Post tariff world

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t ingermanson

t ingermanson

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Without getting into the politics or usefulness (or not) of the recent tariffs, today the Andover newsletter said they'd be charging an additional surcharge for orders going to the US. So, is this a private retaliatory tariff on the hapless citizens/customers on this side of the pond, @Madnorton ?

As an importer of parts in the past, I've always paid tariffs to the company who transits the goods (FedEx, UPS, DHL, etc). I don't understand how an exporter is responsible for any import tariff of another country whatsoever.

Please, let us know what you're experiencing as an exporter to the US, and what we should expect. The newsletter was shy on details and rationale.

Thanks
 
My understanding is that the importer pays the tariff to the US government. The importer typically will add that increased cost to the their wholesaler, which is then paid by the retail customer. Since Andover is selling directly to their US customer, they are the importer and will need to pay the tariff to the US government. Andover is just collecting the tariff from their customers upfront.
 
I think a lot of water will go under the bridge before all the details of this "event" will shake out.

Just listened to a international trade lawyer here in NZ go through about 8 different ways NZ companies may chose or need to handle this. Variations include , where do all the components come from, does the NZ company have a manufacturing entity or registered company in the US, where do the owners of the company reside, for established contracts what does the fine print say etc etc etc.

So it wouldn't surprise me if Andover have to try several options before it settles down.

In the NZ case there is confusion because they said we have a 20 % tariff against US products. But we calculate it at an average of 1.7 % . Basically since 1972 when the UK joined the EU NZ has been at the forefront of free trade and no tarrifs. So this is rather annoying.

Still better than the tarrif than the US wants those penguins to pay. 🤣🤣🤣🤣🤣
 
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Stephen Hill said:
My understanding is that the importer pays the tariff to the US government. The importer typically will add that increased cost to the their wholesaler, which is then paid by the retail customer. Since Andover is selling directly to their US customer, they are the importer and will need to pay the tariff to the US government. Andover is just collecting the tariff from their customers upfront.
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That doesn't sound correct. It is the US Customs agency that charges the tariffs to the importer...which in this case is the US customer. This is what DHL & other couriers "pre-charge" as well as their high "brokerage" fee for doing the "paper work" for customs clearance. Unsure what AN might be charging but it should not be a "tariff" on product being exported to USA. Perhaps the couriers are requesting the US import tariff gets applied at point of the order so the courier doesn't have to chase the customer for the amount upon delivery?
 
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johnm said:
I think a lot of water will go under the bridge because all the details of this "event" will shake out.

Just listened to a international trade lawyer here in NZ go through about 8 different ways NZ companies may chose or need to handle this. Variations include , where do all the components come from, does the NZ company have a manufacturing entity or registered company in the US, where do the owners of the company reside, for established contracts what does the fine print say etc etc etc.

So it wouldn't surprise me if Andover have to try several options before it settles down.

In the NZ case there is confusion because they said we have a 20 % tariff against US products. But we calculate it at an average of 1.7 % . Basically since 1972 when the UK joined the EU NZ has been at the forefront of free trade and no tarrifs. So this is rather annoying.

Still better than the tarrif than the US wants those penguins to pay. 🤣🤣🤣🤣🤣
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We are all still trying to figure out just exactly what those Penguins were selling to the US.

Glen
 
I am just glad I brought all my upgrades for my Norton when the Aussie $$$ was even with the US $$$$ a very rare thing with our Aussie $$$ as now its 62c to the US $$$ so now no need for parts from the US or anywhere else for that matter as I done all the big upgrades I need as for my project Norton all parts will come from England.
I think there be some confusion for some time to come with the US markets and all, even Americans are confused in how things will turn out, cost to live going to hit their pockets even harder, bet it won't affect the rich, will the world economic collapse, worldwide markets crash, too early for the unknown.
It's good to make America great again (in Americans eyes) but at what cost to normal everyday Americans and the rest of the world for that matter.

Ashley
 
ashman said:
I am just glad I brought all my upgrades for my Norton when the Aussie $$$ was even with the US $$$$ a very rare thing with our Aussie $$$ as now its 62c to the US $$$ so now no need for parts from the US or anywhere else for that matter as I done all the big upgrades I need as for my project Norton all parts will come from England.
I think there be some confusion for some time to come with the US markets and all, even Americans are confused in how things will turn out, cost to live going to hit their pockets even harder, bet it won't affect the rich, will the world economic collapse, worldwide markets crash, too early for the unknown.
It's good to make America great again (in Americans eyes) but at what cost to normal everyday Americans and the rest of the world for that matter.

Ashley
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"Fair exchange is no robbery"
 
Regardless of you pays who, parts from UK to the US now cost more. Since I and others have lots of parts in stock, it's unlikely that we will increase/replenish our inventories. I have $78k of parts in stock. If you want AN, AMAL, or Wassel parts better order soon (after I get out of the hospital).
 
Tornado said:
That doesn't sound correct. It is the US Customs agency that charges the tariffs to the importer...which in this case is the US customer. This is what DHL & other couriers "pre-charge" as well as their high "brokerage" fee for doing the "paper work" for customs clearance. Unsure what AN might be charging but it should not be a "tariff" on product being exported to USA. Perhaps the couriers are requesting the US import tariff gets applied at point of the order so the courier doesn't have to chase the customer for the amount upon delivery?
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I agree. My own experience in paying tariffs is I get a bill from the courier, levied by US Customs as the importer.

