what are the import fees I see when I buy from overseas. They are much higher than the 10% GST

jafitc
Community Member

I am often charged import fees for items from oversease. The explanation is that these are fees for bringing into the country. Why are they so much higher than the 10% GST that the Australian government actually charges?

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Answers (4)

Yeah, it's a bit of a scam and many people have complained but when sellers from the UK and US use the Global Shipping Program we don't have much of a choice but to pay if we want the items. You can ask the seller not to use the program, and some might, but since it gives sellers more protections I don't think many will bypass it.

Keep in mind though that sellers over there are automatically signed up to the program and most small sellers don't even know they are on it.

Overseas sellers and shipping agents who are required to collect GST on behalf of the ATO, are permitted to charge fees on top of the GST for collecting and processing GST.  As far as I am aware the extra charges are not regulated and most just list them as import charges.

You are probably looking at items from the UK or USA that are being sent by the Global Shipping Program run by Pitney Bowes who charge their own fees on top of the 10% GST. Or else they are items over $1,000 which attract different GST rates. Below is what listings look like with the GSP.

 

 

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Edit. G'day Maranock...............

                   


@jafitc wrote:

I am often charged import fees for items from oversease. The explanation is that these are fees for bringing into the country. Why are they so much higher than the 10% GST that the Australian government actually charges?


With the Pitney Bowes GSP (Global Shipping Program) you will encounter these fees. I have had very good success in asking sellers if they could please change to USPS First Class International and for the UK, the Standard AirMail. with me, the majority of sellers are happy to do this! Some have no idea that they have GSP attached to their auction or sales. Since getting rid of GSP, sellers have reported an increase in their sales. This is because many customers are frightened off by the exorbitant costs associated with GSP, the shipping being one.  The loss of sales is something many sellers don't like. The issue of combining items from a same seller is a major one with this program. A scenario can be 4 x items from a single seller can mean 4 x postage costs.  Plus as I said, many have no idea that their auctions have been clamped with Pitney Bowes GSP. I came across one seasoned US seller who had no idea what GSP was. He couldn't explain why some of his items were with GSP and some with normal post.

 

There have been reports of damage and unexplained complications by Pitney Bowes. Another problem that is faced now is the extra shipping time and the increased risk of something going wrong because with GSP there are other parties involved. This and a probable delay is due to the Corona Virus problem. This can prove to be a headache for sellers when an upset and irate customer is messaging them about their parcel, "Where is it" or even worse "How did it get damage?"

 

I avoid anything to do with Pitney Bowes and Global Shipping where ever I can. Many others too.

 

Good luck with your future deals and I hope you can navigate your way though to much better results.