Sideshow: Why do you use the wrong Harmonized Code?

[Racetrack]

Dear Sideshow,

I have been doing some research regarding international taxes on your products. You're using the wrong Harmonized Code on most items, causing your customers to incur higher tax charges which for many international buyers limits what they can buy. I have contacted HM Revenue and Customs here in the UK to confirm it.

For example the code you used on my recent order is 9503.00.1000 (Dolls, Other Toys, Scale Models. Puzzels. Parts & Accessories). The charge for using this meant i had to pay 20%.

However using the following code 9701.10.0000 (Antiques, Art & Collectibles → Arts & Monuments → Original Art Work - paintings & drawings) would incur a charge of only 5%, a big difference.

It is perfectly legal as the item contains hand painted parts. The code you use is for mass produced Barbie dolls for example but most countries use a different tariff for collectables including the figures and statues you produce which can be classified as art if any part is hand painted.

The following link has a full list of codes and tax rates for Sideshow Collectables.

https://www.dutycalculator.com/dc/5...es-from-united-states-to-united-kingdom-is-0/

I would appreciate it if you would look into this. Updating your computer with the right codes will save your customers potentially hundreds of dollars and can only increase your sales. I know i would order more if i wasn't hit with a large bill after every order.

 

[youbastards]

Just ask them to ship it as a "gift"!

 

[Collectorcol]

SS stopped using that code years ago after being told it was wrong.
I started collecting after that, 5% would of been nice

 

[Racetrack]

SS stopped using that code years ago after being told it was wrong.

That's interesting. Told by who though and from which countries? I mean just because one customs office might say it's wrong it doesn't actually mean it's wrong. As a comic collector i can't tell you how many times rogue customs officials have tried to charge me for comics which are zero tax rated in the UK and i've had to go through the long process of reclaiming my money.

Sometimes they just tell you "it's wrong" because they either don't know or want to make more money. It could have just been one or two people who told them that didn't understand the rules. As i said i've asked HMRC and they told me it was right and having read the exact wording i don't understand how it could be wrong.

I would love to know more from Sideshow on this.

 

[Something Sexy]

I dunno, these items are mass-produced, even if they have an edition size. Nothing about this is original to me, original to me, means one of a kind. It makes sense why they use that code.

 

[Collectorcol]

I've only read about it back in the day. These aren't and can't be classed as art anymore.
And yes, will be the British Government taking their cut, we do live in rip off Britain'.

 

[Racetrack]

I dunno, these items are mass-produced, even if they have an edition size. Nothing about this is original to me, original to me, means one of a kind. It makes sense why they use that code.

Mass-produced was the wrong word on my part. What they told me on the phone is that any collectable that contains hand painted parts qualifies for the lower 5% tax band rather than the 20% we currently pay. Unfortunately there is nothing they could do as it has to be declared that way prior to being shipped.

 

[SideshowMike]

Hi Racetrack,

Because we ship so many packages all around the world with so many different customs agents with different specifications looking at the harmonized codes that we claim, we have to use the most widely accepted code. If the wrong code is used, or if customs agents THINK the wrong harmonized code has been used they will change it usually resulting in delays in delivery and increased duties and taxes.

We know that duties and taxes are a bummer and can add up quickly. We feel your pain and try to help where we can. We still covering part all of the shipping costs for all our international collectors sometimes up to 50%.

Thanks and let us know if you have any further questions.

 

[Collectorcol]

Good of you to respond Mike.
Can you comment as to whether your items could be coded hand painted art to save British buyers 15% at customs?

 

[Collectorcol]

This was posted in another thread by the OP...
https://www.dutycalculator.com/dc/5...es-from-united-states-to-united-kingdom-is-0/

 

[Collectorcol]

SS stopped using that code years ago after being told it was wrong.
I started collecting after that, 5% would of been nice

Been digging around and this is what ssmike posted a while ago...
I would like to confirm that we have been advised from many customs offices around the world that the Harmonized code that we had been using up until recently will no longer be accepted. We apologize for the added cost this will add to our international orders, but unfortunately we have to comply when shipping internationally.*

 

[Racetrack]

Hi Racetrack,

Because we ship so many packages all around the world with so many different customs agents with different specifications looking at the harmonized codes that we claim, we have to use the most widely accepted code. If the wrong code is used, or if customs agents THINK the wrong harmonized code has been used they will change it usually resulting in delays in delivery and increased duties and taxes.

We know that duties and taxes are a bummer and can add up quickly. We feel your pain and try to help where we can. We still covering part all of the shipping costs for all our international collectors sometimes up to 50%.

Thanks and let us know if you have any further questions.

Thanks Mike, i appreciate you taking the time to reply.

Yes that's what i assumed, customs agents THINKING you used the wrong code and causing problems. However lets say you used the 5% code and the customs agent changes it to 20%. There are two good options that i see from this scenario:

1. If they don't change it your customer only pays 5%. I assume that's what will happen most of the time.
2. If they DO change it, an educated customer can contest the fees with the custom office. Remember we receive our Sideshow items first and then the bill a couple of weeks later.
3. Worst case scenario we end up paying the full 20%, no different from now.

