'Costumes' no longer tariff/duty free.

Gundo · Post by **Gundo** » Sat Nov 02, 2002 12:28 am

http://www.activedayton.com/ddn/business/daily/1007costumes.html

Important for those who ship across the US/Canada border, for example.

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Gundobad,
Wise Ogre Armory

"Always be seeking deeds of arms - DeCharney"

A position worth taking, is worth defending.

taltosh · Post by **taltosh** » Sat Nov 02, 2002 12:37 am

Funny how the person responsible for the suit is bitching about duties on imported fabrics and then later on saying that the costumes importes are killing his business... hell, if that company wants an ounce or credibility, why not make costumes from fabric Made In The USA...that way they don't pay the 10-16% duty fees on imported fabrics... This is just gonna add another nail to the free trade coffin...

Bainard Grey · Post by **Bainard Grey** » Sat Nov 02, 2002 1:27 am

OK, I have a bit of interest in the article but more interest in who found it??? (Dayton is my home town..)

Edric · Post by **Edric** » Sat Nov 02, 2002 9:51 am

This seems to only apply to "non-durable cloth costumes". I would think armour wouldn't qualify. Even sca garb would be durable I would think. Just classify it as durable costume??

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--Edric de Aldebury--
edric@edricsrose.com
http://www.edricsrose.com

Flos est puellarum, quam diligio, et rosa rosarum, quam sepe video.
"My love is a flower among virgins, and a rose among roses"

William Freskyn Murray · Sat Nov 02, 2002 9:19 pm

I may be able to shed a little light on this, I'm a Customs Broker working in Buffalo NY and I deal with a courier company out of Canada so I'm in the perverbial "front line." Last year US Customs changed the definitions of costumes from being defined in Chapter 95 of the tariff which covers toys and such articles to being defined as articles of apparel. It is my understanding that this occurred do to the nature of costumes changing. I know in my childhood if you bought a costume it was a flimsy piece of plastic that usually didn't make it through an evening of trick or treating. Now when you buy a costume it's fabric and a lot better made.

My best free advice to those who live in Canada and make clothing for sale to the US make sure of two things. First, make sure your fabrics originate from either Canada, the US or Mexico (the NAFTA countries). Second, do your research and fill out a NAFTA Certificate. NAFTA has made all CA/MX manufactured products free from duty & mpf (merchandise processing fee) but determining the eligibility of your goods is the biggest pain in the ass but once you've done it once it's done. Do your research prior to your first shipment will make your life easier and your costumers a lot happier. The duty rate on apparel runs from 10 to 35 percent depending on the item and what it's made of.

Hope this helps anyone north of the border. Their is a huge amount of information available on web from the US Customs web site.

Will

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Squire to Bedawyr of Avaricum, Baron, KSCA

"quarterly azure and sable, an eagle displayed argent and on a chief argent two crescents sable"

Dalewyn · Post by **Dalewyn** » Sat Nov 02, 2002 11:05 pm

Gundo: thanks for telling us!
William: Thank you for the information, please post links.

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Dalewyn
Dalewyn@dbis.ns.ca
www.AlchemyArmory.com

Owen · Post by **Owen** » Sun Nov 03, 2002 9:25 am

I see the rational the costumer says- he was having to pay duty on cloth he was importing to make costumes here in the US, but companies that were bringing costumes made from cloth into the US from elsewhere were not. In effect, he was being penalized for making them here instead of overseas. He wanted a level playing field.

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Owen
"Death is but a doorway-
Here, let me hold that for you"

Magmaforge · Post by **Magmaforge** » Sun Nov 03, 2002 12:56 pm

thank you William

Rev. George · Post by **Rev. George** » Sun Nov 03, 2002 1:03 pm

And also, all clothing made in the US of north american materail (except cotton, which must be from the US, or linen and silk, which can be from other places) are covered by the North American Free Trade Agreement.

you can get customs forms from www.customs.gov and fill them out properly. In THEORY, your canadian friend would only be responsible for GST. In practice, i've seen people still get charged duty on said shipment, but if the system worked as it should that wouldnt be an issue.

