Ugghh tariff changes coming July 24, ZONOS email
Summary: ricarmic discusses upcoming changes to U.S. duty regulations, highlighting an increase in the prepayment threshold to $2,500 and the expiration of a global tariff, which will lead to varying duty costs based on each product's classification. They share experiences using a predictor tool to test duty rates for different countries, noting zero tariffs for most except Russia and China. sapphyres-designer-jewellery mentions their recent experience with tariffs and issues selling stamps from Russia due to platform restrictions. Other participants discuss logistical challenges and express concerns about the impacts of these tariff changes, with fallsavenue noting a decline in USPS international revenue and increasing rates affecting consumers. mandicrafts points out the complexity of managing tariffs for online sales.
Hmmm I can't get the predictor thing working, although I only use prepay....
The U.S. is changing how duties work on postal shipments to the U.S, starting July 24:
The duty prepayment threshold is increasing from $800 USD to $2,500 USD.
Today, U.S. CBP requires duties to be prepaid on postal shipments valued at $800 USD or less. To fulfill this requirement, Zonos currently bills you for the associated duties on shipments valued at $800 or less, then remits those duties to CBP.
Starting July 24, that requirement extends to all postal shipments valued at $2,500 USD or less. Because Zonos is responsible for remitting those duties to U.S. CBP on your behalf, Zonos will start billing you for the associated duties on any shipment valued at $2,500 USD or less that arrives in the U.S. on July 24 or later.
For example, a $1,000 USD shipment to the U.S. today does not require duties to be prepaid. After July 24, it will, and you'll see those duties on your Zonos billing.
The duty rates are changing.
The global Section 122 tariff is expiring July 24. Today, all of your postal shipments to the U.S. are assessed a flat 10% duty regardless of what you sell. This is due to the global 10% Section 122 tariff, which expires July 24, and the temporary treatment where postal shipments do not incur standard duty costs.
Standard duty rates will apply to postal shipments for the first time. Starting July 24, each item will instead be assessed its own MFN duty rate, based on its HTS classification and country of origin. These rates have applied to commercial shipments since last August; postal shipments had a temporary exemption. MFN duty will apply in addition to any Section 301 tariffs, as well as other product-specific tariffs like Section 232 for steel and aluminum.
New replacement tariffs are expected: The USTR has proposed new Section 301 tariffs of 10% to 12.5%, depending on country of origin (effectively replacing the 10% Section 122 surcharge), but these have not yet been finalized. Zonos expects a clean cutover between the expiring Section 122 rates and the expected Section 301 rates. Our calculations will include these tariffs as “Section 301 Forced Labor Tariff (this is a proposed tariff, subject to USTR’s final action, and may change)” on any shipments with an arrival date of July 24 or later.
That means different products in your catalog will now carry different duty costs, starting for shipments arriving in the U.S. on July 24. We recommend using Item Quoter to calculate what these new costs will be for your items.
See your new duty costs before the cutover
We’ve added a new Arrival date field to Item Quoter in your Zonos Dashboard to allow you to calculate the new duty costs before the cutover. Set the arrival date to any date after July 24 and your quote will return the new duty rates. This lets you re-calculate duties for your catalog now, see exactly how costs change, and adjust product prices before the cutover happens.
We recommend re-quoting your products this week. Here's a short video reminder on how to use Item Quoter (note: now that commercial and postal duty rates are the same, there is no longer a split between the two in the results). Keep in mind Item Quoter results do not include the postal handling fee (you can see the fee cost per shipment in Settings>Billing>Plan).
Future changes to the U.S. postal entry process
The changes this month are a precursor to the new postal entry process in October where postal shipments will be required to make Type 13 entries into a system called ACE. Zonos is working with your post to make these entries—you do not need to do anything differently to prepare for this at this time. We’ll keep you updated on any changes needed in the future.
If you have questions about how this affects your shipments, reach out to support@zonos.com. We’re here to help.
Thank you,
intimewithmusic
·3 weeks agoThank you @ricarmic
mandicrafts
·3 weeks agoVia the mail, stackable tariffs, differing rates...just like courier/commercial shipments.... coming soon. Impossible to accurately figure out tariff-included flat rate shipping rates for our listings.
I see Etsy has sent out an email.
I have seen nothing from eBay as yet.
fallsavenue
·3 weeks ago · EditedUSPS reported a 42% decline in Q1 revenue for its international (imports) segment. There are many countries that still have no PO service to the USA and those that do are seeing less shipments to the USA.
Now, it just substantially increased rates for remote addresses. Any American who thinks the tariffs don't affect them are feeling them more now. They're complaining like crazy over the price hikes but aren't fully understanding all the reasons behind them.
Many sellers relied on the PO to avoid extra duties. With that done, there'll be even fewer shipping to the USA. Guessing 42% will jump to well over 60% by Q4.
lotzofuniquegoodies
·3 weeks ago · Edited@fallsavenue
@devon@ebay
This is why we need an easy way to use Canada Post (where applicable) for Intl shipments and eIS (if we so choose) to the USA ONLY. With the limited countries eIS Canada currently is available it has become a non starter. UPS isn't even a discounted option provided by eBay labels.
And a way to over ride the default economy shipping when item is going to the hub for eIS shipments. As a seller it is next to impossible to write off Expedited Lite when buyer paid for the letter option so item arrives in time to meet eBay's delivery standard.
ricarmic
OP3 weeks agoI've gone into "zonos proper" and was able to use the predictor.
So far all the test countries I've put in getting the stamps HS code of 9704.00.0000 (typing in "collector postage stamps") have been ZERO tariff EXCEPT Russia (35%) and China (7.5%).
Before the test, I was briefly thinking I'd have to invoke one of my disaster tariff plans, the one where I charge all USA folks $100 shipping or something to disuade them from buying, and asking what the real shipping was, but I think that I can survive the work to change only the Russia/China items I have to make the shipping be the customs fee.
If any fellow stamp folks find other countries that have a tariff showing up, please add them here so I can assess my plan for them....
sapphyres-designer-jewellery
·3 weeks agoI'm with Stallion and they were charging me 10% tariff on all 9704 items. Did you check Hong Kong when you checked China?
Stallion says "no Russia items" and eBay was removing Russia stamps (even imperial and USSR) and giving violations to friends of mine in the US forum. I removed all my Russia stamps a while back. My China stamps were moved to the Canadian eBay store (with no shipping to the US, but I should review that and see if it still stands... I may have changed that shipping policy).
C.
ricarmic
OP3 weeks agoTaiwan and Hong Kong came back zero as well.
Regarding Russia, thats interesting, I only have a small number of them. For fun I did a search of "Russia" in the stamps category on .COM and there were 170,000 plus items. Did your peers get any reasoning as to why their items were getting violations?
sapphyres-designer-jewellery
·3 weeks agoI paged the Blues in the dot com forum and he showed up and told us all that because the stamps were from Russia they were not allowed (even though stamps are not embargoed goods, not all goods from Russia are embargoed). I checked with Stallion on prohibited shipments and they said Russia is not allowed, but all other countries are. However I know for a fact that North Korea, Cuba and Iran and for sure not allowed. (And some other countries have been recently added by Chit Chats, like Palestine, Ivory Coast and Myanmar).