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Buzz cook

(2,668 posts)
Fri Jan 31, 2025, 07:31 PM Jan 31

How do export duties work?

My sense of them is that they are a tax/fee levied on goods before they leave the country and paid by the entity doing the exporting. Or are they paid by the entity in the other country that is buying the goods?

Trump has not put a tariff on the import of Canadian oil. If our Canadian friends want a little tit for tat, then wouldn't an export duty on oil hit that tit right in his orange face?

Of course if I'm wrong, well never mind.

12 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
How do export duties work? (Original Post) Buzz cook Jan 31 OP
US companies Cirsium Jan 31 #1
Thanks. Buzz cook Jan 31 #3
The importer pays the tariff. This additional cost is, of course, ultimately passed on to the LoisB Jan 31 #2
Yes you're right. Buzz cook Jan 31 #4
Oil is a complex equation GreatGazoo Jan 31 #5
Rail JustAnotherGen Jan 31 #8
If Canada prices itself out Buzz cook Jan 31 #10
Trade Compliance Officer here JustAnotherGen Jan 31 #6
Thank you very much. Buzz cook Jan 31 #9
A very small manufacturer JustAnotherGen Jan 31 #7
They are exploring the end of de minimis GreatGazoo Feb 1 #11
I know JustAnotherGen Feb 1 #12

Cirsium

(1,655 posts)
1. US companies
Fri Jan 31, 2025, 07:36 PM
Jan 31

Whether it is an export duty or an import duty, the US business that is exporting or importing goods pays it.

Buzz cook

(2,668 posts)
4. Yes you're right.
Fri Jan 31, 2025, 07:51 PM
Jan 31

I was just looking for a way Canada could react without imposing tariffs of their own.
Given Trumps reluctance to putting a tariff on oil, it seems like a good targeted response.

GreatGazoo

(4,043 posts)
5. Oil is a complex equation
Fri Jan 31, 2025, 08:23 PM
Jan 31

Raising the cost of any source eg. via a tariff on Canadian oil, would cause a change in suppliers to a cheaper source.

The cost of oil (over simplified but still complex...) is the cost of extraction + the cost of transport to refinery + the cost of refining (varies with the quality of the crude) + cost of transport to end users.

Sweet light Texas crude is right next to US refineries and true to its name is fairly easy and inexpensive to refine. Brent is a notch or two more expensive to refine and has to be shipped from north England, and Tar Sands (Alberta) oil only pumps when prices are very high because it is very expensive to refine. Canada has better grades too but I'm just laying out the basic range of crude oil quality.

Transport is railcars and pipelines. A Congress critter who is very lucky in his stock picks recently bought CP (Canadian Pacific rail) in big quantities. It is a very boring stock. Range bound for 3 years or more, bouncing around between $70 and $84. Speculation is obvious that this Congress critter knows something, eg some reason why rail transport will be more profitable soon.

https://www.marketwatch.com/investing/stock/cp

JustAnotherGen

(34,278 posts)
8. Rail
Fri Jan 31, 2025, 09:07 PM
Jan 31

My company has a line of products that literally keep the trains running. That Congressman's pick might not be that great when the patented made in the USA product's price increases exponentially. We are THE global supplier of this critical rail ecosystem part.

Buzz cook

(2,668 posts)
10. If Canada prices itself out
Fri Jan 31, 2025, 10:48 PM
Jan 31

Then the Texans and Brits will raise their prices cause they can.
Thanks for your reply, I knew my idea was simplistic, but just had to put it out there.

JustAnotherGen

(34,278 posts)
6. Trade Compliance Officer here
Fri Jan 31, 2025, 09:03 PM
Jan 31

Not export duties. . . imports.

Duty/Tariff are interchangeable. There are,approximately 20K Harmonized Tariff Schedule codes.

Based on the item you are purchasing - and its country of origin that table is used to determine what the Importer of Record pays.

This is entered into CBP's Automated Customs Entry system by a licensed Customs Broker. In my company's case, our Brokerage pays the tariff and merchandise/port fees on our behalf, and then we remit to them. But - it is entered in the system under our EIN.

So one item might be a plastic component for assembly into a finished good. There's a 3.9% tariff on that.

The Felon is proposing another 10% if the item's Country of Origin is China. So that jumps to 13.9%.

State of Emergency. The Felon floated an External Revenue Service
for collection of these new tariffs.


That's not where Tariffs are collected. So WHO will us manufacturers be paying that money to?

Why the Felon of course.

I wish that fucker would die already.

Buzz cook

(2,668 posts)
9. Thank you very much.
Fri Jan 31, 2025, 10:45 PM
Jan 31

We can hope for a bad Big Mac.

I'm not surprised that a Trumper would find a way to add complexity, incompetence, and graft to the process.

GreatGazoo

(4,043 posts)
11. They are exploring the end of de minimis
Sat Feb 1, 2025, 12:44 PM
Feb 1

>On January 14, 2025, CBP (Customs and Border Protection) proposed a rule that would add additional reporting requirements for low-value, de minimis imports. Then, on January 17, 2025, CBP proposed a rule that would render low-value shipments subject to Section 301, 232, and 201 tariffs ineligible for the Section 321 de minimis exemption...<

https://www.jdsupra.com/legalnews/cbp-proposes-rule-that-would-eliminate-3131669/

JustAnotherGen

(34,278 posts)
12. I know
Sat Feb 1, 2025, 02:31 PM
Feb 1

Because a lot of US importers cheated. A lot were bare board distributors.

The people that hurts the most are consumers who purchase specialty items for personal use.

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