It’s been a long transcontinental flight, but in just a few minutes your plane will land. Although you are excited to get back home, there is still one hurdle that you must clear—getting through customs.
Our last post looked at some general tips for getting through customs. Today we examine the issue of duty (import tax) and the amount of exemptions each traveler is allowed.
As you enter the U.S. you are required to turn in a customs declaration form. You must state on the declaration form how much you paid for the items you acquired abroad and are bringing with you back into the U.S. This must be listed in U.S. currency, so it is a good idea to keep track of the currency conversion rate when you bought the items. The price declared should include taxes. If the item was a gift, you have to estimate the fair market value. You can group items on the declaration form, such as “souvenirs,” rather than trying to list out every item.
Most travelers returning from most countries are allowed to bring in up to $800 worth of items before being subject to paying any duty. It is less if you have been out of the country for less than 48 hours or you have been out of the country more than once in a 30 day period. Family members who live in the same home and return together to the U.S. may combine their exemptions and fill out one declaration form.
One of the most confusing issues for many travelers has to do with items that they bought abroad in duty-free shops. Since it is duty free, do these have to be declared? The answer is yes, and the reason surprises many. Duty-Free shops do not mean you don’t have to pay duty on them. It just means that the country where you bought them did not charge any duty or taxes on them. They are still subject to U.S. exemption limits and duties.
The $800 personal exemption applies to items for personal, household or gift use that you are carrying with you (as opposed to mailing it back). If you do not declare something that should have been declared, you risk losing it if the U.S. Customs and Border Patrol (CBP) discovers it. “If in doubt, declare it,” advises the CBP.
You can mail gifts worth up to $100 to others without being subject to any duty. You don’t have to declare these since they are not accompanying you. The exception to this is if you are returning from a U.S. possession (such as Guam). Details on this, as well as other information related to clearing customs can be found in the CBP publication Know Before You Go. The 68 page document can be downloaded at http://bit.ly/9S1B53.
In our next post, we’ll explore what not to bring back with you. Some of the things may surprise you!