If an exporter is charging a surcharge, that's additional to whatever tariff is paid, that would be a bummer. This is what I'm having a hard time wrapping my brain around. I'm not naive enough to think that it doesn't cause headaches and disruptions to the exporter in getting all the paperwork correct, but if spares prices jump 20% (tariff and surcharge), it will immediately make a project Norton in the US not worth scrap price. Working on these old bikes is already a losing financial situation, but adding 20% makes it lunacy to continue.

I'd really like Joe's two cents to see if the courier is charging them, and he's beating Customs to the punch (as in your GST). If that's the case, then I'm all for no surprises between checkout and the parts showing up at my door, and thank him for the extra effort.

Anything these days can be taken as political, racist, "woke", etc. Let's see if we can take a break from that for just a second, please.
 
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My first job after I left school was as a customs officer. Tariffs are supposed to help local industries. However the main impetus for productivity improvement is competition between suppliers. A Norton Commando has intrinsic value. If the parts are expensive when you install them, they add value. Australia used to have General Motors and Ford car factories which were subsidised and had tariff protection. The Japanese and South Korean factories trounced the Australian factories on quality, performance and price. I used to prefer for our industries to have tariff protection, but it is not realistic. The only way Australia can compete is by moving up-market in a quality sense. However many of our engineers see ISO9000 as an impost and not a training aid. I have worked my way up through the system from bottom to top. It is bullshit, however all is not lost - we individually still have the required mindset. In Australia, when an engineering company works to Australian Standards, they usually comply with the law. I suggest that the economic doctrine of neoliberalism is unrealistic - science often becomes incorporated in design from participation in standardisation committees.
 
If someone still has a very original Commando in year 2035, would other people really like to own it ? I knew an old lady who had a Rolls-Royce car which she had owned for about 50 years. It was really worth looking at. Would tariffs change that ?
 
t ingermanson said:
I agree. My own experience in paying tariffs is I get a bill from the courier levied by US Customs as the importer.

If an exporter is charging a surplus, that's additional to whatever tariff is paid that would be a bummer. This is what I'm having a hard time wrapping my brain around. I'm not naive enough to think that it doesn't cause headaches and disruptions to the exporter in getting all the paperwork correct, but if spares prices jump 20% (tariff and surcharge), it will immediately make a project Norton in the US not worth scrap price. Working on these old bikes is already a losing financial situation, but adding 20% makes it lunacy to continue.

I'd really like Joe's two cents to see if the courier is charging them, and he's beating Customs to the punch (as in your GST). If that's the case, then I'm all for no surprises between checkout and the parts showing up at my door, and thank him for the extra effort.

Anything these days can be taken as political, racist, "woke", etc. Let's see if we can take a break from that for just a second, please.
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That's the way it works into NZ. More or less.

But if for example the GST due is less than $50 then customs generally won't bother to collect it because the paperwork cost is more than $50.

But if the moon is in the 2nd quarter. Or if there is an r in the month then ????

GST is collected at the border but isn't actually a tarrif. It's a govt sales tax and charged if the product is made anywhere. USA, UK, Australia or just down the road in NZ. Doesn't differentiate origin including New Zealand.
 
I suggest there is a thing which is not obvious. It is the differences in mindset of the people from different countries. An artist will probably beat a fanatic any day. I respect the British mindset the most- they are the most devious.
 
johnm said:
That's the way it works into NZ. More or less.

But if for example the GST due is less than $50 then customs generally won't bother to collect it because the paperwork cost is more than $50.

But if the moon is in the 2nd quarter. Or if there is an r in the month then ????

GST is collected at the border but isn't actually a tarrif. It's a govt sales tax and charged if the product is made anywhere. USA, UK, Australia or just down the road in NZ. Doesn't differentiate origin including New Zealand.
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Indeed. NZ has a wide practical streak though, and exists comfortably through friendly trade practice. In the States we still use pennies that are worth less than the value of the metal to make them with. Practicality is not our strong suit. I've gotten import duty bills for less than the value of the paper and stamps it took to send the bill, let alone the labor to pay someone at the Customs office to look up the rate on the specific good.

Again, practically, your GST is included into the advertised cost. In the States we leave it until you're ready to check out, and we spring the new total on you. Obfuscating tax has long been a lifestyle here. And perhaps that's where I'm having trouble. Someone actually being honest about the final price you'll pay? Somehow that sets off alarms!
 
Andover have just said in their online newsletter that orders from the USA are now to be ONLY via the website. And they are adding the tariff to their prices.
 
johnm said:
In the NZ case there is confusion because they said we have a 20 % tariff against US products. But we calculate it at an average of 1.7 % . Basically since 1972 when the UK joined the EU NZ has been at the forefront of free trade and no tarrifs.
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It turns out that the tariff calc is based solely on the US trade deficit as a % of US trade on a country by country basis, although where there is a US trade surplus a 10% tariff still applies.
 
t ingermanson said:
Without getting into the politics or usefulness (or not) of the recent tariffs, today the Andover newsletter said they'd be charging an additional surcharge for orders going to the US. So, is this a private retaliatory tariff on the hapless citizens/customers on this side of the pond, @Madnorton ?

As an importer of parts in the past, I've always paid tariffs to the company who transits the goods (FedEx, UPS, DHL, etc). I don't understand how an exporter is responsible for any import tariff of another country whatsoever.

Please, let us know what you're experiencing as an exporter to the US, and what we should expect. The newsletter was shy on details and rationale.

Thanks
Click to expand...
The newsletter from A/N is crystal clear to me:
Post tariff world
 
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