Friday, August 22, 2014

International Shipping and Customs 101

International Shipping in a Nutshell
by JC Murphy


DID YOU KNOW....... Musical instruments such as guitars can be expensive to ship internationally. This is due primarily to the size of the box, not the weight of the box.

MORE ABOUT SIZE AND WEIGHT
Domestic ground shipments usually use box weight as the primary billing factor. All International shippers including FedEx, UPS, US Postal Service and DHL charge rates that are based on Dimensional Weight which is a combination of the box length plus the girth of the box plus the actual shipping weight. Dimensional weight is important because of the actual space required in the aircraft and the weight is also taken into consideration but to a lessor extent.

Another factor with shipping costs is the destination country. Here's an example:
An acoustic guitar with a hardshell case shipped from Florida to Brazil may cost around $350 US Dollars. The same guitar shipped to Moscow Russia might cost around $120 US Dollars. The reason for the difference in price usually comes from the size restrictions to a particular country. The size restrictions determine the possible range of box sizes. Here's an example:
 
USPS Priority Mail to Brazil:
    Maximum Weight: 66 lbs

Since most guitar boxes are longer than 42" a more expensive class of service such as USPS GXG Global Express Guaranteed is the only option available. Although this class of service is much faster (1-3 business days vs. 6-10 business days) it is also the most expensive. If the destination country has a higher size restriction for a less expensive service then the rate is generally much lower. In the example for Brazil, the shipping rate might be about 50% lower if the box were only 3 inches shorter.

Since most shippers have adopted similar methods of dimensional weight calculation, prices between the different carriers are closer than they used to be. At Pricebeat Music we always compare rates anyhow just to find the lowest available shipping method.

IMPORT TAXES AND CUSTOMS FEES

Almost all countries charge some sort of fee or tax when you buy something from another country (or even the same country in some cases). Every country has different regulations and rates based on the type of product (See the Harmonized System) Collecting this fee is usually the responsibility of the Customs Office and payment of this fee is the responsibility of the buyer or importer which are often one in the same. Sellers who expert individual products often cannot collect these fees in advance on behalf of the buyer. That's because the seller has no way of interacting with a foreign country's Customs office and in some cases is prohibited by law from doing so. The exception to this is when a seller assigns the shipping company to act as the importer or broker of the shipment. The reason sellers don't generally do this is because the shipping company will bill the seller for all customs fees and the seller does not know what the fees will be in advance. This provides an opportunity for a seller to lose a considerable amount of money on a transaction. Local taxes and fees may also be imposed depending on the shipment's ultimate destination.

A handy online tool that can be used to estimate shipping fees, tax and final cost is the Duty Calculator. There is even a page that lets you enter an eBay Item Number and it will calculate everything in a matter of seconds.

Pricebeat Music is an experienced international shipper. If you need a quote please contact us. Please visit our Top Rated eBay Store and PricebeatMusic.com for great deals on music gear.

JC Murphy is the owner of PriceBeat Music and has over 25 years of international eCommerce and shipping experience.

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