Australian Import Tax

[PYLee]

Hey guys,

got some questions on the import tax

anyone know if for example , i order an item from the US that cost about A$800 and the shipping is A$250 , making it the end price at A$1050

will i get taxed , or they'll just look at the cost of the item , excluding the shipping ?

cheers

[JaCe]

Typically the cost rather than shipping because as far as I know, the question is "Are the goods valued at more than $x?"

Only exception to this is those dodgy eBay sellers who underdeclare or shift the pricing to the shipping component.

Either way, once the item is purchased, you could argue the value has gone down considerably as it's "used".

[tryg]

This excerpt from www.customs.gov.au may only be needed if the original value equals $1000AUD, will keep checking.


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
How do I pay duty/GST?
After your import declaration has been assessed Customs and Border Protection will contact you and advise the amount of duty/GST and other charges payable. You will be provided with information about how these costs can be paid. In most instances you can make payments through the mail or by fax.
Who can I call to discuss the calculation of duty and GST on my parcel?
Inquiries about how Customs and Border Protection calculates duty and GST can be directed to the CI&SC on 1300 363 263 or emailed to information@customs.gov.au

[tryg]

Generally, all goods imported into Australia are subject to Customs duty and GST and are assessed for community protection risks. However, all goods (except for tobacco and alcoholic beverages) may be imported duty and tax free if the value of the goods is A$1000 or less.

Goods that are under the A$1000 entry threshold:
If you have a receipt or invoice for the goods that indicates that the value of the goods is below the entry threshold (A$1000) you need to provide a copy of the invoice / receipt to Customs and Border Protection. The contact details for your region are listed on the covering notice to this information pack.
Customs and Border Protection will assess this information and if the goods do not require a formal import declaration or are not alcohol or tobacco products, the goods will be delivered by Australia Post in the usual way.

[tryg]

I guess the message here is to make sure that the invoice suggests a price in Australian dollars and it is under the $1000 mark for the goods themselves...

If it is in foreign currency, expect that they will calculate it on the day they inspect it.. so if it is close and the dollar rises, you could be at risk of eclipsing the threshold.

Food for thought.

[ofey]

I won't say too much about this but so long as your US guy states it's US$800 for the part, that's ok. No questions will be asked.

The stupid thing for them to do is to have just one line:

Cost of parts US$1050

Even though US$250 was shipping, you're going to be done.


Detailed invoice attached is better.

[PYLee]

alright , sounds like a good idea with the detailed invoice as to show cost of the parts and the shipping clearly

A$1000 is too low , they should raise it imho

[Blakey]

Typically the cost rather than shipping because as far as I know, the question is "Are the goods valued at more than $x?"

Only exception to this is those dodgy eBay sellers who underdeclare or shift the pricing to the shipping component.

Either way, once the item is purchased, you could argue the value has gone down considerably as it's "used".

it only goes of the cost of the parts as in most cases the postage cost is not written anywhere and it not part of the shipped item, that is declared at a value.

most place that do under declare are actually good saves you alot of money, if its a bit pricey. my bodykit $2010 was declared for 600 saved me over $250

[Ellimist]

I thought it was free these days if its from the US. trade agreements and all.

[PYLee]

I thought it was free these days if its from the US. trade agreements and all.

for real ? where's this news from lol

[Ellimist]

we have a free trade agreement with the US. not that i keep track of such things but its there.