Pay Tax when purchased Rolex outside US?

[quinson418]

I am new to the forum, does anyone have any experience bringing in a Rolex into the US border? Do they check your watch and see if appropiate taxes were paid? Thanks.

[padi56]

Originally Posted by quinson418

I am new to the forum, does anyone have any experience bringing in a Rolex into the US border? Do they check your watch and see if appropiate taxes were paid? Thanks.

A person is permitted to bring in one Rolex from outside the US for 'personal use only.As long as you have paid the tax in country where bought keep receipt. Any other import is prohibited unless you are Rolex USA themselves.

[dfn8tly]

That's correct Padi. However, you must also declare the purchase to U.S. Customs and pay importation duty on the value over your allotment. If you do NOT declare the watch, or any other foreign purchase, they are subject to possible confiscation by Customs.

Some people get lucky, some don't. Not worth the risk.

[astcell]

What is the allotment amount?

[quinson418]

How do they actually calculate the duty fee on the Rolex?
Just like paying the sales tax according to the State sales tax rate?

I am about to come back to the US soon, deciding what to do.
Thanks for the help.

[OysterDavid]

According to the US Customs web site, each person is allowed to bring in $800 duty free. I believe the exemption can be 'stacked' meaning if you're traveling with a spouse, then the total for the two persons is $1600 and it doesn't matter if it's $800 per or $1600 total.

Then, duty on a watch is a complicated figure that first looks at the material, either SS or Gold or Plat and then also charges for the number of jewels in the watch and then there's a computation for separaing the watch from the bracelet. It's rocket science. But, by the time you get done with the total transaction, especially if you're from a state with high sales taxes, you still come out ahead assuming you're not paying list at the AD. The tourist spots that do a lot of Rolex selling tend to be 'duty free' which means the watch lands in the selling country without that government imposing any duty. That helps keep the cost lower. Then if you can wrangle a discount from that 'duty free' price...that's where you begin to see the savings. You'll give back a little at the border, and then you're good to go, brag about the purchase and the price you paid, make the rest of us jealous both because you were on a vacation to a resort area and you got a new Rolex...and so on.

[montecristo]

Some people send the box and paperwork separately and wears the watch back without declaring anything.

I am not suggestion or recommending this, lots of people does this.

[leopardprey]

For the several hundred times I have flown into America, I never once have had or ever witnessed any custom agents inspecting people's wrist to see what type of watch they are wearing. Also, what if you claimed, I bought this used ROlex off a buddy while overseas and he sold it to me for only $1000?

[Flyjet601]

Originally Posted by montecristo

Some people send the box and paperwork separately and wears the watch back without declaring anything.

I am not suggestion or recommending this, lots of people does this.

Thats what I did when I got one in the Carribean.....not that I am admitting it

[montecristo]

Originally Posted by leopardprey

For the several hundred times I have flown into America, I never once have had or ever witnessed any custom agents inspecting people's wrist to see what type of watch they are wearing. Also, what if you claimed, I bought this used ROlex off a buddy while overseas and he sold it to me for only $1000?

They asked me to show them the watches when I had a few automatic watches in my carry on, leaving the country.

I had a rolex on my wrist, a seiko and a cartier pasha c in my bag. I simply told them these are all for personal use and they didn't bother me further.

[leopardprey]

That is what I will tell them. The Sub is for sport and diving, the Explorer for casual and dress, and the GMT (I am soon gong to get) is for travelling.

Of course I have had more questions before about my Bow and Arrows, and all the knives and tools I travel with.

[astcell]

I found the customs tax rates here. I cannot decipher them!

[montecristo]

Originally Posted by leopardprey

That is what I will tell them. The Sub is for sport and diving, the Explorer for casual and dress, and the GMT (I am soon gong to get) is for travelling.

Of course I have had more questions before about my Bow and Arrows, and all the knives and tools I travel with.

However, I got a feeling if its 3 rolex coming in to the states and they stopped you, this might be a different story.

might search you for other contraband and undeclared items.

[astcell]

Hmmm I may be in luck, I found this on the US Customs website. As I am here on official business and have an official passport, it looks good for me so far.


Is a government official eligible for duty free treatment when returning with gifts or personal goods while abroad?
Answer
According to 19 CFR 10.102 There are provisions that give government officials duty free status when returning with gifts or purchases acquired when traveling on official government business. Officials are encouraged to be traveling on an official passport to ensure coverage under this provision. If the government official does not have an invoice for purchases or gifts acquired while abroad, they may have to fill out a pro forma invoice and provide an estimated value of the items being declared.


Moving to U.S.- Government / Military Personnel Duty Exemptions, who is and is not eligible for these exemptions;
Answer
[Item 9805.00.50 of the Tariff Schedules] The personal and household effects of any person (military or civilian)employed by the U.S. Government, and members of his family who have resided with him at his post or station and are returning to the U.S. with orders, may be entered free of duty unless items are restricted, prohibited, or limited as in the case of liquor and tobacco.

