Buying a bike in the USA

slimboyjim · June 2009

Hi,

I am visiting the USA in a few months and this coincides with the time I will be getting some money to buy a new bike (or frame/fork combo). I was wondering whether, since things seem to be a bit cheaper in the US, if it would be worth sourcing a bike out there and shipping it back? I'd be looking at spending approx £1000-£1500 total, unless I can talk my wife around a bit more :roll: . However, I'm finding it pretty difficult to work out what costs/issues would be involved and I have a million questions - has anyone done this who can give me any advice or is anyone aware of a good internet site where I can read up on all this?

From what I can see I would have to pay the following:
1. Cost of bike
2. Import duty of 14% (I've emailed UK customs to check on this)
3. Shipping costs

Is this everything? I've seen mention of an 8.5% sales tax that is added to purchases made in the US somewhere or other - is this something that would apply? Also, in London it always seems you can buy stuff 'Tax Free' if you are not an EU citizen - would a similar system operate in the US whereby I could discount tax? If so, what is the US tax rate? Finally, does anyone know of any US bike mail order companies I could look at to get an idea of whether their prices are any cheaper?

Phew!

Thanks,

James

Da Mighty Chicken · June 2009

Hi James,

2 things spring to mind really, 1st is the warranty, you may have none in the UK and would need to send it back to the US, I was going to get a frame and shock combo recently from the US and was advised that I'd have no UK warranty! (It was a Marin)

2nd, the tax rate is different from state to state in the US (IIRC) so you'd need to check that, & not sure if they'd sell to you tax free if bought from a shop, you might have to have the shop arrange shipping back to the UK to gain tax free?

HTH's?

bomberesque · June 2009

I have bought 4 bikes in canada over the last 10 years. In each case they have discounted the sales tax at point of sale on viewing my passport and plane ticket / printed confirmation. I don't know if US retail stores can do this, but I don't see why not. If you order the bike to be shipped frmo an online US seller, they will not charge any sales tax. Bricks and mortar retailers may not be as up on such things though.

if you import through normal channels, you'd pay VAT aswell as import duties I think.

for shipping costs, check with your airline, the most I've had to pay was 100 USD per bike per leg with Delta but I've taken bikes for free on some other airlines. You often get them on cheaper if you register your intent tio take a bike when you book the ticket. This may work out cheaper or more expensive than separate shipping.

what you mustn't do is buy the bike take it out on a few trails to get it a bit muddied up then stick in an old bike bag and bring it back with you claiming that you took it out from the UK first. Don't do that, it's illegal. If you get cought they charge you some multiple of the VAT/duties that would have been levied had you been honest about it. I absolutely never did this and got away with it. no sir no way.

slimboyjim · June 2009

Thanks for the advice guys.

The warrantee is an issue - I know some makes prohiibit their retailers from export (eg. Santa Cruz) and I think that it would be an issue with those companies, even if they do have UK/European support arms...

Whether I buy a bike out there will depend on whether the savings make it worthwhile - Does anyone konw of any US bike retailer websites I could view to get an idea of prices?

fred1star · June 2009

If your not worried about warrentee just buy the bike... Use it a bit while out there and bring it back with you, say it was brought in uk....

bomberesque · June 2009

Try;

pricepoint.com
jensonusa.com
competitivecyclist.com

most manuf. sites list RRP

TheRevOlutionary · June 2009

Just be careful, they are Left hand drive over there

nicklouse · June 2009

slimboyjim
you have missed a few things, and customs have not given you the full details.

import tax. about 14% (i would disagree with 15% for a full bike or parts to make a full bike) you then have the VAT to add. (15-17.5% or whatever it is at the time)

shipping and any Vat in the shipping in the UK.

a handling charge is normally paid to the carrier. check some are cheaper than others.

But if you buy a bike and have owned it as part of your everyday "goods" for 3 months minimum (you have to be able to prove it) it can be brought in tax/vat free.

check the time as well.

Where are my stabilisers? · June 2009

If you go through the proper channels, taxes, shipping etc, you probably wont save a lot of money (if any) and you wont have the warranty!

The other way is illegal and you'll regret it if you get caught.

slimboyjim · June 2009

Thanks for the help again guys - I think I'll probably just pick up a bike here and go with the warrantee... Can't mess up that way

fred1star · June 2009

Probably best....

slimboyjim · July 2009

I've got the reply from customs and thought I'd post it for anyone elses reference, although it's not the most helpful...

Thank you for your email sent on 28 June 2009 regarding the importation of a pedal cycle.

I would like to explain that all goods both new and second hand, private or commercial, sent into the UK from outside the European Community are liable to Customs Duty and VAT. Customs Duty will not be charged for goods with a value of less than £120 and VAT will not be charged for goods with a value of £18 or less.

Duty is charged as a percentage of the value of the goods. The percentage varies depending on the type of goods and the country of origin. Duty is charged on the price paid for the goods including any Local Sales Tax plus postage, package and insurance costs. Customs duty is waived if the amount of duty is less than £7.

VAT is charged at the same rate that applies to similar goods sold in this country. The value of the goods for import VAT is based on the value for duty plus any duty charged.

To check how much duty and VAT would be payable, you need to obtain the commodity code for your goods from our Tariff Classification Helpdesk on 01702 366077. Once you have the correct commodity code, duty and VAT information is available from the National Advice Service (NAS) on 0845 010 9000.

Please be aware that currently, an additional 15% duty will apply to certain products originating in the USA. This will be in addition to any customs duty and VAT. When you contact the NAS for duty rates, you should check whether this affects your goods.

The postal services/international carriers normally make a charge for clearing your goods through Customs and collecting the customs charges on our behalf.

Further information can be found in Public Notice 143, a guide for international post users, which can be downloaded from our website at www.hmrc.gov.uk via the following links:-
Import & export on the homepage
Library section
Publications
Notices, Information sheets and other reference materials
Imports, exports and international trade
Public Notices
Notices are listed numerically

batch78 · July 2009

So in Laymans terms, to import anything, you get shafted, shafted again and then forced to phone multiple numbers being shafted a third time, probably in the name of protecting British industry that they forget was ruined, raped, beaten to a pulp and sold down the river years ago.

I'm going on Ebay myself!!!!

Viva Le Taiwan.

GHill · July 2009

Don't bother, it'll be very expensive (as you've seen from customs).

If you do decide to do it, sales tax differs by state but you're looking at 6-10% unless you're lucky enough to be heading to Oregon. If you mail order something you only have to pay tax if the company has a place of business in the same state as you're ordering from (you have to declare an out of state purchase on your US tax return, but I guess that doesn't apply here). Some companies do not allow their dealers to sell via mail order, Trek and Specialized fall into this bracket.

dickst3 · July 2009

For what its worth I've imported loads of stuff from the USA. M/bike, car and radio control stuff - Tower Hobbies are great. They have lots more choice out there (bigger market I guess) and the reduced prices are a bonus - the UK prices for radio control stuff for instance are extortionate.

I have found that some stuff has come straight through to me without any further import charges and on other occassions I have had to pay the courier for the taxes. In any case it has always worked out cheaper than buying in the UK.

Rich

ps I'm not sure I'd buy a bike from there tho'! I am hoping to buy a Core 20 shortly and haven't considered the US.

BigStu2 · July 2009

Why dont you take a bike box with you containing an old wreck, junk it over there and bring back the new bike in the same box, I must be a genius. All hail me, now if this cunning plan fails write me a very stern letter

nicklouse · July 2009

but if you can not prove that you have owned it for the required time you can still be liable for import charges.

Buying a bike in the USA

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