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Dropshipping from out of the country

by Bruha
4 replies
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I was just reading through some FAQ pages of dropshippers and found one that had a question on import taxes, customs, etc.

I'm wondering how I need to handle this scenario of using a dropshipper from say China or Hong Kong to sell products primarily in the USA?

Do I need to worry about import taxes, customs, etc? Here is the statement I found on one of hte pages:

How are customs and tax issues handled?
The customer is responsible for all customs and import issues including but not limited to knowing import laws, dealing with taxes, tariffs, and item seizures. Hong Kong warehouse items are not subject to any export taxes.

Am I the customer in this case? Or is the person buying the item the customer?

Thanks.
#country #dropshipping
  • Profile picture of the author Andy Kobe
    Great question! My primary business model is offline buying and selling, which includes at times out-of-country dropshipping.

    I think the worst thing that I can do for you right now is give you direct advice. What I mean is I am going to suggest that you hire a tax consultant for this matter.

    I was getting all kinds of advice on forums but then when I hired an expert, most of what I was told wasn't correct.

    It would have cost me a lot of money and legal troubles.

    So hire someone. You'll be glad you did. Don't risk your business without it.
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  • Profile picture of the author THK
    I think you are the customer they are talking about. You wouldn't expect your customer to study import laws, tax and tariffs etc. when simply buying a product. They will pay you and want the product delivered to their door.

    Good luck

    Tanvir
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  • Profile picture of the author rrpidor
    Hi,

    When you do dropshipping business. you really don't know the exact value of import taxes on each country. so when you post a product, just include it on your description, that you state import taxes should be shouldered by the buyer. so they will know also the conditions of buying online from other country.

    I hope it helps.
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    • Profile picture of the author derekwong28
      I have shipped more than 20000 orders from the Hong Kong to the US before. The vast majority of orders do not get taxed. I believe that you have to go over a certain value in order to get taxed.

      When they do, it can be quite complicated. For example with gold watches, there is a different tax rate for the gold case, the movement and the strap. In other words, it is very unpredictable and it is best that you leave it to the end customer.
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