News Room

Friday, November 14, 2025

Tariffs, Taxes, and Fees

by Matthew Liebson and Bruce Marsden

Updated with new information on November 14, 2025.

[Editor’s note and disclaimer: The original column was written and updated on October 6, 2025, and published on November 1. The American Philatelic Society does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.]

Tariffs have been much in the news in recent months. Plenty of collectors are worried about the potential impact on their hobby spending, among other things. Taxes can similarly impact the sale and purchase of philatelic material and related items. While we are neither customs nor trade specialists, and we are certainly not tax experts, here are some things to consider when buying and selling philatelic material. As is typical of my [Matthew’s] columns, our focus here is on U.S.-based buyers and sellers.

Sales Taxes and VAT

Most (but not all) U.S. states have a sales tax that applies to most retail purchases. Canada has the GST (General Sales Tax), and many European countries (and other nations) have various VAT (Value Added Tax) systems.

Historically, few show dealers added sales tax to totals (preferring to round off pricing for administrative or customer convenience), and sales tax was rarely an issue for internet purchases unless the parties were located in the same state.

The practice of collecting tax has become more prevalent in recent years (along with the availability of payments by credit card or other online methods). Rules about what taxes sellers must collect (and remit it to a state or other taxation authority) are complex and have become more so in recent years. The rise of online shopping (and a change in Supreme Court legal precedent) has eliminated the requirement of a physical “nexus” between the buyer and seller, leading to a potential risk of, for example, a seller located in Pennsylvania selling to a buyer in California needing to collect and remit California sales tax.

Adding further complexity, state laws regarding who must collect tax have changed – different states have different minimum thresholds for dollar value and/or number of transactions – and many states also have passed legislation requiring online marketplaces (like eBay) to collect sales tax for transactions by their users (even if the user, on their own, would not have sufficient volume to trigger tax liability).

As many of us have encountered, eBay now collects sales tax on transactions for quite a few states (and foreign countries), and buyers should plan accordingly. Sellers also should make note: while a seller does not need to be concerned with the administrative task sales tax collections and remittances that are handled by eBay, sellers pay commission on additional funds collected by eBay for shipping and for tax. For example, I recently sold an 1852 stampless folded letter to a buyer located in the state of New York. The item price was $19.99, with $1.00 added for shipping and handling. eBay collected $1.68 in sales tax, for a total of $22.67 due from the buyer. I was charged commission (for me as a “store” subscriber, 9.7%) on the entire $22.67 collected from the buyer.

Relief for dealers or resellers who buy on eBay is available. Many states have sales tax exemptions for certain types of buyers and sellers (for example, purchases for resale, or purchases by non-profit organizations). eBay will provide exemptions for qualified users with appropriate documentation. A link for information about exemptions, along with quite a bit more information regarding eBay and taxes, can be found at aps.buzz/ebaytax2025.

State taxation continues to grow more complex. Two states – Colorado and Minnesota – also have a “retail delivery fee,” or RDF, that applies to consumer goods delivered to state residents, and many other states are considering them. These taxes remain polarizing. Additionally, many states have “use taxes” that may obligate a buyer to pay tax if sales tax is not collected at time of purchase, which may still apply to purchases from less sophisticated online sellers and for international purchases.

Other online venues and dealers may handle sales and other taxes differently. HipStamp, for example, appears only to collect sales tax if requested by the seller (typically for the state of the seller’s residence). It does not appear to automatically collect “marketplace” based taxes.

European-based stamp marketplace Delcampe de-activated the accounts of many U.S.-based buyers rather than address complex sales tax collections and remittances. Buyers and sellers should keep an eye on sales and use tax liabilities and pay attention to the “small print” when engaging in transactions to avoid surprises.

Tariffs – Applicable to Stamps, or Not?

The tariff situation in the United States has been subject to rapid change under the current administration, leading to uncertainty. Historically, stamps and postal history entering the United States have been treated as duty free, and for most routine transactions the value of items falls below the de minimis threshold (recently $800), below which duties/tariffs were not charged even if the shipment contained goods otherwise subject to duty.

New “baseline” or “reciprocal” tariffs issued under the International Emergency Economic Powers Act (IEEPA) have changed the tariff landscape as well as adding a whole new second set of tariff codes in the Harmonized Tariff Schedule (HTS). Two federal courts have ruled that these tariffs are illegal (though they have not stopped the government from collecting them while the case continues through the system). The Supreme Court will hear argument on that case in November 2025.

