If you’re moving overseas, you already have a ton on your mind—packing up your household, arranging transportation, maybe nailing down details about a job, or where you’ll live—and on and on.
So you’ll be glad to know there’s at least one thing you won’t have to do when you move: pay duties on your personal effects. At least, not if you follow the rules and present all the necessary documents.
Most countries are fairly generous about household goods you can bring across the border without paying duties. Furniture, clothing, kitchenware, electronics, even motor vehicles—most items you’ve used in daily life and will continue to use can enter without charge. Load any number of ocean containers and send them overseas, all at once or within a 12-month period. As long as Customs agents agree that these are used personal effects, you won’t pay duties.
There are a couple of catches, though:
Say you’re a Polish citizen in the US with plans to return to Poland. If you’ve been in the US for less than 12 months, when you go through Polish Customs, you’ll pay duty on any personal possessions you bought in the States. You’ll also pay value added tax (VAT) on those items. But if you’ve been in the US for at least 12 months, you won’t pay duty or VAT on those goods, assuming they meet one more condition:
Customs agents won’t scrutinize each product to figure out its age. But a major item that looks new, or that you pack in its original box, will probably catch an agent’s eye. To avoid a duty payment, be ready to prove that you bought it more than six months ago.
Also, be careful about quantities when shipping personal items overseas. Sure, it’s been eight months since you bought those two cases of your favorite household cleanser at Costco. It’s a great product, and you want plenty on hand to keep your new home clean. To Customs, though, it looks like you’re bringing in supplies for a janitorial business—a commercial import. Officials might let a couple of bottles slide, but you’ll pay duty on the rest.
Some countries won’t let you import vehicles that are beyond a certain age, or whose engines exceed a certain size. But once you establish that you’re allowed to bring your vehicle, most of the same rules for duty-free entry when shipping household goods overseas will apply. Cars, pickup trucks, motorboats, motorcycles, all-terrain vehicles—they all enter without charge if they meet the qualifications. And you can ship as many as you like.
But there’s one extra rule for motor vehicles. It’s not enough to prove you owned the car or boat for at least six months. You must also prove you’ve had it registered in your name throughout that time.
The question of ownership and registration can be tricky. If you leased the car before you bought it, for example, or if a relative gave you the car as a gift, it might not be clear when you became the legal owner. If there’s even the slightest doubt, check with your freight forwarder, or with Customs in your destination country, to see if your vehicle is really exempt from duty and VAT. If it’s not, depending on circumstances, you might be better off selling the car before you move.
To avoid paying duties on qualified household goods, you’ll need the following:
You know that a good tax accountant can save you money by pointing out deductions you didn’t know were available. A freight forwarder with strong experience in shipping household goods overseas plays a similar role, expertly guiding you through the intricacies of import regulations, so every dollar you’re entitled to stays in your pocket.
Are you preparing to move your household to another continent? Contact the international moving specialists at I.C.E. Transport.