This issue really need to be resolved
the $1000 limit doesn't include postage/shipping, It is the "VALUE" of the Goods , i emailed customs a while back and they sent me back a reply stating that it is the value of the goods and not including postage/shipping , However, if the Goods value is over $1000, then you have to pay duties on the shipping as well as the custom charges.
i've ordered heaps of stuff over with totals including postage/shipping over $1000 from OS and never had a problem as it was the shipping that took it over the $1000 mark. thats why they have a area on the shipping/postage forms that ask for the value of the goods
Don't listen to hear say, if your not sure email customs and they will confirm it. i can't find my reply from customs as i must of deleted it. but i just had a look on the website and its all up there for everyone to read
over and out
Cheers,
Bryn
Edited to add more info
I have to agree this will be bad news if the retailers get there way, it's a complete farce!!! while i like to support the local guy, they can't compete due to the importers not reducing the cost.Originally Posted by Mike Delisser
I can buy an architecture book from the states that cost $490 each here for $150 US landed into Australia. Retailers should be taking this fight to their importers and tell them to wake up!!!
Where did you get that info Bryn & do you remember the name of the Customs Officer who replied to your email. Pitty your's and the other guy who said he had an email that stated the same have both accidently deleted the emails, I wouldn't mind seeing them.
I agree with what you said "Don't listen to hear say" This is from the website of the Australian Customs Service
The Australian Customs Service collects GST on taxable goods imported into Australia. The GST payable is 10% of the value of the imported product. The value of the product is the sum of:
Here's a link the Aust Gov website that states postage & insurance included in determining the value for GST purposes
- the customs value of the goods
- any customs duty payable
- the amount paid or payable to transport the goods to the port or airport of final destination in Australia (or the place in Australia to which goods are posted)
- the insurance cost for that transport, and
- any wine equalisation tax payable.
http://www.ato.gov.au/businesses/con...tent/13193.htm
Believe me I deal with this up to 50 times a day at work, also I'm not suprised you claim to have had some inbound items over 1k pass unchecked, it happens.
I see a lot of text books (esp Uni) imported by the big stores so it could be the retailers pushing it up for themselves.
Retailers Assoc are stating that most other countries with a GST or VAT apply it to all imports regardless of value, I know that NZ is $400 and they will drop it to $100 soon.
I expect with our Gov chasing more coin and losing GST rev to increasing o/s shopping it will happen sooner or later. Esp if it will be bringing us in line with other countries. Perhaps the more & more sales going o/s could add to our account deficit, I don't know
Cheers
Hi Mike,
I wish i still had the email, but ill send off another enquiry to customs today to get another reply, hopefully it is the same as the last one i got and ill post it.
I grabbed this info of the customs website this morning and have bold highlighted the key areas. Let me know how you view their worded statement.
This is how they class Valuation
Valuation
While there are several methods of valuing goods for Customs purposes, the method most applied (transaction value) is based on the price actually paid (or payable) for the imported goods subject to certain adjustments.
A major condition for using the transaction value is that there is no relationship between the buyer and seller which may influence the price.
Valuation of imported goods can be complex and importers are urged to seek advice from a customs broker or to contact a Customs Information Centre.
http://www.customs.gov.au/site/page4368.asp
When Duty and Taxes are Payable
All imported goods are subject to assessment for duty, Goods and Services Tax (GST) and other taxes and charges even if you imported those goods for your own use.
Duty rates are determined by the tariff classification for your goods. The Customs Tariff Act 1995 provides the tariff classifications, duty rates, interpretive rules and information on preference schemes, other concessions and exemptions that may apply to your goods. For more information click on working tariff page.
GST is payable on most goods at a rate of 10%. (See examples below)
Imported goods valued at or below A$1000
Generally, there is no requirement to pay duty and Goods and Services Tax (GST) on imported goods valued at or below A$1000, except for alcohol (refer to Example 2 where Wine Equalisation Tax (WET) is also payable) and/or tobacco products (refer to Example 4).
Imported goods with a value at or below A$1000 that arrive by air or sea cargo will require a self-assessed clearance (SAC) declaration to be lodged with Customs and Border Protection.
There are no Customs and Border Protection charges for making a SAC declaration.
For more information about SAC declarations see the fact sheet Self-assessed Clearance (SAC) Declarations.
Goods with a value at or below A$1000 that arrive by post do not require a SAC declaration.
For more information on goods that arrive in Australia by post click on importing goods by post.
Imported goods with a value above A$1000
If your imported goods arrive in Australia by air cargo, sea cargo or by post and their value is above A$1000, in most cases, you will be required to make an Import Declaration and pay the calculated duty and taxes.
An Import Declaration is a statement made to Customs and Border Protection providing information about imported goods.
There is a Customs and Border Protection import processing charge for making an import declaration. Information on Customs and Border Protection fees and charges is available in Australian Customs Notice 2006/21.
For more information about import declarations see the fact sheet Import Declarations.
Imported goods may also require clearance from Australian Quarantine and Inspection Service (AQIS). More information on AQIS requirements is available at www.daff.gov.au/aqis
http://www.customs.gov.au/site/page5549.asp
Cheers
Gday
You've got it there on the page you posted mate, under "VALUATION"
The "Customs Valuation" is the transaction price subject to certain adjustments.
If you take the Customs link that you posted then click on the Customs Valuation of Imported Goods PFD file, you'll see that those "certain adjustments" are the addition of transport or postage costs, any insurance paid, and any duty that may be applied. We then call that "The Customs Value" and if it's still under 1k you're sweet, if not then the item (and don't forget multiple items to the same address can be added together by Customs to be counted as one item for GST purposes) becomes a taxable importation and you should be carded for GST.
