What to expect from Customs when bringing back a $5,000 watch?
 

[Apologies if this is the wrong forum. If so, mods, please move.]

Travel companion wants to buy a Cartier watch while in Europe. All will be in order. Everything will be declared.

Based upon your recent experience, how likely is Customs to charge duty on this watch? If they do, what is the rate?

Duty is 3%
 

No, not at all. I am quite willing to pay whatever duty is assessed.

When I got backed from France in April, I was $800 over my exemption and they asked me for nothing. My questions come down to things:

1. Is there any possibility that Customs would let you "skate" on a $5,000 watch?

2. If not, how much will the duty be?

So, I think the officers have pretty broad discretion.
(anecdotal data point)
Three years ago, I bought my wife $4500 worth of diamond jewelry in Amsterdam for her birthday and declared at full value. The conversation went like
Officer: That's pretty expensive jewelry.
Me: Wife's birthday
He looks at her passport and says Oh, I see. Special one. Welcome home, and happy birthday.

I don't know what the rate would have been, but I had brought my checkbook because I read somewhere that not all POE's will take CC for duty.

I will never be in the postion of affording a $5000 watch, but couldn't your traveling companion simply wear the watch? I understand the ethical need to pay duty on alcohol, tobacco and other products, but this is something you wear. It's not a consumable product. Should duty be payable on what is simply an accessory? Just askin'

As an accessory, why not just put it on? Put the box in your checked luggage and leave it at that

Firstly, the OP came here for advice on what the requirements are, not on how to cheat the system. Secondly, if you plan to break the law (which the OP didn't ask about and I'd advise against), you should at least be smart enough not to have the box (or receipts) with you when you cross the border. Saving a few dollars in duty is not worth the risk of them finding that empty box on a random bag search and figuring out that you lied about it.

It's not an ethical duty, it's a legal duty - with consequences for non-compliance. Plus, I don't really understand why you make an ethical distinction between paying duty on some products and not others.

From within Europe you shouldn't need to pay duty anyway - From the GOV website

You do not pay duty or tax on goods you bring in from the European Union(EU) as long as you:

• transport them yourself
• will use them yourself or give them away as a gift
• have paid duty and tax in the country where you bought them

Are those the rules for within Europe (you don't say which government website)? If so, I'm pretty sure the OP is talking about bringing the watch from Europe to the US, so US customs rules would apply.

Tax refund
 

Don't forget you will be able to claim the 20% VAT back as you leave Europe if you buy from a reputable source

My apologies - i thought it was going to AMS not out!

Paying the duty
 

I have imported a fair number things into the US. The harmonized tariff schedule is on line: https://hts.usitc.gov. Do a search under wrist watch and you should get to the heading for 9101. From there you will need to figure out the correct sub-heading and Stat. Suffix. But my initial read would that one could expect to pay 3.1% of the value. If they know exactly which watch they will be buying one can call the customs office and ask for a specific reading. They are quite helpful. I do this to verify duty and then print the appropriate pages for the goods. This helps whether the item is being shipped or hand carried into the US. because the customs office has the duty right there in front of them. This is especially helpful when there is no duty.

Of course given they are bringing the item in themselves, I would declare it, but then let the Customs office decide if they want to collect the duty. I.e. have the duty paper work ready to verify the correct duty is being applied (i.e. Customs may charge less or nothing). Also when declaring the item make sure one writes down the value - not the price paid as that would include the VAT. Finally make sure when leaving the country there is time to find and wait in line to have the VAT paper work stamped at the airport.

Apart from any duty which might be owed, the OP should be aware that, if he resides in a state with a sales tax, he might owe a compensating use tax in an amount equal to the sales tax. U.S. Customs will make customs declarations available to state tax authorities:

https://help.cbp.gov/app/answers/det...imported-goods