How much is Duty on Cigarettes?

[Solo1959]

....The cruiseline will let you buy as many as you need, but you still would have to pay "Duty" in the event that you declare more than your allowance or customs questions you when debarking ship followed by perhaps a random luggage check !

 

Does anyone know how much Duty costs? If it's only $1 or $2 it may be worth it. Seems like we are all scared of paying Duty on cigarettes, but no one has posted [recently] how much Duty costs for cigarettes. I'm very curious.

[CowPrincess]

To bring cigarettes into Canada, duty is about $45 per carton.

[smeyer418]

in the US the duty is about $6.00 per carton...its not the duty that causes the price- its the local/state taxes which in NY are about $60.00-$70.00 per carton(its 9.50 a pack at the local stores.)

[Solo1959]

in the US the duty is about $6.00 per carton...its not the duty that causes the price- its the local/state taxes which in NY are about $60.00-$70.00 per carton(its 9.50 a pack at the local stores.)

 

So, if I understand this, cigarettes on board are approx $25 or so per carton, or $2.50 per pack. All that would be extra is $6 per carton or $0.60 per pack. There would be no added state/local taxes, just the Duty on excess cartons.

 

I'm sure there is an extra fee if I brought in enough to re-sell, but 1 or 2 cartons extra really wouldn't set me back much and I'd still save LOTS over the prices in New York.

 

Pretty good deal!:)

[JanineM]

To bring cigarettes into Canada, duty is about $45 per carton.

 

Seriously?! :eek: Jeez - when I left Canada in 1996 I was paying $6 a pack --- so that's the tax on a pack now? We used to give people a quarter to bum a smoke ... you'd have to give them a looney now! Glad I quit when I did!!!!

[CowPrincess]

We now pay $11 pack in Canada.

[silentbob007]

I know this doesn't answer the question, but it probably needs to be included:

 

From: http://www.cbp.gov/xp/cgov/travel/vacation/kbyg/paying_duty.xml

 

Tobacco Products

 

Travelers may import previously exported tobacco products only in quantities not exceeding the amounts specified in exemptions for which the traveler qualifies. Any quantities of previously exported tobacco products not permitted by an exemption will be seized and destroyed. These items are typically purchased in duty-free stores, on carriers operating internationally, or in foreign stores. These items are usually marked “Tax Exempt. For Use Outside the United States,” or “U.S. Tax Exempt For Use Outside the United States.”

 

For example, a returning resident is eligible for the $800 exemption, which includes not more than 200 cigarettes and 100 cigars:

 

* If the resident declares 400 previously exported cigarettes, the resident would be permitted 200 cigarettes, tax-free under the exemption and the remaining 200 previously exported cigarettes would be confiscated.

* If the resident declares 400 cigarettes, of which 200 are previously exported and 200 not previously exported, the resident would be permitted to import the 200 previously exported cigarettes tax free uunder the exemption and the resident would be charged duty and tax on the remaining 200 foreign-made cigarettes.

[Solo1959]

I know this doesn't answer the question, but it probably needs to be included:

 

From: http://www.cbp.gov/xp/cgov/travel/vacation/kbyg/paying_duty.xml

 

Yeah, it did need to be said, and thank you.

 

Travelers may import previously exported tobacco products only in quantities not exceeding the amounts specified...Any quantities...not permitted...will be seized and destroyed.

 

Right there it says you don't have to worry about Duty, they'' confiscate any extras.

 

...The resident would be charged duty and tax on the remaining 200 foreign-made cigarettes.

 

Here is where it gets confusing. Foreign-made cigarettes are subject to Duty, but previous posters have mentioned that the cigarettes they buy are often different from the ones we buy here. They are made from different tobacco or were made outside the United States. The confusion is here:

 

These items are typically purchased in duty-free stores, on carriers operating internationally, or in foreign stores. These items are usually marked “Tax Exempt. For Use Outside the United States,” or “U.S. Tax Exempt For Use Outside the United States.”

