Shipping to US royal mail DDP

[ojewellery]

US sales represent around 15% of my cross platform business. So I've started an experimental ship to US before peek trial.

I'm a royal mail account customer and on Thursday they introduced their Delivery Duty Paid (DDP) service.  Its billed as invoicing account customer for the duty and a 50p handling charge.

I don't know what the postage rate will be - its billed as what you were paying before, I had to send as a parcel not large letter as large letter service wasn't available DDP.  I've used code MPR 

International Business Parcel Tracked DDP (01 / X8162259) (£50 compensation)

MPR

The account form was practically the same as previous:

The fill in customs form as you can see from above is very similar to previous with the addition of the customs duties costs box top left - it auto filled from the imported order.

The order also required a phone number and email - previously either/ or sufficed.

The label shows DDP - highlighted so customers shouldn't get a nasty surprise.

I'll update the thread with what its all cost, charges etc as they appear on the account.

[fatbobfan]

I had a California issue this week that did dumbfound me until I read it clearly.

As @4_bathrooms says, two seperate charges on the one transaction

The buyer has paid Ebay for the State tax, Ebay will remit to the State

We sellers then have to deal with new Tariff charges, eg through the courier/postal system. 

Not advising what courier service you use but can confirm if you use the Royal Mail online system it will calculate the tax to be paid, you dont have to pay for the service, you can use the process to give you the exact figure of the hit.  Maybe the Ebay one does as well?,

I used the RM website and its a bit like the IOSS, to look at your postal label nothings changed, its all recorded digitally. 

Double whammy,

A few select words on the Ebay process/packing slip, pointing this out could make things a little clearer

[ojewellery]

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@watchfan700uk wrote:

is that all included - shipping costs and DDP tax etc? for a tracked parcel to usa?

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The cost shown doesn't include tariffs i.e. the duty to be paid prior to delivery.  Its just the shipping and the additional handling fee.  I've not yet had an invoice for the tariff for the example parcel delivered over a week ago!

[eyewear247]

I have just spoken to an account manager at Royal Mail and have been advised that there is no system in place to recover the pre-paid tariff in the event of a customer return where the goods are exported back out of the US and imported back into the UK.

Unfortunately for those selling in clothes, shoes and accessories categories or any other category where a higher percentage of returns are expected it places a big question mark over the viability of selling in the US.  Taking a hit on the outgoing postage is one thing but to also take a hit on the tariff charge in another. 

[4_bathrooms]

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@eyewear247 wrote:

I have just spoken to an account manager at Royal Mail and have been advised that there is no system in place to recover the pre-paid tariff in the event of a customer return where the goods are exported back out of the US and imported back into the UK.

I did wonder about that but due to the way the postal system works there wouldn't be any way for Royal Mail to associate the returned package with the one that was sent. Besides, it's the IRS in the US that has the money, not Royal Mail.

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@eyewear247 wrote:

Unfortunately for those selling in clothes, shoes and accessories categories or any other category where a higher percentage of returns are expected it places a big question mark over the viability of selling in the US.  Taking a hit on the outgoing postage is one thing but to also take a hit on the tariff charge in another. 

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The seller is also relying on the buyer to tick the "returned goods" box on the CN22/CN23. If they don't Royal Mail will charge VAT, any applicable Customs Duty and their £8.00 handling charge.

[eyewear247]

The seller is also relying on the buyer to tick the "returned goods" box on the CN22/CN23. If they don't Royal Mail will charge VAT, any applicable Customs Duty and their £8.00 handling charge.

I have had my fair share of returns from the US and the EU and I always send a polite message to the buyer advising of the importance of ticking the correct box for returns and failure to do so may cause delays in UK customs and possibly the return of the package back to sender.

I have had the odd problem but very few and far between with fees to get my order delivered back. Of course if VAT registered you can reclaim the VAT back but the handling charge would be an unnecessary cost to absorb.

[kangamoose_shop]

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@4_bathrooms wrote:

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The seller is also relying on the buyer to tick the "returned goods" box on the CN22/CN23. If they don't Royal Mail will charge VAT, any applicable Customs Duty and their £8.00 handling charge.

It would be handy if Ebay could provide a specific code in your  return adress for such international returns, similiar to the IOSS codes when VAT was collected by Ebay. It's not possible, even with a VPN, for someone located outside the US to purchase a USPS label through the USPS website.   

That might signal the item as a VAT exempt return even if the (possibly first-time international shipper in the US) checked off the wrong category, as you mentioned.  

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[4_bathrooms]

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@kangamoose_shop wrote:

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It would be handy if Ebay could provide a specific code in your  return adress for such international returns, similiar to the IOSS codes when VAT was collected by Ebay.

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Trump's tariffs do not work like IOSS. IOSS was planned in advance with systems being implemented and tested years before IOSS went live. Trump's tariffs were announced merely months before being introduced and - due to Trump's constant flip-flopping - nobody knew whether they would actually go ahead, be changed or rescinded entirely. The money is paid to the US IRS who almost certainly have no intention of implementing a system for affected senders to reclaim payments for returned goods. As the tariffs have been ruled illegal by the US appeals court they may be suspended or abolished entirely in the near future so the IRS will currently not be motivated to do anything except collect the tariffs. 

[kangamoose_shop]

I was really referring to a sort of EBay provided "return code" , so if you as a UK seller has a package returned by an international buyer, something like "IRC 8675309" which would mean basically "Attention HMRC and RM, this package was previously exported from, and  is now being returned to the UK, do not collect additional fees of any sort".  It was a bit OT, not really about recovering US tariffs but preventing VAT and associated handling charges when a package is returned to YOU from abroad.   

When I ship from Sweden to the UK, there is actually no field on the customs form to enter Ebays "GB xxx xxxx xx Code:Paid" , so I just use that VAT prepaid code as the 2nd line of the UK buyers adress. Works every time.  Since Ebay is already handling the money involved, they really should handle that aspect as well.  A "this is a return from abroad so don't charge fees on this" code 

I know, US tariffs collection and abandoning de minimis was approved by Congress for a start date in July 2027, but tRump decided to implement  it 2 years earlier instead, on his own accord. 

I wish that the RM brainchild who made a working US tariff prepay system would come and work here, rapidly approaching 4 weeks now of this package stop to the USA.   

[bricklanebargains]

We normally sell 2-3 items to the US every day around this time of the year but haven`t been able to sell a single thing to an American since the tariffs entered into effect. Our descriptions clearly state that we pay Customs duty/import fees but still nothing. I was expecting a decrease in sales but this is unusual. Also we haven`t even received any questions from potential American buyers which makes me thing that our listings might be hidden in the US.   

[cobwebcottage]

GSP is still active shipping to the US.

It may be worth switching it on to see if you get your usual sales.

[4_bathrooms]

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@kangamoose_shop wrote:

When I ship from Sweden to the UK, there is actually no field on the customs form to enter Ebays "GB xxx xxxx xx Code:Paid" , so I just use that VAT prepaid code as the 2nd line of the UK buyers adress. Works every time.  Since Ebay is already handling the money involved, they really should handle that aspect as well.  A "this is a return from abroad so don't charge fees on this" code 

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I know when a qualifying order is sent to the EU the shipper (Royal Mail or the courier) will request an IOSS number or will otherwise have an "eBay" option when purchasing the address label. What I don't know is how the UK's broadly identical measures work. I wouldn't expect there to be a specific field on the CN22 for this purpose as it is a standardised Universal Postal Union form. What I would expect is for there to be some indication that VAT has been paid on the address label the same way the IOSS logo does for EU orders.

Have you noticed anything different about a UK address label where eBay has charged and remitted VAT?

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@kangamoose_shop wrote:

I was really referring to a sort of EBay provided "return code" , so if you as a UK seller has a package returned by an international buyer, something like "IRC 8675309" which would mean basically "Attention HMRC and RM, this package was previously exported from, and  is now being returned to the UK, do not collect additional fees of any sort". 

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To be fair that is what the "Returned Goods" box on the CN22 is for; sellers have to rely on the buyer actually ticking it and not ticking any other box (the recipient is held liable for the accuracy of the declaration). In any case I can't see how eBay could provide such a code for international returns as the CN22 would override any information provided on the address label anyway.

[jlovie]

Do you fill in the Country of Manufacture field?

I believe that's now needed to sell to the US.

[4_bathrooms]

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@bricklanebargains wrote:

 Also we haven`t even received any questions from potential American buyers which makes me thing that our listings might be hidden in the US.   

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I searched for "Levi 501 jeans" on eBay.com in a private browsing window and you were the 8th result in "best match". Weirdly, whilst the first result was a US seller the next dozen or so were different UK-established sellers. I have no idea if that was due to eBay geolocating my IP address or not.

Something else to bear in mind is there will be an expectation amongst American buyers that anything located overseas will now cost more which might affect their decision to even click on a non-US listing.

[4_bathrooms]

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@jlovie wrote:

Do you fill in the Country of Manufacture field?

I believe that's now needed to sell to the US.

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I've just realised something that tickled me.

Although LS&Co is an American company most of their factories are in India, China, Mexico, Bangladesh and Vietnam. @bricklanebargains would need to check the label on each pair. I can't even tell what the current tariff is for goods originating from China; is it the baseline 10% or is it still 30%? 

[kangamoose_shop]

You seem to be the only person posting actual visual proof of how the system is working, so maybe you can answer this:

As far as you can see, how would you go about returning an item you purchased US seller? I haven't seen any tariff exceptions other than gifts less than $100, and documents.  Can it be done as a return , value of $0, independent of country of origin , and you (the buyer) will only be charged the 50p handling fee?

I have in the past  returned  Buck brand knives  to the USA for warranty service (both their models Made in USA and models Made in Japan), marked as 0 value both ways and neither of us paid anything additional, but that was before the removal of de minimis.  tRumps executive order did not specifically mention returns, does RM mention them or indicate how to proceed with an item being returned to the USA for whatever reason?  I distrust common sense at this point.