As most of you will be aware, the current US government has been changing tariffs and duties in recent months. As some US customers will probably be aware, a new change comes in today – the end of the ‘de minimis’ rule.
Under that rule, US consumers paid no duties on anything coming into the country that was valued under $800. If the foreign company was small enough, they also paid no sales tax. It was a pretty good deal.
Unfortunately that is now ending from August 29, and on the PS Shop we have decided to start shipping DDP (‘delivery duty paid’) as a result, plus show prices in dollars for extra clarity.
This means that US readers will see the final price on the PS Shop when they buy, including all duties and taxes, and the purchase will go straight to them, rather than them having to pay duties to customs separately.
We resisted DDP for a while, because it often worked out as more expensive, and because it seemed less transparent. But we’ve decided to make the change for two reasons:
- Customs charges will affect far more PS readers than before, because they will apply to purchases under $800 as well as those above, and
- There are likely to be delays as US customs gets up to speed with this huge influx of new charges; DDP minimises those delays
There are greater expenses with using this system, apart from the actual duties. Sorting them out on our end after the package has been delivered can create unknown charges. Currently it’s also impossible to recover duties when customers return items, so we will lose money on those. But then, it was hard for customers to recover duties themselves before, so it will be easier for you.
Overall, these new US taxes will make things more expensive, but hopefully the DDP changes and the dollar currency will make the process smoother. We’ve also made sure to spell out those duties at the checkout stage, so you can see the product price and the duties separately.
Importantly the courier we use, UPS, is continuing to ship as normal, so while there might be some initial delays as customs adjust, there will be no interruption to shipping.
How much will the duties add? Well, purchases under $800 will now have:
- Regular duties on top, which have always applied above $800. These vary with the type of product (eg cotton is treated differently to wool) but range from 7% to 18%.
- Plus the new 10% tariff the US government imposed on everything coming from the UK. This is less than the 15% on things coming from the EU, and much less than those coming from China or India, but still it’s another tax.
- Note that US readers buying things like coats have always paid number 1, as those are over $800, and 2 has already applied since April. So for those making more expensive purchases nothing changes, except that the process will be smoother and the price will be in dollars.
Since the PS Shop started, my aim has always been to offer high-quality products that I didn’t think you could get elsewhere, carefully thought through and made, and transparency about pricing, costs and value.
This doesn’t mean ‘cutting out the middle man’ and placing no value on service or design and service, at one end of the spectrum. But it also doesn’t mean charging big-brand prices with no connection to quality and craftsmanship. PS has always tried to plough its own furrow.
Hopefully these changes reflect that particular approach. I also hope it goes without saying that we hugely value our US readers, who have always been big supporters of the heritage manufacturing we cover as well as making use of in the shop.
PS products have always been great value. I think they will continue to be so, but thank you in advance for paying these extra duties if you do, and so continuing to keep us going.
Pictured: The PS navy Donegal Overcoat
