X in order to resell in country Y is somehow exempt from duties. It is not.
Thankfully, we don't have to rely on your speculation as to what EU customs law considers to be commercial character, as the helpful EU defines it as follows:
"In ths context, imports are regarded as having no commercial character if they take place occasionally and consist of goods for the personal or family use of the travellers, or of goods intended as presents."
Note the conjunctive and. Even a singular import for resale has a commercial character. And there is not a monetary value threshold.
Bottom line: people should educate themselves as to what the law actually is before either importing goods for resale, opining on what the law may be, or accusing fellow FTers of not knowing what they are talking about.
Thankfully, we don't have to rely on your speculation as to what EU customs law considers to be commercial character, as the helpful EU defines it as follows:
"In ths context, imports are regarded as having no commercial character if they take place occasionally and consist of goods for the personal or family use of the travellers, or of goods intended as presents."
Note the conjunctive and. Even a singular import for resale has a commercial character. And there is not a monetary value threshold.
Bottom line: people should educate themselves as to what the law actually is before either importing goods for resale, opining on what the law may be, or accusing fellow FTers of not knowing what they are talking about.
I know there is a distinction between "customs officials won't catch you" -- and yet they sometimes do catch some -- and "it's legal." Import without paying duty is legally sometimes possible in the EU even when it comes to importing a permitted electronics good solely for the purpose of re-sale on an open market.
And I wasn't speculating about "import and resale duties", to use your phrase inclusive of the conjunctive and. My use of the word "occasional" in relation to import (done prior to your post) was deliberate, and I was ahead of the curb in my use of that which you came to rely upon later in your response. So who's speculating about the nature of knowledge held?
With regard to import duties, the customs authorities may not have wanted any payment. In other words, there legally may be zero customs duties paid.
With regard to "resale" tax, there may be a monetary value threshold before that tax may come due from an individual. In other words, there legally may be zero "resale" taxes due.
As you don't know that FTer's exact circumstances, a lot of the assumption about that FTer is just speculation that may seem to be but an attempt to disparage character. Quite distinct from having a question about the knowledge level about the specific circumstances applicable for that FTer in this matter.
Bottom line: people should educate themselves as to what all the applicable laws and circumstances actually are for an individual FTer -- if they don't want to engage in speculating (on the appllcable laws and circumstances) and implying that violations occurred when there may have been no violations. Disparaging or otherwise assuming the worst about the situation of a fellow FTer, in the absence of knowing all the facts of the circumstances about the import and resale, really doesn't do anyone any good.
Originally Posted by GUWonder
Originally Posted by Adam1222
Did you pay import and resale duties?
Are you aware of the person's duty free import allowance? If you were, then you may realize the nature of the relevance of your question.
Last edited by GUWonder; Apr 14, 2016 at 4:10 am
#36
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I didn't even wrote that I imported it into Belgium with the intention to resell it.
Maybe I bought it for myself or as a present for my GF, but changed my mind after coming home (e.g. the wrong model/color, ...), and placed it on an online marketplace afterwards?
It was 1 watch, and indeed far below the duty free allowance
If I really had commercial intentions, I should have imported 5 watches. Almost zero chance that the customs would have controlled me (HBO), and even if, it would still have been profitable.
it's Belgium/Europe after all, so no huge fines!
Maybe I bought it for myself or as a present for my GF, but changed my mind after coming home (e.g. the wrong model/color, ...), and placed it on an online marketplace afterwards?
It was 1 watch, and indeed far below the duty free allowance
If I really had commercial intentions, I should have imported 5 watches. Almost zero chance that the customs would have controlled me (HBO), and even if, it would still have been profitable.
it's Belgium/Europe after all, so no huge fines!
#37
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I know there is a distinction between "customs officials won't catch you" -- and yet they sometimes do catch some -- and "it's legal." Import without paying duty is legally sometimes possible in the EU even when it comes to importing a permitted electronics good solely for the purpose of re-sale on an open market.
