Import/shipping costs

[matt]

OK. I'm officially confused:shrug:

Sorry to ask a question that I'm sure has been answered a few times before during the lifespan of this website.:rolleyes:

I'm trying to work out what the final cost will be on getting an OTA over from the US and the more I read the more fuddle-headed I get:lol:

For the sake of the exercise, let's say I'm spending $2700AUS on this item.

Let's say shipping is going to cost around $500AUS.

So, when it lobs into Aus and it's at customs, do I end up paying 10% on the original $2700 or on a combined ($2700+$500) $3200??? That would add (10%) $320, bringing my total spend to $3520???

Seems a bit wrong to include the shipping cost in the value of the item, which in reality is $2700.

Have I got this right?

[RB]

They may even slog you more than 10% and I think they include shipping costs.
There will also be a lot of paper work to go through if you bring it in yourself.
If you get UPS to deliver it, they take care of all the customs PW for you but it will cost more.

[matt]

Cheers, RB.

I wish we weren't forced to look at this as an option, but I'm looking at a potential saving of over 1K on an item which is only valued at $2400US.

The mark-up and added costs on some stuff once it lands here is extraordinary.

[RB]

I hate it too but sometimes we have no choice but to buy OS.

:(

Good luck.

I'd highly recommend using UPS if it's an option, even if it costs a bit more.
Some U.S. dealers insist on it actually.

[casstony]

I recall discussion here on IIS where items described as 'astronomical instrument' were free from some charge - i don't recall if it was GST or something else. Might be worth going through old posts.

[wavelandscott]

Don't forget that your Overseas purchase may be excluded from any warranty claim depending on the product and retailer...

[matt]

Yes. That is true.

But at the moment I'm just concentrating on the initial outlay:)

[GrahamL]

Have you had a try in trade /wanted yet matt ?
Last year I had an item I had been hunting for a while pop up in buy /sell
about 10 minutes after I had sent payment OS .:doh:

[matt]

Hi Graham

Are you refering to IIS?

Historically I haven't had a great deal of luck with the 'Wanted' items I've placed here.

Just luck of the draw I s'pose and perhaps the sort of items I'm seeking....but enuff to make me look elsewhere:)

[GrahamL]

yes it was here matt
the next time I asked first and it worked out well .

[matt]

So, I've been given a quote on the OTA of interest of $2290US + shipping of $300US (UPS) for a total of $2590US.

That converts to about $3157AUS.

Anyone care to hazard a guess what the final cost will be after duties etc?

Thanks

[[1ponders]]

I reacon between $4,290 and $4,320.

[matt]

You're kidding, right?

You're telling me duties will add about $1200AUS to the final price?

That's about 39% in duties.

That can't be right?

[[1ponders]]

Duties will be around $50 (if at all for astrogear. The jury is still out on that one) and then add GST to the lot.

[[1ponders]]

I bought a G11 from optcorp about 18mths ago and it was about $2200 US. By the time it got to my door it was just a tad under 5 grand (about $4750 from memory). It was about $450 US just for delivery but a G11 is a bit heavier than a scope :P

[matt]

Isn't GST only 10%?

10% of $3157=$315.70

That should bring the total to $3472.70

Even with $50 duties that should still be $3522.70:shrug:

[wavelandscott]

I can't speak about GST/Duty etc...

But don't also forget that...

Assuming that your credit card is an Australian Dollar denominated one that they will charge you a conversion fee of some kind (they may hide it in a poor exchange rate figure or it may be an additional fee)...

So you do yourself a disservice in calculating the cost if you use the "official" exchange rate...better to look at what Travelex (or similar) are using to calculate your AUD$ cost...

[[1ponders]]

You may be right Matt. I wouldn't trust the calculator I was using either. ;) I used your 3157 as US not AUS...sorry :)

[mill]

Import duty is calculated over the cost of the item.
Untill about $1500 you dont have to pay duty and after that you start to pay duty.
I had that when i imported swords from overseas. :(

[matt]

So, anyone care to hazard an educated guess on final cost?

I think I'm pretty close with the $3522.

But it might be a little less working off mill's claim?

[[1ponders]]

Still reacon it will be in the upper 3's

[casstony]

For middle tier OTA's, my biggest concern would be getting it here only to find the optical quality is poor - perhaps you could ask the retailer to test the OTA before shipping for a fee?

[RB]

My guess would be close to $3850.

