Anonymous
Anonymous

Taxation

I'm drop shipping shirts from Australia to USA, what happens if they are sent out of USA & how does import tax work?

I'm getting a lot of shirts sent to the US to be drop shipped - probably using a company like Shipwire (unless anybody has any other suggestions).
I'm assuming that by sending about 100 shirts I will be charged a tax when they enter the country. That's fine for the ones that will go on to be sold to US residents, but I also have customers in Europe. Is there a better way to deal with that, so I am not paying tax on something that is eventually going to be sold outside of USA?

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1 Answer

Chelsea Creamer

Chelsea Creamer , Community Manager at SavvySME

I have experience with a retailer that purchases large amounts of clothing in Canada specifically from Australia. The best bet is going to be to manufacture these directly in the US rather than paying shipping and duties from AUS. This will save a significant amount of money in the end. Textiles get hammered on by duties, it's just not worth it imo, put that money in your pocket.

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