And I wasn't speculating about "import and resale duties", to use your phrase inclusive of the conjunctive and. My use of the word "occasional" in relation to import (done prior to your post) was deliberate, and I was ahead of the curb in my use of that which you came to rely upon later in your response. So who's speculating about the nature of knowledge held?
With regard to import duties, the customs authorities may not have wanted any payment. In other words, there legally may be zero customs duties paid.
With regard to "resale" tax, there may be a monetary value threshold before that tax may come due from an individual. In other words, there legally may be zero "resale" taxes due.
As you don't know that FTer's exact circumstances, a lot of the assumption about that FTer is just speculation that may seem to be but an attempt to disparage character. Quite distinct from having a question about the knowledge level about the specific circumstances applicable for that FTer in this matter.
Bottom line: people should educate themselves as to what all the applicable laws and circumstances actually are for an individual FTer -- if they don't want to engage in speculating (on the appllcable laws and circumstances) and implying that violations occurred when there may have been no violations. Disparaging or otherwise assuming the worst about the situation of a fellow FTer, in the absence of knowing all the facts of the circumstances about the import and resale, really doesn't do anyone any good.
And I wasn't speculating about "import and resale duties", to use your phrase inclusive of the conjunctive and. My use of the word "occasional" in relation to import (done prior to your post) was deliberate, and I was ahead of the curb in my use of that which you came to rely upon later in your response. So who's speculating about the nature of knowledge held?
With regard to import duties, the customs authorities may not have wanted any payment. In other words, there legally may be zero customs duties paid.
With regard to "resale" tax, there may be a monetary value threshold before that tax may come due from an individual. In other words, there legally may be zero "resale" taxes due.
As you don't know that FTer's exact circumstances, a lot of the assumption about that FTer is just speculation that may seem to be but an attempt to disparage character. Quite distinct from having a question about the knowledge level about the specific circumstances applicable for that FTer in this matter.
Bottom line: people should educate themselves as to what all the applicable laws and circumstances actually are for an individual FTer -- if they don't want to engage in speculating (on the appllcable laws and circumstances) and implying that violations occurred when there may have been no violations. Disparaging or otherwise assuming the worst about the situation of a fellow FTer, in the absence of knowing all the facts of the circumstances about the import and resale, really doesn't do anyone any good.
Please don't accuse me of saying things I didn't in your attempt to recover from your incorrect statement about what the law "may" be. Your pivoting to avoid admitting you were completely wrong is inappropriate.
But I'm glad you now appear to be admitting that indeed importing small amounts of goods with the intent to resell for a profit may indeed generate duties and/or taxes, depending on a multitude of circumstances, and that no one should assume that such conduct has no tax consequences. Generally, I follow the protocol of advising people that their conduct may have legal consequences (a yellow light) rather than suggesting its completely okay (a green light) without the knowledge to back it up solely to get into an argument on FT.
#38
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The following borrowed words
are a good response to the above? Doesn't matter.
You asked about paying "customs and resale duties". Unless you previously knew the precise personal circumstances applicable to the FTer who brought in the watch, how can you be aware of the applicable duty free import allowance? The answer to that question gets back to the nature of the relevance of the question you asked, a question to which I responded with a question, not a taunt, and statements about facts based in the laws applicable in these parts.
Glad to hear that talk.
You talked about customs and resale duties. Unless you know more about the FTer's single watch import than that FTer so as to legally contradict the FTer when it comes to:
applicable laws and implemented practice of customs collection; and
applicable law for sales tax collection,
this is all like tilting at windmills.
It's commonly the case that legally nothing is paid in customs and resale taxes for a single permitted electronics purchase with a value of well less than €400 brought into the EU by an ordinary, EU-residing passenger who has been outside of Europe/EU for at least the required period of time. Whether or not with the intent to dump it on the local market. Legally at that.
I'll leave it at that.
