Tax on importing parts

[sydney mike]

Any accountants here?

 

I am considering ordering $1500 worth of parts from the USA and I am not sure if I am going to be hit with GST/duties?

 

I've been told that importations of over $1K have to be subject to GST?

 

Also been told that companies like UPS have their own customs collectors so to avoid them.

 

Please share your experiences.

 

cheers, Mike.

 

and Happy New Year!

[benny]

pretty sure you pay import tax when its over $1000 like you said. I dont know if its per item or as a whole??

 

If its an issue can you just split the order?? I know it will add a tad more for shipping but you wont have the issue!!

 

If doing 2 lots of shipping is the same as the import tax or close too i guess you just gotta cop it!!

[KatoKid]

Its $1,000 total, irrespective of number of items. Be carfeful with splitting deliveries as customs do keep track of imports and if they see split orders they will hit you. Try having the second order sent in another name to a mates address.

[handsandwhich]

Or get the supplier to put a value under $1000 on them where possible.

 

Or do split deliveries (but don't get them delivered at the same time) if that is possible too.

 

 

Have done both options as above and both worked out fine but it's just advice given, don't take it as gospel.

 

 

[sydney mike]

Or get the supplier to put a value under $1000 on them where possible.

 

 

Yes, thats what I had in mind. If the seller is willing to go along with it they've got the sale. If not , I'll keep the money in Australia 

 

 

[luvemfast]

Just don't let Gerry Norman find out 

[Ben]

Double check this, as the duties on car parts was abolished post introduction of the USFTA. Specifically on Jan 01 2010.

[FLEXZED]

Yes, thats what I had in mind. If the seller is willing to go along with it they've got the sale. If not , I'll keep the money in Australia 

 

Hey Mike

 

you can order the parts and use myname and address if you like

 

Loui

 

[Zeddophile]

I think there is something about parts for a car that is older than 30 years that allows you to get away with less duty/tax?  Not too sure, but might be worth looking into....

[Zedsabbath]

I think the ATO reads these boards...believe it or not I got an order for "Z rubbers" (boots) from (person's name)@ato.gov.au out of the blue through ordinary email...probably a reminder to declare the miniscule amount of extra income

[sydney mike]

I think the ATO reads these boards...believe it or not I got an order for "Z rubbers" (boots) from (person's name)@ato.gov.au out of the blue through ordinary email...probably a reminder to declare the miniscule amount of extra income

maybe this ATO employee should post and clarify once and for all

[Ben]

The ATO don't take duty monies - that's customs.

Customs then forward the GST component to the ATO.

 

The details of tariffs is freely available on the interwebs - I remember searching for it only a few months back to see what the 'go' was with car parts.

[gav240z]

I think there is something about parts for a car that is older than 30 years that allows you to get away with less duty/tax?  Not too sure, but might be worth looking into....

 

I thought this was true also, or at least it should be. Interestingly motorcycle parts seem to be exempt from import duties. So some parts could be classified as motorbike parts i.e carbies .

[Scottz]

WEIGHT - 294.8KG

VOLUME - 1.479M3

CHARGEABLE - 0 (Freight paid in USA)

PACKAGES - 2 PLT

 

DESCRIPTION: (GST IN AUD); (CHARGES IN AUD)

Destination Arrival Charges Brisbane: (10%=34.97); (349.65)

Customs Clearance: (10%=15.00); (150.00)

Delivery to XXXXXXXXX: (10%=35.00); (350.00)

AQIS Inspection Fee: (Zero Rated); (264.00)

DUTY: (Exempt Rated); (243.29)

GST: (Exempt Rated); (404.58)

AQIS Inspection Facility Fee: (10%=17.50); (175.00)

 

SUBTOTAL =  1,936.52

ADD GST =        102.47

TOTAL AUD = 2,038.99

 

What does it all mean? Above is the invoice from the Australian agents handling my USA import cargo.

