Importing to the US from Japan

[traindork]

I get my Japanese trains from sources here in the United States. These past few weeks I've opened a paypal account and an ebay account. Now I can buy from plazajapan!

Kato's E5 announcement pushed me over the edge. I'm not going to miss that one for anything.

 

My question is, do you have to pay an import tariff or anything to import trains into the U.S.? Customs forms? Calls from the government? Help! 

[quinntopia]

Nope.  The sender (e.g. Plaza Japan) will have to fill out a customs form to declare the contents and value of the item they are sending you.  As long as it falls under a certain dollar amount, you don't have to worry about any customs tariffs!  I don't know the exact dollar amount that could trigger a customs tarriff, but according to the CBP website, it seems like $200 is the threshold for a tariff fee (I have had many packages exceed this amount with no problem or notice from customs, so not sure if the customs form indicated this amount or its just not worth the customs office time to assess a small fee).

 

Here's the CBP website...for model trains/ ebay purchases, I wouldn't be at all worried about all the language about shipping, delivery etc....  Ebay dealers like PlazaJapan or Hobbysearch have a lot of experience with this so i wouldn't worry one bit.

 

http://www.cbp.gov/xp/cgov/trade/basic_trade/internet_purchases.xml#USCustomsandBorderProtectionDeclarations

 

Interestingly, it seems like citizens in the US actually have it a lot easier in this area than most other countries.

[Guest ___]

Typically under customs declaration Jun will call it a "gift" as does HobbySearch.

[cteno4]

Hugh mine are always checked 'other', not gift from hs and hw, cant remember what plaza does. never gotten charged, though. i always thought there was a lower limit for import duties into the us from japan like quin said.

 

Also check out HobbySearch (http://www.1999.co.jp/idevaffiliate/idevaffiliate.php?id=114&url=59) and HobbyWorld (http://www.hwjapan.com/) as you can use paypal now easily with both of them and they are excellent shops to deal with, in fact they are pretty much at the top of hobby shops i have dealt with online anywhere.

 

cheers

 

jeff

[Martijn Meerts]

You're all lucky on the imports it seems. I have to pay import (around 19/-20% of the total value, including shipping cost.....) plus a standard fee (some 15-20 euro per package) every time I get something from Japan when I use either EMS or standard mail. On top of that, even using EMS, the package usually sits at customs in the Netherlands for 1-2 weeks...

 

I also regularly order CD's from Japan, and that store has the option to use Fedex. Delivered at the doorstep 2 days after the CD's get shipped, and a letter in the mail a month later with how much tax I have to pay. I wish HS would do Fedex.. On the other hand, I'd probably order more than I'm already ordering now :)

[KenS]

The EMS form on two of my recent HS orders had "gift" checked, although I think I've seen "other" listed in the past, along with the correct price (in dollars) for the items in the box.  The invoice attached to the outside has a line reading "Payment" (separate from "Unit price" and "Amount", which have values in Yen) which reads "No commercial value".

 

I think that last part may be the determining factor; since we're not importing for resale either the fee doesn't apply or it's not worth the paperwork required to collect it.  HS is pretty rigid about always stating the true cost (which affects import duties in other countries) so I expect they're following the letter of the law for U.S. customs also.

[railbusgerman]

You're all lucky on the imports it seems. I have to pay import (around 19/-20% of the total value, including shipping cost.....) plus a standard fee (some 15-20 euro per package) every time I get something from Japan when I use either EMS or standard mail. On top of that, even using EMS, the package usually sits at customs in the Netherlands for 1-2 weeks...

 

I also regularly order CD's from Japan, and that store has the option to use Fedex. Delivered at the doorstep 2 days after the CD's get shipped, and a letter in the mail a month later with how much tax I have to pay. I wish HS would do Fedex.. On the other hand, I'd probably order more than I'm already ordering now :)

 

I have purchased from plazajapan as well and I must say, that they are a very reliable and fast shipping supplier. I Also have to pay 19% at customs, which is the standard rate for German Value Added Tax (VAT), but customs haven't charged me anything apart from that. Customs in Germany are faster than yours (2-3 days for the parcels to get through customs).

[cteno4]

interesting all the boxes laying around here are sal ones and they all are marked other, but they all have the price in yen, not dollars.

 

HS use to always put a copy of the invoice on the outside of the box in an envelope which i always assumed was for customs inspection so they could verify the content/prices of the order w/o opening the whole box potentially. they no longer seem to do this.

