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> Seriously though they have a lot of stock in their warehouse. Given they didn't have to pay tariffs before, I would assume they've declared all the goods and
by magicalhippo 2y ago
> Seriously though they have a lot of stock in their warehouse.
Given they didn't have to pay tariffs before, I would assume they've declared all the goods and in that case yes.
> Does the duty only apply for domestic buyers?
If you re-export goods that was previously imported without using it, like DigiKey, then at least here in EU you can apply to get the duties paid back. However it's quite annoying if you import large quantities and sell small fractions. It works better if you do it on a 1-1 basis.
Not 100% sure how it works in US, but in EU you can have a bonded warehouse, where you store goods before you perform the import declaration to free them for general use.
This allows you to postpone the import declaration, and hence tariffs to be paid, to when you've sold the goods, or even avoid paying tariffs if you export the goods directly from the bonded warehouse.
The latter part is very attractive to companies like DigiKey which sell a lot of their goods abroad.
There are typically strict rules regarding getting a bonded warehouse license, with requirements for bookkeeping and physical separation with access control to avoid mistaking the bonded goods for normal non-bonded and hence technically smuggle goods into the country.
This also affects who's performing the import declaration. Pre-tariffs there's usually not much incentive to do anything more fancy than letting someone else handle the import declarations. However the added bookkeeping and usually means the one responsible for the bonded warehouse is best suited to perform the declarations. At least here in EU there are companies that offer this as a service.
Anyway the point was, if they didn't already have a bonded warehouse and decide to go with one, it's not just sending an email and get some approval. It might affect how DigiKey has to handle this goods deeply.