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    1 Reply Latest reply on May 27, 2008 3:41 PM by japan00

    Export duties, tax on foreign-earned income

    japan00 Newbie

      I have a friend from Japan, now living in the US. He wants to start exporting clothes to friends in Japan for resale in Japan. He would buy everything here with a Japanese bank-based credit card, and collect payments into his Japanese account. No money would actually change hands in the US. This is a small side-hobby, where his expected income for the year would be less than $10,000. 2 questions:
      1. Does he need to fill out any special forms to ship the clothes via USPS?
      2. Does he need to register or report anything to the IRS? If so, what?
        • Re: Export duties, tax on foreign-earned income
          Lighthouse24 Ranger

          Your friend would complete PS Form 2976-A (Customs Declaration and Dispatch Note) and PS Form 2976-E (Customs Declaration Envelope) to send a parcel (16 ounces and heavier) to Japan via USPS Priority Mail. The person receiving the package in Japan would likely need to obtain an import permit there if the items are for resale (as you indicated) rather than personal use.

          I'm not sure about the answer to your second question.

          Welcome to the community and best wishes.