I'm not suggesting anything illegal be done here, just following the rules as setout by HMRC in the UK. You could always contact some of the customs offices in the countries where the majority of your customers are and double check to get clarification. I know this is a lot of work for you but the lower the fees the more international customers you'll have not to mention the kudos you'll get for going the extra mile and trying.

My only other suggestion would be to let us decide which code you write. If when ordering there was a "comments box" for additional instructions where we could write anything important regarding our order like many online retailers do.

Regardless thanks for taking the time to reply and i understand where you're coming from now.

 

[guillote68]

hI, i have a friend who buy the Joker Figure from SS, we leave in Argentina, and he pay 90% of tax when the item arrive, this is the normal percent when the item came trough UPS, i dont know why, but this is sad.
If SS send with USPS Priority, we pay 50%, this is not the best, but is cheaper than UPS custom fee service.
I hope in the future, SS can send with USPS.
Regards
Guillermo
Buenos Aires
Argentina

 

[Darth Snoopy]

Wow...it really sucks for international collectors to have to pay those exorbitant taxes, IMO.

 

[Python]

Man I hate tax!! I have had some luck in the past though by contacting FED EX direct and telling them the code is wrong. Occasionally I got someone who changed it to 5% and told me to tell SS to get it right next time This was some time ago however, they may be a little more wise to cheeky sods like me now?

 

[Custo]

hI, i have a friend who buy the Joker Figure from SS, we leave in Argentina, and he pay 90% of tax when the item arrive, this is the normal percent when the item came trough UPS, i dont know why, but this is sad.
If SS send with USPS Priority, we pay 50%, this is not the best, but is cheaper than UPS custom fee service.
I hope in the future, SS can send with USPS.
Regards
Guillermo
Buenos Aires
Argentina

90%!? I would not be collecting if that was the kind of tax I had to pay. In regards to USPS, they've stated before they would never use USPS. It's unreliable and takes longer than Fedex/UPS.

 

[MR Regan]

Come on Sideshow pull your finger out and stop us Brits getting ripped off by HMRC, You know the code is wrong they known its wrong so how hard can it be like Racetrack said and change it in a drop down box when you make a order.

Because you are using the wrong one I'm effectively getting 2/3 pf's a year less with not saving the 15%, Change the code and let us argue the toss with HMRC and you get more orders

 

[SideshowMike]

Hi all,

We do feel your pain and I'll be happy to bring this to the attention of the shipping team, BUT, last time we checked, the present code that we are using has been what has been suggested we use in order to guarantee packages are delivered without delay for all the countries around the world. You have to remember that we are shipping hundreds of packages a day to dozens of different countries besides the U.K. While your customs may be more lax, some are very strict and incorrect information on paperwork can result in additional fees.
But can't we just put use one code for the UK and one code for everyone else??? Unfortunately, like I said we're a business that ships hundreds of packages to dozens of countries a day. In order to remain efficient and get everyone's orders out to them as quickly as possible, I'm afraid using different codes for different countries just isn't in the cards at the moment.

 

[Collectorcol]

Good idea Matt.
Anyone else managed to get Fed-Ex to change their code?

 

[Racetrack]

Hi all,

We do feel your pain and I'll be happy to bring this to the attention of the shipping team, BUT, last time we checked, the present code that we are using has been what has been suggested we use in order to guarantee packages are delivered without delay for all the countries around the world. You have to remember that we are shipping hundreds of packages a day to dozens of different countries besides the U.K. While your customs may be more lax, some are very strict and incorrect information on paperwork can result in additional fees.
But can't we just put use one code for the UK and one code for everyone else??? Unfortunately, like I said we're a business that ships hundreds of packages to dozens of countries a day. In order to remain efficient and get everyone's orders out to them as quickly as possible, I'm afraid using different codes for different countries just isn't in the cards at the moment.

Mike, i do appreciate you taking the time to look into this and speak with your shipping team but with respect if you look at this page below you'll see the code we're suggesting (9701.10.0000) is the same for all countries in the EU since we are under one tax law and it's the same for many other countries too.

https://www.dutycalculator.com/dc/5...es-from-united-states-to-united-kingdom-is-0/

I would also imagine the majority of your international shipments are going to only a handful of countries. Probably Canada, the EU and the far east.

Interestingly i also came across this page below with the code (9703.00.0000) which is specifically for STATUES and is also 5%. While it wouldn't work on Sixth Scale they would have no legal leg to stand on here in the EU to reject your PF figures as being statues. Like the above code it's the same for all of the EU and many other countries. A 15% saving on statues would be HUGE for us and there is no reason you couldn't at least use this code.

https://www.dutycalculator.com/hs-c...970300/statue/9703.00.0000/9703.00.0000/2564/

Sure it's a little more work for your shipping team but at least giving us the option when we order would only be fair? I thought long and hard about ordering your Doctor Doom LS figure but i just couldn't justify dropping an extra 700 dollars or so on the shipping and taxes. There is no way round the shipping but there is for the taxes ...