Zonos App/ duties and tariffs
Summary: The discussion centered around the Zonos App and its handling of duties and tariffs. Participants, including schoondeals, mrdutch1001, ecgt, discussed various aspects and issues related to international shipping costs and taxes facilitated by the app. Multiple participants, like dinomitesales and tuckhouse2021, engaged in a detailed conversation, exchanging insights and experiences on using the app for managing cross-border fees.
So I'm finally learning this Zonos app to ship to the US again. My store is mostly physical media. CDs, DVDs and blu ray all use the same HS Code of 8523.49.
So Far I haven't been charged duties or tariffs on my tests. I have tried cds, dvds and blu rays made in China and other countries. They all come to the same conclusion : no tariffs or duties owed.
Am I missing something here?
This seems to good to be true for me and my business as it seems I can send these items to the USA duty/tariff free.
Thanks
39 comments
byto253
·11 months agoBased on the info posted, would professional medical reference books not published in the US would also be exempt under law 50 USC 1702(b) as a publication?
"50 USC 1702(b), which exempts from duty the following items:
information or informational materials, including but not limited to, publications"
ecgt
·11 months agoIt is our understanding that books are considered "informational materials" under 50 USC 1702(b), regardless of country of origin.
byto253
·11 months agoWe have been kicking this around and wondered if informational publications were things like pamphlets or instruction manuals or more emephera type materials.
If it is books, that is useful. Not my usual area but did pick up some very interesting techie books recently. Also wonder if it would only cover books with "information" eg. technical, fact based versus fiction.
Trying to find definitions or more information on US government websites is nuts. It makes the Canadian government websites look like models of clarity.
dinomitesales
·11 months agoThat's wild. I wonder if that's a glitch. I would definitely reach out to Zonos and inquire about if that's supposed to happen.
Ask them straight up" Why would they charge nothing if using the app but $1.99 if using Automatic Billing?
Unless you're shipping out dozens of packages a day I would just use the app for anything duty free as you're saving $2 per shipment.
ecgt
·11 months agoThis isn't a glitch. They've made it clear since the beginning that they are charging $1.99 for customs declarations (via the method we are using), regardless of whether or not duty applies. They fact that people using the app haven't paid for customs declarations is more likely the glitch in this case, as they were upfront that the app was supposed to incur a $3.99 charge per parcel.
dinomitesales
·11 months agoIt's extremely unlikely that this is a glitch in the app. It has worked the same way since it was launched nearly two months ago. They update the app seemingly daily, so if it was a glitch it should have been fixed by now. It's clear that it's how the app is supposed to work: no fees if no duty.
No one should be using automatic billing for duty-free goods if this is the case, unless you're shipping so much that the time savings are worth the extra $2 per parcel.
burning_moon_video
·11 months agoAll your shipments are getting hit with a 1.99 charge, even recent ones? I know that they were charging the processing fee for all transactions in the beginning but have since removed that for duty/tariff free shipments. I just signed up for automatic billing but there's no way I'm paying an extra $2 per shipment if I'm sending duty free items. If that's the case, I'm going back to the prepay app.
ecgt
·11 months agoWe'll have to wait to see what happens with our October shipments.
ecgt
·11 months agoThis is what the Zonos Dashboard looks like. We were last charged $3.98 on September 27 for two customs declarations after the parcels were delivered.
We closed our eBay store during the nationwide strike, so we likely won't get another charge until the end of this month.
ecgt
·11 months agoThe $1.99 fee we are being charged is the customs declaration fee, which is how this has always been advertised since launch.
tuckhouse2021
·11 months agoYes this has been my experience also. I use the Zonos automatic billing via Canada Post Snap Ship because I don't wish to spend an hour a day driving to and from the post office.
I print the labels at home and my CP mailman takes my parcels on his rounds out of the mailbox at the end of the driveway.
I could save the 1.99 charge if I went to the post office but would rather pay the fee than go daily and stand in line with my parcels. It is not a fun use of my time.
The automatic billing works for me because of this.
dinomitesales
·11 months agoYou can just print your labels on SnapShip or NetParcel and use the app. No need to go to the post office (I assume you're getting pick-ups from your home). Would save $2 per shipment based on the anecdotes here.
tuckhouse2021
·11 months agoI will look into that. I work off a desktop computer and not a phone. Would that make a difference?
dinomitesales
·11 months agoIf you don't use a mobile phone you can access a web version of the app at app.zonosprepay.com.
tuckhouse2021
·11 months agoThanks for the app address. I think I may be using the wrong Zonos. I will see what the October bills are and go from there.
apmtrade
·11 months agoI also work off a desktop computer and signed up for automatic billing, using CP manager.
Zonos is charging me $ 1.99...
ecgt
·11 months agoCertain items are duty and tariff free for American customers as they are considered “informational materials” under IEEPA. Zonos still charges $1.99 for each customs declaration regardless of whether or not said items are duty and tariff free.
