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

[Stardrifter_WA]

Originally Posted by 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

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 (Glen)]

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]

Originally Posted by 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.

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. 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.

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:

Originally Posted by The Australian, 1 Jun 2012

CUSTOMS has confessed it is powerless to stop foreign e-tailers falsifying invoices so Australian shoppers can avoid paying import taxes.

An Australian Customs Service spokeswoman yesterday said Customs was aware of a tax avoidance scam exposed by The Australian this week, but had no jurisdiction over foreign retail websites.

Overseas retailers are instructing Australian cyber-shoppers how to avoid paying GST and import duties, by issuing false invoices for goods that cost more than $1000.

Imports worth less than $1000 are exempt from GST or import duties, but Hong Kong based website eGlobal electronics has offered to send The Australian a $900 invoice for an $1800 camera in an effort to evade GST.

A Customs spokeswoman yesterday said the imports watchdog was "aware of eGlobal through our own compliance activities and industry referrals".

"While our jurisdiction does not extend to foreign online shopping stores, it does cover Australian importers and intermediaries," she said.

"Customs' ongoing compliance activities have not revealed any significant evidence of widespread undervaluation of goods or splitting of shipments to avoid duty or GST liabilities."

Customs had fined 51 people this year for making "false and misleading statements" about the value of imported goods, the spokeswoman said. The fines are equal to 20 per cent of the tax evaded.

But secret correspondence between Customs and Treasury reveals Customs takes cyber-shoppers' tax-free claims at "face value", with "limited verification" to check the value of goods bought through offshore websites. In memos to Treasury, released under Freedom of Information laws, Customs said it lacked the resources to check all parcels or collect duty on everything brought from overseas.

Customs officers take 45 minutes to process an international parcel with a declared value of more than $1000.

"Limited verification is undertaken to determine if the declared value is correct; generally this will only occur if it is obvious to a Customs officer that the value of the goods is likely to exceed the amount declared on the import declaration," one memo states.

"The vast majority of declarations for low value goods are taken at face value."

A Customs crackdown on parcels imported between January and March last year detected 1942 cases of duty and GST underpayments totalling $718,000.

Customs estimated last year that 3.2 per cent of parcels sent by mail, and 9 per cent sent airmail or by sea, had false declarations of value, at a potential cost to revenue of $57.5 million a year.

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]

Originally Posted by 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).

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.

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]

Originally Posted by Stardrifter_WA

The point here, I think, Astro_Bot ...
Myself, I don't try and avoid tax, ...

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:

IMPORTING GOODS
If imported goods are valued above A$1000 and arrive by mail,
air or sea cargo, in most cases, you will be required to make an
import declaration.

Import Declarations

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:

It is suggested that first time or infrequent importers engage the services of a customs broker who, in addition to completing the Import Declaration, can undertake a number of tasks associated with the import process on the importer's behalf.

Clearing Goods Through Customs

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 (Brett)]

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

[leon]

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

Leon

[RickS (Rick)]

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]

Originally Posted by Astro_Bot

Wasn't pointing fingers, just posting information.

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

[Stardrifter_WA]

Originally Posted by Spookyer

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

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 (Eric)]

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 (Laurie)]

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 (Dunk)]

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 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

[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