Purchasing from Overseas

[DaneCross]

Been looking at a few ebay items recently, if I buy from somewhere, say the U.S., will I have to pay duty? Are there any other hidden costs?
Cheers,
Dane

[DR]

usually you pay cost of item + postage + 5% duty + 10gst
=cost to you.
now having said that i think they have dropped the duty on anything under $900, i am sure i will be corrected if wrong.been 18 mnths since i checked with customs
last item i brought in did not pay duty or gst but was only $150 worth.

just looked at www.customs.gov.au it explains.
bit diff to what i said

if your looking at electronics have a look at
www.threeriversmarine.com

[aussiebasser]

I have heard that if you get them to post it, there is very little chance of hearing from Customs, however if the use Fedex, you may have to pay duty.

[markpeta]

very rare you will pay for postage it worth the gamble you'll get a bargin 9/10 times

[QldKev]

I was also told to get them to send electronics out of the original box, in a basic brown box. It then lets the imports know you do not plan on re-selling it, and you can claim it is second hand.

[mono]

Yes Kev, thats the way to do it. Ask the sender (from USA) to send in mail or Fedex but mark it very clearly as 'repaired' or 'second hand'. Over the past few years I've been buying boots from Texas and they are sent over here as 'Repaired Boots'!!! Never had any hassles even though they cost heaps of $$.
Cheers

[jimbo59]

Hey mono do they freek out when u order 2 from the same leg side ;D ;D ;D

[macca]

If you decide to do a deal in US with basspro just make sure that they don't use FEDEX as you will get ripped for duties,taxes, gst and other charges for sure.

Did a deal b4 xmas, came on bloody fedex ice and quick but cost me an extra 160 once landed here with FEDEX in Sydney.

Use USPS as they are mre likely not to get caught up in these extra charges.

Macca

[mono]

Hi Jimbo, no, thats why I buy them from over there. I get two left boots for the same price as a pair! I'm stuffed now but, I've just got a new leg made so now I need a 'pair'!! I'll have to order some more-they will wonder what the hell is goin on!
Cheers

[frankj]

A word of warning, Lowrance/Eagle have just issued a policy of not touching imported items. Not even if you offer to pay.

Globalisation has a lot of wrinkles to iron out yet. There are enormous savings to be had from buying overseas, although I am sure there are some pitfalls as well. But it leaves the local agents high and dry and they obviously don't like it. Mind you somebody is making some big mark ups, when the US price is less than half the Aussie price.
On the one hand companies like Qantas are moving jobs offshore to remain competitive. Whilst on the other hand other companies are refusing to service their own gear.

Frankj

[raefpud]

I agree, purchasing from basspro can really suck nuts if you purchase anything worth more than about $250 US, and fedex is a bitch too - i send plenty of gear i purchase here to Aussies, and if it is sent as a gift from a private source then there is no probs with customs - yet, touch wood

[Heath]

A word of warning, Lowrance/Eagle have just issued a policy of not touching imported items. Not even if you offer to pay.

Globalisation has a lot of wrinkles to iron out yet. #There are enormous savings to be had from buying overseas, although I am sure there are some pitfalls as well. #But it leaves the local agents high and dry and they obviously don't like it. #Mind you somebody is making some big mark ups, when the US price is less than half the Aussie price. #
On the one hand companies like Qantas are moving jobs offshore to remain competitive. #Whilst on the other hand other companies are refusing to service their own gear.

Frankj


Frank,

I was told about Lowrance AUS bringing in this policy about 12 months ago. So they finally did it hey! Shows just how greedy they really are. [smiley=disappointed.gif]




I had a conversation with one of the fellos there once he jelled that the unit was not one they had bought in so it wasn't covered under their warranty, which I was already aware of. But Lowrance AUS are soon going to bring in that they will not even repair a unit that was not bought in Australia. Hows that !!!???


LINK (http://www.ausfish.com.au/cgi-ausfish/board/YaBB.cgi?board=Boats;action=display;num=1080057712 ;start=30)

[whichway]

With regard to the Lowrance issue, when the Free Trade Agreement comes into force, I doubt that they could apply any difference to direct imports. I'll wait for someone else to run the test case through the courts, how much would you save overall? :) ;D

Whichway

[Duncs]

As a tackle store that imports a bit of gear from overseas (basically stuff that I cant get locally, mostly fly gear), I have been offered the australian distributorship for a couple of products. (I'm yet to take one up)
Naturally, the first thing to do is sit down and do the sums.
When you import something commercially, firstly you have to buy a significant amount of the product. This could be anything from a few thousand dollars to a few hundered thousand dollars
Then you pay:
Freight
Import duties
Customs charges for inspecting your shipment

After that you add your margin. You will have to allow for paying all your bills that any business has, staff wages, rent, plus advertising and promotion costs and your profit.

Then you send it to a retailer, to whom you also charge freight

The retailer adds their margin in a similar way as the wholesaler, then adds 10% GST.

