Are all overseas purchases checked for duties payable

[leon]

Hi guys, considering a purchase from the US, it is quite substantial, so I was wondering what is the chances of escaping custom duties.

Dose every item exceeding $1000.00 incur duties payable, how those all this work.

Thank You in advance.

Leon :thumbsup:

[Stardrifter_WA]

Everything over $1,000 (which includes the freight cost) incurs a clearance fee and 10% GST. The last item I brought in was the Williams FLT110 scope which cost $2299 (including freight) and I had to pay around $250 to Customs for the clearance and GST. As far as I am aware, there is no duty on astro gear now, just GST (which is also charged on the freight component) and clearance costs.

Cheers Pete

[glend]

If you can get the purchase broken down into sub $1000 components then your ok, but obviously the vendor has to co-operate. Some will write a lower amount on the customs docket if you ask, but I didn't tell you that.

[Stardrifter_WA]

Be aware that breaking down into smaller shipments will cost more in freight, as freight is usually worked out on volumetric weight, as well as actual weight, whichever is heavier, so may not be viable, given the volumetric weight of more than one shipment, so that needs to be taken into consideration.

Putting a lower value on goods can be risky too, particularly if goods go missing in transit and you have to make an insurance claim. I wouldn't be a party to that myself, just to save a few dollars. :sadeyes: All ok if it goes well, but if it goes missing, you're stuffed! Making a claim on the full value, when it has been marked down, would be fraudulent.

It might just be cheaper to pay the little extra in GST. :D

Caveat Emptor applies :)

[leon]

Thanks Guys, I appreciate your responses, I have now done some research and have all the info i need for now.

Thanks again,

Leon

[Astro_Bot]

Also be aware that both of those strategies are dangerous from the point of view of Customs regulations, although the chance of getting caught may be low:



Splitting shipments to avoid duty (where payable) and/or GST may also attract a fine. Where Customs suspects a package to be one of a series that would otherwise be duitiable/taxable, they may hold all your packages until satisfied otherwise.

As mentioned, astronomy products do not attract duty, only GST on amounts over $1000 (including shipping and insurance).

[Stardrifter_WA]

The point here, I think, Astro_Bot is that Customs are aware that this practice is going on and I am sure the Govt is thinking of ways to do something about it, to ensure tax is paid. I am just surprised that they haven't already done so.

Myself, I don't try and avoid tax, as it is a necessary evil, the country wouldn't run without it. People should remember that we have a good standard of living and excellent infrastructure, compared to most countries, and this is due to the amount of tax we pay.

I only ever buy goods from overseas if there is a wide disparity in prices, compared to Oz, or it just isn't available here. Often, even with paying the tax, the price is usually considerably cheaper, so I still save anyway, so I don't see the point in trying to evade some tax, particularly, going to any effort to do so. And, if that little difference in tax makes a difference to whether I can buy the item or not, then I can't afford it anyway. :sadeyes:

I do consider things like warranties, freight etc, as well, when purchasing goods from OS and I wouldn't bother with anything electronic, that I can get here, as that is a risky proposition, in my view.

If an Australia price is reasonably close, I buy it here, to support local business, to get local warranties and after sales service, which is something a lot of people do not consider. Only when there is a ridiculous difference in price, or I can't get it here, then I look to overseas.

Cheers Pete

[Astro_Bot]

:shrug: Wasn't pointing fingers, just posting information.

[leon]

Just one other question on this issue dose Customs send you notification of the payable amount,or dose one have to physically pick up the item and then pay the costs.

Thanks.

Leon

[Astro_Bot]

From the Customs web site:



Import Declarations (http://www.customs.gov.au/webdata/resources/files/ImportDeclarationsWEB.pdf)

I vaguely remember reading about some shipping agents that can pay the GST and clearance charge on your behalf and they incorporate the charge into their shipping fee - Customs advises this:



Clearing Goods Through Customs (http://www.customs.gov.au/site/page4264.asp)

Hope that helps.

[Barrykgerdes]

I may be just an old nark but:

Just remember everything we buy from overseas is bought on credit and will need to be paid for sometime. including the interest that will probably accumulate to many times the original cost of the goods

Every time you avoid paying the tax (GST) someone else has to make up the shortfall in the government revenue that supports our social services and these social services are what makes the country so desirable to refugees.

Barry

[Spookyer]

So it follows logically that if you avoid GST you would also be helping reduce boat people :eyepop::eyepop:

[leon]

Wow seems like a complicated process, better shop at home i reckon.