Adding to the current complexity, the de minimis threshold for incoming shipments (which previously allowed shipments of goods up to $800 enter the US free of duty) has recently been eliminated (effective August 29), at least theoretically making imported goods of any kind subject to tariff/duty. The executive order eliminating the de minimis threshold (dated June 30, 2025) also contains provisions that require prepayment of duty prior to shipments being released through Customs and Border Protection (CBP), and provides for a temporary fee of between $80 to $200 fee per item as an alternative to traditional tariff calculations. These fees are similar to fees in language from previous executive orders relating to the treatment of de minimis shipments of goods from China.

It remains unclear if these fees will come into use. As of the writing of this column, the executive order is subject to litigation, and more than 20 foreign postal services have temporarily suspended shipments to the United States pending clarification of how duties, collections and payments will be handled. Many international retailers have suspended accepting orders from United States customers. United Kingdom’s Royal Mail has indicated to customers that it believes shippers will be required to estimate and collect tariffs and duties at the point of sale. As of early September, eBay has added warnings to some listings from foreign sellers that “import fees for this item will need to be paid to customs or the shipping carrier on delivery;” other listings may say that import fees are included, or that “fees are confirmed and paid at checkout.” More information about eBay’s reaction to tariffs can be found at https://pages.ebay.com/tariffs/. It will take some time for business practices on the ground to catch up with the changing tariff and duty structure.

As gloomy as this may sound, there could be some solutions for philatelists.

Postage stamps and related philatelic material fall primarily in Harmonized Tariff Schedule codes that still are not subject to tariff. Code 9704.00.00 covers “Postage or revenue stamps, stamp-postmarks, first-day covers, postal stationery (stamped paper) and the like, used or unused, other than those of heading 4907.”

Heading 4907, in turn, is for stamps with negotiable face value or other types of negotiable paper: “Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a recognized face value; stamp-impressed paper; banknotes; check forms; stock, share or bond certificates and similar documents of title.” There is some indication from older classification rulings that the phrase “current or new issue” may simply mean that the stamps remain valid for postage in the country to which they are destined.

The new tariffs require a second Harmonized Tariff System code to be used from chapter 99 of the HTS. The HTS code 9903.03.31 is for “informational materials.” Background material (specifically, the International Emergency Economic Powers Act’s frequently asked questions listed in the resources section of this article) provides additional explanation of what “informational materials” incudes; this explanation incorporates materials from HTS chapter 9704, and thus includes postage stamps for collectors. It does NOT, however, include chapter 4709 (new issues).

There is some contrary guidance, however: a July 2025 classification letter from Customs and Border Protection takes the position that stamps are NOT informational. It appears that there are some internal inconsistencies in CBP handling of these classifications at this point. [Editor's note (11/14/2025): the July 29 ruling letter has since been rescinded and replaced. See the update at the bottom of the page for more information.]

A second code, 9903.01.34, provides that items which have at least 20 percent value of U.S. content are duty free, which presumably provides another route to free importation of United States material. An interesting corollary here may be that foreign stamps printed in the United States may qualify as “U.S. origin” for customs purposes. It is important that one of these two section 9903 codes just noted here be utilized in order to avoid the “default” classification of 9903.01.25, or a range of individualized country codes reflecting “baseline” tariffs from various countries (9903.01.43 through 990.01.76 as of the time this was written) which may result in the application of “the IEPPA or “reciprocal” tariffs from the country of shipment.

Ignoring for now the nuanced questions of whether foreign stamps should be subject to potential tariff based on their country of issue, their country of actual origin, or the country from which they are being shipped (so far, it appears that the country of issue is the most likely case), and the question of what stamps constitute “new or current issue,” there should be a pathway to retain duty-free treatment for most shipments of stamps. These issues could prove quite complicated in the case of mixed lots, worldwide collections, multiple auction lots, or other similar philatelic materials.

Given the complexity of the HTS and the tariff system generally, it should be no surprise that there is and will be the potential for confusion and for error. At least in eBay’s system, it is up to the seller to enter a proper HTS code; this process is not automated. The ability to add a second level code remains uncertain, and of course, an international shipper must be aware of what codes to use. Given the complexities of the tariff and customs system, it is easy to imagine errors being made, both by senders and by the agencies and offices now responsible for assessing tariffs and duties on incoming packages. At least on eBay, if a seller requires payment of tariffs upon purchase or if the postal service (even erroneously) charges tariffs on an article and withholds it from delivery, a buyer may have little meaningful choice.

While stamps themselves may not be subject to tariff, it is certainly possible that supplies, albums, and philatelic accessories may fall into classifications subject to tariff, or may contain components subject to tariffs that will push prices up. Catalogs and albums may well qualify as “informational material” treated as duty-free under HTS 9903.01.31.

As an additional matter, incoming packages processed for customs duties are subject to two sets of administrative/processing fees: one from CBP (Customs and Border Protection) and one from the Postal Service. Packages may also not be delivered prior to the payment of duties and fees.

