by Chris Cornell, Manhead Merchandise
Merchandise does not only create a strong bond between bands and their fans; it has become a top source of income for artists big and small. With recorded music being free or close to it, bands depend on merchandise sales to keep their business going.
Touring around the states is one thing, but as a band gets more popular, bringing the operation overseas becomes a different story. Since founding Manhead in 2007, we’ve been through every possible scenario when it comes to selling band merch internationally. It can get pretty complicated.
Carrying merchandise across borders categorizes you as an importer in the eyes of most countries. Just as you plan out international logistics for touring, selling merchandise internationally should be well thought-out in advance. Generally, every country will assess duties and taxes on goods imported across their borders, and your merchandise is no exception.
Just like most states, most countries and even smaller jurisdictions within countries assess some sort of final consumption tax on retail sales, similar to sales tax. It is helpful to know what the situation is where you are touring, so you don’t get into any trouble or have your merchandise seized due to non-compliance.
Canada and Switzerland are excellent examples of countries that can be strict with importing and tax procedures. For example, when entering Canada, you will need a customs broker if your merch is worth more than $2,500. Switzerland is notorious for customs enforcement and has been known to thoroughly search a band’s vehicles looking for undeclared goods.
We recommend to our clients that they never cross the borders into these countries carrying merchandise. Typically we ship in using proper brokerage methods or produce locally. Often times, courier or parcel services like FedEx or DHL also provide customs broker services.
Producing merch in the U.S and shipping internationally can be more expensive than printing locally overseas. At some point, it gets cheaper to print locally. Also you have the benefit of a supplier in a similar time zone with less logistical hurdles to receive your orders.
The easiest way to sell merch internationally is to print and purchase it within that country, but depending on where your music career is, this setup isn’t for everyone.
Keep in mind design trends when leaving the U.S. Current fashion sensibilities are often different internationally. What is in season there? How you can design merch that is functional? In this way, your stuff can appear less like typical band merch and more like a clothing line. A good example of this is the Christmas sweater – a huge seller for artists and labels today.
With factors like flight costs and visa costs, an emerging band can be operating on a loss before even leaving their country. Selling merchandise in a foreign country adds an element of import and export which your average person may not necessarily be familiar with, so it’s important to be careful so that you can enjoy selling your merch worry and costly mistake-free
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