-+G

William Freskyn Murray · Sun Nov 03, 2002 11:06 pm

I have a few good links on my PC at work, I'll forward them home to myself tomorrow and post them when I get home. The tariff book (which once you figure out isn't TO bad but is HUGE and slow to down load) and a searchable online rulings system are both available and very useful. I'll post both tomorrow night.

Will

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Squire to Bedawyr of Avaricum, Baron, KSCA

"quarterly azure and sable, an eagle displayed argent and on a chief argent two crescents sable"

Mad Matt · Post by **Mad Matt** » Mon Nov 04, 2002 10:32 am

Armour should be declared as sports equipment.

Or handmade goods. Declare it made in Canada (or the US or Mexico if you're shipping from mexico).

No duties.

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The budding mid 14th century German Transitional guy.
Mad Matt's Armory

William Freskyn Murray · Mon Nov 04, 2002 7:48 pm

Ok, so here are some of the links I use at work that are pretty helpful and once you're used to them can be remotely user friendly (well as friendly as any government site can be).

The tariff book of the US, determine the proper tariff classification for your goods and it will tell you your duty rate (if not free under NAFTA). All clothing falls into Chapter 61 & 62 depending of if the fabric is knit/crochetted or woven.

http://dataweb.usitc.gov/SCRIPTS/tariff/toc.html

Customs also has available a searchable rulings system - a Customs binding ruling is when you pay a fee to US Customs and send them a sample of your item and they provide you a legally binding ruling telling you your item is to be classified as X. This online searchable database allows you to check 86,000 rulings that other people have paid for .

http://rulings.customs.gov/

The Customs electronic bulletin board has some useful items on NAFTA and other various restricted imported goods. It's not nearly as user friendly as it could be.

http://www.cebb.customs.treas.gov/public/cgi/cebb.exe?mode=sa

And of course there is US Customs home page which has links to import information.

http://www.customs.ustreas.gov/

Ive rambled long enough but a couple other things that may be helpful, especially to people importing clothing. US Customs requires the filing of a formal entry for any shipment valued in access of $2,000 us dollars and certain other commodities at lower values - furniture, and articles of plastic valued in access of $250, clothing regardless of value. As far as an importer is required the only difference is that to file a formal entry US Customs requires the broker to include the tax id number of the US buyer. If selling to an individual this would mean there Social Security #. A lot of people get very upset when they get a phone call asking for there Social Security # and if you warn your client that this is a US Customs requirement and they may get a phone call from a Customs broker would make your client a lot happier. If the shipment is valued under $200 and is to a person 99.9% of the time it will pass the border without a second look by USC and no filing of electronic entry so it won't be required but if we get an inspector who wants to be difficult then..... Any shipment of clothing over $200 and your going to be better off explaining to your client and obtaining the info before you ship to avoid hassles and extra costs at the border, and ultimately and angry client because his shipment is delayed.

Second ramble has to do with duties & taxes. Putting "armor" in as sporting goods would make them duty free but not free from merchandise processing fee. US Customs charges two fees on all shipments, duty which everyone is familiar with and is a percentage based on the declared value of the shipment (free to 70+% depending on the item). They also charge a merchandise processing fee. If the item is informal (under $2,000 and not covered under the list of formal regardless of value or over $250) then the mpf is $2. If the entry is formal then the mpf is 0.21% of the declared value with a minimum of $25 (max $475). This means you could send a complete outfit such as Gwen sells valued at approx $400 and the client would be charged duty on the value of each item based on how they're classified plus $25 mpf. NAFTA completely eliminates both of these charges (but not a brokerage fee for clearing the shipment - I got to make a living somehow).

Ok, I've rambled enough... hope this did more good then causing confusion (was that actually a sentence? I'm beginning to confuse myself).

if I can clarify any of this let me know

Will

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Squire to Bedawyr of Avaricum, Baron, KSCA

"quarterly azure and sable, an eagle displayed argent and on a chief argent two crescents sable"