 

cheers

 

jeff

 

ps i feel for those in europe with the tariffs and various shipping charge addons. ouch, would definitely cramp my japanese train hobby with those!

[Guest ___]

The EMS form on two of my recent HS orders had "gift" checked, although I think I've seen "other" listed in the past, along with the correct price (in dollars) for the items in the box.  The invoice attached to the outside has a line reading "Payment" (separate from "Unit price" and "Amount", which have values in Yen) which reads "No commercial value".

 

I think that last part may be the determining factor; since we're not importing for resale either the fee doesn't apply or it's not worth the paperwork required to collect it.  HS is pretty rigid about always stating the true cost (which affects import duties in other countries) so I expect they're following the letter of the law for U.S. customs also.

 

I just looked at three boxes I have laying around. (I keep boxes as I often send cameras out to service and like the big thick HS boxes) In an intersting notre, all three of the customs slips (the little green tag) says value ¥2000 on them. I'm sure most of the stuff was more or less than that figure.

[westfalen]

At the moment here in Australia there are no hidden import duties or taxes, I've never had to pay anything extra on stuff from anywhere overseas. I say "at the moment" though because some larger Australian retailers have been making some noise lately about cheap online purchases from overseas hurting their sales and wanting the government to do something about it.

[The_Ghan]

Hey westfalen,

 

I've also been watching these retailers blame the Government for their poor Christmas sales.  Frankly, I doubt Australia Post is keen to become the Government's GST collector and foreign companies will just laugh at the situation.  Besides, the first train I bought on-line, from HobbySearch, cost me around $225 including EMS shipping.  I bought it on-line because HobbyCo in Sydney was selling the same Kato set for $359 !!!  What a joke.  They must have a 200% markup or something.

 

Cheers

 

The_Ghan

[westfalen]

Hey westfalen,

 

I've also been watching these retailers blame the Government for their poor Christmas sales.  Frankly, I doubt Australia Post is keen to become the Government's GST collector and foreign companies will just laugh at the situation.  Besides, the first train I bought on-line, from HobbySearch, cost me around $225 including EMS shipping.  I bought it on-line because HobbyCo in Sydney was selling the same Kato set for $359 !!!  What a joke.  They must have a 200% markup or something.

 

Cheers

 

The_Ghan

You're right, I don't think it will get anywhere either and even if it does, with 10% GST things will still be cheaper though I imagine the line at the post office will get longer and slower as customers argue about and pay their GST. A few hobby shop owners I know claim they are only charging what they need to to break even but someone along the supply chain is making money on U.S. models too, not just Japanese. With airfares what they are I could go to a hobby shop in Tokyo myself and save money on buying three or four Kato sets locally.

 

It's interesting that the retailers who are complaining, they took out a full page ad in today's paper, have themselves spent the last few years putting small mum and dad shops out of business and sending local manufacturing broke by selling cheap overseas made products. IMHO, whether some like it or not, internet retailing is just the next step in the natural progression of things.

[The_Ghan]

Been on holidays ... back at the PC now. 

 

I saw the full page ad, led by the likes of Harvey Norman.  There argument is fundamentally flawed for the following reasons:

 

1. They say that the GST is killing them, yet the difference in price between my online prices and shop door prices for the things I buy is usually over 25%, including the cost of freight to my door.  Examples include model railways from UK and Japan, shoes, electrical products, and even wine bought in our own country.  My wife gets food online such as Armond Meal at very cheap prices too.  Adding GST to these items (and those I buy within Australia, such as wine and Armond Meal already have GST) would still make a saving of 15%;

 

2.  They claim the exchange rate is making international products cheaper ... er .... doesn't that mean the retailers buy price is also cheaper?  The argument just doesn't hold water.  Yes, I'm stocking up on rolling stock with the strong Aussie dollar.  I've doubled my fleet in the last six months.  But HobbyCo in Sydney hasn't dropped its price - ever!  Somewhere along the line someone is reaping the rewards of a strong Aussie dollar and not passing the saving onto the consumer;

 

3.  Jobs will be lost.  This may be true.  It may be part of the evolution of the retail industry.  When I was a kid there was no shortage of sales assistants at department stores and speciality shops.  These days, I'm sick and tired of hunting down a sales assistant when I want some service.  Even worse is the poxy little teenager who really can't convince me either way over a purchase decision because they are untrained and really don't know what they're selling.  Thirty years ago being a sales assistant was a career - not anymore.  But, that is part of the evolution.  Culture, the internet, and the economy have changed retailing.  I now prefer to do my research online, and my shopping as well.  But jobs may not be lost.  Online shops need staff to maintain websites, do shipping and packing, etc.  That's job creation, isn't it?

