Import taxes in US versus EU
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  1. #1
    Member Vlciudoli's Avatar
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    Import taxes in US versus EU

    Looking at the Doxa site, it seems that Doxa are happy to absorb 4.5% US customs duty, but offer no such consideration to EU customers who are hit with around 20% VAT


    So it looks like US customers are effectively given a 4.5% discount then!

    Is this correct, or have I misinterpreted?

    Import of Swiss watches to the US is not subject to taxes similar to VAT, GST etc..., only a customs 1 Euro fee for import of watches into the EU, DOXA pays this fee for US and EU customers, the reason being i that duties are usually born by the importer/distributor in each country, unlike local value added taxes that are born by the consumer. The duties for US import of watches vary between 1.5 - 4.5% depending on the state. in light of the advantage of the US, DOXA EU usually gives an incentive to EU ad ROW customers in the form of a free strap or free shipping.
    Last edited by DOXA S.A.; December 26th, 2013 at 14:43.
    Have:
    1990 Roamer 200m diver, Quartz
    1991 Tag Heuer GMT quartz
    1999 Rolex Sub 16610.
    2010 Monster Orange, Strela
    2012 Rolex Exp 1.
    2013 Omega PO Liquidmetal LE, Omega SMP, 1999 model, Omega PO 42mm 2500D
    2017 Doxa 1200T Caribbean, Longines Legend Diver, Tudor BB Dark.
    2018 Tudor BB RaSP, xx/75 and xx/75, Doxa Divingstar, Pre-moon Speedmaster, Tag Monza
    2019 Seamaster Chrono, 1962, 321 movement, Speedmaster Teutonic, Tudor BB58

    Had:
    1998-06 Seamaster SMP
    2007-16 Omega PO XL
    2010-15 Seiko Monster Black
    2011-13 Skyland Avenger Blacksteel, Daytona, Explorer 2
    2014-18 Obris Morgan Predata, black, Obris Morgan Predata, blasted
    2014 Helberg CH6, Raven Deeptech, Bombfrog, Skagen
    2015-17 Steinhart Ocean Black. Unreliable movement repaired
    2015-18 Steinhart T500. Unreliable movement replaced.
    2017-17 Bulova Moonwatch, Seiko Turtle PADI, Seiko Turtle Pepsi
    2018-19 1969, Zenith Defy x2 (70s)






  2. #2
    Member mpalmer's Avatar
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    Re: Import taxes in US versus EU

    I cannot speak to Doxa's policy, I can say from my anecdotal experience it seems that there is an excellent chance that if you live in the US you will not have to pay any customs duties on packages that are shipped because for whatever reason the fees do not get assessed. In the EU, authorities might be more meticulous about monitoring packages...
    "The stuff that dreams are made of…" - RGM ‘801 EE Motor Barrel’

  3. #3
    Member Vlciudoli's Avatar
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    Re: Import taxes in US versus EU

    I accept that sometimes authorities fail to collect taxes, that happens here in the UK too, but my point is that Doxa openly state they will prepay the 4.5% tax for the US yet they make no such contribution towards the taxes for the UK and other EU states.

    Unless I am misinterpreting their statement?
    Have:
    1990 Roamer 200m diver, Quartz
    1991 Tag Heuer GMT quartz
    1999 Rolex Sub 16610.
    2010 Monster Orange, Strela
    2012 Rolex Exp 1.
    2013 Omega PO Liquidmetal LE, Omega SMP, 1999 model, Omega PO 42mm 2500D
    2017 Doxa 1200T Caribbean, Longines Legend Diver, Tudor BB Dark.
    2018 Tudor BB RaSP, xx/75 and xx/75, Doxa Divingstar, Pre-moon Speedmaster, Tag Monza
    2019 Seamaster Chrono, 1962, 321 movement, Speedmaster Teutonic, Tudor BB58

