Moving Precious Metals Overseas: 3 Things to Know Before You Do It

So far as client perception is concerned, I’ve found that moving metals internationally is one of those things that looks easy on the surface but is actually more involved in practice.

Why is that?

Here are some of the key issues we have to deal with…

Uncle Sam requires you to declare it before you export it

In many cases, shipping metals worth more than $2,500 requires a special record to be filed with the Automated Export System, a system built to provide US Customs and Border Protection with the details of the transaction.

It’s not a permission system per se. But Customs can stop, delay or even seize a shipment that hasn’t been properly declared.

Specialty shippers only

Most standard shippers (UPS, FedEx, DHL, etc.) aren’t interested in handling metals. And if they will, only very, very small amounts. In the vast majority of cases, we have to rely on dedicated carriers like Brinks, Loomis, etc.

Trouble is, these specialty shippers almost never want to work with the public. Instead, they only work with banks, asset managers, private vaults, and bridge services like ours.

This can make things quite difficult if you insist on a DIY approach.

Surprise tax bills

Many clients are surprised to learn that importing metals can trigger an immediate tax bill, specifically VAT (sales tax). The rules here are surprisingly fiddly.

Take Switzerland, for example. Qualifying investment gold is often treated differently from other precious metals, and the tax consequences can depend on the type of metal and whether it arrives as coins or bars.

Silver is even stricter and will often trigger sales tax immediately upon import.

However, there is a way around it. If you work with a custodian located inside a free trade zone—like the one right under Zurich Airport—the metals never officially “enter” the country for customs purposes. As a result, VAT and customs charges can often be deferred for as long as the metals remain in the facility.

I admit this can seem complicated. But if you work with someone experienced, it’s manageable.

That said, we don’t consider foreign precious metals a “DIY” sort of thing. Better to work with an advisor who understands the nuances and can help you put together a structure that accomplishes what you’re trying to do.

If you’re looking to establish a foreign precious metals account—or already have one and want an unbiased review—feel free to get in touch.