Importing: costs, confusion, headaches
Posted: Jun 15th, '14, 21:18
I've often been dismayed by the retail cost of products. In regards to tea, most of it comes from countries that pay people working in the industry less per day than workers get in "developed" countries for an hour.
However, every official hurdle that must be jumped comes at a cost of time etc. which is ultimately paid by the retail customer.
Some countries want reports on what money is coming in-- for what etc. A bill may not be paid by credit card on-line or over the phone. A wire transfer can cost $45 to send; &, fees may be charged to the receiver though the sender was told there would be no additional fees.
Language of the USA's harmonized tariff schedule can be confusing. E.g., black tea is duty-free in immediate packings of content not exceeding 3 kg. Does this mean that 10 kg. of tea sent in one-kg. packs is duty-free? I don't know? Do you?
A customs official can look at an invoice that lists the cost of goods & the cost of shipping; then tax the total (though it is incorrect to do so). To fight mistakes, one applies for a hearing that he may learn of only 72 hours before it is scheduled. If the hearing is missed, the goods are destroyed. A broker may attend on the receiver's behalf & charge his client much more than the money he saved his client... etc.
So, tea seems to cost 3 to 4 times more, but it does not. I am bringing in tea in quantity to save 60% but will save much much less. I will have secured a great tea, a "vintage" so to speak--- good, I hope I have the energy to drink it.
However, every official hurdle that must be jumped comes at a cost of time etc. which is ultimately paid by the retail customer.
Some countries want reports on what money is coming in-- for what etc. A bill may not be paid by credit card on-line or over the phone. A wire transfer can cost $45 to send; &, fees may be charged to the receiver though the sender was told there would be no additional fees.
Language of the USA's harmonized tariff schedule can be confusing. E.g., black tea is duty-free in immediate packings of content not exceeding 3 kg. Does this mean that 10 kg. of tea sent in one-kg. packs is duty-free? I don't know? Do you?
A customs official can look at an invoice that lists the cost of goods & the cost of shipping; then tax the total (though it is incorrect to do so). To fight mistakes, one applies for a hearing that he may learn of only 72 hours before it is scheduled. If the hearing is missed, the goods are destroyed. A broker may attend on the receiver's behalf & charge his client much more than the money he saved his client... etc.
So, tea seems to cost 3 to 4 times more, but it does not. I am bringing in tea in quantity to save 60% but will save much much less. I will have secured a great tea, a "vintage" so to speak--- good, I hope I have the energy to drink it.