Importing Audio Gear Into the USA (2025)
I’m not a lawyer or a professional global logistics person, but I have imported stuff directly from the UK, China, Europe and Japan, so I figure it’s worth starting a thread about importing goods to the U.S. since it can be confusing if you have never done this before.
Importantly, let’s keep politics out of this thread so that it can remain a practical resource.
Economics 101
When you buy goods in the United States, you pay a sales tax. When you live in Europe, you pay a VAT, which is usually included in the advertised price. If you are a tourist to Europe, you can often get a rebate on some of the taxes you paid. This is because you don’t benefit as much from the public services that the VAT covers and because it’s good for tourism.
However, imagine that you bought a widget in Europe instead of buying the same exact widget in the U.S. Let’s say it’s a luxury handbag or watch, where it truly is identical such as a Rolex. When you buy a Rolex from your local U.S. watch retailer, you paid sales taxes that go the city, county, and state. The watch retailer has profits that they also need to pay business taxes on. The shopping center got paid rent from the watch retailer, which also pays taxes. The watch retailer paid their employees, who pay taxes on their salary. Those employees also spent their income on goods and services, with companies that also paid taxes…
You get the point. Your single purchase at a local retailer powers a whole local economy. So, when you import goods, that is money that could have spent locally and there is loss of tax revenue. This is the basis for:
Import Duties
Also called customs duties, these are specific taxes charged on imported goods. The rate is determined by the product’s classification, its value, and its country of origin.
Think of this like capturing lost sales tax. This covers the cost to the economy of you going outside the economy, and covers real things like the cost of inspection and enforcement to stop the bad guys from bringing in illegal/banned substances.
Tariffs
Tariffs are a particular type of import or customs duty imposed on certain imported goods. They are generally calculated as a percentage of the goods’ value and are used to regulate international trade flows, often with the goal of protecting domestic industries from foreign competition.
Tariffs are going to be something to think about today, four years from now, eight years from now, Republican or Democrat. There is no doubt that President Trump’s tariffs have caught the world’s attention, but those of us armchair historians will remember that President Clinton threw 100% tariffs on $520 million worth of popular European products, such as decorative crystal and pecorino cheese and he even put 100% tariffs on the top 13 Japanese luxury cars as negotiation tactics too. Bush, Obama, Biden… find your favorite and least favorite President and you will see tariffs being added for various reasons.
De Minimus Trade Exemption
If anyone you know traveled to Switzerland, they probably came home with some chocolate for friends and family. Theoretically, buying that chocolate overseas is no different than the Rolex example with an economic chain reaction of lost tax revenue. However, chocolate is pretty cheap and the actual cost to maintain and oversee duties is really not worth the effort. The idea that we shouldn’t sweat the small purchases/packages is what de minimis refers to.
If you are importing commercial quantities of chocolate, then yes, there are duties. Personal quantities? Not at all.
https://www.nftc.org/de-minimis-a-vital-tax-exemption/
How expensive would the cost be without de minimis? For something $50, you could end up paying another $47.23!
There needs to be some threshold where it doesn’t make sense to spend so much money to enforce the duties. Thats the idea of de minimis. Importantly, U.S. Customs and Border Protection are still responsible for screening these items and ensuring that illegal stuff isn’t being brought in, and that no one is sending stuff worth thousands of dollars and pretending that it’s just worth $50.
Before 2016, the threshold was $200. Since 2016, the threshold is $800.
The Changing World
In the examples above of a wrist watch or chocolate bar from a vacation to Switzerland, it’s easy to see how that’s not a common event.
In 2016, there were 150M duty free shipments and in 2023 it was over 1 billion packages! The average cost per package in 2023 was $54 not $800, but that’s $54B of goods that probably would have needed to pay taxes. And of course, there may be undereporting of true value of the goods in the package.
On top of that, there is data suggesting that if you look at all imports that are supposed to have duties, it should be ~3.94% but the actual collected duties ends up being ~1.29%. Specifically, one third of good entered duty free regardless of whether they should have qualified for De Minimis exemption or not according to the non-partisan CRS.
For comparison, the EU has a 150€ limit and in 2021, a formal committee created by the EU Commissioner recommended that this exemption be removed due to underreporting of true value and commercial companies skirting the rules by breaking up large shipments into a lot of small ones to avoid duties.
That’s just for normal duties, which average around 4% and are typically single digit percentages. Tariffs can be added in order to encourage local spending or direct imports away from certain countries.
One more wrinkle: The import broker
The HTS (Harmonized Tariff Schedule) is a large database which you can categorize goods into. You can see the type of detail that goes into this:
Sony soundbar (Made in China)
https://rulings.cbp.gov/ruling/n325613
Onkyo receiver (Made in Malaysia)
https://rulings.cbp.gov/ruling/N162335
Polk speakers (Mix of Countries)
https://rulings.cbp.gov/ruling/n328997
Raspberry Pi Audio PCB (UK)
https://rulings.cbp.gov/ruling/N289366
You can see that global companies use legal firms to help prepare the paperwork for importing goods into the United States. The knowledge and time to prepare the customs paperwork is where the import broker comes into play.
