Australian buying from USA - import duties/GSP

[gregmc28]

Hi there...a question regarding the Global Shipment Program.

There is an item I am interested in buying that has:

Buy Now price of US $1,070

Postage:                US    $129

Import charges:    US    $306

We (in Australia) pay import charges on anything over $1000 Australian.

The seller has "Make Offer" enabled If I make an offer for less than AU $1000 ..lets say $900 US ($943 AU) and it is accepted by the seller....

Will the Postage charge still be : US $129?

Will there be any import duties?

Thanks for any help you can provide

[lyndal1838]

Not completely correct CQ.

The comparisons being made refer to both items being shipped with Pitney Bowes (the dreaded GSP) and they do know the import charges for every country....that is their business after all.

In the past there was more than the GST charged when items reached the limit...there was Customs clearance fees and several other charges which amounted to more like 20-25% of the value of the item.   In view of the fact that Pitney Bowes are already charging quite substantial fees for shipping the items and doing the paperwork for Customs it is a bit of an unknown as the whether the Customs clearance fees are included in the shipping or the Import duties.

From what I have seen of PB so far I would not trust them....they will gouge every $ from the poor sucker of a buyer and you have no leg to stand on.  And if it suits them they will just not send the item at all.

[cq_tech]

Lyndal, the statement to which I took exception ("First one has a value of AU $927, AU $128 shipping and $0 Import costs") is quite clearly wrong, and whether Pitney Bowes know the charges or not, the information provided in the listing as specified is incorrect.

Being freight forwarders, they are naturally entitled to recover the customs charges which wouldn't normally apply to items coming in via the postal service, but in the example above, not only have they neglected to add any customs charges, they've also neglected to allow for the additional amount payable for GST, which is not an inconsiderable amount at around $105.50 (and which I presume the poor buyer is expected to pay).

US ebay's GSP is a travesty which will ultimately cost them millions in aborted or incompleted sales.

[lyndal1838]

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@cq_tech wrote:

US ebay's GSP is a travesty which will ultimately cost them millions in aborted or incompleted sales.

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Now that statement I heartily agree with CQ.  The whole scheme is a disaster and the above comparison just highlights how unsafe it is to trust Pitney Bowes.

I think the worst thing I have seen so far is where PB just refuses to ship items....no explanation, but the buyer then has to fight to get their money back because the seller has all the protection of tracking and insurance.

[gregmc28]

Thanks to everyone for your replies....I can quite confidently say that I will not be buying anything from the USA that uses GSP !

One thing I'd like clarified though...on the AU$1000 limit.... where does it say that the value of the goods also includes the shipping cost...and not just the value of the goods being imported?

Cheers

[fourandsixpants]

ref...."One thing I'd like clarified though...on the AU$1000 limit.... where does it say that the value of the goods also includes the shipping cost...and not just the value of the goods being imported?..."....

I don't know. But I was assured by Australian Customs that it is calculated on TOTAL COSTS.....which is ALL COSTS paid to get item/s delivered- pls refer info below ref.'transaction value' - if you have paid for post insurance you have to include this amount as part of your total vale/costs too.....naturally includes postage or courier fees. This point was confirmed by Aus Customs when I spoke by phone with them a few years back.

http://www.customs.gov.au/site/importingGoodsByPostFaq.asp

How is duty and  GST calculated?

The Customs value of goods imported into Australia is known as the ‘transaction  value’. It is usually the amount you paid for your goods, converted to  Australian currency. The  exchange rate that is used is the rate applied on the day the goods were posted  (exported).

When the goods  you import are valued at more than A$1000, or include alcohol or tobacco  products of any value, a Customs value is used as the basis for calculating the  amount of any duty and/or GST and other taxes payable.

Duty payable is  calculated on the Customs value of the goods. Relevant duty rates are  determined by the Customs Tariff Act 1995 and are applicable at the time an import declaration is made.

GST is paid on  the Value of the Taxable Importation (VoTI). The VoTI is the sum of the Customs  value, transport and insurance costs (or postage and insurance) plus any duty  payable and WET payable.

Below is an  example calculation for an electric sound amplifier with a duty rate of 5%. The  purchase price was US$1,274 and the exchange rate on the day it was exported  was 0.9100 (A$1 = US$0.91). The postage and insurance was US$118.30

Customs value  converted to Australian currency = US$1274/0.9100 = A$1,400.00

Postage and  insurance converted      = US$118.30/0.9100   = A$130.00

Duty (amount  payable) = 5% of A$1,400 = A$70.00

VoTI    = (customs value + duty + postage and  insurance)

            = A$1,400 + A$70 + A$130 = A$1600.00

GST    = 10% of VoTI   (amount payable)

            = 10% of A$1,600 = A$160.00

Amount payable  to Customs and Border Protection

Duty + GST =  A$70.00 + A$160 = A$230.00

Plus import  declaration (lodged by document) processing charge of A$48.85   Total  payable = A$230.00 + A$48.85 = A$278.85......etc

[gregmc28]

Thanks again, that's my understanding on how it's calculated if the AU$1k threshold is exceeded.

I didn't think though, that if I buy an item for AU $600 which costs me AU$500 to ship here, that any other fees or charges would be due.

Have emailed the customs guys...will post here if I get an answer

Cheers

Greg

[cq_tech]

Greg, rather than emailing Australian Customs and Border Protection and more than likely receiving a stock or boilerplate reply, I think you'd have far more success if you give them a call on 1300 363 263. 🙂

[gregmc28]

thanks CQ...yes I will try that if I dont get a reply...but would really like to get a clear unambiguous official reply that I can refer to (that I'm not filtering through my own interpretation on the phone).

Not in any rush now.

Cheers,

Greg

[lyndal1838]

As I understand it from both the Customs website and my daughter who works for an International Freight Forwarding company the charges only kick in once the value of the GOODS exceeds $1000, but once they do kick in the value of the postage is added for SOME of the calculations.

[gregmc28]

Thanks Lyndal...that gels with my understanding.

I got a reply from customs today:

My question to Customs:   

If I buy an item from the USA (not alchohol or tobacco) and it's value on the day I buy it is.. lets say AU $900  and it costs me AU $250 to ship it to me here in Australia...will I have to pay any import duties/GST etc?

I thought that the AU$1000 threshold was on the value of the item....and not on item+shipping?

I know if the item is over AU$1000 that all costs associated with the purchase are taken into account but I'm talking specifically about items with a value of under AU$1000.

Cheers,
Greg

Customs answer:

"Dear Greg,

Thank you for your enquiry about importing goods under the value of AUD$1,000.00.

The freight costs are not included in the valuation of the importing item.  The freight costs are only included when a tax calculation is made. 

In short, if you post an item to Australia with a value of less than AUD$1,000.00, then no taxes are required to be paid.

Regards,"