Page 1 of 1

re: GST to pay on incoming items

PostPosted: Thu Jun 09, 2005 6:44 pm
by jdear
Hi there,
Not sure if this has been asked or even in the right section here...

Im hoping to order some stuff from BHPHOTOVIDEO from the states. The order will be over $1000 USD.

Do I get stung GST (10%) on whatever is over $500 AUD that it totals to?

Hows it all work?

Many thanks,

JD

PostPosted: Thu Jun 09, 2005 6:56 pm
by Nnnnsic
I think the limit is $200 AUD, so you probably will.

PostPosted: Thu Jun 09, 2005 6:57 pm
by wile_E
Hey JD, I ordered something from B&H just recently and got stung for the WHOLE amount (ie there's no threshold involved) - FWIW I got the Tokina 12-24 and a couple of other bits and bobs.

I went for the US Postal route, but B&H had labelled the package as "collect tax" (or something to that effect)... *grumble grumble grumble*

Still, it worked out cheaper than going the retail route here in Oz, so that's a benefit!

PostPosted: Thu Jun 09, 2005 6:58 pm
by gstark
It depends.

Whether you get hit is basically just the luck of the draw, but you can do a few things to try to reduce your exposure. The limits vary depending upon how the goods are shipped, and with whom. But you're still alkways subject to the whims of the people who do the processing and whether your package gets selected for inspection.

Can you split the package into perhaps 2 shipments? How much extra will that cost in terms of shipping? 2 smaller shipments may improve your chances because each package will have a lesser individual value, and even if one ends up needing to have GST paid, perhaps the second may get through.

The golden rule though is to have the goods shipped by USPS express mail, or second choice FedEx. Avoid UPS at all costs.

This is important - avoid UPS at all costs.

PostPosted: Thu Jun 09, 2005 7:07 pm
by birddog114
I mentioned many times previously, try to minimize under AU$500.00 including shipping charges, if over this amount then 100% GST will be charged.

PostPosted: Thu Jun 09, 2005 7:11 pm
by johndec
I bought a laptop off US Ebay that cost just over $US1000. The seller sent it via USPS and I got stung for GST (plus customs processing fee). As soon as customs see the value on the accompaning documentation, you are Goooooone :lol:

I think the rule of thumb threshold is $AU500, but they can technically charge you GST on anything, regardless of the value.

PostPosted: Fri Jun 10, 2005 9:44 am
by jdear
if over this amount then 100% GST will be charged.


... 100%! I hope you meant 10% !!

would it be better to ship it somewhere inside the states to a contact and then get them to ship it out to you, marking it Gift, no commercial value etc? - then $15 usd shipping inside the states not $90 USD!

Then again maybe ill wait until i know of someone going over there

JD

PostPosted: Fri Jun 10, 2005 10:29 am
by birddog114
jdear wrote:
if over this amount then 100% GST will be charged.


... 100%! I hope you meant 10% !!

would it be better to ship it somewhere inside the states to a contact and then get them to ship it out to you, marking it Gift, no commercial value etc? - then $15 usd shipping inside the states not $90 USD!

Then again maybe ill wait until i know of someone going over there

JD


Ring up George or Laura Bush and ask them to do for you a favour :lol: :lol:

PostPosted: Fri Jun 10, 2005 2:02 pm
by tsanglabs
gstark wrote:It depends.
This is important - avoid UPS at all costs.


So is this why I have always been hit with the GST when I by from B&H? It is a bit stupid that I still end up paying less in total than what I would if I bought in Australia (Retail).

PostPosted: Fri Jun 10, 2005 2:23 pm
by gstark
Search our forums for UPS and see what turns up. There's a couple of horror stories that have been told, such as they are assessing the taxes etc before the good have even landed. It's not their call; it's the recipient country's government's.

And they insist that you use their nominated customs agent, and at a "nominal" fee, from around $60. Guess who the "agent" turns out to be ?

And this seems to be a worldwide practice with UPS ...

PostPosted: Fri Jun 10, 2005 3:41 pm
by ajax

PostPosted: Fri Jun 10, 2005 4:22 pm
by Manta
jdear wrote:would it be better to ship it somewhere inside the states to a contact and then get them to ship it out to you, marking it Gift, no commercial value etc?


Be aware there are penalties for misdescription and false declaration - you could end up paying double the GST as a penalty.

As an ex-customs officer, I would suggest you give that idea a miss - they're well onto it. I wish I had a dollar for everything that came in marked "Gift" or "NCV"!
Three important things to remember:
1) X-ray machines don't read labels.
2) As it's their business, Customs have a very good idea of what things cost and if they don't, they can hold it 'til they find out, one way or another.
3) Get caught once having "a go" and you could well be flagged everytime you import something.

PostPosted: Fri Jun 10, 2005 7:18 pm
by johndec
Manta, what you say is dead right. As I mentioned earlier, I imported a laptop and went to the customs at Sydney International Mail Centre to pick it up. I had no dramas as my goods were clearly marked with a realistic (actual) value, but there was another guy carrying on a treat that his "whatever" was only worth $100 as stated on the package.