 

They ALL say that, even the ones that were foreign-made.

 

Very confusing

[greatam]

 

Here is where it gets confusing. Foreign-made cigarettes are subject to Duty, but previous posters have mentioned that the cigarettes they buy are often different from the ones we buy here. They are made from different tobacco or were made outside the United States. The confusion is here:

 

They ALL say that, even the ones that were foreign-made.

 

Very confusing

 

I buy cigarettes at the Mexican border across from Lukeville, Arizona. The cigarettes are made in MEXICO by Phillip Morris. They are NOT exported from the USA for sale in Mexico so not subject to the limitation. I pay $8.00 per carton duty. I have never brought more than 10 cartons at a time in but believe I could if I wanted to. They do taste slightly different than USA made Marlboro 100's, but I will put up with the taste to save almost $35 per carton. They are labeled-Made in Mexico so no questions from the border officials.

 

The ones on the cruise ships are generally USA made, tax exempt, so are subject to the limitation.

[Donray]

So, if I understand this, cigarettes on board are approx $25 or so per carton, or $2.50 per pack. All that would be extra is $6 per carton or $0.60 per pack. There would be no added state/local taxes, just the Duty on excess cartons.

 

I'm sure there is an extra fee if I brought in enough to re-sell, but 1 or 2 cartons extra really wouldn't set me back much and I'd still save LOTS over the prices in New York.

 

Pretty good deal!:)

 

People don't understand tax laws. You will be breaking the law if you do not pay all taxes. You do know that you are suppose to pay all state sales taxes if you bring something into your home state to use and did not pay sales tax. This includes things bought over the internet.

You will be breaking the law if you don't pay New York sales tax and use them in New York.

For example you buy something in Oregon (has no sales tax) and you live in California, you should declare the value with CA and pay the CA sales tax. It is the CA law.

[Solo1959]

People don't understand tax laws. You will be breaking the law if you do not pay all taxes. You do know that you are suppose to pay all state sales taxes if you bring something into your home state to use and did not pay sales tax. This includes things bought over the internet.

 

You will be breaking the law if you don't pay New York sales tax and use them in New York.

 

For example you buy something in Oregon (has no sales tax) and you live in California, you should declare the value with CA and pay the CA sales tax. It is the CA law.

 

Not being a tax attorney, but knowing that tax laws are usually benefit the states unfairly, I'll have to believe that what you are saying is correct. However, it must be difficult to compute.

 

How do I get a refund of the taxes I paid to New York for the cigarettes I smoked in Massachusetts? Do I owe a tax to Massachusetts for the gasoline I paid for in New York to drive into Bennington? And will New York give me a credit for the gasoline and cigarette taxes I paid to New York for my out of state car trips? And should I count the gallons of gasoline I used in each state and then send a tax to each state for the gallons of gasoline I used?

 

This gets very complex. I'd bet it would be legal or at least accepted by tax courts to forfeit the small taxes that they could collect because the full bookkeeping system would be too burdensome and expensive to run. At least for purchases like personal use gasoline, personal use cigarettes, etc.

[greatam]

How do I get a refund of the taxes I paid to New York for the cigarettes I smoked in Massachusetts? Do I owe a tax to Massachusetts for the gasoline I paid for in New York to drive into Bennington? And will New York give me a credit for the gasoline and cigarette taxes I paid to New York for my out of state car trips? And should I count the gallons of gasoline I used in each state and then send a tax to each state for the gallons of gasoline I used?

 

Not to hijack the thread but your gasoline example is EXACTLY what trucking companies get stuck with. IF you don't buy enough fuel in XXXX state to cover XXX miles, you pay the state the taxes.

