Why is there import charges on secondhand items?

[stelpher]

My recent overseas item browsing show many items now attract huge import tax fees. This even applies to second hand clothes (jeans /jacket) coming from the US. A secondhand jacket listed at  US$23 attracts a $9.22 import tax levy. Thats ridiculous!

[lyndal1838]

Where does it say that there is an import tax levy?

Are you sure it is not the GST charge on the item cost plus the postage?

[brerrabbit585]

Lyndal, if you look at an item being sent through the GSP it shows a separate import duty. I realise that it'd be just the GST on the item + postage. In the OP's example I'd imagine the postage would be fairly hefty on clothes being sent through the GSP. (Just wait till certain people get wind of that!)

[lyndal1838]

Are you saying that the postage on a pair of jeans is around US$70?

Even for the GSP that sounds excessive.

I am also pretty sure the GST would have to be declared as GST to be in compliance with Australian Law.  Saying it is import charges would not cut it.  There should not be any import charges on clothing.

This is why I asked where it said anything about import charges.

[brerrabbit585]

Maybe the gst has triggered other import charges when you use the GSP because I've never seen an import charge on any listing before, but they're there now.  It's more likely that PB is charging to collect the GST on behalf the govt, but I would have thought ebay/pp would have already done that.

I looked at a $15 US item with $23.73 US postage (GSP) and it showed $7.22 import charge.  When I hover over the question mark beside it, it says this:  This amount includes applicable customs duties, taxes, brokerage and other fees. This amount is subject to change until you make payment.

The last bit could indicate that gst hasn't been added on yet and will only be added when you pay. 

[lyndal1838]

My goodness, if you are right that has to be immoral if not downright illegal.  That is almost 20% surcharge and it apparently does not even include the GST.

It will be interesting to see if there is a further 10% added when payment is made through paypal.

[6508.froggy]

Hi All - Yes I have spent two hours on the phone today regarding the charging of more than 10% via GSP.

I have spoken with the ATO - GST area who comfirmed my thoughts that for low value items under $1,000 there is 10% GST payably ONLY..

GSP is charging extra costs. Now I have also demanded form Ebay I want a break down of the so called import charges on the invoice which will include the GST but should not include any other costs which I have confirmed with the ATO.  They are to get back to me 

The ATO were helpful but said they could do little about it and suggested I go to the Customs section or ACCC.

Perhaps we all need to get on this case to Ebay and suggest that Pitney Robbers review the new legislation effective 1 July 2018

[brerrabbit585]

What they're charging is no different to the admin charge that UK post offices charge to collect the VAT. The only difference is that I can't really see that PB are collecting anything, but maybe they're collecting the gst for ebay. I don't know why they'd need to because the postage amount is set before you actually make your purchase and ebay would know exactly what the gst would cost.

[c_mount]

A very good question. Somebody as usual rorting the system. Why should be have to pay 10% GST on secondhand goods??

[c_mount]

PB are probably charging a fee to collect the GST.