Leon

[RickS]

If you get it shipped via an international courier they will just call you and get you to pay the GST+fees. If it is shipped by post then there is a better chance that it will just slip through. If not, then they will expect you to do the customs paperwork yourself or via a broker. It's not that big a deal. Best to just assume you'll need to pay...

[Stardrifter_WA]

Wasn't actually pointing fingers, sorry if it came across that way, was just saying. :D

[Stardrifter_WA]

:sadeyes:

If only it was so easy. Why wouldn't they want to come here, we are a very generous and safe nation, at least for now, which is what makes it so attractive. But it isn't just a problem for Australia, as we are fairly lucky in comparison to other countries in this regard.

Taxes have to be raised in order to pay for all the benefits we, and the refugees get, so we either lose those benefits or simply have to pay more tax. The easy route for any Govt. is to raise taxes, either directly or indirectly. Either way, you pay! Can't escape it, so we just have to accept it.

We are a victim of our own success, but then, I wouldn't want to live anywhere else. :)

[erick]

There can be good reason to buy from other countries - usually because the item isn't available retail in Australia. There is also the situation where the retail price in Australia considerably exceeds the landed price in Australia, regardless of local GST. But let's not get into that discussion (price differentials and the pros and cons of supporting local retailers - there are plenty of earlier threads dealing with this). What I did want to say is that my experience of buying a package of astro goods which I carefully kept in the $900-1000 range was that it was delayed some time. I suspect Customs held it until they felt confident it was not being followed by further split shipments from the same vendor to me.

[Larryp]

I try to support local dealers when the product is available here, and at a competitive price.
But I still buy a lot from the USA, and sometimes from China. Never had a problem bringing anything into Australia, and delivery never seems to be more than 2 weeks.:)

[Camelopardalis]

The $1000 is pretty generous... back in the UK, it's about $30 (from outside the EU) before it attracts the equivalent of GST, at a 20% rate :eye pop:

It's a different market, as I'm finding :sadeyes: a few things I've looked at I've wondered if the prices are high because there's no or little competition, it can't be because it costs more to ship from China to Australia than to Europe :shrug:

[leon]

Maybe I should have worded my thread on this subject a bit better.

It was not that i was trying to slip stuff into the country, under the counter, so to speak, what I really meant is it a case of chance if they (Customs) check your package or do they check every package.

I was quite happy to pay duties on the goods, but thought that there maybe times that a package of high value just goes through and is never checked.

Leon

[Camelopardalis]

In my experience (albeit not in Australia), it depends how it is shipped. If by courier (UPS, Fedex, etc) then an invoice would turn up every time. Higher value items usually don't tend to get shipped by post, usually because there usually bigger than the postal service will carry and for insurance reasons.

[AstralTraveller]

I got caught up in this last year when I bought a lens from Hong Kong. The vendor had a track record of understating the value of goods and so was on a watch list. My parcel was held and I was requested (well ordered) to provide a copy of the paperwork (receipt, card statement?? I forget exactly what) to show the purchase price. I wasn't trying cheat and didn't ask them to understate the price. I explained this to Customs (forcefully!!) and provided the paperwork. I had to pay some amount (again - I forget the details) which I did via credit card over the phone. The lens then arrived a couple of days later. Even with the extra charges it was significantly cheaper than buying in Australia.

[Stardrifter_WA]

Hi Leon,

No, they don't physically check every package as it would be impossible, given the number of shipments that go through the system. The only time, as far as I am aware, that Customs opens a package is because of something suspicious, i.e, the usual contraband. Otherwise, they go by the paperwork, unless, as David suggested, that a company is on a watch list. I don't know about such watch lists, but I am sure Customs are aware of such companies.

If you are dealing with a well known and legitimate company you shouldn't have any problems. I have bought a lot of expensive stuff in from overseas and have only ever had one package opened, which contained a laser (which was listed on the paperwork), but fortunately I had the appropriate authorisation anyway and it wasn't an issue.

Other than that one time, I have never had an issue. I just pay the clearance costs and GST to the shipping company (usually FedEX) and happily go on my way.

The only thing that does sometimes surprises me is the time some things take to get here. I once ordered some stuff from Bintel (Sydney and OPT (California), on the same day, and the OPT shipment arrived before the Bintel. Most times, it appears to be just as quick to get stuff from overseas than from over east, but then WA does stand for "Wait Awhile" :lol:

The only shipments that take time to get here are stuff that is stuff sent via surface shipping, The longest lead time I have had via surface is about three months.