It is not necessary for the goods to have been in their household at least 1 year in order to qualify for duty free status - but they must have been in the owner's physical possession before shipping. Goods shipped directly to the U.S. from a factory do not qualify for duty free entry.

The following groups of people are not entitled to this exemption: Employees of private business and commercial organizations working under contract for the U.S. Government, persons under research fellowships granted by the United States Government, peace Corps Volunteers, employees of UNICEF or the Red Cross or persons going abroad under the Fulbright-Hays Act of 1961, or under the Mutual Educational and Cultural Exchange Act of 1961.

[leopardprey]

If I am reading that customs link you sent, most standard SS rolex sport watches would have a 3.1% duty tax. Even if that is the case, since a Rolex watch in Hong Kong is going for about 20% less than the US and since Sales tax in say my home state of Indiana is 6%, I would be saving a lot if I decided to declare.

[dfn8tly]

Speculation on whether you will or will not be asked about your shiny new watch is all fun and games. Just remember that when questioned the burden of proof is on you.

If you are going to wear or carry a valuable item out of the U.S. it is strongly recommended that you register the jewelry with Customs. There is a form on their web site for this purpose that you complete prior to your trip.

[montecristo]

Originally Posted by dfn8tly

Speculation on whether you will or will not be asked about your shiny new watch is all fun and games. Just remember that when questioned the burden of proof is on you.

If you are going to wear or carry a valuable item out of the U.S. it is strongly recommended that you register the jewelry with Customs. There is a form on their web site for this purpose that you complete prior to your trip.

So its like guilty until proven innocent?

[JJ Irani]

If you decide to leave anywhere from the USA, I think the easiest way would be to declare your Rolex on your way OUT and have them endorse the same on the last page of your Passport.

So when you come back into the country, you just show them your Passport and all's well.

There is however, one drawback to this. I've seen it being done back home in India several years ago when a Rolex was considered a smuggled item.

Smartasses would buy some fake POS, have it endorsed onto their Passport on their way OUT of say Bombay Airport. Then go overseas, throw the fake POS into the trash can, buy the real McCoy and "smuggle" it back into Bombay via the endorsement on the Passport.

Fantastic profits were made in this manner due to the overwhelming demand for Rolex in Bombay at the time.

Now the scenario has changed around completely. There are like at least 5 ADs for Rolex in Bombay city alone.

JJ

[dfn8tly]

Originally Posted by montecristo

So its like guilty until proven innocent?

That's right. No jury of your peers votes on whether or not you pay the tax.

[Goldsplinter]

What the hell is the whole point of all this "declaring" "registering" valuable items (watches) for?

[JJ Irani]

Originally Posted by Goldsplinter

What the hell is the whole point of all this "declaring" "registering" valuable items (watches) for?

Ever heard the word "smuggling", pal? It's BIG TIME business in certain parts of the world...and ROLEX can become BIG TIME business for "smugglers" if left un-controlled by the Authorities.

JJ

[Goldsplinter]

I understand smuggling Cocaine or narcotics n stuff. But Rolex's? I don't get it.

Maybe, what if some group of people steal some Rolex's from Hong Kong, smuggle it into the US, sell it here for a lot more, would that would be what the US Customs are trying to prevent?

[astcell]

Originally Posted by JJ Irani

If you decide to leave anywhere from the USA, I think the easiest way would be to declare your Rolex on your way OUT and have them endorse the same on the last page of your Passport.

JJ

But what about BUYING one while outside the country?

[JJ Irani]

Originally Posted by astcell

But what about BUYING one while outside the country?

Well, you are officially allowed ONE back into the USA. If you have a travelling companion, pick up two and let him wear one back in for you.

JJ

[Blue Bull]

Originally Posted by Goldsplinter

I understand smuggling Cocaine or narcotics n stuff. But Rolex's? I don't get it.

Maybe, what if some group of people steal some Rolex's from Hong Kong, smuggle it into the US, sell it here for a lot more, would that would be what the US Customs are trying to prevent?

Loss of imp taxes...... Dont know in the States,loss of imp tax,State tax and VAT(Value added tax)/Sales tax...? How much would that be on a luxury item,like a watch... ?

[montecristo]

Originally Posted by JJ Irani

Well, you are officially allowed ONE back into the USA. If you have a travelling companion, pick up two and let him wear one back in for you.

JJ

I wonder if its okay to bring an extra rolex into the states if your companion is an infant.

[JJ Irani]

Originally Posted by montecristo

I wonder if its okay to bring an extra rolex into the states if your companion is an infant.

LOL! Good point, but I'd be quite surprised if they allowed that!!

[Timascus]

I've done it w/ currency. The rules say 10k/person, not 10k per person over certain age.

Unless they changed the rules . . . .

[astcell]

Yup, that's with cash, not stuff. Weird.