Global trade policies are often nuanced and complicated. Recently, a number of tariffs have been introduced that could change how packages pass between certain countries. The following guide will help you understand how tariffs work and what we’re doing to support you as these changes unfold.
Update as of April 14: Many countries around the world are evolving their tariff and de minimis structures. As of April 14, de minimis exemptions are in place for goods entering the United States. On May 2, items originating from China and Hong Kong will be subject to tariffs when entering the US, no matter the item’s value. This means the vast majority of Reverb packages entering the US are not currently impacted. We’ll continue to provide updates on any potential changes as they are available in the coming days and weeks.
Understanding the basics
What are tariffs?
A tariff is a tax on goods imported from one country into another; tariffs can be broad or may apply only to specific categories or types of items. Typically, tariffs are a set percentage of the total item value. In many cases, tariffs do not apply to items below an established value threshold; this is called a de minimis exemption.
What is a de minimis exemption?
De minimis exemptions allow shipments under a certain value to enter a country without incurring customs duties or tariffs. These exemptions are put in place to simplify the trade process and reduce administrative burden. De minimis thresholds vary from country to country.
For example, the de minimis threshold for items imported to the United States is $800.
This exemption may be subject to change once adequate systems are in place to efficiently process and collect tariff revenue on these shipments.
How are tariffs collected?
For items above the de minimis threshold, tariff collection varies depending on the market and shipping carrier. Generally, buyers pay tariffs and associated carrier handling fees to the final shipping carrier when their items are delivered. In some cases, postal carrier pricing includes the cost of tariffs, allowing exporters or sellers to show the tariff-inclusive price at the time of checkout.
This means that after purchasing an item on Reverb, buyers may be required to pay tariffs and additional fees on packages that are shipped internationally. That’s why we advise scrolling down to About the Seller on the listing page to view the seller’s location before making a purchase.
How do I know what tariffs impact me?
On April 2, the US announced a 10% universal tariff on goods shipped to the US and additional reciprocal tariffs that vary by country. There have been frequent, nuanced changes to these regulations, and more are expected in the weeks and months to come. Because of this, it’s difficult to provide up-to-date specific insight and guidance that considers both the needs of Reverb sellers and the nuances of each individual regulation.
For personalized support, we recommend that you connect with a legal professional. For updates on any tariffs that impact your home country, we recommend following official government websites and resources. Some examples include US Customs and Border Protection, Canada Department of Finance, and Integrated Tariff of the European Communities (TARIC).
How we’re supporting our community
We're closely monitoring rapidly evolving regulatory changes and remain committed to showing up for our community by providing a transparent, reliable experience for customers and equipping sellers with the support you need to succeed. We'll continue to provide updates as tariff regulations and our response evolves. Thank you for being a part of our global Reverb community.
FAQs
What costs are buyers responsible for when purchasing from another country?
In addition to the listed shipping price and tax, buyers pay customs fees, including any tariffs, to the shipping carrier. These customs fees are not included in the Reverb order and will be billed to the buyer when they’re contacted by the carrier or applicable customs agency.
What happens if a shipment is held at customs or by the carrier because a buyer does not pay for the tariff?
All sales completed through the Reverb website or mobile app are covered by Reverb Seller Protection. This includes support in situations where shipping issues arise due to a buyer’s refusal to pay applicable tariffs.
If a buyer declines to pay these fees, we recommend reaching out to them directly to clarify the situation. Should the issue persist and prevent successful delivery, contact Reverb Support. A Resolutions Specialist will step in to help facilitate a resolution.
If the item is returned to the seller due to the buyer’s refusal to pay tariffs, Reverb will ensure that the documented shipping costs are protected by refunding all related shipping fees to the seller, so long as the seller provides Reverb with adequate documentation of the shipping expenses paid. Additionally, if the item is neither delivered to the buyer nor returned to the seller as a result of unpaid tariffs, the seller will not be held financially responsible for issuing a refund.
What steps should sellers take with their shipments to support their buyers?
The state of tariffs is evolving, so be sure to keep an eye on recommendations from preferred shipping carriers.
With all international shipments, sellers should make sure that all of the customs paperwork and declarations are filled out and included in accordance with each carrier’s guidelines.
We also recommend making sure that the “ships from” information in our seller’s shops is up-to-date. This allows the buyer to understand where the item is shipping from.
For sellers: To adjust your shipping information, go to your Shop Profile under Shop Settings and scroll down to Shop Location, where you can update your shipping address.
Does Reverb have the ability to collect and remit tariffs, like you do with value added taxes?
At this time, the United States does not have a process for allowing intermediaries like Reverb to collect and remit tariffs. Each shipping carrier may handle tariffs and associated costs—like handling fees—differently, so we recommend connecting with your carrier to answer any specific questions you may have about their processes.
Does my shipping carrier include the cost of tariffs in their rates?
Some non-postal shipping carriers allow sellers to pre-pay the tariffs to the carrier, which would allow you to build these costs into the product or shipping price. Please check with your shipping carrier for more details about how they handle the cost of tariffs and associated fees.
Do sellers have an option to sell only to buyers within their home country?
Yes. Sellers may choose which countries they ship to, including choosing to ship only domestically.
There are two ways to set up which countries to ship to:
- When creating/editing a listing: Under the Shipping section, scroll down to Where else in the world will you ship?
- As part of a shipping profile: In your Shop Policies page, head to the Shipping tab and scroll down to Shipping Profiles. You’ll be able to select any of these shipping profiles when creating listings moving forward.
Do these tariffs apply to digital listings?
No. Tariffs apply to physical items, so digital listings are not subject to additional tariffs. Note that other taxes may apply.
This article does not constitute legal advice, and is not a substitute for obtaining legal advice from a qualified attorney.