Shipping into the USA from the European Union: Some Basic Info on the Monster Show

Kevin Wilkins

Kevin Wilkins

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Oct 7, 1998
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This thread is an offshoot from another thread and its aim is to provide some information and bring a bit of clarity to a confusing and very frustrating situation that is now International Shipping Today. As many have already read, the US government recently made a major change to US Customs regulations governing the importation of goods into the US from abroad. Previously US citizens were able to import goods worth up to $800 free from any US Customs duty. Now ALL merchandise coming into the USA - regardless of the value - is subject to US Tariffs and Duties. This is pretty much how it has always been for most of the world and the USA was an exception in allowing its citizens to import goods duty free. Those days are over. The minimum duty is 15% which is calculated based on the total cost of the merchandise PLUS the shipping costs.

In one BBC article on this subject it was mentioned that approx. 4 million packages come into the USA every day. Previously the vast majority were waved right on through at the border by the shipping companies and delivered to the recipient quickly. Now every damn package has to be processed, the duties and taxes calculated and this money collected before the shipment is delivered to the recipient. This is a massive job. And it's one that is done by the shipping company, NOT by US Customs.

The shipping companies only had a few months to prepare for the changed regulations and none of them were ready. Add to this that the US Tariffs seem to change by the day if not the hour and you can picture the nightmare. I'm not trying to make excuses for the shipping companies but it's important to understand they didn't make this situation and are simply overwhelmed by the scale of the problem.

What Information is Needed for an International Shipment?​

The USA now requires every shipment contain an invoice listing:
- Merchandise Value of every item in the shipment which should match any insurance. Don't list the value as €100 and insure it for €2500.
- Customs Code Number for every item with Country of Origin (God help you if it's China or Russia!)
- A clear product description and the intended use for every item (No more Camping Tools and Cutlery, more like Fixed Blade hunting knife with wooden grips and leather sheath for use by hunters)
- the weight of each product must be provided
- For items containing or made from Steel or Aluminium the origin of the metal must be given (Exactly how if at all this has to be documented is something I haven't been able to find out. Is just listing Blade Steel Origin Sweden enough or do we need 10 pages of docs from Sandvik too?)

I highly recommend reading up on FAQs up on the websites of the major shippers such as FedEx, DHL, UPS and DHL Express. You should also familiarize yourself with INCOTERMS 2020 which sets the rules for who pays for what in international shipping. Basically you want to only ship DAP which means the buyer pays the duty, taxes and fees.

A common misconception is that your package is "stuck in Customs." Customs never has your package. Or you better hope they don't. The shipper has your package. The shipper acts as an agent for Customs, processing the paperwork in good faith (!!) and collecting the Duty. Customs has the right to flag and hold up any shipment they want to inspect. Or if their dope sniffing dog starts doing a happy dance when he sees your box. The problem for the shipping companies is where to put all these packages that had previously come in and gone right on out? Now they have to sit in a warehouse while the paperwork gets done and meanwhile there's a million more piling up every day. Like that warehouse scene in one of the Raiders of the Lost Arc films.

Currently the only major shipping company worth having a go with is DHL Express. Be aware that DHL and DHL Express are two different companies! DHL Germany now only ships Incoterm DDP which means they will bill the seller for all US duties and fees at some later date when they get around to it. You, the seller, will either have to eat those costs or try and get your customer to pony up way after they have their order. So DHL Germany is out. FedEx seems very hit or miss, I have not tried them but have read enough to not want to. UPS is a total disaster, see the linked articles in the other thread - and just read the other thread.

I will try and post more when I have some time and hopefully other folks will post their experiences, tips and links. My business has been devastated and I know I'm not alone.

Link to other shipping thread - https://www.bladeforums.com/threads/help-needed-with-ups.2052709/
 
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Thanks for the information. My package is still with UPS in Louisville KY. It has been there since Sept. 21. I keep getting messages that they will contact the receiver which is me, but they never have.
 
Another note, don't try and be a wise-a$$ with the information you provide. This will only cause your shipment to be delayed, never arrive or end up getting hit was some crazy, way too high and wrongly calculated duty. Good luck on ever getting any shipper to fix that and refund anybody anything. Make sure you use a valid, correct customs number for what you're shipping. There are a bunch of ways to find these online including ChatGPT. You want your invoice to be clear, easily understood and contain all the information required for clearance. The information should also be believable. You want whoever is processing the forms to see everything they're looking for, believe what they're reading and process the damn order in one go.
 
Unfortunately, I will not be buying anything from overseas under these conditions. It was bad to begin with and now we might as well embargo all trade.

N2s
 
The steel in knives is also liable for a separate tariff. Although exactly how that is calculated I am unsure.

For most of the South African knifemakers selling into the U.S. is getting harder and harder.........
 
navman said:
what about shipping into EU, specifically Germany?
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That's not a problem, the German buyer will have to pay German import duty and 19% German sales tax but unless the item shipped is illegal or requires an import license, the package should arrive fine. The backup and problems are on the US side.
 
Americans have had access to so many different niche products from around the world for at least a generation or two, and while many Americans would gladly absorb the extra costs of the taxes on them, the reality is that the burdensome bureaucracy and lack of any insurance that the goods will arrive is causing these producers to either redirect their efforts toward other countries, or simply go out of business.

I think that the net effect of these tariffs will ultimately decrease the availability of choices in the US market, especially for people like ourselves whose interests are somewhat niche.

I feel incredibly fortunate- up until about a year and a half ago, I was full steam ahead with building my knife and sheath making business as a full time maker, all due to the incredible support of my American patrons who made up well over 95% of my business. At that time, my other dream job came a'knockin', so I wrapped up my commitments and started fixing bikes again, while taking on a smaller number of special orders.