When you bring things in under de minimis, my understanding is you basically need to say what it is and what it costs and you’re done. It’s simple.
When you bring things outside of the de minimis exemption, you need paperwork. Sometimes the seller overseas does it for you, sometimes they don’t know how to do it either. The import broker is the person who handles the paperwork.
It can be you, if you know what you are doing. It can be a division of UPS or FedEx, which isn’t the same division actually moving your purchase across the globe. It can be a middle man that is dedicated to global logistics. It can be eBay (only for certain countries like the UK to US).
If I am shipping one speaker or one hundred speakers (in a single shipment), the paperwork should be pretty similar. So broker fees are sort of high for individual customers like you and me, and probably more reasonable for commercial agents.
If I am inspecting a shipment, there’s probably a basic level of effort I need to look at one speaker or one hundred. The Merchandise Processing Fee (MPF) is a U.S. Customs charge assessed for most imports into the United States. The MPF is charged at 0.3464% of the cargo value declared on the commercial invoice, with a minimum of $32.71 and a maximum of $634.62 per entry.
Again, for small low cost shipments, $33 is a big percentage. For high ticket items like a whole pallet of AVRs, $635 might not be too bad.
Here is an example from eBay
The item being sold is £5000. The seller of the goods will have eBay fees deducted from that. Shipping is based upon weight, size, distance, and level of service. The sales tax is the California sales tax in this example. The import duties are the sum of both brokerage fees and actual customs fees.
Here’s another example. I bought some Meyer Sound speakers from Canada. These are US made speakers that I am bringing back to the US. No duties, right? Still need a broker to prepare paperwork and cover inspection fees. That was $55 extra when done by FedEx, on top of shipping and local sales tax. I actually had to return the unit due to a problem, but while the seller refunded all my eBay expenses — the customs paperwork was money that I just lost as part of the transaction.
Practical Guidance
I’m not a lawyer or a professional global logistics person, but I have imported stuff directly from the UK, China, Europe and Japan, so I figure it’s worth starting a thread about importing goods to the U.S. since it can be confusing if you have never done this before.
Importantly, let’s keep politics out of this thread so that it can remain a practical resource.
Economics 101
When you buy goods in the United States, you pay a sales tax. When you live in Europe, you pay a VAT, which is usually included in the advertised price. If you are a tourist to Europe, you can often get a rebate on some of the taxes you paid. This is because you don’t benefit as much from the public services that the VAT covers and because it’s good for tourism.
However, imagine that you bought a widget in Europe instead of buying the same exact widget in the U.S. Let’s say it’s a luxury handbag or watch, where it truly is identical such as a Rolex. When you buy a Rolex from your local U.S. watch retailer, you paid sales taxes that go the city, county, and state. The watch retailer has profits that they also need to pay business taxes on. The shopping center got paid rent from the watch retailer, which also pays taxes. The watch retailer paid their employees, who pay taxes on their salary. Those employees also spent their income on goods and services, with companies that also paid taxes…
You get the point. Your single purchase at a local retailer powers a whole local economy. So, when you import goods, that is money that could have spent locally and there is loss of tax revenue. This is the basis for:
Import Duties
Also called customs duties, these are specific taxes charged on imported goods. The rate is determined by the product’s classification, its value, and its country of origin.
Think of this like capturing lost sales tax. This covers the cost to the economy of you going outside the economy, and covers real things like the cost of inspection and enforcement to stop the bad guys from bringing in illegal/banned substances.
Tariffs
Tariffs are a particular type of import or customs duty imposed on certain imported goods. They are generally calculated as a percentage of the goods’ value and are used to regulate international trade flows, often with the goal of protecting domestic industries from foreign competition.
Tariffs are going to be something to think about today, four years from now, eight years from now, Republican or Democrat. There is no doubt that President Trump’s tariffs have caught the world’s attention, but those of us armchair historians will remember that President Clinton threw 100% tariffs on $520 million worth of popular European products, such as decorative crystal and pecorino cheese and he even put 100% tariffs on the top 13 Japanese luxury cars as negotiation tactics too. Bush, Obama, Biden… find your favorite and least favorite President and you will see tariffs being added for various reasons.
De Minimus Trade Exemption
If anyone you know traveled to Switzerland, they probably came home with some chocolate for friends and family. Theoretically, buying that chocolate overseas is no different than the Rolex example with an economic chain reaction of lost tax revenue. However, chocolate is pretty cheap and the actual cost to maintain and oversee duties is really not worth the effort. The idea that we shouldn’t sweat the small purchases/packages is what de minimis refers to.
If you are importing commercial quantities of chocolate, then yes, there are duties. Personal quantities? Not at all.
https://www.nftc.org/de-minimis-a-vital-tax-exemption/
How expensive would the cost be without de minimis? For something $50, you could end up paying another $47.23!
