@dinomitesales wrote:I wonder how these cross-border shippers (and, well, the entire US CBP in general) are going to handle people who just lie about the country of origin. No one has the time, resources, or manpower to be opening every package to inspect it for country of origin.
They would start by passing on any fines incurred and at the same time suspending those accounts from using their services.
US customs have done random examinations of shipments by cross-border couriers in the past. I expect this will be more common going forward.
I dropped off a few US bound packages today at Stallion, I have provided them with the information they have requested.
I speculate that they will go over the information and decide which packages remain eligible for the Section 321 exemption and process those as normal. Any that don't qualify or might not qualify will be prosessed via formal entries and incure duty. Besides passing on the duty there may be associated fees, it's not clear what those might be.
The elimination of Section 321 for products from China should not be a suprise to anyone, it's dates back to the Biden administration and would likely have come into effect some time this year regardless who won the 2024 Election (it was a bipartisan ruling).
@sin-n-dex wrote:I got the same note, it's sounding like the shipper will be the one paying the tariff to get it across.
C.
Of course, duties are always assessed at point of entry.
@motomike_canada wrote:Exactly, whenever I shipped something over the de minimus, buyer paid duties and federal taxes on entry where applicable.
Stallion billing to seller account is a bit cheeky, they just want to push the parcels thru as quickly as possible for their own sake.
Can I assume those are shipments via the Postal system?
It would work the same way if you shipped via UPS Canada or FedEx Canada because they are the carrier on both sides of the border.
Stallion (plus all the others) are the carrier to the border and for a short distance on the US side. At that point the packages are turned over to USPS or UPS, those carriers are not going to collect payments from recipients on shipments that are totally within the US.
Stallion must pay the duties at the border and they have no way to collect that money from the ultimate recipient.
This is how import duties have always worked in virtually all countries.
Many exporters ship DDP which means the duties have been paid in advance, the exporter/seller calculates the duty and adds that to the price of the goods (sometimes included and sometimes as an additional line item).
When I was supplying retailers in the US (1980/90), my pricing was an all inclusive, goods, shipping, import duty and fees all included in the price. The shippers I used would clear the shipments and bill all those costs back to me.
In the international shipping world that is know as "Free Domicile" or "DDP" (Delivered Duty Paid). I received two notifications today from merchants that sell Chinese made goods to customers in Canada and the US, they are going the DDP route and will be charging the duty/fees upfront to their US buyers.
If there are any sellers dealing with goods made in China, I hope you understand that the Trump Tariffs, 10% on goods from China is in ADDITION to the already in place tariffs. One of the sellers who deal in clothing are telling buyers that the duty rate for underwear will be the existing duty of 42% plus the new 10%, they appear to be absorbing any brokerage fees they may incur.
If Stallion / Chit Chats etc are able to secure a good deal with a US Customs Broker the fees MIGHT be low enough for them to absorb that cost. Unfortunately Stallion is not the manufacturer, distributor or retailer, the margins on shipping are very slim, there is no way Stallion could cover even a $5 brokerage fee on a package they might only be making a dollar in gross profit.
