# Buying foreign and selling Ebay



## popscott (Oct 6, 2004)

Has anyone had experience buying wholesale lots from a China or Japan, etc. and reselling on Ebay?

What kind of extra tariffs or taxes are there and how does... and where does... one pay them to stay out of trouble with the government? What kind of things do you look out for when buying from a foreign producer? Thanks in advance.


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## oldtruckbbq (Aug 8, 2016)

popscott said:


> Has anyone had experience buying wholesale lots from a China or Japan, etc. and reselling on Ebay?
> 
> What kind of extra tariffs or taxes are there and how does... and where does... one pay them to stay out of trouble with the government? What kind of things do you look out for when buying from a foreign producer? Thanks in advance.


I'm going to start doing this myself. To start out, I took a look on eBay to see what similar items are selling for. Then I calculated the cost of the merchandise, the packaging, postage, eBay listing fees if I go over 50 items a month, and eBay seller fees. If you don't account for all that in your pricing you will end up losing money. It is amazing how cheap some things are when bought in quantity from China. 

From the Customs and Border Patrol website: "Informal Entries: If the value of your purchase(s) is less than $2500 and your goods are being shipped by mail or freight, they may, in most cases, be imported as an informal entry. However, there are exceptions to this. For instance, if the importation is determined to be for commercial purposes, the value limit for filing an informal entry for many textile items is either $250 or $0 - depending on whether or not the item is subject to Quota (see below). Clearing goods through CBP as an informal entry is less arduous a process than clearing them by filing a formal entry. Essentially, when goods are cleared as an informal entry, CBP will prepare the paperwork, including determining the classification number and duty rate for your merchandise."

My experience is that if the package comes through the Post Office you will have to go there, pay any customs fees, then they will give you the package. I had to make a trip to the FedEx office once to pay customs fees, then they gave me my package. Make sure when you purchase the items that you ask the seller for an invoice. This is required for commercial purchases. I have found that on smaller shipments with a relatively low value customs doesn't seem to bother with them. You just never know. I came through customs on a flight back from Italy and brought back enough wine that I should have paid duty on it. The customs officer looked at my form, commented that it didn't look like he needed to tell me to have a nice day because I had that covered, stamped my form, and welcomed me home. A couple friends who did the same thing had to pay.

Sellers from each country are required to attach a customs label declaring the type of merchandise and the value in dollars. Customs uses this information to determine the fees. You can check out the Customs and Border Patrol website for restricted items. You need to do research to make sure what you are buying isn't prohibited or a counterfeit, because those items will be seized and you will be out your money.

Good luck!


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## popscott (Oct 6, 2004)

Here is a handy site if you haven't seen it already... 
http://newlifeauctions.com/calc.html

Tariffs and taxes...So if I screw up... will they let me know... or does the IRS man show up at my door with hand cuffs?

With Ebay or any sells... I have to declare $400 or more on income tax?

Thanks abunch.


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## oldtruckbbq (Aug 8, 2016)

popscott said:


> Here is a handy site if you haven't seen it already...
> http://newlifeauctions.com/calc.html
> 
> Tariffs and taxes...So if I screw up... will they let me know... or does the IRS man show up at my door with hand cuffs?
> ...


When it comes to the IRS I will only say "consult a tax professional". Listening to barracks lawyers and accountants has landed many people in hot water. It is worth the cost of a trained and licensed professional to keep you out of hot water with the IRS because they can make your life a living hell. That's what I'm going to be doing come tax time.


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## siberian (Aug 23, 2011)

Buying from china and re-selling here,,,,,sounds like we are all following big buisness


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## oldtruckbbq (Aug 8, 2016)

siberian said:


> Buying from china and re-selling here,,,,,sounds like we are all following big buisness


We are working hard to pull together the money to buy property to start our homestead. I'm salaried and work way too many hours and way too many weekends right now due to 2 supervisors being out for medical issues. I would much rather sell bbq at weekend festivals and events so I can seed the market for my sauces and rubs. That requires being able to commit to being in a given location at a given time. Right now I can't do that, so I've looked at alternatives that I can work into my schedule.

Our goal is to buy property and put up a place without a mortgage. Doing this, paying off debt, and paying of the car note will put us in a place where I can get a job with fewer hours (ie, less pay) that will allow us to do what we really want to do. In the meantime, this looks like it may be a means, although somewhat inglorious, to the ends.


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