CNG message on tariffs

I found this message in my inbox this morning:

President Trump has introduced tariffs for the majority of imports into the US, including collector coins. While changes to these tariffs may be made at any time without notice, and we don't know what the future will bring, here is what we know as of 10 AM on April 4:

-No coins have been exempted from the tariffs.
-Coins entering the United States will be subject to tariffs based on the country of origin, meaning the country of manufacture. A coin from a mint located in what is now modern Greece will be tariffed at the rate for Greece (i.e., the European Union) regardless of where the coin has been held or where it is shipped from.
-Although tariffs are not the same as import VAT, our European customers and colleagues are familiar with the taxation of incoming coins. US customers have not had to deal with this issue in the past. One difference from import VAT is that, as far as we know, tariffs that are paid cannot be reclaimed later upon export from the US.
-Coins already in the United States and sold to buyers in the United States are not subject to any tariff.
-Coins already in the United States and sold to buyers outside the United States continue be subject to regulations of the buyer's home country.
-Coins purchased by US buyers from dealers or auction houses abroad will be subject to US tariffs, even if those coins were consigned to the sellers by collectors or dealers in the US.
-The US buying market is believed to constitute the majority of world purchasing power of ancient and world coins.

The good news for US customers of CNG is that the coins in our auctions through the end of June are already in the US at our Lancaster, PA headquarters. None of these coins, when sold, will be subject to any new US tariffs. This gives us three months to evaluate how this situation might change. (The one exception is our Islamic Auction 9, which will be held in London on 24-25 April 2025.)

One thing is certain at the moment: if coins are sent from the US to other countries, they are subject to US tariffs if they are returned or sold back into the US. US collectors will need to think carefully before sending coins abroad, whether on consignment or for any other reason. And US collectors buying from foreign auctions will need to factor in the tariff costs when deciding how to bid. For the moment, coins sold in the US face no additional costs for US buyers, but coins sold outside the US will incur tariffs if they are imported into the US.

CNG is an international firm, fully capable of conducting auctions in both Europe and the US, and as such we will be able to respond to this changing situation in the way that best serves both our customers and buyers.

We at CNG will be monitoring developments and will do our best to keep numismatics as enjoyable and rewarding as possible for all our customers, wherever they may be.

Mike Gasvoda

Managing Director

Classical Numismatic Group, LLC

I imagine that coins purchased by collectors during a visit to Europe or elsewhere will be subject to tariffs upon arrival in the US at US Customs. I'm not sure how this would work. Another mess!

 

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I saw it as well. I assume prices will drop on foreign auctions due to less sales, but who knows.

 

Huh. I didn't know they were headquartered in Lancaster (my stomping grounds for a brief period in the mid-90s).

It's a good time to be Amish.

Edit: LOL, they're a five-minute walk from the old townhouse...

 

I searched thru my usual European auctions on Biddr and none of them stated anything about a tariff markup. We'll see if it creeps up in the future.

 

Thanks for sharing, @robinjojo... this aligns with earlier threads discussing the implications. I guess though that if you were buying US coins in a foreign auction they would not be subject to any tariffs! Canadian and Mexican coins may still be tariffed as I don't think that they are part of the current US MCA.

 

Thank you so much @robinjojo for posting CNG's information.

 

That's a good point. I don't know how that would work, but I'm inclined to agree that US coins acquired overseas should be exempt, unless the rule becomes country where the coin was purchased. This is all vague and troublesome.

 

this is absolutely nothing to worry about or even waste time speculating about until something (or even anything happens), until then I will continue to buy and sell as I have always. If something happens down the road, I will adjust my opinions if needed. Until then, I am not engaging in the spread of worst case scenarios...life is too short.

 

I recieved a similar message from Nomos. Also, auction 35 that was supposed to take place today was postponed until June 15th and will occur around the same time as auction 36. They did this in order to assess how tariffs will impact sales and wait for more clarity. Strange times.

Larry

 

Customs? Why declare them, just mix them in with your pocket change.

 

This will curtail most of my purchases from Europe. Most of the auction houses in Europe haven't said anything. I will ask them in the future before bidding.

 

Interesting debates ahead about the mint place of some Punic coins. If minted in Carthage they'll be stricken with a 55% tariff (Tunisia). But if the mint place was actually Sicily, it's only 39% (EU).

 

LOL, “only”.

 

I can't imagine that customs agents will have the time or inclination to make sense of any of this, especially given that they will now have to deal with a million other classes of items, especially the removal of the "de minimis" clause exemption purchases below $800 from China. The devil is in the details, and people may not have the patience for any of this nonsense. Things may change again soon (if history serves as a guide). As @Victor_Clark said, "life is too short"...

 

Easier to slap tariffs on containers filled with the same car
part(s). Do they have the man power to sort thru bags and
bags of small packages carried by the airlines, or container
loads of packages such as on the FedEx airplanes. Or am I
mis understanding the situation. Would the collection of the
tariffs fall upon the dealers much like sales tax collection falls
on the seller ie. WalMart does at the register.

 

When a commercial entity imports goods from abroad they must file CBP Form 7501: Entry Summary.

This form, filed by the entity receiving the cargo container will detail the:
Name/address of the importer
Name/address of the country of origin
Detailed contents of container
Any additional info required by CBP

From the port of entry the CBP will do a Non Intrusive Inspection (NII) by means of x-ray, radiation detection and/or NACIS which uses gamma ray technology. If there is any discrepancy between the Form 7501 and the NII the container will be transferred to a Customs Exam Site (CES) for a physical exam/inspection. At the CES the container will be devanned by an authorized CBP agent for intensive cargo inspection.

These procedures, if the initial NII process isn't clean and by the book, can add lots of delay/time to the container making its way to its final destination.

I would also contend that any disparity in the duties initially paid at declaration and the final tariff levied after the physical inspection would red flag that importer and shipper of origin for future shipments.

Hope this helps.

 

@masterswimmer Thank you.

 

Well stated, thank you.

My experience:

I manufactured goods domestically, as well as imported from factories all over the globe (Europe, Asia, the Americas, South Africa), for 45 years. We provided to virtually all the major hard-goods consumer products retailer customers in North America and Europe. (Yeah, many of you all may my products within your homes - THANK YOU ! )

ALL inbound tariffs that we paid were passed on to those retailers, whom adjusted their pricing to the consumer. Most tariffs / duties were 2%-10% and built into costs to customer. Ultimately, costing structures were passed on to the consumer within the Retail prices.

Ergo, any tariff / duty fees are a TAX on the in-bound country’s CONSUMER, NOT the outbound country. Plain and simple, tariffs are a CONSUMER tax paid by the consumers within the country IMPOSING those tariffs.

The hurt on the EXPORTING country is the loss of demand for their products due to raised tariffs. The exporting country DOES NOT pay the tariff. It is the importer within the tariffing country that pays the tariffs.

 

I just so happened to order a denarius of Vitellius from a French dealer right before these new tariffs were announced and it just got sent out yesterday. :/ Really hoping for the best and my coin makes it through in the end but this may be the last thing I buy from overseas until this mess gets sorted out.

 

I think this is important to remember here: "We must protect our freedom to collect ancients!"

Quoting @Deacon Ray Oct. 2, 2021 at https://www.cointalk.com/threads/a-...s-shes-got-the-whole-city-on-her-head.387166/