Country of Origin and Import Duties...

R

Ricky

Guest
When buying chips from China, how do you prove the country of origin to avoid the import duty?
 
On Wednesday, June 29, 2022 at 10:53:50 AM UTC-4, Phil Hobbs wrote:
legg wrote:
On Tue, 28 Jun 2022 09:44:38 -0700 (PDT), Ricky
gnuarm.del...@gmail.com> wrote:

When buying chips from China, how do you prove the country of origin to avoid the import duty?

Semiconductor packaging labels list the country of origin.

RL

Which is probably fine unless they\'re looking for transshipment.

See e.g.
https://harrisbricken.com/chinalawblog/transshipment-no-magic-remedy-against-tariffs/

Like everything else, it depends on how much money is involved. According to CBP if it\'s under $1000 a simple notation of country of origin on seller invoice will suffice. It\'s not worth anyone\'s time to do more than that. The country of origin jazz is a very, very, very small part of customs clearance. U.S. has put some kind of requirement on China to sanitize and disinfect their shipments. Sounds like they pack it all into a sealed warehouse and then fog the place to the max. Buyer shouldn\'t have to worry about any of that, in the U.S. anyway.
There\'s a fairly huge ( as in gazzilions of $$ involved) industry of full service import handlers that take care of every little thing from unloading the shipment ( air, boat, or whatever) , sorting packages, clearing customs, and arranging for shipping and delivery in the destination country. They employ licensed customs brokers (port specific) who know all the customs requirements, and customs knows them. The brokers are just a very small part of the operation. If the so-called exporter is not using these services then something\'s wrong with them.

\"Customs brokerage is a profession that involves the clearing of goods through Customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation (and usually the payment) on behalf of the client of taxes, duties and excises, and facilitating communication between the importer/exporter and governmental authorities. Customs brokers in the U.S. will often prepare and submit documentation to notify or obtain clearance from other government agencies such as the U.S. Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), and/or U.S. Fish and Wildlife Service. In the United States, as is the case through much of the world, Customs brokers are licensed by the local Customs authority. In the United States, this authority is the U.S. Department of Homeland Security, Customs and Border Protection. \"



(That Harris Bricken blog is almost always an excellent read, BTW.
Recommended.)

Cheers

Phil Hobbs

--
Dr Philip C D Hobbs
Principal Consultant
ElectroOptical Innovations LLC / Hobbs ElectroOptics
Optics, Electro-optics, Photonics, Analog Electronics
Briarcliff Manor NY 10510

http://electrooptical.net
http://hobbs-eo.com
 
On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

Should depend on the type of product and the valuation of the shipment.

I take it things are different in the USA?

John :-#(#
 
On Tue, 28 Jun 2022 13:37:27 -0700 (PDT), Ricky
<gnuarm.deletethisbit@gmail.com> wrote:

On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?

Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.

I don\'t know what \"proof\" is required.

Yes, it\'s awful for us manufacturing electronics in the US. 25%
tariffs on a LOT of parts that are only available from China.
Electrolytics for instance. (only ones that are any good anyway)

But then again, if we were to manufacture our entire product in China,
then it is MUCH cheaper. But then 70+ people are out of a job.

boB
 
On Saturday, July 2, 2022 at 5:37:20 PM UTC-4, boB wrote:
On Tue, 28 Jun 2022 13:37:27 -0700 (PDT), Ricky
gnuarm.del...@gmail.com> wrote:

On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?

Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.

I don\'t know what \"proof\" is required.
Yes, it\'s awful for us manufacturing electronics in the US. 25%
tariffs on a LOT of parts that are only available from China.
Electrolytics for instance. (only ones that are any good anyway)

But then again, if we were to manufacture our entire product in China,
then it is MUCH cheaper. But then 70+ people are out of a job.

I may try this with my next design. As it turned out, there was no tariff. There was a handling fee from customs and a handling fee from DHL for handling the customs handling fee.

What\'s even weirder, is that the distributor only shipped one of three shipments ( I had to split it into three orders to get it on the credit cards). I could not get any word from them about why they had not shipped the other two and said if they can\'t provide info, I would be canceling the orders.. They canceled the orders! But then, going back to Octopart, I found Rochester had 40,000 of the part at the lowest price of anyone. So now Rochester has 33,000 of them. At that price, what was two orders fit on one credit card.

--

Rick C.

-+ Get 1,000 miles of free Supercharging
-+ Tesla referral code - https://ts.la/richard11209
 
On 2022/06/28 9:44 a.m., Ricky wrote:
> When buying chips from China, how do you prove the country of origin to avoid the import duty?