 

Here's a few of my recent online shopping experiences:

 

1. I bought 2 x iphone car charger on ebay for $1 each with free shipping.  The same product, in the same packaging, sells in Coles for $15.95 each;

 

2. 10 x 2 x 3-Way Molex power supply splitter cable for PC (I use these for my layout wiring) for $9.90.  Would have cost me over $60 in the local PC shop;

 

3.  Xerox drums for the office coppier $52 each - $290 from Xerox.

 

On the other hand ... I recently had Bing Lee match my best online price for 2 x Windows 7 Professional.  So not all retailers are screaming.  Gerry Harvey, and other retailers like him, need to pull their heads in and catch up to where retailing is heading.  There REAL fear is that consumers are gaining control !!!

 

Cheers

 

The_Ghan

[Sir Madog]

I am a resident of Germany, and domestic prices are just outrageous. For this reason I have changed my modeling habits from German prototype to Japanese prototype. There is only 1 on-line store that I know of handling Japanese model railways and their prices are OK, but still way above a direct import from Japan. As they carry only Tomix/Tomytec products and are mainly doing back to back business (hardly any stock), I do most of my purchases directly in Japan. In most of the cases, customs clearance is done by the forwarder, as there is no customs duty on those items. The postman delivering my merchandise collects the 19% VAT at the time of delivery - that´s it. As convenient as ordering locally, but with a saving of 15 to 40 % attached to it.

[bikkuri bahn]

I am a resident of Germany, and domestic prices are just outrageous.

 

Sir Madog, I'm curious, are most German model trains produced in Germany?  If so, the costs must be high. 

[Martijn Meerts]

Ulrich, if you're referring to the store in Kamen, he can also order anything from Kato, MicroAce etc, he just doesn't have them listed on the online store. Actually, you can even ask him for things that have been out of production for a while, and he'll try and get it through his contacts in Japan. He also does have quite a bit of stock in his store, but it's only a small store, so there's a physical limit there ;)

 

 

Bikkuri, it's mainly only Marklin (or more, Marklinists) that seems to think made in China is per definition bad. Then again, many Marklinist also still think train item made of plastic is bad. What a lot of Marklinists fail to understand though, is that most Marklin models are manufactured in China, but assembled in Germany, yet they're still sold as "Made in Germany"...

[bikkuri bahn]

What a lot of Marklinists fail to understand though, is that most Marklin models are manufactured in China, but assembled in Germany, yet they're still sold as "Made in Germany"...

 

Ah, yes, I see.  Kind of like how some mechanical wristwatches are labeled Made in Germany, but their movements are actually mass-produced Swiss-made ebauches.  Anyway, I personally don't care where the trains are assembled, in fact it seems most of the new HO plastic rolling stock here in Japan is made in China (except maybe some of the older Kato models).  But still, it's not cheap- equivalent of $80 for one passenger car, the reality of limited production and a small market.

[Sir Madog]

I am a resident of Germany, and domestic prices are just outrageous.

 

Sir Madog, I'm curious, are most German model trains produced in Germany?  If so, the costs must be high.  

 

In addition to Martijn answer - most of the German brands have their products manufactured in China, but still ask crazy prices. A Brawa Royal Bavarian State Railway S 2/6, a nice streamlined 4-4-4 steamer, costs as much as $ 700, with the same level of detail as a Bachmann 4-6-0. Incredible.

 

Actually, Martijn, it is mainly cars from Marklin which are produced in China. Locos are made in Hungary.

 

No, it is not only taxes that push up the price. It is greed!

 

This is what I wrote in another forum some days ago:

 

There is hardly any European model railroading business which has not been or still is in financial trouble. Marklin/Trix, Fleischmann/Roco, Lima, Arnold, Jouef, Rivarossi, those three now being Hornby brands, Faller, Kibri - you will find all the big names on this list. All of them once thriving businesses, which are now just struggling along. Most of them blame a shrinking market for their failure, but I doubt that this is the sole reason, as there are still businesses which are doing quite well.

 

What happened?

 

Marklin, for many decades being the market leader in Europe, made a tremendous development in post-WW II years, in a time, when money was VERY short and people had to struggle to stay alive. Two factors kindled that development:

 

   * Marklin produced high quality toys (that term is deliberately chosen)

   * Marklin understood the toy market

 

Marklin´s trains were always a little more expensive than those of other brands, but consumers were prepared to pay for that to get the quality. Each year, Marklin would release one or two new locos into the market, which were readily accepted. Detail was sufficient not only to attract kids, but even the more serious modeler, yet still crude when compared to today´s standard. New products were  ready just in time for the Christmas business, and as catalog items, the were always available - no limited runs, no pre-order, no bargain runs.

