German Import / Reduced Vat

[Darcy]

One of my clients just imported a Juyo I sent him in Germany. As per all the previous messages I wrote on this, it was declared at 9706.00.00 (antiques more than 100 years).

 

In all countries this qualifies for duty free. In some countries like the UK it also qualifies straight out for reduced VAT rates of 5% instead of 20%. Lucky. 

 

The customs broker changed this one during processing to 9705.00.00.90.3 and I changed it back. But it seems for Germany, if the item is a significant historical specimen this code is appropriate and triggers the reduced VAT rate from 19% to 7%. So after I changed it back to 9706 it was changed again to 9705.00.00.90.3

 

This title is:

 

US Hs Code - 9705 : Collections & collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or

 

And is one of the three slots you can place a sword. (One is 9307 I think... swords and bayonets) 

 

I thought 9705 was the best code to use for gendai or shinsakuto since they qualify as ethnographic works of art (since sword smiths are licensed by the Ministry of Education and embody transmission of a traditional art). 

 

That makes shinsakuto duty free, but say a Japanese style sword made in China will not be duty free, it falls under 9307.

 

If you are in Europe it pays to be in touch with customs and find out if one of these codes improves your tax situation as you could use either the 9705 or 9706 section to declare an antique Japanese sword. Probably if it is of significant value or Juyo in a place like Germany then there is an easier argument to be made that it is actually a significant artwork.

 

The way this code works...

 

9705 is the heading.

 

00.00 is the subheading (for all).

 

After this is a type code indicting the material. My client said his passed in type .90.3 but there is no such subsection in US code. I think the subsections could be country dependent. In the USA it would be 9705.00.00.91 (the 91 meaning "Other" ... if it were gold menuki it would be 9705.00.00.30 for gold). 

 

Anyway just a tidbit that may be worth a few thousand dollars to European collectors.

 

Canada has no reduced VAT (HST) exception and no VAT in the USA of course (yet!!!!)

 

 

 

 

[Andi B.]

...I can confirm the 7% but you have to prove - e.g. with NBTHK papers - that the piece has really historic value...

Few years ago it was no big problem to convince the customs officers (in Munich) but recently they are stricter...

[vajo]

Andi it is actual a dilemma to import pieces over 1.000 EUR. You can't make the import not longer by yourself. You need a import company to bring the pieces through the declaration. There are some new restrictions by importing antique pieces. NBTHK papers can't read by german customs. They want a proofed translation and so on.

I was argueing the last months with german customs by getting a sword from Japan and one from US. It was terrible, it takes much time and costs.

Maybe the customs in my hometown are different from them of munich. I'm from Rosenheim and the custom is Reischenhart.

[Teimei]

Andi it is actual a dilemma to import pieces over 1.000 EUR. You can't make the import not longer by yourself. You need a import company to bring the pieces through the declaration. There are some new restrictions by importing antique pieces. NBTHK papers can't read by german customs. They want a proofed translation and so on.

I was argueing the last months with german customs by getting a sword from Japan and one from US. It was terrible, it takes much time and costs.

Maybe the customs in my hometown are different from them of munich. I'm from Rosenheim and the custom is Reischenhart.

 

Had the same problem a few weeks ago. They get strict if you want the 7%. And then all of a sudden I had to make sure that the item is not of historical or religious importance to the country it originated... it is quite hard to proof that something is not important :D!!!

[Brian]

Sounds like SA customs. We pay 14% value regardless, and then they want to charge duties unless we can prove it's antique. But won't accept any submitted proof.
Stopped getting swords a long time ago, but hopefully will be getting something soon thanks to an amazing offer..holding thumbs it works out...there are special ppl out there.

[tom]

Hi Darcy,

about the Code is 9706 0000 00 9 the best for import antique swords to Germany. I do this now over 30 years and had never problems with the costum. But the 19 % VAT you must pay always here in Germany, is the sword over 100 years or not. But if you make a wrong bill of the value of the sword, you get in trobble here.

 

For the future, if someone needs help for import the swords to Germany, we can make it fix, and without any problems.

 

Tom

[vajo]

The Problem ist the german custom atlas system. The finance ministry give the order all over 1.000 Euro must be declared over the atlas system. But the problem is since last year you can't declare private over 1.000 Euro online with atlas because you need a license now. The import export companys must buy a license for using it.

[vajo]

Tom bist du Spediteur?

 

Gruss

Christoph

[tom]

Hi Christoph,

no im not. But im over 30 years in these business.I import many swords every months, include juyo and higher.

