Import duty / brokers

[The Tasmanian]

Hi gents,
I am looking into importing new electrical goods from the US - hopefully in 1 box - (maybe 2 or 3 boxes in total?)
Total value is well above $1k.

Anyone have an idea on how much duty (5% - or 10% ? ) - obviously GST needs to be paid on top.

Is shipping in multiple packages more expensive?

Should I use a broker - or shipping company to make it all run smoothly?
Advice would be much appreciated.
Thanks

[Sammas]

Hey Chris!

What kind of electrical goods are we talking about? Speakers? Audio recorders? If you can get away with shipping them via USPS then Aus Post will take care of most of it for you. You will be billed for the import duties and taxes plus a $60 AQIS processing fee (which is probably applicable to each box...).

In any case, you should dig out the applicable HS tariff codes from here: http://www.customs.gov.au/tariff/tariff2012.asp

Chapter 85 & 92 are probably in the right areas. Using the appropriate tariff code and country of origin on the customs declarations should let the stuff slide through without any addition duties thanks to a free trade agreement. GST will be payable on the total cost of the items AND the shipping cost.

[The Tasmanian]

Thanks Nath,
its basically multiple sets of specific powered speakers that are not available anywhere but the US.
I'll have a look deeper into the customs quagmire , it's very difficult to wade through it all...

Maybe best to use a US courier from the supplier, then they insure instead of me & can quote shipping etc etc.
Thanks for the free trade tip.

I'll keep digging...

[The Tasmanian]

Thanks Nath - looks like 5% tarif + GST .

[Junction]

You should ask the manufacturer/supplier for the tariff code, they are pretty much an international standard. if it happens to be a low tariff rate category (say 5 or 10%), then its good to request that they put the tariff code on the shipping documentation otherwise customs may interpret the tariff code to be one of the highest rate then it becomes difficult to resolve without much paperwork and negotiation.

[The Tasmanian]

Thanks Michael,
That is a good tip,
so, you are saying the tariff code would be the same code in both the US and AUS?
Is this a numeric code?

[Sammas]

HS is an abbreviation of the Harmonized Commodity Description and Coding System.
It is designed to be pretty well universal around the world.

[The Tasmanian]

Thanks gents for all your help, I'm very green in this department.
Cheers!

[simonstav]

Hey Chris,

What exactly are you importing? There may be a 0% stat code that is applicable

Post is the easiest and usually cheapest if you can get it within the size/weight restrictions. Feel free to contact me if you need assistance, I do this on a regular basis.

[The Tasmanian]

Thanks Simon,
I'll just price it all on 5% tariff, less is good!
At least I know it wont be more and break the bank..
Also I would rather use a courier for these items, with proper insurance - (even though it will cost more)
I want to avoid postal services.

[simonstav]

Are you going to import via post? If so you will need a n10 post import form

http://www.customs.gov.au/webdata/resources/files/B374-Importdeclaration-goodN10Post_Submit.pdf

[The Tasmanian]

Ha > posting about posting > at the same time!
Definitely courier organized from the manufacturers end.
Thanks for your help

[simonstav]

Then the couriers would handle all the processing.

[Alistair]

Couriers often get it pretty wrong though unfortunately. They will just go for the quickest option for them to fill out, and not check up on whether there might be a reduced tariff.

Just to agree with what everyone else has said-If the items are made in the USA from mostly US made materials (eg not just assembled out of Chinese parts) you should qualify for the Free Trade Agreement- duty = 0%
You'll still have to pay GST on the items and shipping, plus a small brokerage fee, usually under $100.
If there is any wood you'll likely have to pay a Quarantine fee too.

[gigpiglet]

hi all
i do this all the time (for both touring work, and more recently as the local rep for joeco)

if you are importing "recording and audio equipment" which is the catogory i use
its 5% on the amount duty
and 10% on the amount GST
(so $100 import will incure $5 import duty and $10 GST = $115)

i use UPS for these kind of small imports and have been great

[The Tasmanian]

All good info
Thank you.

[Drumstruck]

But wait! There's more! Customs can also hit you with an admin type fee (on top of the other taxes) before they will release your goods - I've had these twice and they were around $350 each time.

[The Tasmanian]

Yes - me too,
When I imported my Lucas CS4 I was slugged with this, which is part of the reason I am asking these questions....
If I import via a US/AU courier like FedEx- would they be handling customs? therefore no charge?
it gets worse the more I dig.....

[The Tasmanian]

Further,
maybe I should book FedEx & insure, do all the paperwork from this end - to make sure all is done properly?

[gigpiglet]

my experience with UPS bringing the joecos in has been excellent
just the duty charge
no hidden fees
no issues
ive done about a dozen units and exactly the same every time with no concerns or questions.

[Kurt]

I used to work at a mechanical workshop and we imported engines and parts from the USA a few times.

If the item is manufactured in the USA, from substantially American made parts, there should be no duty. The guys we bought from included several copies of a letter stating that this was the case. We used a few different couriers, the best experience was with was DB Schenker, one contact who looked after every step.

[Drumstruck]

I've used Fedex and UPS and USPS - all were good and offered accurate tracking. All processed the doco etc as part of the service, but when some items hit our shore customs charge this "fee" on top of the taxes (it's not a tax or a duty or GST or any other acronym they try to hide taxes behind - it's an admin fee). I got hit with this fee for a couple of items over 1K value (mixer and xylosynth).

[wez]

One thing to watch out for is VoTI (taxable import value)... for customs purposes, the value of the product is not the sale price, but the Customs Value (USUALLY what you paid for it but in some cases whatever customs decide it's worth) PLUS shipping and insurance PLUS all the duties and charges. In some cases it amounts to a tax on a tax on a tax!

ie say you pay $1000 for some speakers, plus $300 shipping plus $200 in other charges, the deemed value of the item is $1500, and that's what you pay GST on. I've been caught out by that one.

[The Tasmanian]

Gareth - I will contact UPS, thanks for the advice.
All good info from everyone - thanks gents.
Cheers!

[berkfinger]

Hey Chris,

just in case it helps, these guys crated, shipped and handled customs on my Electrodyne console from Kansas City to Sydney and it was very easy and surprisingly cheap:

https://www.cratersandfreighters.com/

[The Tasmanian]

Thanks Simon -
...hope your not eating too much cheese (and ham) in Berlin!