 

In the mid 1980´s, Marklin and all others realized that the baby boom years were over and that their customer base would be rapidly shrinking. The industry answered by upgrading their products, increasing the level of detail and adding electronic gadgets and features, thus moving away from a kid´s toy market into the serious hobby market. Prices went up as a consequence. In order to attract more buyer´s in a shrinking market, Marklin increased the number of new products in the market and introduced limited runs to urge the buyers to buy immediately - a policy which led to exploding costs and skyrocketing prices. Moving production out of Germany to low wage countries like Hungary and partly China while at the same time keeping the high price level did not help at all, so the downfall was foreseeable.

 

What went wrong?

 

   * Marklin moved their products into a price region where they are competing with other not so cheap hobbies

   * Marklin completely overestimated the size of the collector´s market

   * Marklin completely underestimated the cost of complexity

   * Marklin neglected their heritage

   * Marklin ignored the needs of their customer base

 

Model railroading is still the # 1 hobby in Germany, with an increasing attractiveness. We even have a bi-monthly TV show exclusively covering model railroading! But it is not Marklin/Trix or Fleischmann/Roco who is capitalizing on this attractiveness, it is the former state-owned East German manufacturer Piko who has developed a budget line of products being sold at prices people still can afford - and buy. Piko still offers high end products, but on a platform of a bread-and-butter business which pays their bills.

 

The lesson to be learned?

 

Don´t offer a Mercedes if the market is prepared only to pay for a Toyota, unless you are prepared to sell the Mercedes at the price of a Toyota.

[westfalen]

I am a resident of Germany, and domestic prices are just outrageous. For this reason I have changed my modeling habits from German prototype to Japanese prototype. There is only 1 on-line store that I know of handling Japanese model railways and their prices are OK, but still way above a direct import from Japan. As they carry only Tomix/Tomytec products and are mainly doing back to back business (hardly any stock), I do most of my purchases directly in Japan. In most of the cases, customs clearance is done by the forwarder, as there is no customs duty on those items. The postman delivering my merchandise collects the 19% VAT at the time of delivery - that´s it. As convenient as ordering locally, but with a saving of 15 to 40 % attached to it.

When I first visited Germany in 2008 I thought I might pick up a few trains as souvenirs but after looking in a few hobby shops I came out shaking my head and wondering how the locals can afford the hobby. In most countries around the world like Japan, U.S. and U.K. models of that country's trains are cheaper than they are here in Australia by 50-100% but German trains seem to be the most expensive where ever you buy them.

[bikkuri bahn]

Model railroading is still the # 1 hobby in Germany, with an increasing attractiveness. We even have a bi-monthly TV show exclusively covering model railroading! But it is not Marklin/Trix or Fleischmann/Roco who is capitalizing on this attractiveness, it is the former state-owned East German manufacturer Piko who has developed a budget line of products being sold at prices people still can afford - and buy. Piko still offers high end products, but on a platform of a bread-and-butter business which pays their bills.

 

Thank you, Sir, for your take on the German model rlwy market.  It's good to hear that the hobby is healthy in terms of popularity.  And very interesting about Piko and their marketing strategy.  It seems Tomix here in Japan follows a similar strategy- having a good line of entry level yet quality train sets (widely available at mass-market retailers) that draws newcomers into the hobby, hopefully to get them hooked to buy more products as their interests and ability to pay expand. 

 

Many here know that N scale is the most popular gauge in Japan, but the discussion on marketing sparked my interest, and I did some web research.  Japan is the the midst of a "railway boom" in terms of hobby interest, and of course it's positively affecting model railway sales.  N scale is dominant, the industry has annual sales of approx $150 million dollars/year, with $110 million in N scale.  Basically N scale has a 70~80 percent share of the market.  Tomix was aiming for 10% year on year sales growth in 2008, and the industry wide growth rate is estimated at 4~5%.  Apparently the key customer to attract is the child/youth market, obviously the most potential in terms of growth, and model trains are seen as a healthier hobby than say video games or model guns in the eyes of mothers, who hold the purse strings in the family. *Notice in Japan it is the mother who is seen as the enabler in getting a child interested in trains, rather than the father.  A somewhat sad symptom of the lack of paternal involvement in child rearing in Japan, especially for boys.