    Had:
    1998-06 Seamaster SMP
    2007-16 Omega PO XL
    2010-15 Seiko Monster Black
    2011-13 Skyland Avenger Blacksteel, Daytona, Explorer 2
    2014-18 Obris Morgan Predata, black, Obris Morgan Predata, blasted
    2014 Helberg CH6, Raven Deeptech, Bombfrog, Skagen
    2015-17 Steinhart Ocean Black. Unreliable movement repaired
    2015-18 Steinhart T500. Unreliable movement replaced.
    2017-17 Bulova Moonwatch, Seiko Turtle PADI, Seiko Turtle Pepsi
    2018-19 1969, Zenith Defy x2 (70s)






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  5. #4
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    Re: Import taxes in US versus EU

    Quote Originally Posted by Vlciudoli View Post
    Looking at the Doxa site, it seems that Doxa are happy to absorb 4.5% US customs duty, but offer no such consideration to EU customers who are hit with around 20% VAT


    So it looks like US customers are effectively given a 4.5% discount then!

    Is this correct, or have I misinterpreted?
    DOXA has a US subsidiary that pays customs and duties for every watch shipped to the US, so it is not that they slip through customs, they are definitely paid for, While the case is not true for EU customers, EU customers take advantage of the very weak USD exchange rate, if you look at other Swiss manufacturer's pricing, you will notice that $3000.00 usually translate into €3000.00, which is not the case with DOXA, where the USD is the only payment method. I know that when the DOXA SUB was introduced in 2001, the Euro was half its current value

  6. #5
    Member Vlciudoli's Avatar
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    Re: Import taxes in US versus EU

    So, regardless of exchange rates which are beyond the control of Govts let alone watchmakers and buyers....Doxa DOES effectively give a discount to US customers.

    That makes me feel valued. NOT!

    Seriously though, why favour one market over another? The German car makers, particularly BMW really suffered with UK sales in the late 90s, because they priced the cars higher there than on mainland Europe. As a result they had to realign their prices, with approx 10-15% reductions implemented in Sept 2000.
    Have:
    1990 Roamer 200m diver, Quartz
    1991 Tag Heuer GMT quartz
    1999 Rolex Sub 16610.
    2010 Monster Orange, Strela
    2012 Rolex Exp 1.
    2013 Omega PO Liquidmetal LE, Omega SMP, 1999 model, Omega PO 42mm 2500D
    2017 Doxa 1200T Caribbean, Longines Legend Diver, Tudor BB Dark.
    2018 Tudor BB RaSP, xx/75 and xx/75, Doxa Divingstar, Pre-moon Speedmaster, Tag Monza
    2019 Seamaster Chrono, 1962, 321 movement, Speedmaster Teutonic, Tudor BB58

    Had:
    1998-06 Seamaster SMP
    2007-16 Omega PO XL
    2010-15 Seiko Monster Black
    2011-13 Skyland Avenger Blacksteel, Daytona, Explorer 2
    2014-18 Obris Morgan Predata, black, Obris Morgan Predata, blasted
    2014 Helberg CH6, Raven Deeptech, Bombfrog, Skagen
    2015-17 Steinhart Ocean Black. Unreliable movement repaired
    2015-18 Steinhart T500. Unreliable movement replaced.
    2017-17 Bulova Moonwatch, Seiko Turtle PADI, Seiko Turtle Pepsi
    2018-19 1969, Zenith Defy x2 (70s)






  7. #6
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    Re: Import taxes in US versus EU

    I felt undervalued by Omega when I bought my wife a watch in London and had to pay 20% vat. I only paid 12.5% when I bought mine in here in NZ. Why didn't Omega make the prices the same or absorb the sales tax difference? Why don't companies have the same prices throughout the world to account for different incomes and cost of living etc.

    Said with tounge firmly in cheek.....

  8. #7
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    Re: Import taxes in US versus EU

    Quote Originally Posted by robin1979 View Post
    Why don't companies have the same prices throughout the world to account for different incomes and cost of living etc.
    One of the irritations of planet earth lol, there should be a global currency with global tax (or global no tax) - even playing field wherever you live.

