16 ms·
- €150 is higher than 0€ - Also, you are fully wrong. The EU has an import duty of 0% on pretty much anything, especially electronics. Here, the de minimis is a
by Fischgericht 1y ago
- €150 is higher than 0€
- Also, you are fully wrong. The EU has an import duty of 0% on pretty much anything, especially electronics. Here, the de minimis is about the VAT. Which you therefore also are wrong about. No, there is no VAT on items below €150 - because that what our de minimis is about. Also, import VAT is easy to process. Because it's always the same amount for everything - 19% in Germany, for example. For tariffs you need to know what is INSIDE the package.
- China's high tech economy does not depend on small imports. Also, they do have de minimis for import VAT, and 0% import duty on lots of stuff (again, including electronics)
The problem for low-value items is not the import duty. It's the delay of processing.
I am running an electronics development company in the EU. To us it's mission critical to be able to get devkits, samples, prototypes, spare parts etc within 5 days from China.
I would not mind having to pay $1 of duty on a $10 part. I would be in huge trouble having to wait for that part 30 days.
Also: As always, Trump gave nobody any time whatsoever to prepare. The US now suddenly will have to hire thousands of customs employees. New machinery to transport all of this. New warehouses for storing stuff that sits for customs processing.
You could not be more off here. This will turn out to be a gigantic disadvantages for huge bunch of the innovative parts of the US economy. In our industry, nothing matters more than time to get parts.
As you have noticed: All other countries have LOWERED de minimis, and they did this with 12-18 months of advance notice.
Thailand last year tried to get rid of de minimis. They reverted the decision after ONE WEEK.
You are completely underestimating the amount of the US shooting into their own feet AGAIN here. In these days of global shipping volume you MUST have de minimis a country, or else you will be de-coupled from global R&D markets.
- TheOtherHobbes 1y agoI'm in the EU, and in this corner of it it's damn near impossible to import anything, no matter how small. I would be delighted if de minimis rules applied to imports. But everyone I know who has tried to import trivial items - books, small presents, and such - has been slapped with wildly unpredictable and excessive costs, and long delays while the paperwork clears. As for the US - yes, clearly the goal is the destruction of government, health, education, research, and the economy in general. Whatever the people nominally in charge think they're doing, the people who are advising them and setting policy are either cranks or traitors. Given their links to other countries, it's hard not to suspect the latter.
- leovingi 1y ago>Given their links to other countries, it's hard not to suspect the latter. Interesting... Which people are you talking about and which countries?
- patrickhogan1 1y agoMost “mission-critical” R&D parts will still clear in < 48 hours. Express carriers already transmit full data to CBP before wheels-up. Type 86 filings have been required “upon or prior to arrival” since Feb 2024, so the paperwork is literally done while the flight is in the air. This will shift important inventory to local distributors in the US. This makes local supply chains more resilient, not more vulnerable.
- Fischgericht 1y agoAh, how I love americans still living in the bubble thinking they are relevant. No, you will neither get an Intel N100 devkit in the US, nor any Realtek devkits. No, your supply chains will not get "more resilient". The industry simply is no longer taking your country as a trustworthy an serious trading partner. If you want to do R&D in electronics, you need quick imports from China. Yes, the US is totally prepared now for a future of coal powered steam trains, true. Have fun with that :)
- patrickhogan1 1y agoIntel N100 devkits are primarily made in Oregon and Arizona in the US. Realtek devkits are made in Taiwan. China is clearly important. Nothing here changes that. Orders will just shift to bulk and get sourced from local distributors.
- Fischgericht 1y agoAt least I have to order the devkits from China, can't get them from the US. As you know, in practical terms china/taiwan/hongkong don't make a difference anymore when it comes to customs and shipping times. But I understand and value that you understand the business, and we are looking at it from a different angle and potentially from inside/outside a bubble. I understand your point that markets will adapt looking at it on a large scale. But the question is HOW the market is adapting. In the US far too many people are assuming that the world will bend for Trumpamerica. In reality the world is at least in my industry is doing free-trade agreements in record time now. And the people in China I work with are not even thinking about the US market anymore at all. The future markets are elsewhere on this planet. What they care about is that the EU won't buck to Trump and also implement any kind of trade barriers against China just to please Trump. And again: You are talking about bulk distribution. I am talking about small businesses, R&D, rapid prototyping, time to market. Days count. Every day I wait for a prototype I have developers sitting here doing nothing. You can not "shift" that problem. There is only one region where you are able to get not just SOME of the electronic parts you need, but ALL of them. And that very clearly is not the USA.