 

Tom

[cisco-san]

Hi Christoph,

no im not. But im over 30 years in these business.I import many swords every months, include juyo and higher.

 

Tom

Lucky man!!

[vajo]

Hello Tom

nice to hear.

 

regards

Chris

[sabiji]

No antiques with 7% VAT here in Germany, except books, stamps, paintings or graphics! As long as an antique dealer is not a small business here in Germany, he is subject to VAT at 19%. The same applies to the Import: if you buy an antique in Japan or the USA, 19% import VAT is completely out of question.

Historical or ethnological significance plays no role here. Unless you bought Excalibur!

The customs number 9706 ... is correct, but has not to do with the Import VAT, but with the customs fee.

 

Best,

 

 

 

 

 

[brannow]

Interesting topic!  Where is this code applied to the costumes declaration?  Next to the item description?

 

Thanks.

 

 

[Clement]

I imported a sword from Japan to France recently. It was 9706 code which applied  =>  5,50% VAT at the customs.

[vajo]

Little Story from today. I got a letter from customs to pick up a sword from US. Reason, the customspaper is declared as gift they dont belive it. Reasonable. I phoned with customs a women told me i should declare it over Atlas online. My last knowing was that Atlas online is only for companys. I check out the site. It works. I fight through the forms and fill out all necessary points. Print out the form sign it and drive 40 Kilometers to the coustoms. I wait 20 minutes at the desk. Because a lot of people want pick up their packages. I give all my sheets to the officer. He go to his computer checks the form, came back and give me the papers back. There is failure in no. Xy paragraph bla bla - what? I understand nothing.

I say to him if he could change it. He say no thats not allowed. I start my car and drive 40 km back home. Phone now since one hour to find a transport company to fill out the form correctly. The two companys were i import my earlier pieces dont make not longer private imports.

That is all boring.

[Blazeaglory]

Little Story from today. I got a letter from customs to pick up a sword from US. Reason, the customspaper is declared as gift they dont belive it. Reasonable. I phoned with customs a women told me i should declare it over Atlas online. My last knowing was that Atlas online is only for companys. I check out the site. It works. I fight through the forms and fill out all necessary points. Print out the form sign it and drive 40 Kilometers to the coustoms. I wait 20 minutes at the desk. Because a lot of people want pick up their packages. I give all my sheets to the officer. He go to his computer checks the form, came back and give me the papers back. There is failure in no. Xy paragraph bla bla - what? I understand nothing.

I say to him if he could change it. He say no thats not allowed. I start my car and drive 40 km back home. Phone now since one hour to find a transport company to fill out the form correctly. The two companys were i import my earlier pieces dont make not longer private imports.

That is all boring.

Please update if you fix the problem. Thats too bad.

[vajo]

I have the sword now at home. That was a expensive day. I found a small import / export company (one women show) she filled out the form for me and sent it to customs (60 EUR fee). On the customs a long discussion about the age (Yes a gendaito) no chance without a written expert guarentee for antique   (it's not over hundred years)  I paid full tax price 7% custom fee + 19% value added tax. Needed half a day holiday and 160 km by car.  After unboxing I'm a little sad too about some points that didn't told from the seller (well known here). That's life. I think i need now two beer to fix the evening.

 

Best 

Chris

[TETSUGENDO]

Chris,

 

Sounds like a long and difficult day.  Prost, mein freund!     

 

Cheers,

   -S-

[vajo]

Thanks Steven        

 

[vajo]

One Tip from a german buyer (me) who buys often from Japan and US. The german customs are not stupid. You can declare what you want. If the decission on Frankfurt Airport is that something is wrong with the piece they sent it to the local customs and they let your trousers down. From US sending 120 Dollar mostley is free. If you want get this way please declare on the customs sheet, that inside is a sharp blade, the buyer is over 18 years and describe it as martial arts sports.

 

The 97..code is very difficult, because they want a written proof that it is over 100 years old. A nbthk certificate is nice but no one can read it. So you need maybe a certified translation to bring it with the decleration to the customs. If they have doubts they declare it as a sports piece. I show them for example a sword in old shirasaya with sayagaki and hozen paper. No chance. Full tax.

 

The german state wanted to see cash. If you don't have all documents waterproof you can speak outside with a wall. That will understand you better.

[Clement]

Regarding my situation, i asked the seller to write on the invoice, in english, "Japanese Antique Sword made over 100 years ago."

That invoice was enclosed with shipping papers. All went pretty smoothly this way.

 

No need for NBTHK paper translation, a simple invoice from the seller should be enough, at least for some customs. Other ones could be picky i guess.