Please don't accuse me of saying things I didn't in your attempt to recover from your incorrect statement about what the law "may" be. Your pivoting to avoid admitting you were completely wrong is inappropriate.
You asked about paying "customs and resale duties". Unless you previously knew the precise personal circumstances applicable to the FTer who brought in the watch, how can you be aware of the applicable duty free import allowance? The answer to that question gets back to the nature of the relevance of the question you asked, a question to which I responded with a question, not a taunt, and statements about facts based in the laws applicable in these parts.
Originally Posted by Adam1222
But I'm glad you now appear to be admitting that indeed importing small amounts of goods with the intent to resell for a profit may indeed generate duties and/or taxes, depending on a multitude of circumstances, and that no one should assume that such conduct has no tax consequences. Generally, I follow the protocol of advising people that their conduct may have legal consequences (a yellow light) rather than suggesting its completely okay (a green light) without the knowledge to back it up solely to get into an argument on FT.
You talked about customs and resale duties. Unless you know more about the FTer's single watch import than that FTer so as to legally contradict the FTer when it comes to:
applicable laws and implemented practice of customs collection; and
applicable law for sales tax collection,
this is all like tilting at windmills.
It's commonly the case that legally nothing is paid in customs and resale taxes for a single permitted electronics purchase with a value of well less than €400 brought into the EU by an ordinary, EU-residing passenger who has been outside of Europe/EU for at least the required period of time. Whether or not with the intent to dump it on the local market. Legally at that.
I'll leave it at that.
Last edited by GUWonder; Apr 14, 2016 at 8:26 am
#39
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The following borrowed words
are a good response to the above? Doesn't matter.
You asked about paying "customs and resale duties". Unless you previously knew the precise personal circumstances applicable to the FTer who brought in the watch, how can you be aware of the applicable duty free import allowance? The answer to that question gets back to the nature of the relevance of the question you asked, a question to which I responded with a question, not a taunt, and statements about facts based in the laws applicable in these parts.
Glad to hear that talk.
You talked about customs and resale duties. Unless you know more about the FTer's single watch import than that FTer so as to legally contradict the FTer when it comes to:
applicable laws and implemented practice of customs collection; and
applicable law for sales tax collection,
this is all like tilting at windmills.
It's commonly the case that legally nothing is paid for a single permitted electronics purchase with a value of well less than €400 brought into the EU by an ordinary, EU-residing passenger who has been outside of Europe/EU for at least the required period of time. Whether or not with the intent to dump it on the local market. Legally at that.
I'll leave it at that.
are a good response to the above? Doesn't matter.
You asked about paying "customs and resale duties". Unless you previously knew the precise personal circumstances applicable to the FTer who brought in the watch, how can you be aware of the applicable duty free import allowance? The answer to that question gets back to the nature of the relevance of the question you asked, a question to which I responded with a question, not a taunt, and statements about facts based in the laws applicable in these parts.
Glad to hear that talk.
You talked about customs and resale duties. Unless you know more about the FTer's single watch import than that FTer so as to legally contradict the FTer when it comes to:
applicable laws and implemented practice of customs collection; and
applicable law for sales tax collection,
this is all like tilting at windmills.
It's commonly the case that legally nothing is paid for a single permitted electronics purchase with a value of well less than €400 brought into the EU by an ordinary, EU-residing passenger who has been outside of Europe/EU for at least the required period of time. Whether or not with the intent to dump it on the local market. Legally at that.
I'll leave it at that.
#40
Join Date: Jun 2015
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I do it, from the US & Europe to Japan. Not going to say what exactly as I have a pretty good run on a niche market at the moment. Only customs issue I have is 8% consumption tax in Japan as what I sell is otherwise duty free. On average I can make an extra $50-70k a year in addition to my regular income, so I suppose if someone actually wanted to they could do it full time. It definitely provides me with travel money plus some, so if it's something that interests you, I'd recommended finding something fairly niche with a high margin in the country you'd be selling in, that way you don't deal with so much volume. Also very helpful to do duty free goods or very low duty.
