Tax when buying a Rolex watch in the US and bring it to Korea?

[T-Man]

Hi,

I am a U.S. citizen living in California.
I am planning to buy a Rolex watch here and give it to a friend in Korea as a gift. I was wondering whether there would be any tax issue in this case.

1> Will I need to pay any tax for the watch in Korea customs?

2> Will I need to pay any tax if I buy the watch at a duty free Rolex shop in the U.S. and bring it to Korea? In this case, is it okay to bring the box and the warranty card with the watch?

3> Will there be any difference between buying the watch at a retail shop and buying it at duty free shop in the U.S. when bringing it to Korea?

Thanks in advance for any help!

[HK Islandboy]

1 - yes - unless you choose to try to smuggle it in (not generally recommended)
2- yes
3 - no

[stamsd]

Hypothetically speaking, one could wear the watch and ship the box prior to leaving.

[beshannon]

Originally Posted by stamsd

Hypothetically speaking, one could wear the watch and ship the box prior to leaving.

Yes this would be known as smuggling hypothetically of course since no sane or moral person would do that right?

[THC]

Originally Posted by beshannon

Yes this would be known as smuggling hypothetically of course since no sane or moral person would do that right?

[stamsd]

Originally Posted by beshannon

Yes this would be known as smuggling hypothetically of course since no sane or moral person would do that right?

Would it? He is a US citizen buying a watch in the US. If you buy a watch and pay taxes at the time of sale, are you not the owner of the watch? What you do with it when you travel is nobody's business. If the OP was not paying taxes or importing it, that would be another issue.

[beshannon]

Originally Posted by stamsd

Would it? He is a US citizen buying a watch in the US. If you buy a watch and pay taxes at the time of sale, are you not the owner of the watch? What you do with it when you travel is nobody's business. If the OP was not paying taxes or importing it, that would be another issue.

In his description he intends to import the watch to Korea to give to someone. If you are advocating violating international customs laws that is your choice.

He needs to consult Korean Customs authorities. Or purchase it in Korea and gift it there.

[stamsd]

Originally Posted by beshannon

In his description he intends to import the watch to Korea to give to someone. If you are advocating violating international customs laws that is your choice.

He needs to consult Korean Customs authorities. Or purchase it in Korea and gift it there.

I really do want to be educated here and not argue. Do you mean to tell me that if you visit someone outside of the US (as this example states) and give your (lets say) 2 year old wristwatch to the person you are visiting, he should pay taxes on it? Just because it will be newer when it arrives in Korea does not (in my opinion) mean the recipient should pay taxes. The OP bought a piece of property in the US and paid taxes on it. Does he not have the right to give it to whom he chooses? The person receiving did not pay for and import it. It's a gift.

[beshannon]

Originally Posted by stamsd

I really do want to be educated here and not argue. Do you mean to tell me that if you visit someone outside of the US (as this example states) and give your (lets say) 2 year old wristwatch to the person you are visiting, he should pay taxes on it? Just because it will be newer when it arrives in Korea does not (in my opinion) mean the recipient should pay taxes. The OP bought a piece of property in the US and paid taxes on it. Does he not have the right to give it to whom he chooses? The person receiving did not pay for and import it. It's a gift.

I am planning to buy a Rolex watch here and give it to a friend in Korea as a gift. I was wondering whether there would be any tax issue in this case. ]

It is not a two year old product. It is brand new bought specifically for the purpose of importation.

State sales tax in the US had nothing to do with the issue.

I cannot comment on what Korean customs would do except to look at their website.

Korea also maintains a tariff quota system designed to stabilize domestic commodity markets. Customs duties can be adjusted every six months, within the limit of the basic rate, plus or minus 40 percent.

Korea has a flat 10 percent Value Added Tax (VAT) on all imports and domestically-manufactured goods. A special excise tax of 10-20 percent is also levied on the importation of certain luxury items and durable consumer goods. Tariffs and taxes must be paid in Korean Won within 15 days after goods have cleared Customs.

https://2016.export.gov/southkorea/d...ards/index.asp

[peterpl]

just wear the watch back and send the back the box in the mail. Simple.

I know that is what you want to hear.

AND by talking to numerous gray market dealers in a few countries that I often travel for work people shouldn't be so naive to think they are paying the duties as well. Far far from it that's where a lot of the profit comes from.

Not the right thing to do but very common.

[oldman2005]

Originally Posted by peterpl

just wear the watch back and send the back the box in the mail. Simple.

I know that is what you want to hear.

AND by talking to numerous gray market dealers in a few countries that I often travel for work people shouldn't be so naive to think they are paying the duties as well. Far far from it that's where a lot of the profit comes from.

Not the right thing to do but very common.

know many people do this...

[Quailhunter]

I would advise taking the watch along with the sales receipt to a US Customs office before your trip. They will give you a form proving you owed the watch prior to the trip. This form will allow you to reenter the US without having to pay Customs duties. If you reenter with a new watch, box, and papers; you might have issues proving you didn’t buy the watch outside the US. Buying the watch with the intent to sell without paying applicable taxes can be big problems.

[daveo5]

You will have to complete a US Customs declaration. Ownership, cost, etc. This must be done before any shipper will accept. The first stop is US Customs, as to Korea, you need to check with that country's import laws.

[Tools]

Originally Posted by stamsd

I really do want to be educated here and not argue. Do you mean to tell me that if you visit someone outside of the US (as this example states) and give your (lets say) 2 year old wristwatch to the person you are visiting, he should pay taxes on it? Just because it will be newer when it arrives in Korea does not (in my opinion) mean the recipient should pay taxes. The OP bought a piece of property in the US and paid taxes on it. Does he not have the right to give it to whom he chooses? The person receiving did not pay for and import it. It's a gift.

You need to get out more.

It does not matter. If you are taking anything from one country and leaving it behind in another country, you are importing that item.

What you believe is irrelevant, you must abide by a countries import/export laws. International wars have been fought over importing stuff and if you ignore a countries import requirements, it is smuggling.

Those who advocate "just wear it and ship the box" are advocating breaking import/export law and some countries will throw you in prison, not just slap you on the wrist.

[Leungtennis]

If you act like the watch is yours, you will be fine. How would customs know you were trying to give it or sell it in Korea?

If you want to be super safe, you could wear the watch, leave the boxes and papers at home, and then drop it off the next time you go (or when your friend visits the states).

[MonBK]

Originally Posted by Leungtennis

If you act like the watch is yours, you will be fine. How would customs know you were trying to give it or sell it in Korea?

If you want to be super safe, you could wear the watch, leave the boxes and papers at home, and then drop it off the next time you go (or when your friend visits the states).

Did you read the post right above yours?

[beshannon]

Originally Posted by Tools

You need to get out more.

It does not matter. If you are taking anything from one country and leaving it behind in another country, you are importing that item.

What you believe is irrelevant, you must abide by a countries import/export laws. International wars have been fought over importing stuff and if you ignore a countries import requirements, it is smuggling.

Those who advocate "just wear it and ship the box" are advocating breaking import/export law and some countries will throw you in prison, not just slap you on the wrist.

Thank you.

[BillA]

If you own the watch, wear it from the US to Korea, and take it off your wrist and give it to someone, don’t see how this is trackable. upon leaving Korea are they going to want to see your wrist?

[rebel_1]

I went to Korea in 2012 and took several watches with me, but they were not Rolexes (Panerais and Breitlings) with zero issue. I did not carry the B&Ps with me. As others have said, the proper thing to do is declare the item and it’s not responsible to recommend anyone not declare something.

[T-Man]

Thank you very much everyone for comments. I think I'd better check Korea customs rules.