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    1. Arjan is offline

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      #1

      Does my overseas dropshipper have to show the wholesale price on import papers for custom duties purposes?

      Hi all there,

      I am located in Belgium and am considering starting dropshipping with a supplier located in China. I might be shipping (from China) to Europe and the USA/Canada mainly.

      I guess this is a common problem (with dropshippers) but I have not found anything which tackles the subject as yet on this forum.

      It seems that my dropshipper ensures a blind dispatch (they promise not to show their details on the parcel), yet they must indicate content and price on the parcel in order to clear possible custom duties.

      Of course, the price would be the drop-shipper price (the wholesale price) as they won't know how much I charge my customers. So obviously I do not like my customers to see how much I paid the item (and my surcharge to them) but this seems the norm. Does it work the same for all dropshippers?

      How does it work for you? I also wonder what the custom (or a post office) located - say - in the USA would do when they receive a package with no value written on it. Do they open the package for inspection? Do they send it back to the sender?

      Thanks for any clarification.

      Best regards,

      Arjan
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    2. WholesaleMod's Avatar
      WholesaleMod is offline

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      #2
      Hi Arjan,

      Welcome to Wholesale Forum

      Please note your customer IS the importer, unless you choose to cover import duties for your customers. You can ask your dropshipper to state your retail price, or you can open an account with your customs office linked to your business. They will assign you a reference number which your dropshipper can include with each one of your orders. Import duties will then be applied automatically to your customs account, based on your wholesale price + shipping & insurance.

      If no value is stated on the packaging, customs may open it and assign it the value they deem most appropriate. The addressee will still be responsible for paying import duties, unless your customs reference ID is quoted on the packaging / import papers.

      Hope this helps
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    4. experience is offline

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      #3
      Hi Arjan,

      The moderator has given sound advice.

      The main problem I see for you is that although it would be quite simple for you to open an account with Customs in the Netherlands, it might be more difficult to do so in other countries.

      The EU for example does not have centralized Customs processing, so you would need an account in every EU country where you may have customers. You would also need an account in the USA and another in Canada. Perhaps an international organization such as Kuehne and Nagel might provide a service to you to overcome that problem.

      Provided you clearly advertise that customers will be responsible for any duty and taxes, another possible course of action might be for you to request your dropshipper to add a flat rate of X% (your margin) to their wholesale price when declaring value.

      That would disclose your selling price to the dropshipper, but would ensure that your customer pays the correct duty and tax. Dropshippers know you are making a profit anyway.
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    5. Arjan is offline

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      #4

      Quote:

      Originally Posted by experience View Post
      Hi Arjan,

      The moderator has given sound advice.

      The main problem I see for you is that although it would be quite simple for you to open an account with Customs in the Netherlands, it might be more difficult to do so in other countries.

      The EU for example does not have centralized Customs processing, so you would need an account in every EU country where you may have customers. You would also need an account in the USA and another in Canada. Perhaps an international organization such as Kuehne and Nagel might provide a service to you to overcome that problem.

      Provided you clearly advertise that customers will be responsible for any duty and taxes, another possible course of action might be for you to request your dropshipper to add a flat rate of X% (your margin) to their wholesale price when declaring value.

      That would disclose your selling price to the dropshipper, but would ensure that your customer pays the correct duty and tax. Dropshippers know you are making a profit anyway.
      Thanks for your and for the mod advice.

      You guessed my problem correctly. It's extremely impractical to open custom accounts in every country i might be shipping to.

      On the other hand, I also hope that the amount I sell my items for (I guess never more than 20 euro) should never end up in the customer having to pay for custom duties. But I need to check just to be sure...

      Cheers,
      Arjan

    6. BlueJae is offline

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      #5

      Quote:

      Originally Posted by WholesaleMod View Post
      Hi Arjan,

      Welcome to Wholesale Forum

      Please note your customer IS the importer, unless you choose to cover import duties for your customers. You can ask your dropshipper to state your retail price, or you can open an account with your customs office linked to your business. They will assign you a reference number which your dropshipper can include with each one of your orders. Import duties will then be applied automatically to your customs account, based on your wholesale price + shipping & insurance.

      If no value is stated on the packaging, customs may open it and assign it the value they deem most appropriate. The addressee will still be responsible for paying import duties, unless your customs reference ID is quoted on the packaging / import papers.

      Hope this helps
      Resurrecting an old thread here, but this applies to my situation perfectly.

      I am having products drop shipped from China to the US. Do you have more information on how to go about opening an account with US customs? (I am in Canada). Also by doing this will I be saving brokerage charges that couriers like to tack on? Pre-payment is my main goal as I don't want customers getting customs bills at their doors.

      Thanks for any help with this!

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