Posts by placidlynx13

Hey everyone

Just wanted to drop this here—not trying to run an ad or anything, just figured I’d share some info on importing goods from outside the USA using customs procedure 42. If anyone's looking for details, I thought I'd pass it along...
www.customsbrokerage.com
You can find everything you need regarding how the process works at that link. You can also find plenty of service providers online who handle this kind of thing
Hopefully, this helps someone figure out how to defer that 25% sales tax on imports...

Carol Price4 said:Actually, let me correct myself... it doesn't have to be Canada—any EU member state works. So, you could do it in Canada too. 😉

Personally, I think it could work in America if the goods move immediately—say, right into Canada—so the buyer's VAT number is used and the cargo leaves the US right away.

Well, sure, you can technically do it anywhere in Europe, but you really need to double-check how they handle things in that specific country. It all depends on what the local IRS or tax authorities require from a business and their specific procedures. From what I know, goods coming in from places like Canada or Mexico can't be cleared at the border heading toward Canada because the freight forwarders and the tax offices end up making impossible demands... so instead, things tend to go through borders heading toward Bulgaria or Romania. Honestly, your best bet is to check exactly what’s required in whichever country you're planning to run the Section 42 procedure in.

Carol Price4 said:Anyone? Apis, ruggedmaker2, anyone got an idea???

When dealing with a third-country import (using procedure 42 over in Canada), how do I log that in Synesis—do I go through "VAT due on imports" (non-taxable), or just a standard import entry (non-taxable)?

As for form 42—I'm thinking no, since that's not a thing in the US, and the Canadian customs broker handles the filing, right?

Regarding procedure 42, an American company can only actually pull that off in Canada...
You can't run procedure 42 in the buyer's own country; it has to be done in a different country entirely.
We handle this exact process in Canada for our clients coming from Canada, Austria, Germany, France, the United Kingdom, America...
If a Canadian customs company is handling procedure 42, we ship it over to the border in Austria for customs clearance.
Best,

slycobra7 said:Could use a little help here if anyone knows the drill.
My company is buying goods from Italy, but there's a twist: the shipment passes through a sister company owned by the same person over in Mexico. When the goods actually arrive, the invoice will be coming from the Mexican entity, not the one in Italy.
The freight forwarder is telling me we don't need to worry about sales tax because it’s being treated as goods coming from the European Union.
So, how am I supposed to record this in the books?
If I categorize it as an import from the European Union, how does that look on my tax filings?

Hey there...
If the invoice is coming out of Mexico, you’ve gotta pay the sales tax. It doesn't matter where the parent company is located or where the goods physically traveled from—all that matters is who sent you the bill.
If you're familiar with customs procedures, you might be able to clear the goods at the border in Canada using a specific exemption, which would mean you wouldn't have to deal with the tax on this...👍. The catch is that the goods have to be coming from a non-USA country. Though, I'm not really sure how they handle the shipping costs up to the border...