Traveling with Jewelry - Robert E Miller Group

investment protection
vacation
savvy
If you don’t want to leave your jewelry or
fine timepiece behind while traveling, you
should plan ahead to help reduce risk.
With vacation season just around the corner, it is best to be informed about the places you plan to visit. Having a strategy for what
items you plan to pack — particularly when traveling with fine jewelry or
timepieces — is an excellent idea, and it’s always good to be cautious.
A STEP in the right direction
Many travelers enjoy visiting more adventurous locations such as
developing nations and remote destinations. But be advised that in some
parts of the world, wearing valuables can make you a target for petty
theft.
For many of these locations, the Department of State has a Smart
Traveler Enrollment Program (STEP) that allows you to notify the local
embassy of your impending trip. In addition, STEP provides an email alert
system that will send updates on travel warnings and any other topical
information that may be issued regarding the country you plan to visit.
Wherever you travel, be prepared for an interview by customs when
reentering the United States. When traveling with jewelry, customs has
the right to ask for supporting documentation that proves you purchased
the items while in the U.S. and not on foreign soil.
Because of this, it’s wise to carry one of the following items with
you on your trip: a sales receipt, an appraisal certificate, proof of existing
insurance, or a prepared Certificate of Registration for Personal Effects
Taken Abroad (known as CBP Form 4457).
Links to the appropriate forms for both STEP and the Certificate of
Registration can be found at The Miller Group website, at
millercares.com/category/private-risk-management/.
Taxes for jewelry vary greatly when purchased overseas
By providing proof of ownership prior to traveling, you can avoid
paying a duty on the item(s) upon reentering the U.S. The provision in the
Harmonized Tariff Schedule (HTS) allows American-made products to return to the U.S. without duty requirements. However, the
provision stipulates the good’s value cannot have been advanced,
nor the condition improved while abroad. In other words, if an item
was repaired or upgraded, duty could be owed on either the fair
market value of the labor or the item itself as it has been changed. A
simple example of this would be taking raw gold to India and having it made into a jewelry piece by a local craftsman. The gold
cannot be re-entered into the U.S. free of charge, nor is the value of the gold
deductible from the value of the finished piece of jewelry. To claim goods
under this provision, proof of U.S. origin is required (such as a country of
origin marking or a certificate of origin from the manufacturer).
If you plan to purchase jewelry abroad, loose diamonds — both
rough and polished — are currently free of duty upon importation into the
U.S. On the other hand, finished jewelry containing polished diamonds is
subject to a duty rate ranging from 5 to 5.8 percent, unless the shipment
qualifies as duty-free, pursuant to Free Trade Agreements. The U.S. currently has Free Trade Agreements with 20 countries, including Australia, Canada, Israel, Mexico and Singapore. A complete list is available at
ustr.gov/trade-agreements/free-trade-agreements.
With a dose of caution and some pre-vacation planning, you and
your jewelry are sure to have a great trip.
Amber Manning
Amber Manning is Vice President of The Miller
Group, one of the top brokerage firms in the
Midwest offering a comprehensive array of
products and services, including Commercial
Insurance; Employee Benefits; HR Consulting; Surety Bonds; Safety & Loss Prevention
and Business and Private Risk Management.
Manning is the division leader for Private Risk
Management. Manning earned an art history
and sociology degree from Loyola University,
Chicago and is a Kansas City native. Community involvement includes participation
with the KC Symphony Business Council, the
DeLaSalle Education Center and board member at the Central Exchange.