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Customs Duty


Simonk

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Just wondering if any of you know how the payment of Australian customs duty works. I'm buying over $1,000 worth of goods from France using UPS. Is the duty imbedded in the UPS shipping fee or will I be contacted some how when the goods reach customs and be required to pay then?

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I don't think you'll pay any duty, just the GST on top of the item.  How much that is depends on the dutiable amount of the shipment - which is probably printed on the green label by the person who sent it.  But you should figure on 10%.

 

Next time get it shipped in multiple batches to get it below the full amount :)

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I don't think you'll pay any duty, just the GST on top of the item.  How much that is depends on the dutiable amount of the shipment - which is probably printed on the green label by the person who sent it.  But you should figure on 10%.

 

Next time get it shipped in multiple batches to get it below the full amount :)

It hasn't shipped yet but I was thinking if I did it in 2 batches the additional shipping costs will be almost the GST charge anyway.

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My understanding is that the 1k threshold is the value of the item excluding postage. If the item is worth more than 1k then they charge GST on the sum of the item value, shipping, clearance fees and duty etc. I'm yet to try it out where the item is under 1k but the shipping tips it over though.

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With UPS you'll get charged:

Security Fee: $10.95

Customs Entry Fee: $56.20

Duty: 0% - 10%+ depending on the customs tariff code of the item and country it's coming from.

GST: 10% on total value of goods plus shipping.

 

Value of goods + shipping must be under $1000AUD to sneak in and avoid the above, but sometimes if it's close you're lucky and they don't pick it up.

 

UPS will call and/or email you for all this when it's on route/almost here.

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  • 2 weeks later...

I ended up buying from the US and the sender has used US Postal Service. Does anyone know if it's still the same process as mentioned above. I know UPD look after customer clearing but not sure what the deal is with USPS. I assume Aus Post look after it here?

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I ended up buying from the US and the sender has used US Postal Service. Does anyone know if it's still the same process as mentioned above. I know UPD look after customer clearing but not sure what the deal is with USPS. I assume Aus Post look after it here?

 

Yes, Aus Post look after it here. If you get anything through that attracts duty, they'll send you a letter with it all specced out. On payment they'll release your package and it normally arrives a couple of days later. If you don't get pinged, it'll just get delivered directly.

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Yes, Aus Post look after it here. If you get anything through that attracts duty, they'll send you a letter with it all specced out. On payment they'll release your package and it normally arrives a couple of days later. If you don't get pinged, it'll just get delivered directly.

Great, thanks Simon.

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  • 2 weeks later...

Just as a continuation of this thread … my latest Pelican Parts order just got held up by customs. The Aussie dollar tanked the day I placed the order which meant that but the time they processed the transaction the converted amount went over the $1K limit to $1,025.00. Argh! 

 

This is only the second time in many, many years of ordering things from overseas that I've had a parcel stopped, interestingly enough the customs notice makes a point of saying that they are currently on high alert (G20 here in Brisbane/other global shenanigans I guess) so it's probably a little bit of bad timing and a little bit of bad luck.

 

I'm in the process of organising the paperwork now, so I'll update this thread as it progresses for future reference. I'm sure this won't be the last time it comes up!

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OK, because of the hassles with having to classify the products for customs, as well as the length of time customs quoted if I did the paperwork myself, I've opted to go through a customs broker. This cost me $110 inc GST on top of the duty and GST that I would have had to pay if I'd lodged it myself. 

 

That $110 bought me not having to dig through all the paperwork and classify each item, as well as 24 hour clearance (just got the clearance notification 22 hours later) instead of what customs quoted for release which was 5-15 working days. The breakdown of charges is as follows:

 

Australian Customs Import Duty      $50.45

Australian Customs Import GST    $118.27
Australian Customs Entry Fee         $40.20
24hr Express Customs Clearance   $77.00
Additional Classified Products          $33.00
Credit Card Surcharge (1.5%)           $4.78
Total:                                              $323.70
 
Which is a pretty hefty kick in the peanuts for bad timing at my end. By the broker's calculation I only went over the $1,000 limit by $9 because they don't calculate based on the conversion rate that you paid, but by the conversion rate that the government publishes for that day. He'd just finished doing a submission for a client that went over by $0.40. 
 
These are the guys that I used: http://www.auspostcustoms.com.au
 
I have no affiliation, I just found them online and used them because they specialise in packages coming in through Australia Post. You just upload your documentation into their site and they do the rest. I was impressed with the service.
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So ~$1350...How does that compare to if you had purchased everything locally?

 

Still better, but not as good as if I hadn't had to pay!

 

Buying from overseas is still a bit of a mixed bag, some things are dramatically cheaper, others hardly at all. Basically the decision for me depends on two things (and this is not just porsche parts, but other purchases as well): how much I can save on any given order; and whether I need local warranty on the item or not.

 

For example, I've got a Bosch Drill/Impact Driver set that I bought from the US that I landed here for just under AUD150. The best price I could get for it here in Australia was AUD399 plus shipping. I have no Australian warranty (warranty is managed by the local distributer), and there's no way I'd bother sending them back to the US for a warranty claim, although I technically could. On the other hand, I can buy that same set three times over for it cost here. Easy decision.

 

I'm all for supporting local business, especially guys like JustJames who provide fantastic service, but I don't have unlimited funds so sometimes it makes sense to save what I can. If I could have bought that set here for AUD200-250 I would have.

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Over the years I have brought into Australia many things from entire vehicles to small spare parts and one thing I can guarantee if you can be bothered the savings will always be there. 

But sometimes it can be tedious

Having done the process from start to finish myself including vehicle import I can also confirm that it is far easier to let the broker wet his beak when the item moves past normal package size.