 

Example: You run a lot of trips from Port Elizabeth NJ to Taunton, Mass (our company does). Semis hold 250-300 gallons of fuel and average about 5.5 MPG on that traffic lane. So you fill up in NJ (where fuel is cheap due to the lower taxes) and drive up I-95 across the GW, through the short stretch of NY, through CT and on in to Mass. Theortically, you could make one complete RT plus another trip North to Mass with fuel you bought in NJ before you ran out. So you purchase enough fuel in Mass to get back to NJ where fuel is cheap. BUT you owe NY and CT fuel taxes for all the miles you traveled in their states on NJ fuel. You fill out a form every quarter for fuel taxes owed. You also pay Federal Hwy Use Tax yearly for every truck you own. You are subject to audits whenever a state feels like they want to audit. And YOU pay for the audit, including all travel expenses, if your figures are off more than $10.00 with what the state computes.

 

Our close friends, who own one truck, were audited by the State of Arizona in 2003. They sent 3 auditors to audit ONE truck. Our friends' figures differed with the State auditors by $26.00. They paid for 3 airline tickets, 3 hotel rooms for 3 nights (and at the most expensive hotel in Des Moines), plus all meals up to the government per diem amount. Total for the $26.00 supposedly owed in fuel taxes-$2,864.00. They tried to appeal the decision. Legal fees were going to run $5000+ due to travel to Arizona for court. They paid but it almost put them out of business because the State of Arizona wanted the money all at one time. They now still haul meat from Iowa to California weekly. They just run across I-80 down I-15 through Utah instead of going through Arizona.

 

So don't think they don't go for SMALL amounts of taxes. The states see this a FANTASTIC way to get revenue into their states. Plus the auditors get a FREE vacation. Bet there are a lot of audits of Florida/Arizona trucking companies from Northern state auditors in January.

[ducklovemama]

Does anyone know how much Duty costs? If it's only $1 or $2 it may be worth it. Seems like we are all scared of paying Duty on cigarettes, but no one has posted [recently] how much Duty costs for cigarettes. I'm very curious.

 

 

 

We recently came back from a caribbean cruise.We bought 10 cartons of cigarettes for family members. We were 8 cartons over the limit. We paid customs in Maryland 33.00 total. The cigarettes still were less then 21.00 per carton. My family members were happy to refund me the cost.

[Solo1959]

We recently came back from a caribbean cruise.We bought 10 cartons of cigarettes for family members. We were 8 cartons over the limit. We paid customs in Maryland 33.00 total. The cigarettes still were less then 21.00 per carton. My family members were happy to refund me the cost.

 

Compared to $7.25 per pack or $75 a carton where I live, I'll pay Duty any time I get a chance! That's still a excellent price!

 

Thank you. Real numbers from a real person who actually paid it. I consider you the authority!

[greatam]

Compared to $7.25 per pack or $75 a carton where I live, I'll pay Duty any time I get a chance! That's still a excellent price!

 

Thank you. Real numbers from a real person who actually paid it. I consider you the authority!

 

Wonder where those cigarettes came from???? On most ships, they are $20-25 per carton. PLUS any additional duty.

 

Look at the cartons BEFORE you buy them. If they say US Tax Exempt, you are NOT supposed to bring more than your allowance (one carton per person-200 cigarettes) into the US and the cigarettes COULD be destroyed with no compensation. If they are made in a foreign country, then you pay duty for THAT particular country (which varies depending on NAFTA and other international commerce agreements). I travel internationally a lot for business. I sometimes bring cigarettes from Vietnam and the Middle East. Vietnam-NO DUTY per US trade agreements for everything except clothes, Kuwait-$11.00 per carton (which are $20.00, so not as much of a bargain).

 

And be aware-some ships will only allow purchases of about 2 or 3 cartons per person in the cabin because the shops KNOW their cigarettes are US exported products. I watched a lady on Infinity get into a heck of an argument with the shop lady. She had 10 of those 3 carton packs. She ended up leaving them on the floor in front of the counter when they refused her purchase.

 

PS-I do this import/export stuff for a living, so I do know what I am speaking about.