The story: - I bought parts from California. I paid the vendor in US dollars and roughly the AUD=USD at the moment. I had 3 quotes for sea freight and 3 quotes for air freight. Naturally sea was cheaper as follows:

A - California to Melbourne Port $800

B - California to my door $1120

D - California to my door $1400

I choose option B because Melbourne is over 2000km from my home, Brisbane is over 500km, and I was not waisting 2 -5 days of my holiday hauling a trailer to and from the big smoke!

However once the cargo arrived in Sydney (before forwarding to Brisbane) things got a bit weird. The freight company in California made a booboo    Sorry, freight of $1120 only goes to Brisbane Port, oh and we forgot to tell the vendor to attach the Duty Declaration paperwork.  OFFS

Try not to PaNiCk. But hey, they have got you over a barrel. Pay or loose !

The guys handling the cargo in Brisbane acted fast to get the paper work ASAP so I didn't have to pay storage fees with any delays. And the California vendor was ace with jumping onto the problem and getting the declaration through.

Now I knew I had to pay 5% duty, 10% gst and $150 fee for customs clearance.

What I did not know was the extra $350+gst for transport to get it delivered to my door (because of the booboo); Destination Arrival Charges+gst; gst on Customs Clearance; AQIS Inspection Fee; and AQIS Inspection Facility Fee+gst. Like - WTF !

All of the "unknown extras" add up to $1241.12. The entire import cost, not including purchase price of the cargo, =$1120+$2038.99=$3158.99

However, not a sad end really. It was still considerably cheaper to do the import rather than buy here. And remember I am not in a capital or large city. I'm in a small town where availability, access and variety is limited. What ever I got it had to be transported in from some where else.

 

Lessons Learned:

1. I should have bought diff, CV's & tyres as well to fill the pallets. If you are going to import and pay by the pallet/s, then fill the freakin' things up. Go all the way. In for a penny, in for a pound.

2. Airfreight is the way to go for smaller size items like suspension, brakes, interior trim, most engine parts, etc. and stay under the $1000 limit. If it fits in a box, weighs less than 20kg, and is easy to handle, then air freight is best.

3. Re Sydney Mike's comment - You do not need to avoid anyone if the value is less than $1000 or realistic for the goods purchased.

4. If it's not a bargain or something impossible to get in Aust', don't bother. Pay a little extra, support your local, and get close at hand backup service + warranty.

 

Happy hunting, and don't get hurt.

Scottz.

[Paulo]

Hi Guy's

 

I am the ATO employee who placed an order for rubber boots, and yes, the ATO and Customs are separate entities within the government structure, so no the ATO doesn't collect duties and yes, I'm still after those rubber boots!

 

Owning a zed means I gotta work to get it back on the road!

 

 

[Scottz]

Hi all,

 

Well the hits just keep coming.

Just got slogged another $100. Apparently the pallets used have to be destroyed and replaced.

 

The vendor and I are pursuing a complaint with the freight forwarding agents.

It's their job to do the export / import properly and inform the customer of all things required.

They are suppose to be the experts. We are the customers.

 

Hard lessons learned, but I'm not giving up.

Hope you can all take something from this experience and get your export / import to be trouble free.

 

Scottz.

[handsandwhich]

Wow sounds like a bit of a dogs breakfast.

 

Is this the first time the person you bought the stuff from has ever exported items or what?

[Scottz]

No, not the first time exporting for the vendor. But first time with this agent.

We have made an official complaint to the freight export company. The CEO has responded and is now investigating the issues.

Just have to wait and see what he replies with.

I'm glad to see so many people are watching this thread. I've put up the info to help others, not to embarrass or injure anyone. I'm not going to publish names.

Sometimes crap happens and we prefer to bury it, or keep some of the details to ourselves, but this is worth sharing for everyone to see, despite the grief it has given me.

[KatoKid]

Hey Scott.

 

I feel your pain.

 

Ive just been through the same and cant believe the way charges and fees add up. Like you, I agree that deals from OS may look attractive but after you pay all costs they arent that good....unless you cant buy them here anyway and then you dont have a choice.