7. Paying Duty
If you're bringing it back with you, you didn't have it when you left, and its total value is more than your Customs exemption, it is subject to duty.
The Customs inspector will place the items that have the highest rate of duty under your exemption. Then, after subtracting your exemptions and the value of any duty-free items, a flat rate of duty will be charged on the next $1,000 worth of merchandise. Any dollar amount beyond this $1,000 will be dutiable at whatever duty rates apply. The flat rate of duty may only be used for items for your own use or for gifts. As with your exemption, you may use the flat-rate provision only once every 30 days. Special flat rates of duty apply to items made and acquired in Canada or Mexico. The flat rate of duty applies to purchases whether the items accompany you or are shipped.
Here's an example of the different rates if you acquire goods valued at $2,500 from various different places:
| Country |
Total declared value |
Personal exemption (duty-free) |
Flat duty rate |
Various duty rates |
| U.S. insular possessions |
$2,500 |
$1,200 |
$1,000 at 1.5 percent |
$300 |
| Caribbean Basin countries |
$2,500 |
$600 |
$1,000 at 3 percent |
$900 |
| Other countries or locations |
$2,500 |
$800 |
$1,000 at 3 percent |
$700 |
The flat duty rate will be charged on items that are dutiable but that cannot be included in your personal exemption, even if you have not exceeded the exemption. The best example of this is liquor: Say you return from Europe with $200 worth of items, including two liters of liquor. One liter will be duty-free under your exemption; the other will be dutiable at 4 percent, plus any Internal Revenue Service tax.
Family members who live in the same household and return to the United States together can combine their items to take advantage of a combined flat duty rate, no matter which family member owns a given item. The combined flat duty rate for a family of four traveling together would be $4,000.
If you owe duty, you must pay it when you arrive in the United States. You can pay it in any of the following ways:
- U.S. currency (foreign currency is not acceptable).
- Personal check in the exact amount, drawn on a U.S. bank, made payable to the U.S. Customs Service. You must present identification, such as a passport or driver's license. (The Customs Service does not accept checks bearing second-party endorsements.)
- Government check, money order, or traveler's check if it does not exceed the duty owed by more than $50.
- In some locations, you may pay duty with credit cards, either MasterCard or VISA.