There needs to be some threshold where it doesn’t make sense to spend so much money to enforce the duties. Thats the idea of de minimis. Importantly, U.S. Customs and Border Protection are still responsible for screening these items and ensuring that illegal stuff isn’t being brought in, and that no one is sending stuff worth thousands of dollars and pretending that it’s just worth $50.
Before 2016, the threshold was $200. Since 2016, the threshold is $800.
The Changing World
In the examples above of a wrist watch or chocolate bar from a vacation to Switzerland, it’s easy to see how that’s not a common event.
In 2016, there were 150M duty free shipments and in 2023 it was over 1 billion packages! The average cost per package in 2023 was $54 not $800, but that’s $54B of goods that probably would have needed to pay taxes. And of course, there may be undereporting of true value of the goods in the package.
On top of that, there is data suggesting that if you look at all imports that are supposed to have duties, it should be ~3.94% but the actual collected duties ends up being ~1.29%. Specifically, one third of good entered duty free regardless of whether they should have qualified for De Minimis exemption or not according to the non-partisan CRS.
For comparison, the EU has a 150€ limit and in 2021, a formal committee created by the EU Commissioner recommended that this exemption be removed due to underreporting of true value and commercial companies skirting the rules by breaking up large shipments into a lot of small ones to avoid duties.
That’s just for normal duties, which average around 4% and are typically single digit percentages. Tariffs can be added in order to encourage local spending or direct imports away from certain countries.
One more wrinkle: The import broker
The HTS (Harmonized Tariff Schedule) is a large database which you can categorize goods into. You can see the type of detail that goes into this:
Sony soundbar (Made in China)
https://rulings.cbp.gov/ruling/n325613
Onkyo receiver (Made in Malaysia)
https://rulings.cbp.gov/ruling/N162335
Polk speakers (Mix of Countries)
https://rulings.cbp.gov/ruling/n328997
Raspberry Pi Audio PCB (UK)
https://rulings.cbp.gov/ruling/N289366
You can see that global companies use legal firms to help prepare the paperwork for importing goods into the United States. The knowledge and time to prepare the customs paperwork is where the import broker comes into play.
When you bring things in under de minimis, my understanding is you basically need to say what it is and what it costs and you’re done. It’s simple.
When you bring things outside of the de minimis exemption, you need paperwork. Sometimes the seller overseas does it for you, sometimes they don’t know how to do it either. The import broker is the person who handles the paperwork.
It can be you, if you know what you are doing. It can be a division of UPS or FedEx, which isn’t the same division actually moving your purchase across the globe. It can be a middle man that is dedicated to global logistics. It can be eBay (only for certain countries like the UK to US).
If I am shipping one speaker or one hundred speakers (in a single shipment), the paperwork should be pretty similar. So broker fees are sort of high for individual customers like you and me, and probably more reasonable for commercial agents.
If I am inspecting a shipment, there’s probably a basic level of effort I need to look at one speaker or one hundred. The Merchandise Processing Fee (MPF) is a U.S. Customs charge assessed for most imports into the United States. The MPF is charged at 0.3464% of the cargo value declared on the commercial invoice, with a minimum of $32.71 and a maximum of $634.62 per entry.
Again, for small low cost shipments, $33 is a big percentage. For high ticket items like a whole pallet of AVRs, $635 might not be too bad.
Here is an example from eBay
The item being sold is £5000. The seller of the goods will have eBay fees deducted from that. Shipping is based upon weight, size, distance, and level of service. The sales tax is the California sales tax in this example. The import duties are the sum of both brokerage fees and actual customs fees.
Here’s another example. I bought some Meyer Sound speakers from Canada. These are US made speakers that I am bringing back to the US. No duties, right? Still need a broker to prepare paperwork and cover inspection fees. That was $55 extra when done by FedEx, on top of shipping and local sales tax. I actually had to return the unit due to a problem, but while the seller refunded all my eBay expenses — the customs paperwork was money that I just lost as part of the transaction.
Practical Guidance
- Be prepared to pay duties on anything you are buying overseas. If you take the time to find the HTS code, you can figure out what this will cost. It often is just a few percent.
- There may be tariffs which are added costs. These too are fees that you will incur importing goods.
- There will be brokerage fees too if the paperwork isn’t correct or there is no paperwork. Depending on what you are buying, this can be a disproportionately high percentage of what you are buying or relatively small.
- When you are buying individual products that exceed $800 overseas, you are the importer of record. That means you are legally responsible for documenting all of the right stuff. If you are an ordinary person, FedEx or UPS can fill the paperwork for you, but they aren’t the importer, you are. A) Therefore you may need to provide them with a your social security number if the value is over $2500 (according to Microsoft Co-Pilot) or file for a CBP importer number (which can take months). B) When the FedEx or UPS brokerage calls you, it will seem to be a completely random number. I would verify the number using the 1-800 main number to avoid fraud/phishing attempts.
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