You see, the invested interests that work in the field do not like outsiders playing with their ball so they can make your life quite complicated especially when you are at the wharf and depot level. 

Customs for that matter don't really offer much help either, you are on your own with the massively complicated import classifications for various goods.

 

A few years ago when bringing in a Vespa from O/S I picked it up from the docks myself, a messy business in itself and the ground staff spotted me easily as a newbie. Loading the crate on to my trailer the fork lift driver that didn't even acknowledge me allowed the crate to fall sideways. 

Other waiting truck drivers rushed to my aid to assist me get it back on the fork whilst the fork lift driver sat there and made no attempt to help or comment. I think I detected a concealed smile too.

He never said sorry and when he was gone my new mates the truckies all reckoned that it wasn't really an accident but in muffled whispers as they couldn't be be caught out by the dock staff or their progress could be made more difficult too.

A lesson learned.

 

But this is my best story by far.

.

Back in the 90's I had to import Fiberglass body panels from England for a Formula Ford I was working on. It was a normal import and I had to pick up the goods from the depot in Tullarmarine.

I go to the office and and pay all the fees shipping, brokerage, customs et al.

All had been passed no problem with customs, which I might add had an office in their building and all I had to do was go down to the warehouse and pick up my panels.

I arrive at the counter give the bloke my cleared paperwork and he stares at me.

What's wrong I ask?

His slow unwilling answer was. The goods are not here they are still in Singapore they had to wait to replace an engine. You will have to speak to the office.

Boy did the proverbial hit the fan then. 

They had been caught out by an outsider, did the service level lift then. You bet it did

Nobody wanted a please explain how everything had been passed, especially customs when the goods were not even in the country.

My goods were delivered to my home free of charge as soon as the plane arrived in the country

Another lesson learnt.

 

I believe lot of the importing business is smoke and mirrors pretty much one of those tight knit industries that does not like outsiders playing in their game.

 

If you can be bothered though the savings are there.

The big advice is though never push or get angry with any of the sections you have to deal with, they hold all the cards and could make your life very difficult.

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Over the years I have brought into Australia many things from entire vehicles to small spare parts and one thing I can guarantee if you can be bothered the savings will always be there. 

But sometimes it can be tedious

Having done the process from start to finish myself including vehicle import I can also confirm that it is far easier to let the broker wet his beak when the item moves past normal package size.

You see, the invested interests that work in the field do not like outsiders playing with their ball so they can make your life quite complicated especially when you are at the wharf and depot level. 

Customs for that matter don't really offer much help either, you are on your own with the massively complicated import classifications for various goods.

 

A few years ago when bringing in a Vespa from O/S I picked it up from the docks myself, a messy business in itself and the ground staff spotted me easily as a newbie. Loading the crate on to my trailer the fork lift driver that didn't even acknowledge me allowed the crate to fall sideways. 

Other waiting truck drivers rushed to my aid to assist me get it back on the fork whilst the fork lift driver sat there and made no attempt to help or comment. I think I detected a concealed smile too.

He never said sorry and when he was gone my new mates the truckies all reckoned that it wasn't really an accident but in muffled whispers as they couldn't be be caught out by the dock staff or their progress could be made more difficult too.

A lesson learned.

 

But this is my best story by far.

.

Back in the 90's I had to import Fiberglass body panels from England for a Formula Ford I was working on. It was a normal import and I had to pick up the goods from the depot in Tullarmarine.

I go to the office and and pay all the fees shipping, brokerage, customs et al.

All had been passed no problem with customs, which I might add had an office in their building and all I had to do was go down to the warehouse and pick up my panels.

I arrive at the counter give the bloke my cleared paperwork and he stares at me.

What's wrong I ask?

His slow unwilling answer was. The goods are not here they are still in Singapore they had to wait to replace an engine. You will have to speak to the office.

Boy did the proverbial hit the fan then. 

They had been caught out by an outsider, did the service level lift then. You bet it did

Nobody wanted a please explain how everything had been passed, especially customs when the goods were not even in the country.

My goods were delivered to my home free of charge as soon as the plane arrived in the country

Another lesson learnt.

 

I believe lot of the importing business is smoke and mirrors pretty much one of those tight knit industries that does not like outsiders playing in their game.

 

If you can be bothered though the savings are there.

The big advice is though never push or get angry with any of the sections you have to deal with, they hold all the cards and could make your life very difficult.

Thanks for sharing your experiences.

As you say, "don't push those who hold all the cards".

No matter what color they wear, in my experience. Certainly never out anyone either. Humans can be savage when cornered.

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Great story -- in the paperwork that customs sent out they make it pretty clear that they want you to use a customs broker, and that if you don't going to cost you time and money. In my case, $110 well spent I think. Hopefully the delivery will arrive early next week (it's coming up from Sydney). I've also found that being incredibly polite and overly reasonable in these situations pays dividends. I've watched others make their situation dramatically worse by throwing tantrums or trying to bully the powers-that-be. 

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  • 2 years later...

Fedex called me Tuesday - I missed their call, but they didn't leave a msg. I googled the number which came up as Fedex, however, when I called them back they couldn’t tell me what the missed call was about, or indeed whether anyone had actually called me. So I thought it might have been a scam.

They called again yesterday, I answered and got a Filipino sounding lady who told me I had to pay $450 or they'd hold my package. Of course I wasn't going to pay them over the phone so I asked them to email me the details. It turns out it's for the wheels for the RX2 which I bought from the States. I called them back on the number listed on their Australian website (although I got another Filo), and paid over the phone. It was either that or EFT as you can't pay via the website. You'd think that you'd be able to enter the tracking number on their site and pay with credit card.

It seems very unusual for a courier to collect import duty, as opposed to being collected by Customs on arrival in Aus. 

Has anyone heard of courier companies collecting GST and Duty?

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