The Cost of Ownership

[Scargo]

I recently ordered $270 worth of Mini parts from my usual source, Mini Spares. With DHL shipping, it came to $297.

Once the order arrived in the states a couple days later DHL sent me an email saying I owed them $130 in Import Fees (aka:tariffs), and if not paid within five days, the order was going to be shipped back to the UK.

Two days later, I received another email stating that I had three days to pay the "import fee".

On the last day, I paid them the $130 and I receive the shipment the following day.

Not a good situation at all. The cost of British car ownership has just increased significantly.

[94touring]

I have an order on the way so waiting to see what I need to pay. 50% seems high, I thought we were down to around 20%?

[MPlayle]

From reading several posts/articles about recent shipping from Europe/UK and the tariff situation, the published % tariff is just the "government" portion.  All of the shippers are now also charging full "brokerage fees" on top of the tariffs.  When the "de minimus" was still in effect, they would not charge brokerage fees or tariffs on anything under $800 and we all got spoiled.  Now we get hit with both the tariff and the brokerage fees on everything.

As Scargo says: "Not a good situation at all. The cost of British car ownership has just increased significantly."

[MiniDave]

Yep, ever since my local Mini owner buddy got hit for $500-600 on a $2K order, I've been dreading ordering anything from Europe - even used parts are subject to the tariffs.

And its not like any American firm is going to step in and start making Mini parts.

[94touring]

Well mine came out to about 20%

[94touring]

I see now in the bill breakdown that $17 of that is DHL charging an admin fee to pay the duty and taxes.

[MiniDave]

So, only $9 is actual duty on $100?

[94touring]

$8.50

[94touring]

I'm going to assume dhl charges more based on whatever the total duty is.  Even though the paperwork and admin time can't be anymore.

[MiniDave]

Yeah, looks like a big money grab on their part, or them thumbing their corporate noses at the US for imposing these bullshit tariffs in the first place. Hard to say, but as usual we take it in the shorts.

[94touring]

Scargo- what does your breakdown look like?

[BruceK]

Yeah, it's chaos with importing stuff right now. I spent a couple of hours last Friday and again a couple of hours again this morning with the wonderful UPS regarding a shipment I was expecting from Belgium. It wasn't for my Mini, it was a used analog clock for my Land Cruiser from an auto salvage yard in Belgium.

These particular clocks are really hard to get a hold of, so I thought finding a used one for the price of €35 was pretty good. I bought it through an online site that was all in Dutch and it was a little difficult navigating through the site and getting emails that were in that language. I decided to purchase it and honestly I did not expect shipping to be very expensive, based upon my past experience buying auto parts from the UK and from the Middle East for my JDM cars.

I was wrong, as I got an email saying it was already shipped and they were charging me €55 for that. But it was a done deal at that point so nothing I could do. Friday morning UPS contacted me saying the package would arrive on Monday (today) and there would be $108 charge due before it was delivered. WTF?! UPS said that "government charges" were $94 and "customs brokerage" was $14. Of course, there were no breakdowns provided on what the government charges were supposed to be. Call me crazy but $108 for a €35 item seemed a little much.

Then I began trying to contact UPS to find out what was going on, how they made the determination, and what I needed to do to fight it. It was pretty much a nightmare of different phone numbers, long waits on the phone, and finally talking to various call center people in India with heavy accents, who wasted my time, did not know anything, and basically just stuck to their written scripts.

I was trying to get a resolution on the import charges before I would have to pay to receive my package, but that did not work. Several hours on the phone this morning to various UPS phone numbers and some online text chats on the UPS website got nowhere. It became clear to me that if I wanted the clock, I would need to pay the money for the package, and then fight it afterward with UPS. Otherwise, if I refused the package, it would probably go into limbo and I'd have no way of getting the clock or my money back from the auto salvage place.

[94touring]

If UPS wasn't bad enough before 

[BruceK]

So I finally got an email address to dispute the custom charges with UPS and I sent them a clear email along with a copy of the invoice from my purchase from the Belgian salvage yard. My theory was they just made up the customs charges to more than cover their butts without looking at any of the documentation, such as the invoice, from the shipper.  That invoice contained the information they needed, including the proper coding for used automotive parts to determine the tax, or duty or tariff calculation to be used.

Several hours later, UPS responded saying basically "oops, looks like we've already cleared the package through customs so we can't help you. You need to contact a different organization in UPS that deals with disputes for customs entries that have already occurred. Sorry."

Lovely.