Cheers Pete

[JB80]

It's a part of life over here unfortunately and in many countries there is no "send as a gift" option so basically my kids grandparents in Australia cannot send Christmas or Birthday presents over without it attracting VAT, I'm not sure how it is here in Spain yet but in Belgium they just made the values up to begin with so you would pay more to get the gifts than they were worth.

At the moment though we got a good relocation package that means any goods we buy inside of Spain we will be refunded the 21% VAT back but even then it is probably still cheaper to order a scope from the US.
Then again 21% off of a new car is quite substantial.

I don't think it's lack of retail competition regarding astro gear though as much as lack of distributor competition.

[Stardrifter_WA]

So, you pay tax on the goods when you buy it here and again when it is received there. That sucks! :sadeyes: Just makes you realise how lucky we are here. :)

[JB80]

There is also customs handling fees too, bloody crooks the lot of them.

Oh well swings and roundabouts.

[Camelopardalis]

That's even more shameful then...I don't begrudge the small guy trying to make a buck but the distributors shouldn't be so greedy. I appreciate the cost of operations here aren't cheap like the US, but still...

[Stardrifter_WA]

Yes, it is time the distributors realise that it is a global market place now, and becoming even more so. After all, the Internet has opened a whole new range of products that we didn't know existed, and that are not always available in every country. But, they are just making agreements with resellers to prevent them from selling to OS markets, for example, I cannot buy Celestron gear from the US; not that I want to buy any anyway.

Their argument is that they are protecting local distributors, which may be partially true. The argument becomes weak when you consider someone in the US has a cheaper wholesale price than in Australia, why? The distributors argument is freight, also partially true, but even that doesn't account for the disparity in wholesale prices, and I am talking before tax, so it isn't tax either. Also, I understand that a lot of resellers have very small margins, so it isn't, necessarily, the reseller who is at fault. But, having said that, the resellers mark-up is also influenced by rent and other outgoings, so the retail prices can vary a great deal, as a result. But, my point is that the appears to be a disparity between distributor wholesale rates, but that is something we cannot scrutinise between distributors in different countries. It also must be remembered that each distributor also has costs, such as warehouse costs, etc, which also affects wholesale costs.

My rambling here appears to be a convoluted argument, which simply means it is far more complex than we realise, with many factors affecting prices in each country.

Is it price gouging, I don't know, but suspect that it isn't. Maybe the manufacturers should just cut out the distributors and sell direct, at a much cheaper price. Oh, Meade tried that, in the early days, and it didn't work! There was a problem with that..........it is called service and they had a problem delivering that directly.

And yes, yet another cost is Service! But, it is when you pay a higher price and don't get that service is what gets up my nose. Frankly, service in Australia, generally, is rather poor, in my view, but it is worse in the US, but at least there, you simply don't give them a tip. I tipped generously when I go great service in the US, but that wasn't that often.

I deal with some great companies that give GREAT service, and after sales support, which is why I will pay extra. However, a couple of companies recently took me for granted, and disrespected me, and lost my business as a result. I took that business off shore, as a direct result, because of I didn't like the other Australia alternatives, as they weren't much better, in my view.

One company representative said to me, after I remarked that I had spent well over $10,000 with this company, that that is nothing, as some customers have spent over $100,000, and it was said in, what I thought, was a rather condescending tone. And when I took the company manager to task on this point, he didn't care that I was taking my business elsewhere, and it isn't that I was a difficult customer, for I rarely asked for much. He thought I had everything and wouldn't probably buy much more from them, so I didn't matter any more. They are wrong, as I am in the process of deciding on downsizing to free up capital, and guess what I will do with that capital, upgrading!

The problem with this particular reseller, is that he doesn't think that a customer who ONLY spent $10,000 isn't an important customer. The problem with that, is that I have a voice, and I speak to a lot of potential customers. If they lose 100 potential customers that spend $10,000 each.......... well, you do the math. Unfortunately, they have forgotten that math!

EVERY customer is important and is the lifeblood of EVERY business, period! Oh, I won't disparage this reseller, not at all, I just say to people I would never deal with them again, I simply don't give a reason why, the company was good to me otherwise. But, the point is they have lost my business.

SERVICE is critical to any business, as not many businesses in Australia can compete on price in a global marketplace, but unfortunately, too many businesses are forgetting this simple rule. So, now, it purely comes down to price, where can I get it the cheapest, since I can't get decent service.

Australian businesses need to wake up!