US Customers – Taxes and Duty

We are well practiced at sending our frames and bikes to the US and around the wider world. We have daily collections by DHL (our international shipping partner). You can buy from Fairlight with confidence.

  • All information and documents on our website show 2 prices:
  • UK Price – Includes UK VAT (20%) – eg: Strael 3.0 Deposit Price – £750
  • Non-UK Price – Excludes UK VAT – eg Strael 3.0 Deposit Price – £625
  • US Customers are charged the Non-UK price. The products purchased will then incur Duty and a processing fee when they arrive in the USA.

 

Process Overview

The US has specific duty rates for bike and frameset purchases. These are defined by the Harmonized System (HS) Code, for the product. Normally the worldwide Duty rate is 14% for bicycles and 4.7% for frames. However, US Customers benefit from lower rates.
 
Below is the process: 
  • Once the product has shipped; DHL (our shipping partner) will send you an Import Invoice for Customs Duty and Fees. You will need to pay this in order to release and ship your Fairlight.
  • Customs Duty rates are the following:
    • Strael Bicycles – 5.5% (Road bikes benefit from lower duty)
    • Secan, Faran and Holt Bicycles – 11%
    • All Frames and Framesets – 3.9%
  • Fees – DHL charge a ‘Processing Fee’ to handle the customs arrangements. This differs by country but is typically between 15 and 20 Dollars. 

 

Worked Example: Strael 3.0 Bike

  • Bicycle Cost: e.g. Strael 3.0 105 = £2,124.17
  • Shipping to US = £300
  • Total Charged by Fairlight = £2,424.17
  • Customs/Duty Costs – Recovered by DHL:
    • Duty @5.5% = £133.33
    • DHL Processing Fee = approx. £15
  • Overall Total Cost Including Shipping = £2,572.50
    • Charged by Fairlight (Bike + Shipping) : £2,424.17
    • Charged by DHL (Duty + VAT + Fees) : £148.33 

 

State Taxes

Because Fairlight bicycles ship from outside of the US, and we are a relatively small company, no state sales tax is charged.
 
However, you may be required by your state laws to pay ‘use tax’. ‘Use tax’ is typically charged at the same rate as ‘Sales Tax’ for your jurisdiction.
 
 

Please note that the above rates and workings represent a best efforts understanding of your likely Tax and Duty costs. These can change frequently dependent on state, tax jurisdiction and personal circumstances. For a full understanding of your particular circumstances you would need to consult a local tax professional.

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