Phantom import duty charges

[1076johnw]

As an Australian buyer, I often see import duty charges listed by eBay for sales of items in the UK. This is a phantom charge as there is no import duty payable on on line purchases made in Australia on overseas items if the item is less than $1000 as per link below.

https://www.abf.gov.au/buying-online/importing-by-post-or-mail

Quote: "Goods that arrive by mail and have a declared or assessed value of AUD1000 or less, there are generally no duties, taxes or charges at the border, unless they are alcoholic beverages, tobacco, or tobacco products".

It seems this charge appears when the seller goes through eBay's global shipping program which incidentally also charges 70% more for postage to Australia than the standard Royal Mail tracked item postage cost. Australian buyers should be aware of this anomaly when viewing UK items.

[collect247]

Yes but you need to make a SAC declaration for items under the value of $1000

[1076johnw]

GST is a government tax applied to most Australian purchases whether purchased on line or otherwise and whether purchased in Australia or from on line overseas purchases. So yes, GST will be charged on overseas on line purchases as a matter of course.

However, import duty is ALSO being charged as a separate cost (over and above GST) to Australian purchasers by eBay's global shipping system. This is a false charge as import duty (as distinct from GST) should not be charged on goods to the value of less than AUD 1000 entering Australia (liquor and tobacco products aside).

[collect247]

And if the items arrive by post then you will have to pay the duty even if under $1000

[1076johnw]

Not true. The duty is collected at the time of purchase, not at the time of receipt. If an item arrives by post and its less than AUD1000 and it's not liquor or tobacco, there's no import duty payable. To that end, the seller usually signs a declaration when sending saying the value of the goods and type of goods.

[collect247]

So what is your complaint about?

Are you saying that the goods you have received was declared by the sender but you were still charged the duty tax?

[imastawka]

I think you need to specifically state what your problem is.

Responders can't give the correct information based on conjecture.

Otherwise we'll be guessing all day and half of next week.

[digital*ghost]

I think you are confusing what is labeled on GSP listings as "import charges" with "import duty" - they are not necessarily one and the same, "import charges" is just an umbrella term they've used for any and all additional costs Pitney Bowes extract at the time of purchase. 

The GSP will apply and charge all taxes and import duties applicable to items over AUD$1000, because that is what it was originally designed to do - the buyer pays all costs up front in those cases, and everything is taken care of by Pitney Bowes at the border.

On items under $1000, they will apply the GST, and the import charges will include a charge for collecting the GST, and apparently also an added 10% GST on the collection fee, hence why the import charges on such listings are above the 10% rate of GST. 

[gutterpunkz05]

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@1076johnw wrote:

GST is a government tax applied to most Australian purchases whether purchased on line or otherwise and whether purchased in Australia or from on line overseas purchases. So yes, GST will be charged on overseas on line purchases as a matter of course.

However, import duty is ALSO being charged as a separate cost (over and above GST) to Australian purchasers by eBay's global shipping system. This is a false charge as import duty (as distinct from GST) should not be charged on goods to the value of less than AUD 1000 entering Australia (liquor and tobacco products aside).

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There are differences in how overseas GST can be treated compared to  GST  on Australian Goods.   Austrailian Goods the GST

is included in the purchase price and sellers can not add additional charges for collecting and remitting GST to the ATO.

In the case of overseas goods  GST is added to the Sale Price  and Sellers or service providers can and do add additional charges for acting as Australian Tax Collectors.  As previously stated, these add on,s can and are referenced  as fees/charges /duties etc.

While these additional charges are most common among ebay members using the GSP,  they are not unique to either entity  but can be and are applied  by the majority of exporters  who are now required to process GST in relation to Australian Sales.

After all, why should an overseas company be expected to collect and remitt GST, on Austrfalian sales, free of charge.

NOTE:  When you buy an item in Australia, it will show the GST component  on the receipt, but it does not tell you if sellers have

included additional charges, of any kind, when calculating their mark up and final price.

[lyndal1838]

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@1076johnw wrote:

As an Australian buyer, I often see import duty charges listed by eBay for sales of items in the UK. This is a phantom charge as there is no import duty payable on on line purchases made in Australia on overseas items if the item is less than $1000 as per link below.

https://www.abf.gov.au/buying-online/importing-by-post-or-mail

Quote: "Goods that arrive by mail and have a declared or assessed value of AUD1000 or less, there are generally no duties, taxes or charges at the border, unless they are alcoholic beverages, tobacco, or tobacco products".

It seems this charge appears when the seller goes through eBay's global shipping program which incidentally also charges 70% more for postage to Australia than the standard Royal Mail tracked item postage cost. Australian buyers should be aware of this anomaly when viewing UK items.

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No, you do not see "Import duty charges" listed on GSP listings.   You see "Import charges".

These are completely different.

Import Duty does not apply as you have pointed out....but Import charges do apply and include the GST, the fees charged by Pitney Bowes to collect the GST and the GST on those fees.

[ekrabappel]

Correct me If I'm wrong but Pitney-Bowes does not collect the GST, that is still done by EBay (who is in bed with Pitney Bowes).  As others have stated, Pitney Bowes charges a fee (a set amount PLUS a percentage of sale price) to ensure all the import paper work is in place (regardless of whether import duty is owing or not).  The PB component appears as a seperate charge on your Paypal account.  Ebay will charge GST on the Final Sale Value + Freight + PB import charges. 

As others have also stated, for low value items PB charge a high freight price compared to other methods and the import charge is galling when no import duty is due. Also, from experience, PB is listed as "Priorty Shipping" when in fact it is slow as.  In short, avoid purchasing low piced items from OS that use GSP. Is just aint worth it. On the other hand, I have heard that GSP is not bad for heavy, higher priced items.