Importing goods question - seeking knowledge!

[tweakeasy]

I've just had my BLUE Cactus arrive in the country and have been sent a 'NOTICE TO POSTAL IMPORTERS OF DUTIABLE GOODS'.

I know that the sender insured the package for it's full value which is well over a grand. This would be stated (or viewed by Customs) as a replacement value though, not what it cost me right?

The notice says (as I'm sure most of you know) that if the goods are valued at or below A$1000 I will not be required to pay Customs Duty or GST, provided I supply them with a receipt stating that the value (or cost) is below this amount.

I have the receipt from the seller in Word format.

What would you do?

Would the Duty and GST on the mic be that much? (considering a cost of around 2 grand).

I'm not at all experienced in these matters, first time I've ever imported anything over a grand. It is second hand too, though I don't know if that matters? If I can save money I would certainly like to. Broke as a joke at the moment.

Thanks all!

[heathen]

It's always a catch 22 unless you make an arrangement with the seller about pricing, usually you will wear the cost if it's under insured and arrives busted.

I think the most you will have to fork out is 10% for gst of the payment you made, though if it's insured for a different amout you could be up for a bit more I think though I'm not 100% sure.

It's made in the USA so there will be no other duties appart from the 10% gst.

I bought 3 kiwis last time the dollar was good, luckilly I got 2 for under ac grand and the came straight through. Seemed a couple of years back they were'n t so strict on enforcing gst if it was a few bucks over, though now seems they want every cent possible.

Let us know how the Cactus sounds, please!!

Also you can deal with customs via fax, much quicker than posting documents, just call them and find out, the first time is a pain but once you have done it once the 2nd time is much easier.

[tunetown]

Anthing over a value of $1000 AUD including postage will incure 5% Duty and 10% GST after that. Yes, you pay GST on duty. Sucks.

So, if the value is $2000 including postage, your taxes will be $100 duty PLUS $210 GST for a total of $2310.

Hope this helps.

Cheers

[Chinagraf]

Don't forget that when they calculate gst they include the postage fee as well. Over 1K you will need a formal customs clearance which you'll need to use a broker for unless you are registered as an importer in the CARGO system, which you probably aren;t and don;t want to be unless you do a lot of importing. Fees vary, something like $150 for the clearance and cutsoms attending fee etc, then duties and GST on top of that.
A word document printed out probably won't be accepted as proof of purchase price, but you could try. They generally want a bank transfer receipt or paypal receipt, ebay receipt etc. You also need the details of the seller, name addy etc as they have to be listed for the clearance as well. THe insurance value won't matter as long as you have proof of payment for the item. How much was it in AUD?

[lonearranger]

More info available here (customs)

http://www.customs.gov.au/site/page.cfm?u=5653
http://www.customs.gov.au/site/page.cfm?u=5549

Sometimes the freight handlers will contact you for payment, in which case you may not need an agent.

Don't forget that if you are registered for GST then you can claim that back.

I have some family who live in the US and try to get them to bring me goodies when they come home - also handy for US only ebay. If more than 1 person is travelling you can make a joint customs declaration and you get the $1000AU allowance per person (or at least that used to be the case).

Cheers

[musikwerks]

Anyone importing anything should always factor in at least 10% GST on top of the declared value (on the parcel) and another few hundred for customs, to be safe. Sometimes things slip through and you get away with it and sometimes they calculate the GST on the $US dollar value, not the converted $AUD value, but this is the exception to the rule. Customs will always use the declared value of the package to make their assessment. If the package says $2k and you say $1k they don't care, $2k it is.

Allow for this and you won't be disappointed when they bill you. Remember that declaring a lower value may get you through customs without a fee but if your $2k item is declared at $1k and it gets mashed in the mail you're never going to get $2k's worth of insurance.

[tweakeasy]

Thanks for replies all! I'm still finding it somewhat confusing though - you need a law degree to decipher the Working Tariff Page and classify your goods. Which would be the specific tariff classification and Stat Code for my mic from this page?

http://www.customs.gov.au/webdata/resou ... oods_b.pdf

And how does the no GST on US made items work? How do I communicate that to them?

The full insured amount as appears on the Australia Post article details (which accompanied the customs notice) is $1600 US. On top of that I was charged 120 US for postage though the actual amount ended up coming to 190 US (but the seller wore the extra).


Groaaannn...

[norm]

Simple really. You will be charged for the actual postage and insurance, plus the insured value. That is $190 plus $1600 x the exchange rate. No matter what agreements you have in place. There will be a processing fee by customs, GST and any duty if applicable and they dont take off the first $1000. You pay for the total. Allways make sure your total postage insurance and item cost below $1000 aud. Never insure for more than say $800 aud. Never have invoices included in parcel as they open them. Make sure the amount declared on the other end is covered by a email agreeing to the amount this end so if customs want proof you can show them. Regards Norm

[Chinagraf]

It's not actually no gst on US made items, it's no duties, but the catch is it must be made in the US from entirely US components. It falls under the Free Trade Agreement.
I would be using a customs broker for the clearance. Let them classify it. I'd also get a copy of the payment (paypal, bank transfer etc) if it was less than the value on the package. You can argue the fact with Customs, but you need proof of the purchase price if it was less than the value. I won an argument with them when they overcalculated duties but it took literally 6 months.

[musikwerks]

Allways make sure your total postage insurance and item cost below $1000 aud. Never insure for more than say $800 aud. Never have invoices included in parcel as they open them. Make sure the amount declared on the other end is covered by a email agreeing to the amount this end so if customs want proof you can show them. Regards Norm

That is totally dodgy Norm.

Actually, it's fraud.

[norm]

Not dogy as long as all the information you supply is correct. It would be dogy if the information you supplied is false. However I am sure no one here would knowingly break the law.

[musikwerks]

So how do you "Always make sure your total postage insurance and item cost below $1000 aud. Never insure for more than say $800 aud."

[heathen]

Yeah if you bought 2 $800 mics then you would be crazy to declare them in 1 package if they are going to take 3 weeks and slug you gst, just separate the order and pay the extra $50 for shipping. They will both arrive in about 5 days.

That's 1 way.

[norm]

If you split your shipment and the two or more parcels hit customs at the same time from the same place they will add them together and tax you. If the items are ordered separately and arive say 5/6 days apart and are invoiced separately then no problems.

[heathen]

If you split your shipment and the two or more parcels hit customs at the same time from the same place they will add them together and tax you. If the items are ordered separately and arive say 5/6 days apart and are invoiced separately then no problems.

I dunno, it seems there are different days/weeks where they feel like charging and some where they don't. I've only ever had 1 order held up by customs which was just over a grand. Then I've had others just turn up at the door with an Aus post guy wanting me to sign for it., usually just above or below a grand.

I've tried to make sense of it but it seems hit and miss to me sometimes.