Cheers
Hey Mike,
I did read that as well and that factfile quotes:
ARE FREIGHT AND INSURANCE COSTS INCLUDED?
The Customs value does not include freight and insurance costs in transporting the goods from the ‘place of export’ to Australia.
http://www.customs.gov.au/webdata/re...s/commer02.pdf
I did send a enquire of to customs this morning and hopefully ill get a reply that will clear this up,
I know you said that you deal with this everyday, but isn't business imports completely different to the general public importing goods.
Cheers,
Bryn
I think this will go on for a while until we get this reply from Customs, lol
Yeh sorry Bryn, I've been telling you it is called Customs Value after the freight, insurance cost & duty are added, I realise that not right. It's called that before it's added to the freight, insurance & duty. Never the less the GSt is applied at that point. I see the paperwork then, and many millions would be getting refunded if postage & insurance wasn't included for GST purposes.
What you posted explains what's called Customs value but it doesn't show whats used to calculate what becomes a taxable importation for GST purposes
Below is also from Customs website and it might help
The Customs value of goods imported into Australia is based on information (in particular, the value of the goods) as advised by the importer.
When the goods are valued at more than A$1000 threshold, or include alcohol or tobacco products of any value, a Customs value will be determined that is used as the basis for calculating the value of any duty and/or GST.
The Customs value is combined with other items (customs duty, international transport and insurance costs and, where applicable, Wine Equalisation Tax) to produce the value of the taxable importation (VoTI). The Customs value is equivalent to the Australian currency purchase price of the goods. An example of how the duty and GST on goods valued at A$1000 is calculated:
Customs value1,000.00Customs duty @ 5% x $1,00050.00(Payable)International transport and insurance150.00VoTI1,200.00GST @ 10% x $1,200120.00(Payable)Total payable (Customs duty + GST)170.00
Hey Mike,
i got back my email from customs and it appears that shipping/insurance isn't included in the $1000AUD limit,
Im sure, it confirms that from the reply which ill post below,
Dear Sir
Thank you for your follow up enquiry to Officer Van. Officer Van is currently out of the office so I shall respond on her behalf.
In response to your question, I confirm that no duty or GST is payable on imports of goods (alcohol and tobacco product excluded) that have an invoice value alone of less than AU$1000. Therefore, in your case, if the reel (which is the only thing in the consignment) is AU$950 and the shipping (transport and insurance) is say AU$100 then no import duty or GST is payable. So you have interpreted it correctly.
I hope this assists.
Sincerely
Andrew Young
Senior Customs and Border Protection Officer | Customs Information and Support Centre | CE/CS
Australian Customs and Border Protection Service
Customs House, 10 Cooks River Drive, Mascot NSW 2020
T: 1300 363 263 | F: 02 8339 6713
E: information@customs.gov.au
W: www.customs.gov.au
This information is provided as a guide only and should be clarified either by lodging a formal advice request with the appropriate section of Customs or employing the service of a customs broker if appropriate.
I can email the reply to if you like,
Cheers,
Bryn
Re: Buying Overseas Update
Good to see someone obtain the actual facts instead of alleged experts stating half arsed rumour as fact.
bassfan
That isn't fact. If you were to be charged GST, etc on an item you could not use that email in order to have it refunded. As stated on the email, it is a guide only.
More often than not if your goods are valued under AUD$1000 than you will not be charged GST/Duty, however Customs can include the cost of freight & insurance to value the item/s and charge Duty/GST based on that. I work in a Customs brokerage, and I know that this is the case. Like I said, more often than not they won't include it to value the item, but there is still the chance, perhaps only 1 in 100, that they can charge you for it.
So what "MORE" would you guys like from customs?
Would you like them to knock on your door and give you a written reply?
From the way i have read the customs website it is clear that postage/insurance isn't included until you exceed the $999.99 AU.
This is the second email customs have sent me regarding this issue with the same reply to sort it out.
Sure there might be some people that get caught out and are incorrectly charged duties/GST, but i'm sure if you sent in an official formal request it would be revised.
Like i said before in an earlier post, if your unsure contact customs and get a response.
I don't know what more i have to add as i contacted customs got a reply stating that postage/insurance isn't included.
If you still have issues, email or ring customs and clear this up with them.
Cheers Peoples,
Bryn
Mate, I wasn't having a go, just stating it exactly as it is, and as I am a Customs broker I know that you can be charged Duty/GST when the value of the item plus shipping/insurance totals AUD$1000 or more. Like I said, it is extremely rare for Customs to enforce this where it is a parcel through the mail, etc as it is not worth their time/effort to go through the process, but they are entitled to charge.
hi there guys does any one know what percentage is import duty on items from os
So just to clear up some possible confusion
So under the $1000 limit, the freight, packing and insurance are not included in the ammount for assssment of the $1000 limit nor in the amount to be taxed if at all.
AND above the $1000 limit the freight packing & insurance may be included in the amount to be taxed.
correct?
And of course if you do the wrong thing, like incorrect declaration or something "devious" and possibly illegal, that can tax you on an item under $1000 plus penalties and processing fees.
Correct?
AND
If you play nice they might even cut you some slack and not charge you for stuff they are entitled to...if you are lucky.
cheers
cheers
Its the details, those little details, that make the difference.
I don't get all this wrangling over what customs will or will not do. If the thought of paying duties and gst on freight scares you then just don't import the goods.
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