So, I wrote another email with basically the same information to a different internal organization within UPS saying I was disputing the "government charges" as they seemed excessive. 

UPS responded back with an email that indicated they are running three months behind (!) in handling customs disputes.

Here's exactly what they said:

———————
"Please read this message as it contains important information.*

Thank you for contacting the Post Entry Mailbox about your US import shipment.  Your request is very important to us!

Recent changes to US import guidelines have created a significant backlog of disputes for both UPS and US Customs.  Our team is currently responding to emails from weekending 06/21/2025, so anything sent to us after that date has not yet been reviewed.

Post Entry prioritizes our work based on the Liquidation Date with US Customs; typically, 1 year from when the shipment made entry into the US.  We do this to avoid being assessed penalties by US Customs and to treat all UPS customers equally.  When your dispute comes up in a researcher's queue, they will follow up with you to confirm the details of your dispute and to request necessary substantiation.  Some examples of substantiation that could be needed would be things like product literature, color photos, etc.

Post Entry has received your communication.  Please be patient and refrain from sending multiple emails to this mailbox about the same issue.  Multiple emails only create more work for our team and add additional time to resolving your dispute.  Again, our team is currently responding to emails from weekending 06/21/2025.

Here is contact information for other UPS departments, depending on your need:
Exporting Customer Concerns – 1-800-782-7892.
Brokerage Accounting for billing concerns – 502-485-2222 or 866-493-7140.
Entry packet or ACE report requests – sdfupsusfileprep@ups.com.
Temporary In-Bond (TIB) shipments – UPSSDF-SPTIBGROUP@ups.com.
Government Contract shipments – UPSUSSPGovernmentContracts@ups.com.
Canada/Mexico Ground shipments – casbseattleground@ups.com.

Thank you for choosing UPS, and we look forward to resolving your dispute.

Best regards,
UPS Post Entry Team"

———————-

So I guess I'll be lucky if I hear something by the end of this year. I'm hoping to get at least a partial refund.  Who knows?

In my view, UPS has definitely not risen to the occasion in dealing with changes in import duties and tariffs.

[BruceK]

Here's something I learned today as I was trying to figure out what a correct custom duty would be on my €35 used clock. Turns out that it's not just the value of the item being shipped. It's the cost of the item, the shipping cost, and the insurance cost (if that applies). So in my case, it's the €35 clock and the exorbitant €55 shipping cost that is to be used. I guess the rationale for doing it that way is people would play games with the value of the items against the cost of the shipping.

For example, the calculation is:

"When importing an item from overseas into the US, the basis for calculating customs duties (tariffs) is the customs value of the goods, which under the standard transaction value method used by U.S. Customs and Border Protection (CBP) includes not only the cost (invoice price) of the item itself but also the international shipping (freight) and insurance costs to the port of entry. This is commonly referred to as the CIF (Cost, Insurance, and Freight) value.
Key Details:
•  How It's Calculated: Duties are typically a percentage rate (based on the item's Harmonized Tariff Schedule or HTS code) applied to this CIF value. For example, if your item costs $900, shipping adds $50, and insurance is $10, the dutiable value is $960. A 5% duty rate would then be 5% of $960 ($48)."

[94touring]

Mine after shipping was $125 and some change. 

Back to UPS. When I got stuck with storage fees that they jacked up themselves, I disputed it and never paid it.  Over a year later they called me and had me pay it. They went through different employees during that period of time and the latest group finally got to my dispute and stamped it shit out of luck.

[BruceK]

Okay. Let's see what effect the current tariffs should be on a placed with a UK based Mini parts supplier such as MiniSpares shipping to us in the US. I asked an AI I use to determine tariffs due on a shipment of new automobile parts from the UK to the US.

Here's the answer I got for a hypothetical order of a new $100 Mini part from the UK to the US with $50 in shipping costs using the appropriate HS classification codes for the car parts item being shipped:

———————-

"Hypothetical Import Calculation:

New Automotive Parts from UK to US

For this scenario, I'll assume the shipment is via a commercial courier (e.g., FedEx or DHL, non-postal) to qualify for informal entry procedures, as the $50 shipping charge suggests express shipping rather than standard postal.

The goods are classified under HS heading 8708 (parts and accessories of motor vehicles, suitable for new vehicles), a common code for new automotive parts like brakes or filters.

Under the US-UK Economic Prosperity Deal effective June 30, 2025, eligible UK-origin automotive parts under HS 8708 face a preferential 10% ad valorem duty rate (reduced from a prior 25% reciprocal tariff). This applies to the full CIF (Cost, Insurance, and Freight) value.

