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After the Auction: Selling Internationally continued ...

As far as packaging is concerned, make sure your packages are meticulously wrapped, adequately padded, and durable--they have a long way to go. Merchandise shipped internationally also needs to have labels so that customs officials can determine the required duties, value added tax (see below), and other fees. In general, you should include two labels, one on the inside of the package and one on the outside. Make sure that each label contains a description of the item and associated value. Also note the cost of the shipping and insurance (if any) and the name and address of both yourself and the buyer.

It's the Custom
Yes, you'll have to fill out a customs form (which doesn't take long). Customs forms are required when you send dutiable letter packages, small packets, printed matter, and parcels to international destinations. The forms come in two flavors: the green-colored 2976 and the white 2976-A (which includes an accompanying plastic envelope sleeve, the 2976-E). The form you'll need will depend on the type of mail, the weight of the item, and the regulations of the destination country. Customs forms are available at U.S. post offices. It's helpful if you describe your item in language that custom officials will understand, i.e., "video game" and not "Quake, first-person shooter blastfest, w/ mission pack."

Added Tax
Some countries require a provincial or a national sales tax (Canada, for instance, imposes a 7 percent goods and services tax). Most European countries have what's called a value added tax (VAT). The rate varies from country to country. For the most part, items are classified as taxable according to a specified rate, a zero tax rate, or as exempt (in which case no tax is applicable). For more information, here's a VAT guide. Also watch out for international buyers who ask you to declare an item as a gift, in hopes of avoiding certain taxes.

Insurance and Escrow
As in all transactions, make sure that you determine who will be paying for insurance and escrow if the buyer requests them. You can insure an international package with either the USPS or an express shipping company. There will be some additional fees, though. Escrow is another consideration. Check with individual escrow services to see how they handle international sales. In i-Escrow's international transactions, the credit card company converts non-U.S. currency into U.S. dollars for the purchaser. The seller is then paid in U.S. dollars.

In the Zone
Lastly, you'll need to know a little about international time zones. Why? Two reasons. One, since auction sites run on U.S. standard time (usually pacific or eastern), consider amending your auction start and end times. Two, your prospective buyer will be on a completely different time schedule than you. When you send an email and don't get a timely response, remember that your buyer might be at work or asleep. Having a general grasp of the world's various time zones will you help in your international transactions. But don't worry about having to memorize the earth's multiple time zones. Just check out CNN's Worldtime.

Bonus!
Here's a quick one: Don't assume that a bidder with a foreign email address will necessarily lead to an international sale. For example, your German bidder could actually be a U.S. serviceman who wants the item shipped to his mother's home in Las Vegas. So even if you don't engage in international transactions, don't be too quick to blow off a potential bid. It could actually be just a regular domestic sale.

Picking Postage
Packing Merchandise
Starting an Auction Business


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