#42
Join Date: Nov 2016
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I do it, from the US & Europe to Japan. Not going to say what exactly as I have a pretty good run on a niche market at the moment. Only customs issue I have is 8% consumption tax in Japan as what I sell is otherwise duty free. On average I can make an extra $50-70k a year in addition to my regular income, so I suppose if someone actually wanted to they could do it full time. It definitely provides me with travel money plus some, so if it's something that interests you, I'd recommended finding something fairly niche with a high margin in the country you'd be selling in, that way you don't deal with so much volume. Also very helpful to do duty free goods or very low duty.
#43
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Manufacturers (or these days, more like brand-name marketers) have long mispriced goods in various countries, or using differential pricing (allowing for taxes).
Back some 2 decades ago, Levis jeans were selling for multiple times more in Europe (list price in Europe) than in the U.S. as Levi Strauss priced them as luxury goods in one and as working person's wear in the other. I remember going to a jean shop in eastern Pennsylvania (FWIW depressed economy, prime Trump country these days) where Levis jeans were being sold cheap (starting from $15 - what level I don't remember as don't buy/know about Levis). I do remember newspapers reporting that jeans sales were being rationed in NYC to prevent people buying them there are bringing to Europe to resell. I understand Levi Strauss is still using this pricing strategy.
I see a NY Times article from 2001 about Levi Strauss winning a European court case to keep Tesco from selling it grey market products in Europe.
More recently, Louis Vuitton was selling its goods in France for much less than in east Asia. That's why you see (or used to) a line up of Asians outside the LV shop on the Champs Elysée in Paris and product rationing. My partner had a colleague whose sister was an FA for an airline. They'd jumpseat from North America to Asia to Paris, buy a whack load of stuff, fly back to Asia to resell (nameless locality with no/low import and sales taxes), before flying home to North America.
Another absurdity in the past was a Japanese retailer/distributor bringing Coca Cola from the U.S. to resell in Japan as it was that much cheaper even factoring in transportation.
Back some 2 decades ago, Levis jeans were selling for multiple times more in Europe (list price in Europe) than in the U.S. as Levi Strauss priced them as luxury goods in one and as working person's wear in the other. I remember going to a jean shop in eastern Pennsylvania (FWIW depressed economy, prime Trump country these days) where Levis jeans were being sold cheap (starting from $15 - what level I don't remember as don't buy/know about Levis). I do remember newspapers reporting that jeans sales were being rationed in NYC to prevent people buying them there are bringing to Europe to resell. I understand Levi Strauss is still using this pricing strategy.
I see a NY Times article from 2001 about Levi Strauss winning a European court case to keep Tesco from selling it grey market products in Europe.
More recently, Louis Vuitton was selling its goods in France for much less than in east Asia. That's why you see (or used to) a line up of Asians outside the LV shop on the Champs Elysée in Paris and product rationing. My partner had a colleague whose sister was an FA for an airline. They'd jumpseat from North America to Asia to Paris, buy a whack load of stuff, fly back to Asia to resell (nameless locality with no/low import and sales taxes), before flying home to North America.
Another absurdity in the past was a Japanese retailer/distributor bringing Coca Cola from the U.S. to resell in Japan as it was that much cheaper even factoring in transportation.
#44
Join Date: Apr 2007
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But the heyday of that lasted only a few years, and by the mid-aughts everything was getting heavily lawyered and the brands got all upset and even got the French government to criminalize trafficking in the fakes (yet more draconian punishment for non-violent crime at the behest of powerful special interests in the name of revenue).
So how do you feel about intellectual property theft? is that OK too?
If not... whats the difference?
#45
Join Date: Sep 2015
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AFAIK, the reason why especially Chinese spend fortunes in Europe on luxury goods is that imported luxury goods are heavily taxed in China. I've seen them in outlets storm Prada, Gucci, etc..., buying everything and then heading to the Samsonite store in the outlet, put all the shopping in there and leave again.