    No point in moaning about it (not you) , just pay what you have to pay

  9. #8
    Member Vlciudoli's Avatar
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    Re: Import taxes in US versus EU

    Quote Originally Posted by robin1979 View Post
    I felt undervalued by Omega when I bought my wife a watch in London and had to pay 20% vat. I only paid 12.5% when I bought mine in here in NZ. Why didn't Omega make the prices the same or absorb the sales tax difference? Why don't companies have the same prices throughout the world to account for different incomes and cost of living etc.

    Said with tounge firmly in cheek.....
    Robin, you are TOTALLY missing my point. Doxa is charging EVERYONE the same net price, but for the US they are covering 4.5% tax. This is effectively a gift to US customers that they don't extend to others.

    Local taxes are controlled locally, but Doxa is choosing to subsidise the US purchaser.
    Have:
    1990 Roamer 200m diver, Quartz
    1991 Tag Heuer GMT quartz
    1999 Rolex Sub 16610.
    2010 Monster Orange, Strela
    2012 Rolex Exp 1.
    2013 Omega PO Liquidmetal LE, Omega SMP, 1999 model, Omega PO 42mm 2500D
    2017 Doxa 1200T Caribbean, Longines Legend Diver, Tudor BB Dark.
    2018 Tudor BB RaSP, xx/75 and xx/75, Doxa Divingstar, Pre-moon Speedmaster, Tag Monza
    2019 Seamaster Chrono, 1962, 321 movement, Speedmaster Teutonic, Tudor BB58

    Had:
    1998-06 Seamaster SMP
    2007-16 Omega PO XL
    2010-15 Seiko Monster Black
    2011-13 Skyland Avenger Blacksteel, Daytona, Explorer 2
    2014-18 Obris Morgan Predata, black, Obris Morgan Predata, blasted
    2014 Helberg CH6, Raven Deeptech, Bombfrog, Skagen
    2015-17 Steinhart Ocean Black. Unreliable movement repaired
    2015-18 Steinhart T500. Unreliable movement replaced.
    2017-17 Bulova Moonwatch, Seiko Turtle PADI, Seiko Turtle Pepsi
    2018-19 1969, Zenith Defy x2 (70s)






  10. #9
    Sinn Moderator gaopa's Avatar
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    Re: Import taxes in US versus EU

    Quote Originally Posted by Vlciudoli View Post
    Robin, you are TOTALLY missing my point. Doxa is charging EVERYONE the same net price, but for the US they are covering 4.5% tax. This is effectively a gift to US customers that they don't extend to others.

    Local taxes are controlled locally, but Doxa is choosing to subsidise the US purchaser.
    Actually I think it is you who missed the point of the Doxa moderator when he said the U.S. subsidiary paid the tax for the Doxa watches sold in the U.S. If I understand that correctly, it is not Doxa giving a break to U.S. customers, but the U.S. subsidiary. Cheers, Bill P.

  11. #10
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    Re: Import taxes in US versus EU

    Quote Originally Posted by gaopa View Post
    Actually I think it is you who missed the point of the Doxa moderator when he said the U.S. subsidiary paid the tax for the Doxa watches sold in the U.S. If I understand that correctly, it is not Doxa giving a break to U.S. customers, but the U.S. subsidiary. Cheers, Bill P.
    Absolutely correct !

    and the story goes back to 2001, when the DOXA SUB was introduced to the world, 98% of the DOXA SUBs went to the US, the major issue that DOXA faced was that unlike Europe, there is no unified tax code for Swiss watch imports to the US, it is different from state to state and sometime from one FedEx broker to the other, and there is no way until today to find an exact fee or percentage applying to the DOXA purchase when it enters US borders, DOXA then formed DOXA watches USA and they helped facilitate the imports for the US customers by just eliminating the whole customs process and make the buying experience as hassle free as possible, DOXA USA then decided to absorb this amount an pass it on the US customer, and in 12 years no US customer complained about the fact that DOXA USA paid their duties. I guess it is not easy to make everyone happy, and I really mean it in sense of international trading laws,

    Also if you check consumer products and other Swiss watches pricing, you will see a similar policy.

    Merry Christmas

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