Customs appear to have a computer permanently connected to Ebay and did a quick search that showed that it was worth at least $US800. The customs officer warned him with words to effect that the sender may have "accidently" mislabelled the item and if he continued to assert that the valuation was correct, blah, blah,blah, section this, etc,etc....

Needless to say, he crumbled, coughed up and got his stuff :lol:

Moral of the story: Factor in the GST on anything you bring in :!:

PostPosted: Fri Jun 10, 2005 10:43 pm
by Killakoala
I thought we had a 'free-trade' agreement with the US.

Why should we be paying GST on goods not purchased in this country anyway????? Don't we pay US GST on the goods we purchase there (In some states)?

I don't think it's fair that we get stung because we buy products from overseas due to the excessively marked up prices in Aust.

Once again, Joe Public gets screwed. I'm starting to feel victimised. :)

I don't think i will ever understand why we pay GST on imported goods.

PostPosted: Fri Jun 10, 2005 10:59 pm
by johndec
Killakoala wrote:I don't think i will ever understand why we pay GST on imported goods.


Well for starters, every local manufacturer in Oz would go broke if it wasn't a level playing field. Every Falcon and Commodore would be at a 10% disadvantage, because (imported) Toyotas would be cheaper. BTW, if GST only applied to local products, in order for the government to raise the same amount of money, it would be more like 20%, which would only exacerbate the situation......

PostPosted: Fri Jun 10, 2005 11:03 pm
by leek
Killakoala wrote:I thought we had a 'free-trade' agreement with the US.

Why should we be paying GST on goods not purchased in this country anyway????? Don't we pay US GST on the goods we purchase there (In some states)?

I don't think it's fair that we get stung because we buy products from overseas due to the excessively marked up prices in Aust.

Once again, Joe Public gets screwed. I'm starting to feel victimised. :)

I don't think i will ever understand why we pay GST on imported goods.


The FTA will exclude us from paying tariffs not GST...
We don't pay US sales tax (which varies by state) on purchases from here...
Now that you pay 10% GST, you are no longer paying the 20-40% wholesale tax that used to apply to imports.
You still get the goods cheaper - even after paying the 10% GST.

What's the problem???

PostPosted: Sat Jun 11, 2005 12:12 am
by stubbsy
leek wrote:Now that you pay 10% GST, you are no longer paying the 20-40% wholesale tax that used to apply to imports.
You still get the goods cheaper - even after paying the 10% GST.

What's the problem???

Well for starters there's GST and they added a new Wine Equalisation Tax on top (which strangely when added to 10% equaled the preceding tax on wine) and number of other "special" taxes. It's not a flat 10%. Although having said that I have to disagree with Killa and agree we should be paying the GST. It's a consumption tax ie a tax on things CONSUMED in Australia regardless of where they originated.

PostPosted: Sat Jun 11, 2005 8:08 am
by gstark
johndec wrote:BTW, if GST only applied to local products, in order for the government to raise the same amount of money, it would be more like 20%, which would only exacerbate the situation......


Actually, a more reasonable rate for our GST should be around 7%. 10% is just government gouging of the consumer. Again.

And the new tax rates, whilst a significant improvement, are still way too high.

customs and assessing capital value of items

PostPosted: Thu May 10, 2007 12:52 am
by rookie2
I'm considering looking to the US for a second hand D2h/D2Hs and maybe a 300mm f4 to replace my recently stolen gear. Still no idea of my settlement figure but I'm not holding my breath

I am adding 15% on to all the costs of US gear assuming customs will pick it up and and base their figure on the purchase price (ie if I buy US$3K worth of gear (from BH, Adorama or similar) I will end up paying US$3450.

I know not to use UPS and assume I have to go into local customs/mail centre to pay before collecting any gear - is that correct?

It may work out to not be worth the hassle and an order will be heading off to Poon or birddie for a D200/f4 300 combo instead.

thanks for any info.

cheers

damian/rookie2

PostPosted: Thu May 10, 2007 12:58 am
by sirhc55
Damien - you certainly have gone back in time for this post. Today we have but one HK source and that is Poon :wink:

PostPosted: Thu May 10, 2007 1:03 am
by rookie2
yep I have been off line for a while but I did get my 17 -55 through birddie prior to heading OS and then having the bloody thing stolen.

this aside, do I need to post this elsewhere....and are my assumptions correct re getting gear from USA?

cheers

Damian

PostPosted: Thu May 10, 2007 8:40 am
by DaveB
When buying from the U.S. I try to get the goods shipped by USPS Global Express, as UPS have a nasty habit of charging GST plus a brokerage fee (I have had some incoming [small] UPS packages with no penalty though).

If the declared value of the goods is over AU$1000 then the rules say you will have to pay GST (although the odd package slips through). If the value is under $1000, then it's much more likely that you won't have to pay anything. Either way, you won't have to pay UPS a brokerage fee!

[edit]BTW, if Customs notice many packages coming to you at around the same time they can apply the $1000 limit to the combined shipment.[/edit]