A package I [Matthew] recently received from Japan containing non-philatelic merchandise was charged a 12.7 percent tariff based on its classification. I additionally paid a $9.50 “customs clearance and delivery fee” from the Postal Service, and a $7.20 “customs processing fee” from CBP. These rates are likely to be “flat rate” and to apply to shipments of any value, which means that they can result in a significant escalation of cost of lower-value shipments. As of the writing of this column, paying the duties and fees also required a visit to the post office to pay over the counter, which can mean delay and inconvenience when dealing with incoming packages. It remains to be seen if de minimis shipments will receive similar treatment.

It is foreseeable that the Postal Service will develop online systems to streamline the payment process in the future (other couriers, such as UPS and FedEx, already have this in place), but USPS isn’t there yet, despite the now-passed August 29 deadline to prepay duties or face large fees for incoming postal shipments.

Summing Up

Taxation is complex, and becoming more so. It is also possible (and nearly certain) that things will continue to change. Buyers and sellers should continue to be aware of their potential implications for buying and selling.

For those receiving shipments in the U.S. from abroad, the potential for tariffs and fees exists, but philatelic material could remain tariff free in at least some cases. Buyers in the U.S. may consider instructing their international sellers, carriers, and customs brokers to utilize HTS codes 9704.00.00 and 9903.01.31 (or, for U.S. material, 9903.01.34). Further guidance from the government may clarify the current uncertainty or provide alternative approaches; further legal action may result in the temporary or permanent elimination of the IEEPA tariffs.

October/November 2025 Updates

[Editor's note (11/14/2025): The following update was provided by Bruce Marsden on October 24, 2025.]

Recently, there has been concern across the global philatelic community that new US tariffs introduced in 2025 may impose new costs on the importation of international philatelic material into the US. Historically philatelic material, classified under Harmonized Tariff Schedule (“HTSUS”) 9704.00.0000, has entered the US free of duty.

“Informational Materials”, as defined, are exempt from the new 2025 reciprocal tariffs imposed by executive order under the International Economic Emergency Powers Act (IEEPA) as amended. In response to an inquiry from a US stamp dealer, on July 29, 2025 US Customs and Border Protection (“CBP”) staff issued a Ruling Letter concluding that the subject stamps and a first day cover were not informational materials and therefore were subject to the new tariffs.

On Thursday October 23rd, CBP staff informed the dealer that the July 29th Ruling Letter has been voided and a new letter will be issued. The information provided by CBP also referred to the definition of informational materials that is contained in a CBP Frequently Asked Questions document that is posted on their website. That definition includes the historically duty free philatelic material described in HTSUS 9704.00.000, alongside artworks (HTSUS headings 9701-9703) and miscellaneous collectors pieces (HTSUS heading 9705) in the list of items to be considered as informational materials.

[Editor's note (11/14/2025): The following update was provided by Bruce Marsden on November 12, 2025.]

The July 29 ruling letter was rescinded; its replacement is available here.

The new letter is silent on the issue of whether stamps are informational materials or not, qualifying for the Berman Amendment's exemption for informational materials.The last paragraph refers to Chapter 99 but does not appear to provide guidance on this matter.

Informal guidance from CBP supervisors continues to refer collectors to the CBP FAQ which notes that HTS heading 9704 items may be considered informational materials. The suggestion then is that philatelic material can enter the US under one of four exemption codes for informational material as follows:

Mexican origin material : 9903.01.03

Canadian origin material : 9903.01.12

Chinese origin material : 9903.01.22

All other origin material : 9903.01.31

Collectors who have instructed their overseas vendors to include the HTS code 9903.01.31 in addition to the traditional 9704.00.0000 code are reportedly now successfully receiving their purchases without the assessment of tariffs. Based on all available evidence, this approach should work.

As always, consult your own tax, legal and accounting advisors before engaging in any transaction.

The Authors

Matthew Liebson is a life-long stamp collector. An APS member since 1992, he is also a dealer member and an accredited philatelic judge. He is a member of the board of trustees of the APRL in addition to holding leadership positions in a variety of other philatelic organizations. By day, Matt practices law as Senior Corporate Counsel with a large automotive supplier and is 4-4 in convincing his children to collect stamps, at least for a while.

Bruce Marsden is a retired CPA and CFA Charterholder. He served on the APRL Board of Trustees from 2010 to 2016 and as Treasurer of the APS from 2016 to 2022. He continues to serve as Treasurer of several local and national and specialist societies and on the Board of Directors of Hostelling International (Hi!) USA, hiusa.org. Bruce’s philatelic collecting interests are in anything Swiss, and thematic items related to the Alps and Global Tourism. Bruce’s interest in the IEEPA tariffs was kindled upon a surprise receipt of an invoice from FedEx for tariffs on a recent Swiss auction purchase.

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