Step 1: Determine the Dutiable Value (CIF)
•  Cost of goods: $100
•  International shipping (to US port of entry): $50
•  Insurance: $0 (assumed negligible; if applicable, add it here)
•  Total CIF value: $150

Step 2: Calculate Duties
•  Applicable rate: 10% ad valorem (value-based) under the US-UK tariff rate quota for automotive parts.
•  Duty amount: 10% × $150 = $15.00

Step 3: Calculate CBP Fees
•  Entry Type: Informal entry (applicable for shipments ≤ $2,500; no bond required if automated via ACE system).
•  Merchandise Processing Fee (MPF): For automated informal entries not prepared by CBP personnel, a flat $2.62 per shipment (effective rate as of September 2025; increases to $2.69 on October 1, 2025).

•  Other Fees:
    •  Harbor Maintenance Fee (HMF): $0 (typically 0.125% for sea shipments; waived for air/express).

    •  No additional brokerage or informal entry fees charged directly by CBP (though your courier may add handling charges separately).

Total Estimated CBP Charges
•  Duties: $15.00
•  MPF: $2.62
•  Grand Total: $17.62


Additional Notes

•  Payment and Process: Duties and fees are collected by the carrier upon arrival and remitted to CBP. Expect 1–3 days of hold for processing. File via the Automated Commercial Environment (ACE) or courier's system with accurate HS code, invoice, and commercial docs.

•  Variations: If postal (e.g., USPS), a flat specific duty of ~$100–$200 per item could apply instead until February 28, 2026, potentially higher than ad valorem. If the parts qualify for further relief (e.g., specific subheadings under 8708 with lower base rates adjusted to 10%), consult CBP.

VAT/GST from UK is already handled at export.

•  Recommendations: Use CBP's online estimator or a customs broker for exact subheading (e.g., 8708.99.8180 at base 2.5%, but overridden by 10% UK rate). Rates can change; verify via HTS.usitc.gov.

This is a simplified estimate—real scenarios may include state sales tax or carrier surcharges."

——————

So, about $18 tariff in this hypothetical situation of a $100 part like an alloy wheel. That's not nothing, but that's not a massive dealbreaker either.

Assuming this is all correct it would be great if UPS, DHL, FedEx, etc. would get with it and charge appropriately.

The AI I used for this query is Grok. For those of you that use a different AI perhaps you could ask a similar question and see what response you get. 

[94touring]

I'm going to use reality AI and placed a 2nd, much larger order, and will see what I get hit with. Waiting on a shipping quote before I click buy.

[BruceK]

Reality AI.   

[ve9aa]

I only glanced over this thread and I won't hit you with details to ruin your breakfast.

I just wanted to say, as far as import fees, duty, taxes and whatever else goes:

Don't move to  ! Canada. We oftentimes get hit really hard on those items coming from the lower 48 (always, not just recently) .  Inflated (ahem) "brokerage fees"    would sometimes make you gag.

I just paid I think it was a $169.00 CDN "brokerage fee" to a major carrier you all know on a $249 weather station I  bought out of the USA.  This is in addition to the actual price, the exchange from USA>Canadian money, shipping costs, Canadian taxes and one other small cost I now forget.  In the end this low end weather station cost me just shy of double.

Amazing right?

[94touring]

Well the quote from spares was pretty high. I went over to Somerford and they gave the option of fedex as well as dhl. Fedex was $140 cheaper.  These are large panels so was expecting it to be expensive. Going to see how fedex does.

[94touring]

Ve9aa-  that has been my experience trying to ship items overseas as well. It gets so expensive it's not worth it. Unless you REALLY need something sent. 

[BruceK]

My advice would be to make sure whoever is sending the parts does their homework and includes on the invoice the proper HS codes so the parts fall into the correct category for auto parts. Otherwise the recipient may be charged the wrong tariff or the shipping company may just guess how much to collect - like UPS seems to do.

The other thing is that companies like MiniSpares and Sommerford have been shipping to the US for decades, but probably 90% of what they've  shipped has been under the previous de minimus exemption of $800. That exemption went away three weeks ago at the start of this month. I wonder if these companies have stepped up their game realizing that ALL shipments to the US must now contain more information on the invoices (like HS codes) and that information must be presented to the shipping company.

[94touring]

Well I'm about to find out. Next question, will fedex send me a bill like DHL just did.

Edit:  I see the tarrif codes are on the invoice 

[94touring]

That code is 10%