I'm so lucky I made that move, as I had no idea that the US government's future policies would otherwise kill my business. So, I have time now to pivot. I'll never give up on being a maker and maintainer, so I'll be looking to build an inventory and start attending Canadian knife and gun shows in order to peddle my wares and build some awareness of my work here in my home country. I'll also take on knife sharpening locally and further develop those skills. Unless the de minimis exemption is reinstated, and the red tape is cut, my ability to sustain my business by counting on my US patrons isn't really on the table. It sucks.

I know I'm not really adhering to the specifics of your thread, Kevin Wilkins Kevin Wilkins , but we are in exactly the same situation. In fact, makers around the world are, as well. I have a hard time understanding who wins in this scenario, as both consumers and producers suffer alike.
🤷‍♂️
 
Lorien said:
Americans have had access to so many different niche products from around the world for at least a generation or two, and while many Americans would gladly absorb the extra costs of the taxes on them, the reality is that the burdensome bureaucracy and lack of any insurance that the goods will arrive is causing these producers to either redirect their efforts toward other countries, or simply go out of business.

I think that the net effect of these tariffs will ultimately decrease the availability of choices in the US market, especially for people like ourselves whose interests are somewhat niche.

I feel incredibly fortunate- up until about a year and a half ago, I was full steam ahead with building my knife and sheath making business as a full time maker, all due to the incredible support of my American patrons who made up well over 95% of my business. At that time, my other dream job came a'knockin', so I wrapped up my commitments and started fixing bikes again, while taking on a smaller number of special orders.

I'm so lucky I made that move, as I had no idea that the US government's future policies would otherwise kill my business. So, I have time now to pivot. I'll never give up on being a maker and maintainer, so I'll be looking to build an inventory and start attending Canadian knife and gun shows in order to peddle my wares and build some awareness of my work here in my home country. I'll also take on knife sharpening locally and further develop those skills. Unless the de minimis exemption is reinstated, and the red tape is cut, my ability to sustain my business by counting on my US patrons isn't really on the table. It sucks.

I know I'm not really adhering to the specifics of your thread, Kevin Wilkins Kevin Wilkins , but we are in exactly the same situation. In fact, makers around the world are, as well. I have a hard time understanding who wins in this scenario, as both consumers and producers suffer alike.
🤷‍♂️
Click to expand...
(Apologies for adding to Lorien's derailment.)

I just ordered some belts this week from Canadian based company Maritime Knife Supply.
They have 10-packs, listed quite a bit cheaper than my usual suppliers.

I noticed that some of their usual items were not listed, and they posted a notice saying "Due to the elimination of the $800 De Minimis Exemption, MKS is only selling USMCA products (products made in the USA, Canada or Mexico) to the USA to avoid additional tariff and brokerage fees to our customers in the USA. If a menu item is empty, it was a product made outside of Canada, the USA and Mexico."

I almost didn't place the order because when I added a pack of belts to my cart, I had to acknowledge a disclaimer saying "I accept the Shipping/Freight Terms and Conditions I acknowledge that I am responsible for any duties, taxes, tariffs or other charges imposed on my order when importing it to the destination country." I was worried that extra fees might kill any savings and then some, and that my order might get tied up for weeks etc.

Incredibly, my order from Tuesday just got delivered in only 48 hours, with no extra fees.
The tracking shows that the shipment started in Canada and passed the border to my US address.

Lorien, you might want to contact those folks to get clarity about USMCA products.
 
Richard338 said:
(Apologies for adding to Lorien's derailment.)

I just ordered some belts this week from Canadian based company Maritime Knife Supply.
They have 10-packs, listed quite a bit cheaper than my usual suppliers.

I noticed that some of their usual items were not listed, and they posted a notice saying "Due to the elimination of the $800 De Minimis Exemption, MKS is only selling USMCA products (products made in the USA, Canada or Mexico) to the USA to avoid additional tariff and brokerage fees to our customers in the USA. If a menu item is empty, it was a product made outside of Canada, the USA and Mexico."

I almost didn't place the order because when I added a pack of belts to my cart, I had to acknowledge a disclaimer saying "I accept the Shipping/Freight Terms and Conditions I acknowledge that I am responsible for any duties, taxes, tariffs or other charges imposed on my order when importing it to the destination country." I was worried that extra fees might kill any savings and then some, and that my order might get tied up for weeks etc.

Incredibly, my order from Tuesday just got delivered in only 48 hours, with no extra fees.
The tracking shows that the shipment started in Canada and passed the border to my US address.

Lorien, you might want to contact those folks to get clarity about USMCA products.
Click to expand...
David Mary has been amazing wrt sharing his newly acquired knowledge wrt customs etc.

Technically, everything I make is covered by CUSMA, so there shouldn't be any extra fees for US patrons. That said, even with the documentation required, David has had the fees applied to some of his shipments anyway. He's also had shipments returned.

An outfit like Lawrence's, (Maritime) has had to deal with quite a lot lately, and he's definitely smarter than me when it comes to business, so I'm sure he's been able to streamline his operation and make things work. For me, though, jumping through all the hoops kind of kills my enthusiasm. Shipping is always the lamest part of my work, and now it's 10x lamer. I'm a maker because I love making. I don't love shipping and I don't love selling, but obviously I gotta do what I gotta do to keep the dream alive.

I think the answer is to find an agent in the US that I can do bulk shipments to, who can in turn send my work to US patrons. I have a couple ideas, specifically for my sheaths, that I'll be thinking on over the next little while.

One thing I've learned in life so far, is that even when things seem implausible, there is almost always a workaround.
 
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