The law is 50 USC 1702(b), which exempts from duty the following items:
information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.
schoondeals
OP11 months agoBest regards
ricarmic
·11 months ago@schoondeals Just a note, I've been using the ZONOS prepay app, stamps are non dutiable, ie zero cost each time and I am not charged anything fees wise as long as the duty is zero.
regs43
·11 months agoIf you do it manually one at a time on the zonos app its 0.00
If you set up automatic billing with Canada Post and Zonos I assume thats where the $1.99 processing fee is occuring. If your volume is low enough do the manual one at a time process with the app. I get maybe 2-3 orders a day at most even before tariffs and $2 savings adds up. Takes about 2 mins to run through the app, but I do that as I am packing the item after I snap the picturefor the app.
Good luck either way, at least you can account for $2 more in the shipping charged to the buyer as thats a known flat cost if you choose to do automatic billing 🙂
schoondeals
OP11 months agoI have a US buyer that wants a CD lot of 2 from me. It's a decent size order of $179.99. I got the 2 CD's for $1 each so I have a lot of wiggle room incase things don't go as planned. I just don't want the buyer to pay any additional fees or duties.
I'm gonna give it a go and see how it works out. It's gonna be awesome to start selling CDs dvds and blu rays to Americans again.
regs43
·11 months agoI have mailed a lot of Hockey cards and photographs to USA and havent been charged anything after the fact 🙂 When it said $0.00 and let me complete the order on Zonos to ge tthe code, thats all.
I also sent a couple orders that were in the $150-$250 and no issues
ecgt
·11 months agoAre you sure that the app has no fees? On the Canada Post website it says that the Zonos prepay app incurs a $3.99 fee. It's stated under the "What costs and fees can I expect to pay using the app?" section at the following link:
https://www.canadapost-postescanada.ca/cpc/en/support/kb/sending/sending-faq/how-to-use-zonos-prepay-app-to-pay-duty.page
Are you sure you just haven't been charged yet?
We don't get charged the $1.99 fee right away using Zonos automatic billing via Canada Post Snap Ship. So far we have been filled once a month for our shipments.
ricarmic
·11 months agoThis is a difference between the prepay and the other app. The prepay doesn't know who I am besides my name and email address, ie there is no payment mechanism attached to my account. A friend who uses prepay too and does from time to time have to pay tarrifs says that when they do have tarrifs/duties, they pay them one at a time via their credit card to get "the number" one needs.
PS I'm a stamps on the box kinda guy, so they don't have a CP account or anything hooked to it either.....
flipistics
·11 months agoWouldn't having the CP account save you a little even if you're using stamps to send out parcels? I think it should reduce the rate a little as long as you show your card to the person at the counter. Maybe I'm wrong?
ricarmic
·11 months ago@flipistics yes you are correct, I forgot that my SSB account is attached to the orders (manually by the PM), so I am getting as much a discount as one can get over the counter. If I were to be charged I guess it would be through that, but everything shows zero cost and zero balance so I don't think there's a problem.
My point was that I'm not using labels so my account isn't attached the same way it is for folks who do.
ecgt
·11 months agoSo, are you send these items to the USA as letters? That doesn't work for CDs, DVD,s Blu-rays or other physical media. Said items have to be sent as parcels, otherwise they will be rejected and returned to sender.
Also, if you are sending items to the USA as letters, it is our understanding that you don't require a customs delaration via Zonos.
We are under the impression that you cannot send a parcel from Canada to the USA using stamps, only letters. Are we wrong?
mrdutch1001
·11 months agoYou cannot send goods/merchandise "disguised as letters", to destinations outside of Canada..
ecgt
·11 months agoExactly. We're also not sure how someone can send a parcel outside of Canada using stamps. We don't think that's possible.
ricarmic
·11 months ago@ecgt No these are tracked packets same as everyone else sends, incase it is confusing, one can (or is supposed to be able to) use stamps for everything, tracked, expedited, expresspost, registered etc. That has always been the case. (aside from some misinformed POs/Outlets that believe otherwise).
ecgt
·11 months agoSo, are you using stamps to pay for the cost of Tracked Packet at the post office counter and then they are affixing a Tracket Packet label to the parcel?
dinomitesales
·11 months agoAs others have stated, this isn't true in my experience. When using the Zonos Prepay app, and there is no duty owing, there is also no processing fee. So you pay nothing.
You're saying that if you use Automatic Billing with Zonos/Canada Post that you're being billed $1.99 on duty-free shipments? That's huge news if true. Can you confirm first-hand experience of this happening?
ecgt
·11 months agoEvery item we have sent a to the USA using Zonos automatic billing via Canada Post Snap Ship has incurred a $1.99 fee. The fee has been charged more than a month after shipping each time. The fees show up in the Zonos Dashboard in the Invoice section and are subsequently charged to the credit card we have on file.
mrdutch1001
·11 months agoSome Canadian Sellers on my other selling site also use Zonos integrated with Canada Post and those sellers indicating not receiving invoices until over a month after shipping....
dinomitesales
·11 months agoYes, it seems like there is a billing delay for automatic billing. That has been widely reported.
Doesn't change the fact that it's still completely free to process duty-free goods through app.
mrdutch1001
·11 months agoIt is my understanding that IF there are tariffs, processing fees, etc due, an invoice will be sent to the seller OR, depending on how payment was set up, there is also an automatic billing process...Someone, please correct me if I am wrong on this...