Shop smart for the holidays, understand the rules

By Ms Jessica Lipari (USAREUR)December 8, 2011

Value Added Tax form
Items purchased overseas in Germany at local U.S. military facilities or on the economy with a Value Added Tax form are duty and tax-free. As a result, there are restrictions on giving these items as gifts to local nationals and other people not auth... (Photo Credit: U.S. Army) VIEW ORIGINAL

BAMBERG, Germany -- 'Tis the season of giving; however, before one starts shopping for gifts to give to friends and Family, they should ensure they are not breaking the law.

Items purchased overseas in Germany at local U.S. military facilities or on the economy with a Value Added Tax form are duty and tax-free. As a result, there are restrictions on giving these items as gifts to local nationals and other people not authorized privileges, including sending gifts back to stateside Family and friends.

Gifts must be for the recipient's personal use.

Gifts can be given to the recipient on an occasion where gifts are customarily exchanged such as birthdays and religious holidays. Gifts cannot be given on a regular or scheduled basis, used as payments for services or goods and given in commercial quantities.

Additionally, the customs agency has a list of non-customary gifts that require a permit to transfer document, Army Europe Form 550-175B, to be completed. The form authorizes U.S. military personnel stationed in Germany to give or sell used property to non-identification cardholders. The owner must have had the item and used it for at least six months..

The customs agency's list of non-customary gifts includes:

• All types of machinery (e.g. motor vehicles)

• Electrical appliances

• Office equipment

• Major household appliances

• Serial numbered items (e.g. firearms)

• Furniture

• Other valuable items (e.g. camera, binoculars, watches, jewelry)

This list, is not set in stone and if authorized purchasers are unsure if the gift is appropriate or legal, they should call customs.

Military equipment and uniforms cannot be given as gifts.

Not all food items, including candy, purchased from a U.S. military commissary can be given away but they can be shared or consumed together. Restrictions are tighter for rationed items, including:

• Tobacco products - 25 cigarettes or 10 cigars or 60 grams (approximately 2.1 ounces) of smoking tobacco

• Coffee - 500 grams (approximately 17.6 ounces) of coffee or 125 grams (approximately 4.4 ounces) of coffee extract

• Liquor - One bottle, not to exceed 1.2 liters (approximately 1 quart)

Violations to these regulations can lead to legal action and may result in termination of employment for civilians and Uniform Code of Military Justice action for service members.

Items acquired on the local economy without using a VAT form may be given as gifts without restrictions.

Restrictions also apply when mailing items and gift givers should be aware of the U.S. customs, agricultural and postal regulations. Violations of these restrictions can lead to hefty fines and confiscation of the goods.

Restrictions can be found at U.S. Department of Homeland Security's website. Some of the main restrictions include:

• Meat and meat products, fresh fruit and vegetables

• Liquor including inside a piece of candy

• Cuban rum and cigars

• Kinder Surprise eggs

• Wildlife products including ivory and whale teeth carvings

• Wood products that are unfinished or contain moss, bark, pinecones or untreated straw