As a very rough example
An item from a manufacturer in the US costs $1AU
Freight cost from US $1 (item cost is now $2)
import duty 5% (cost $2.1)
Customs charge $0.3 (cost $2.4)
Add wholesaler markup 40% (cost $3.36)
Add freight to retailer $0.2 (costs $3.56)
Add Retailer margin 40% (costs $4.98)
Add GST 10% (costs $5.48)

Ok so this is not an exact costing by any stretch. Depending on the item, freight charges could be quite different depending on size and weight of the item, and margins vary a lot from item to item. But its pretty easy to see how something costing $1 from the manufacturer becomes $5.50 on the shelf here.

Now if you are a big business in the US you probably buy almost as much product as the Australian Distributor does. your buy price is probably about $1.2AU for the same item. Freight charge is minimal and there are no borders to cross. The margins will be smaller because of the size of the retailer (economy of scale)means they have lower costs (minimum wage is also much lower in the US than here). They also get a significant tax break from the US government for selling on the net. Overall it is very easy for them to sell you something for about half the cost of what you would pay here.

At the end of it all the price we pay here is a factor of:
Distance,
Our tiny domestic market,
We expect to be paid properly for the work we do.

Really I think the only choice the consumer has to make is whether they want to see imported items in the shops here (and gain the service and advice that comes with buying locally) or not. Whether or not you get the service you deserve for buying locally is another thing entirely. If the importer and retailer doesn't deliver on these things, they should go out of business.
I've only been in the fishing tackle business for a couple of years now, but I have worked in several other retail industries before this. Where ever you go there is alway a perception that because something is cheaper overseas, the customers are being ripped off and that 'someone' is making a killing out of them. So far Im yet to meet this 'someone'. All I meet are hard working australians same as you and I just trying to make a living.

I don't want this to be taken as a whinge. I love what Im doing, its the best job Ive ever had. I just wanted to show that there isn't some big conspiracy going on, trying to rip everyone off.
If you really like the price of stuff in the US, try living there. What you will find is that you have to share the waters with 20 million odd other anglers, have to pay a small fortune in licence fees to go fishing and prossibly will have to put up with a lower standard of living. What you get on one hand you loose on the other.

Cheers
Duncan

[Duncs]

PS when I type brackets I keep getting smilies - hope that didn't confuse anyone

[frankj]

Duncs

Of course there are always two sides to any story and the Australian retailer/distributor position is understandable. But the globalisation issue isn't going to go away. Free trade and the internet are going to make the situation worse for business that can't adapt. It seems unfair at times, but it's coming and whatever anyone thinks, people more and more are going to look for the cheaper prices. If that is overseas then so be it. Eventually public opinion will force the reputable manufacturers to support these goods that they have sold. I don't think there would be many people on this site that don't support Australian business. But faced with two identical items, but one is half the price of the other. more and more people will opt for the cheaper one.

When you get a call from a Telstra call centre, chances are it is coming from overseas. When you fly on a QANTAS aircraft in future it will probably have been serviced and maintained overseas. The big Aussie icons.

Where is it all leading, I don't know, but we are going to find out.

Anyway, hows the fishing.

Cheers Frankj

[Duncs]

Frank
I agree with you- no matter how big a supporter of Australia you are, its hard to ignore the prices. Before I owned my own business I would have happily bought overseas, now my perspective has changed somewhat.
Globalisation is an interesting beast. Amazing benefits on one hand and a few serious downsides on the other. One thing is for sure - we can't stop it, so we might as well enjoy the ride and see where it takes us.

[gunna]

Whats the best way of paying for thistuff from OS. Surely you don't just give them your card details ?? And who works out the exchange rate ??

[DR]

for conversion go to www.xe.com
& most reputible dealers are pretty safe, just check they have the little padlock (secure site) logo on the bottom right hand side of the screen. or if they use it you can use paypal.

[NQCairns]

Duncs I understand what you are saying but dont really get it, I do have trouble seeing how Australia is always THAT much more expensive. Even on products made here compared to the states. I may be wrong but a person can buy electronic equipment made in NZ from the US at near 60% the cost of over the counter if bought in Aust ???.
There seems to be much more to it I suspect, those 40% may actually be closer to 80%?? I remember a jean company happily competing in Australia at 200+% :o without a problem. I am sure there are a lot of pigs at the trough in oz :P.
If the FTA calms that down some it may be good for all of us? Not looking forward to 20 dollar packets of panadol but! anyway buggered if I know, would be good to hear from someone that does.nq

[charleville]

Frankj wrote...

"When you get a call from a Telstra call centre, chances are it is coming from overseas."


Let's stamp on that misconception and Frankj is very mischievous to make such an assertion. Telstra does NOT use any overseas call centres.

However, ther are plenty of two bob competitors calling from overseas call centres and say that they are Telstra until you quiz them a bit and they start changing their story.

