Sending assembled PCBs to Europe and taxation.

[GadgetGoof]

I am trying to understand the tax budget required to transfer few PCBs to Europe from China. 12 breakout boards with PIC32MK soldered, with no invoice, etc. Single chip itself costs around $7, but I've learned that it's irrelevant. Is there any chance that using DHL, SF Express or maybe some fulfillment service may ease this unnecessary struggle with price declaration. How much should I reimburse to the person receiving this parcel? To avoid him feel awkward at the post office when asked to pay the tax? $100, maybe $200? Thanks!

[alm]

The exact procedure is different by country, but this is roughly how it should work in most EU countries. International shipments need to have a customs declaration (CN22/CN23) form attached that states the contents and values. Possibly more paperwork like a commercial invoice depending on the value and purpose. Generally this value is used to assess taxes, although the tax authorities are free to inspect their package and do their own assessment. The recipient generally pays VAT (roughly 17-25% in the EU depending on the country) over the value + shipping costs, and depending on the type of item, value (if above €150) and country of origin also duties. You can look up duties in the TARIC system. It helps if you know the goods code. Searching for something like "HS code PCB" or "Tariff code PCB" on Google will often give you the answer.

The fees the recipient pays is the sum of VAT, duty (if any) and admin fees the courier charges for doing the import paperwork (something like €4-15 or so, depending on the courier). Depending on the countries they might send an email/letter before delivery asking to pay, ask for money on delivery, ask you to go somewhere to pay or send an invoice some time after delivery. Unless fees are paid in advance (see below), the recipient is pretty much guaranteed to pay these days. The days of writing "$1 gift" on the customs label for a laptop and hoping it would sail through are over.

If you want to make this process easier, then either look at shipping with DDP (delivery duty paid) incoterms or look if the sender can use IOSS (International One Stop Shop) for paying VAT. IOSS is typically used by B2C platforms like eBay and AliExpress, and is not something you're going to set up for a single shipment.

[audiotubes]

I think the limit where we only pay VAT and not duties is 135 euros, which includes shipping.

I have been burned badly by American shops that offered free shipping but which did not list it on the invoice, so I got to pay imaginary shipping costs based on distance to the EU and then distance to my post office (which amounted to almost 200 dollars on 250 dollars of product). So, make sure everything is itemized, even if the shipping is free. If it's less than 135 euros total including shipping if any, then only VAT will be payable (in theory) and they should not charge brokerage or other fees. But, the carriers get their piece if it's not sent EMS (post office). So if you use UPS/FedEX, etc. then get a firm answer on how much the recipient will be charged.

As @alm said, if you can get DDP incoterms that's the best option in general.

But, some Chinese shops have worked out logistics so that the customer pays, the shop/manufacturer ships to their agent inside the EU, and from there it's reshipped as if it originated inside the EU, no taxes, no customs, just shows up like magic. So there are a lot of variables.

[GadgetGoof]

thanks for these valuable answers! I filled some online forms before asking, so I was already familiar with HS codes. Found some good examples by googling "eval board HS" and "evaluation board HS code". It's pretty confusing that there are few different HS codes commonly used for the same type of goods.
Also, I wonder how some single-person Indiegogo campaign owners send their goods to the backers. EDIT: is it common for backers to pay additional tax/shipping fees on delivery?

[alm]

It's pretty confusing that there are few different HS codes commonly used for the same type of goods.

Some of the sub-codes may be different by region, so in the US a certain good might be 8536490075, but 8536490099 in EU. What I find helpful if I'm in doubt is to go to the TARIC system, click "Browse nomenclature" and then look at the descriptions of the codes you are considering. Often they are branched like ".49 Used for automotive, .50 other", or there are descriptions like "With a power supply voltage < 15 V and a power draw < 5W". The difficulty for me is in general finding the area where I have to look. Once I dig down to the relevant part, deciding which isn't too difficult.

EDIT: is it common for backers to pay additional tax/shipping fees on delivery?

Yes, I have certainly paid import fees on physical Kickstarter rewards. Looks like Crowdsupply will pre-pay VAT for EU and other regions (and charge the creator).

[jonpaul]

Dont use thuird party shippment from Chicom or anywere.

Get prod into USA, from China,  first  then ship to your EU cust.

Probably need a QC check anyway.

Fed Ex/DHL can advise on paperwork.

Over $2500 val need US CBP ETN number .

See CBP for ETN and HARM.

Jon