[spearo]

Matt,
See below fromthe Customs website - subsection "buying over the internet"

I think that in example 3, the international transport and insurance refers to your UPS amount you indicated. Hope it helps
frank:

Imported goods with a value of more than A$1000


Irrespective of how your imported goods arrive in Australia, you will be required to lodge a formal Customs import declaration if their value is above $1,000, and to pay the calculated duty and taxes.

duty, where applicable, is based on the classification of the goods within the Customs Tariff Act 1985. Goods and Services Tax (GST) is also payable on most goods at a rate of 10%. Refer to example 3 (http://www.customs.gov.au/site/page.cfm?u=5549#e989).
Formal import declarations can be lodged either electronically or by document as follows:

Electronic lodgement: obtain a digital certificate in order to communicate with Customs' electronic systems to complete a formal import declaration or engage the services of a customs broker (listed in the Yellow Pages); or
Documentary lodgement: go to the nearest Customs office and present the necessary documentation including evidence of identity.
Import declarations are subject to cost recovery charges.
Further information is available from the following Fact Sheets: Communicating electronically with Customs; Digital certificate and client registrations; Evidence of identity (EOI) for imports; and Import declarations. (Please refer to www.customs.gov.au/internet/site/page.cfm?u=5329 (http://www.customs.gov.au/site/page.cfm?u=5329))

o information on Customs fees and charges is available in Australian Customs Notice 2005/36 at: www.customs.gov.au/internet/site/page.cfm?u=4387 (http://www.customs.gov.au/site/page.cfm?u=4387). The Customs tariff is available at: www.customs.gov.au/internet/site/page.cfm?u=4273 (http://www.customs.gov.au/site/page.cfm?u=4273)
All imported goods are subject to the controls of the Australian Quarantine and Inspection Services (AQIS). More information on AQIS requirements is available at: www.aqis.gov.au (http://www.aqis.gov.au/) Calculating duty and taxes



























Example 3: Import of goods (other than tobacco products or alcoholic beverages) valued above $1000


AUD$
Customs value (Cval) 2000.00
Customs duty (Duty) @ 5% of Cval 100.00 (Payable) International transport and insurance or postage (T&I) 150.00
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) 2250.00
Goods and Services Tax (GST) @ 10 per cent of the VoTI 225.00 (Payable) Total payable Duty + GST 325.00

[matt]

Thanks Frank.

That's still a bit confusing.

Look at that final sentence in the calculation.

Is $325 the final figure or is it $225 + $325 = $550.

Shocking that there's not 'total' figure included in that example.:doh:

[spearo]

Yep ,
I know...I couldnt quite tell what they meant and thought "ok, maybe it's just the same kind of calculations that budget managers use to explain why I dont agree with their figures usually"
it might be worth sending them a quick email? Or a PM to someone on IIS who's bought lots of expensive stuff from overseas?
f

[matt]

Or maybe they could jump in and tell me what an OTA worth $2290US, plus $300US for shipping is gonna cost me ($AUS) by the time it lands at my door????:whistle:

Wouldn't it be great if you could just punch the numbers into an on-line ready reckoner on their website!

[spearo]

hhahaha
:]
f

[CometGuy]

Matt,

According to customs link, these are the figures I get:

Cost = $2700
Customs duty = $135
Transport (inlc shipping, customs handling, insurance, etc) = $500
Taxable importation = $3335
GST = $333.50
Payable Duty = $468.50

Total cost landed = $2700 + $500 + $468.50 = $3668.50

I haven't had a little experience with this as the only purchases I've made OS were sub-$1000 (and you save a bundle in that case).

Terry

[matt]

Hi Terry.

Quick question:

Where did you get that first figure of $2700???

Cheers

[CometGuy]

Matt,

I took that from your first post.

Terry

[matt]

Cheers, Terry.

So many different numbers floating around in this thread, it's easy to get lost:lol:

[netwolf]

My old post.
http://www.iceinspace.com.au/forum/showpost.php?p=148260&postcount=31

I looked it up some time back and posted on this matter, in my humble opinion the ACT seemed to indicate there was no duty applied to astronomical gear. However GST applies to Goods and Services, hence it applies on the total Value+shipment+Insurance cost. As shipping and insurance are a service.

Hence the cost would be (Value+shipment+Insurance)*1.1

This is only my opinion.


Regards
Fahim

[duncan]

Hi all,
I tend to agree with you on this one Fahim. I remember the post you refer to as i think i was one who was asking and complaining about it all. It really peaves me that one has to pay exorbidant fees for something you cannot get manufactured easily in your own country. The goverment should get off there fat shiny %#*^! and do more to promote things like Astronomy instead of ripping everyone off.

Ps. Above comment is that of the Author !!!
Cheers,
Duncan:mad2: