Taxes and duties?

Question

I just ordered something online and after the transaction was complete, I saw in very fine print that the recipient of the package is responsible for all duties and taxes...how does this work? Will these charges be added to my credit card? How can I find out how much these extra expenses are. I believe the package is coming from Australia (to U.S.) weighing approx. 10lbs.

Answer 1

You won't know until it gets here.

The customs/duties are imposed by the US government on the package you are importing.  The amount isn't based on weight, but on the actual item you are importing.

Some items are heavily taxed (clothes, textiles, purses, electronics).  Some are a really low amount (I've paid 4% on used items from New Zealand).  Some items aren't taxed at all.  *IF* you are charged the tax, you pay for it when it's charged to you, it does not automatically go on your credit card.

Do you know how the item is being shipped?  USPS tends to be very lenient (eg not charge when they should) and doesn't add huge brokerage fees.  3rd party shippers (UPS, FEDEX, DHL) may or may not be sticklers for following the law...and if they do any work, they add a hefty broker fee.

The USPS will expect to get paid before delivery.  If the amount is nominal ($25 or less), the 3rd party shippers often send a bill of lading to the address a week or two later and expect you to follow up and pay .