customs $1k tax threshold on imports?

montyv8 · 12-05-2009, 12:35 PM

I'm about to import a car part from the states, its value in AUD is $772. Postage is another AU$316 (yeah, its heavy), bringing the total to AU$1088.
I had a look on customs.gov.au and it says that the $1k threshold includes the value of the item plus the postage for it landed here.

I rang them on the number on their site, spoke to a guy in the import/export department, and he said very clearly that they go only by the value of the goods imported, and do not include shipping costs. He even gave the example of "say, if your car part cost you AU$900, and shipping was a further AU$200, you're fine as we only go by the $900".

I forgot to ask him why the website says differently (from what i can make of it anyway). Has anyone here imported anything around that value recently, or dealt with anything to do with this, and knows from experience what the deal is?

I just dont want to get shafted a few hundred $$ in taxes because i was given the wrong info..

Yellow_Festiva · 12-05-2009, 02:22 PM

When I have imported large quantities I always paid taxes based on a cost value of product plus the postage fees. The site confirms this to be the case as well.

http://www.customs.gov.au/webdata/re...sByPostFAQ.pdf

Quote:

The Customs value is combined with other items (customs duty, international transport and insurance costs and, where applicable, Wine Equalisation Tax) to produce the value of the taxable importation (VoTI). The Customs value is equivalent to the Australian currency purchase price of the goods. An example of how the duty and GST on goods valued at A$1000 is calculated:

Customs value________1,000.00
Customs duty @ 5% x $1,000
____________________50.00 (Payable)
International transport and insurance 150.00
VoTI____________1,200.00
GST _______@ 10% x $1,200
___________________120.00 (Payable)
Total payable (Customs duty + GST) 170.00

I imported a few items this year, and remember making a note of getting the products and postage under the grand for the very reason of not paying taxes.

If you were told different, get it seconded by a supervisor there and then if they still advise you against the site then get names and details.

Seems odd that they have said something that contradicts the site.

CHARGED TERRA · 12-05-2009, 03:32 PM

When I was importing performance parts from the UK for my RS250 Aprilia the company I purchased it all off of wrote "Promotional Merchandise" on the Declaration and kept the value down for me. Customs tax payable = $0

I'm not saying it is legal to do in your case, but in my case it was a promotional offer at the time I was a member of a UK based motorbike forum & the owner of the business that is affiliated with that site is a friend of the family (my cousins wifes sisters brother - inlaw or something like that) and the goods were offered to me on a promotional basis when I was club racing to help promote these products in the Australian market.

Im pretty sure even if the value of the goods you are importing is below the threshold for Customs duty, if you import similar products a few times within the one year those values are/can be added up and you will have to pay duty on the total amount.

Cheers

Adam

**Falcon Coupe** · 12-05-2009, 05:03 PM

Phill i had the person sending me the parts write on box "Engine parts $800".

mickyyyy · 12-05-2009, 06:15 PM

so is it $1000.00 AUS or $1000.00 US because i assume if you purchase something in the US for $900.00 and convert it to AUS that's over $1000.00 so do you pay tax then or not???

paule11 · 12-05-2009, 06:20 PM

If its over 1000Aus you pay tax

montyv8 · 13-05-2009, 01:52 AM

Quote:

Originally Posted by Falcon Coupe

Phill i had the person sending me the parts write on box "Engine parts $800".

did you pay tax Nick?

merlin · 13-05-2009, 01:03 PM

You can get around it by gettting the sender to write an invoice for a lower price.

I learnt the hard way - If its over $1K not only do you have to pay tax but you usually have to hire a customs broker to get it cleared out of customs for you otherwise it will just sit on a dock collecting "holding fees".

DJR David · 13-05-2009, 01:15 PM

For the amount at stake I would suggest being honest, sure is better than having nothing to show for your $1000.

However saying that, seeing you are so close to being under the $1k mark, will a fluctuating AUD/USD help you bring it under????

JOHNNOSF6 · 13-05-2009, 01:23 PM

Pay for your item then pay for the shipping seperate, quite simple. They dont stop everyhting anyway but they do a hell of alot more than they did 12 months ago.

noosacuda · 13-05-2009, 01:32 PM

Labeled "Vintage Auto parts" may work,did for me.

montyv8 · 13-05-2009, 02:13 PM

just rang them back, according to the guy i just spoke to, they only include shipping costs if the item itself is over $1k AUD...

It'd be nice if the fluctuating dollar got me under, but the value of item and shipping is going between $1088 and $1097 at the moment lol... i sent a message to the guy asking nicely if he could knock the listed value down a bit, but i don't want to cause issues for anyone else. But if what the two customs guys have said is right, all is good anyway

**Falcon Coupe** · 13-05-2009, 03:50 PM

Quote:

Originally Posted by montyv8

just rang them back, according to the guy i just spoke to, they only include shipping costs if the item itself is over $1k AUD...

It'd be nice if the fluctuating dollar got me under, but the value of item and shipping is going between $1088 and $1097 at the moment lol... i sent a message to the guy asking nicely if he could knock the listed value down a bit, but i don't want to cause issues for anyone else. But if what the two customs guys have said is right, all is good anyway

No i didn't pay tax, i was only a few hundered over and the person in the U.S kindly offered to do it.

Bearman · 13-05-2009, 05:29 PM

Through the post if the total revenue to be collected is AUD50.00 or more it'll be assessed. The duty component is a straight % of value. The GST is another matter. You take the value, add the duty, add the postage & insurance to come up with a sum. The GST is 10% of that. Add the duty and GST together and if that comes to AUD$50.00 or more then you're stung.

Say the parts equate to AUD1,000 and the postage & Insurance is AUD100. The Duty rate for car bits is generally 5%:
1,000 (Value) + 50 (Duty) + 100 (Postage) = 1,150. The GST is 10% of this which is AUD115. This makes the total payable (Duty + GST) to be AUD165. Stung!!

Same example with AUD400 in parts and AUD50 postage & insurance:
400 (Value) + 4 (Duty) + 50 (Postage) = 454. GST @ 10% = 45. Total payable = AUD49. It'll be flicked.

You'll need to crunch the numbers and factor in exchange rates etc.

Good luck.

**GasoLane** · 15-05-2009, 04:05 PM

I just bought a $2400 video camera from HK for $1500. On the shipping label it said 'Gift' with a Value of $900

The invoice was emailed to me and not sent with the camera.

(If any customs officers are members here, I tell lies!!)