Telstra does not have any overseas' call centres!

[imported_admin]

Here is just a little sample using prices from just one USA website, could probably get them cheaper if I looked a bit further.

5 x SHIMANO TLD 20 LEVER DRAG REEL - US$127.99 each
Shipping from USA - US$32.00
Total - US$671.95 (Approx AUD$845.38 )

Plus duty of 5% =AUD$887.65
Plus GST of 10% = AUD$976.42

Each reel would cost AUD$195.28

One for lures

Rapala Magnum Sinking 9" 3-1/2 Ounce Size 22 US$12.99 each

30 would cost - US$389.70
Shipping - US$67.00
Total - US$456.70 (Approx AUD$574.57)

Plus duty of 5% =AUD$603.30
Plus GST of 10% = AUD$663.63

Each lure would cost AUD$22.12 each landed in Australia

[imported_admin]

Whats the best way of paying for thistuff from OS. Surely you don't just give them your card details ?? And who works out the exchange rate ??

Why not. Surely you don't beleive that crap hat the media use to push on us.

I haev had my credit card coppied twice, and both times were when I used it physicaly, not over the net. I use my card on the net at least 6 times a month and never had a problem in the last 12 years.

[Heath]

An example of how much can be saved.

Icon VHF radio M402c

RRP here is Aus - $654.00 or with the discount $639.00.... Woooopeee

Can buy on from the US for $283.00AU landed & no duty/GST

Not a bad saving!!!!!

SO, if anyones look for one - $400.00 will see you right ;) ;) ;D

I buy almost all my stuff from the US. Clothes, toys, fishing gear.... save a bloody fortune.

But lets not kid ourselves. In the Shimano TLD example Steve put forward, it wouldn't be worth it in this day & age with the reels going for about $220 au, but 12 months ago when they were $349.00 it was well worth the effort.
On the flip side of the coin, a Shimano Stella 10000, landed will cost around $720 AU, thats a BIG saving on the RRP out here. Infact, I bet that the Tackle shops couldn't even buy them for that.
Oh yes! I think I may have one for next summer 8)

[frankj]

Hello Charlie

I won't argue because I suspect you are talking from a position of knowledge. However, in principle this is happening more and more and I suspect if Telstra aren't doing it now, they will be before long. I placed a help call the other day to a major computer manufacturer who does an enormous trade in Australia. They were very helpful, but as a matter of interest I asked where he was located. Southern states of India was the reply. (I am sure most of the calls I get about new mobile phone deals are coming from outside Australia)

Just trying to demonstrate a point rather than picking on Telstra. My apologies.

Cheers
Frankj

[Outsider]

Don't be ashamed of picking on Telstra - it's your birthright as an Aussie! ;D

Savings from buying OS can't be ignored. I've spent over $3k in the last 12 months at Ebay or online stores using credit card or Paypal - no probs at all - fast delivery, no GST or duty - electronics and tackle at 40-80% of Aussie shelf price. I'd be mad not to.

When "she who must be obeyed" rolls her eyes as another package turn up at the door, I can quite rightfully look her square in the eye and say - " I'm saving us heaps buy buying more stuff". ;D :-X

[gif]

When the Free Trade Agreement comes in ?


It came in on 1 January 2005. It’s called AUSFTA

So no more 5% duty on gear MANUFACTURED in the USA. But clothing - which was at 25% is not yet 0%.

Remember this is an agreement between the two economies - USA and Australia. It is not with any other country. This is not BS it is right and proper.

So a Shimano reel, made in Malaysia bought from a shop in the USA still attracts 5% duty.


Just to head off the arguments I can imagine going on as you read this.

We have a Free trade agreement with New Zealand (CER) but that does not mean that the sneaky importer can save duty by having the ship from China stop at Auckland on the way. Free trade agreements cover ONLY the goods made in each country. It protects the Jobs in those countries.

If anyone is a small importer and wants to get their application for Origin Status (to gtee the duty free status) Then give me a call. I got my application through on first attempt and am happy to show you how to do it.

Cheers

Gary
0412 111 573

[Derek Bullock]

Telstra does NOT use any overseas call centres.

Maybe not but Telstra uses companies in India for much of the $500 million a year in software development work previously done in Australia.


Derek

[NQCairns]

Every third person has shares in Australia it seems even me, very few (that I know of) have shares in the US. Does anyone know what the go now is with the FTA and investment/housing loans?
I wonder if it is now easier or even smarter to purchase money from the US?
It would be nice to roll over 'stuff' to the US away from the Australian banks who I dont respect. Of coarse the financial bottom line would have to stay the same or be better. Just a thought.nq

[gif]

Cheap loans from overseas have banrupted Many.


The interest rate is cheaper - but you are also making a "bet" on the exchange rates moving ( or not).

Interest rates and exchange rates are linked together and locked in a kind of market driven balance around the world.

In other words - there is no free lunch.

G