[Donray]

Compared to $7.25 per pack or $75 a carton where I live, I'll pay Duty any time I get a chance! That's still a excellent price!

 

Thank you. Real numbers from a real person who actually paid it. I consider you the authority!

 

But you failed to pay state taxes and are therefore a criminal.....

[Solo1959]

But you failed to pay state taxes and are therefore a criminal.....

 

In addition to the other questions I posted concerning this, you'd think if this were really an issue, they'd have state taxation people waiting at the docks to make sure people paid these taxes if they were serious about collecting them. You'd figure the amount of taxes they could collect from even just one ship coming back into port could pay the salaries.

 

But then, would I pay Florida taxes on the cigarettes when I returned to Fort Lauderdale, Georgia, South Carolina, Virginia, Maryland, D.C., New Jersey, and also New York taxes for those I smoked in the car driving home? And would I get rebates for the taxes I paid in those states for the cigarettes I didn't use in those states?

 

I don't know if it's a crime. I think it would be more of a crime for each of those states to impose a tax burden like my scenario above.

 

The truth is, there are probably enough people buying cigarettes in every state and bringing them back home that it would equal out. Probably as many New Jersey people buy cigarettes in New York and bring them home as do people from New York buying New Jersey cigarettes. Probably evens out.

[navybankerteacher]

In addition to the other questions I posted concerning this, you'd think if this were really an issue, they'd have state taxation people waiting at the docks to make sure people paid these taxes if they were serious about collecting them. You'd figure the amount of taxes they could collect from even just one ship coming back into port could pay the salaries.

 

But then, would I pay Florida taxes on the cigarettes when I returned to Fort Lauderdale, Georgia, South Carolina, Virginia, Maryland, D.C., New Jersey, and also New York taxes for those I smoked in the car driving home? And would I get rebates for the taxes I paid in those states for the cigarettes I didn't use in those states?

 

I don't know if it's a crime. I think it would be more of a crime for each of those states to impose a tax burden like my scenario above.

 

The truth is, there are probably enough people buying cigarettes in every state and bringing them back home that it would equal out. Probably as many New Jersey people buy cigarettes in New York and bring them home as do people from New York buying New Jersey cigarettes. Probably evens out.

 

With New York state taxes at $1.50 per pack vs. New Jersey's $2.57 (as of January 2008), I doubt there would be many New Yorkers sneaking Jersey smokes home.

[greatam]

But you failed to pay state taxes and are therefore a criminal.....

 

Depends on where the cigarettes were made. If US made for export and then brought into the USA, yes, you would owe state taxes. If foreign made and brought in for personal use, the product is handled no differently than any other foreign product, subject to duties and tariffs for that particular country. Few people would even think about importing cigarettes from Mexico or Malaysia (two big Phillip Morris factories) in container quantity for sale in the USA. THAT would be prohibited, due to ATF laws, not Customs.

[Solo1959]

With New York state taxes at $1.50 per pack vs. New Jersey's $2.57 (as of January 2008), I doubt there would be many New Yorkers sneaking Jersey smokes home.

 

$2.57!!!! Just in tax alone! That's not right.

 

And that goes along with my point exactly! The guy who works in New Jersey ran out of smokes, walked to the corner store and bought a pack, smoked one or two, then brought the rest of the pack home, New York would never try to collect the unpaid taxes on the 18 cigarettes he had left in his pack. Same thing if he bought TWO packs in New Jersey. New York would never collect the unpaid taxes on the unopened extra pack in his pocket.

 

It's not a crime.

 

Nobody was talking about sneaking cigarettes to sell on the black market, I was just curious how much Duty would be on a extra carton or two of cigarettes. I got an answer, someone ACTUALLY paid $33 for an extra 8 cartons of cigarettes. No crime committed. No police waiting. No jail time. To me, this is a reasonable, and responsible answer. And I don't doubt that it is true.

 

But $2.57 a pack... You guys in New Jersey need to do something about that.