In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?

John :-#(#
 
On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?

Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.

I don\'t know what \"proof\" is required.

--

Rick C.

+ Get 1,000 miles of free Supercharging
+ Tesla referral code - https://ts.la/richard11209
 
On Tuesday, June 28, 2022 at 1:37:36 PM UTC-7, Ricky wrote:
On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?
Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.

If it\'s coming from China, why is it not made in China or at least value-added in China? What are the goods in question?
 
On Tuesday, June 28, 2022 at 5:16:05 PM UTC-4, Ed Lee wrote:
On Tuesday, June 28, 2022 at 1:37:36 PM UTC-7, Ricky wrote:
On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?
Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.
If it\'s coming from China, why is it not made in China or at least value-added in China? What are the goods in question?

Buying from a broker. No value added, just a salesperson.

--

Rick C.

-- Get 1,000 miles of free Supercharging
-- Tesla referral code - https://ts.la/richard11209
 
On 06/28/2022 12:56 PM, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin
to avoid the import duty?

In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?

John :-#(#

uS customs can be dicks if they\'re having a bad day. I came back from
Trois Rivieres with a half dozen spare ice cube relays in my tool box.
iirc they were from Taiwan and I did not have proof I\'d brought them
with me from the US so they charged me duty. Fortunately the tools and
the Simpson meter were US products.

Usually if you dig into in the US and Canada are in some sort of pissing
contest over lumber, salmon fisheries, or something and it trickles down
to the poor sucker trying to cross the border.
 
On 2022/06/28 5:13 p.m., Ricky wrote:
On Tuesday, June 28, 2022 at 5:16:05 PM UTC-4, Ed Lee wrote:
On Tuesday, June 28, 2022 at 1:37:36 PM UTC-7, Ricky wrote:
On Tuesday, June 28, 2022 at 2:56:41 PM UTC-4, John Robertson wrote:
On 2022/06/28 9:44 a.m., Ricky wrote:
When buying chips from China, how do you prove the country of origin to avoid the import duty?
In Canada if an electronic component comes from China there is no import
duty.

I take it things are different in the USA?
Yes, a little bit. You may remember the time we had a carrot as President? Yes, as some form of retribution for Covid, he decided that trade should be constrained, even when China is the only real source for various goods, and imposed a significant import duty on many types of goods that are made in China. To prevent people from avoiding the tariff by shipping through other countries, the tariff is imposed based on the \"country of origin\". However, they impose the duty on anything coming directly from China until shown the goods were not made in China.
If it\'s coming from China, why is it not made in China or at least value-added in China? What are the goods in question?

Buying from a broker. No value added, just a salesperson.

If possible get a Commercial Invoice for the items from your supplier
and make sure the Country Of Origin is displayed beside the items
listed. If all items come from one country it is OK to simply put that
on the commercial invoice AFAIK.

https://www.deskera.com/blog/commercial-invoice/

I have trouble convincing some of my suppliers to do this, but it sure
pays off when Customs gets a hold of it...

John :-#)#
 
On Tue, 28 Jun 2022 09:44:38 -0700 (PDT), Ricky
<gnuarm.deletethisbit@gmail.com> wrote:

>When buying chips from China, how do you prove the country of origin to avoid the import duty?

Semiconductor packaging labels list the country of origin.

RL
 
legg wrote:
On Tue, 28 Jun 2022 09:44:38 -0700 (PDT), Ricky
gnuarm.deletethisbit@gmail.com> wrote:

When buying chips from China, how do you prove the country of origin to avoid the import duty?

Semiconductor packaging labels list the country of origin.

RL

Which is probably fine unless they\'re looking for transshipment.

See e.g.
<https://harrisbricken.com/chinalawblog/transshipment-no-magic-remedy-against-tariffs/>

(That Harris Bricken blog is almost always an excellent read, BTW.
Recommended.)

Cheers

Phil Hobbs

--
Dr Philip C D Hobbs
Principal Consultant
ElectroOptical Innovations LLC / Hobbs ElectroOptics
Optics, Electro-optics, Photonics, Analog Electronics
Briarcliff Manor NY 10510

http://electrooptical.net
http://hobbs-eo.com
 
On Wednesday, June 29, 2022 at 5:28:22 AM UTC-7, legg wrote:
On Tue, 28 Jun 2022 09:44:38 -0700 (PDT), Ricky
gnuarm.del...@gmail.com> wrote:

When buying chips from China, how do you prove the country of origin to avoid the import duty?
Semiconductor packaging labels list the country of origin.

China is well known for making fake labels or packagings.
 

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