AUSFTA - buying stone and setting from different vendor?

[mcosme]

Hi Everyone

Does anyone have experience with buying a loose diamond and setting from different vendors? I found a stone at a good price with a different vendor, but they do not carry Vatche settings.

Yekutiel at IDJ has kindly offered for me to send a stone to him so he can order the Vatche setting for me. As I am from Australia, does anyone have any idea how this would work in regards to paying GST/Duty as technically both should be exempt from duty under the AUSFTA. Also, it appears both vendors are from NY, so will I be hit with a sales tax too?

Or do you guys recommend me to just look for a stone with IDJ instead?

Thank you!

 

[gr8leo87]

There are no sales tax on exports. But since one vendor would be buying from another vendor within the US I'm not sure how that comes in to play.

For the AUSFTA to kick in the vendor would need to send the goods with a certificate of origin. This will exempt the jewellery piece from getting a 5% duty. (loose diamonds don't attract duty).

On arrival you'll be required to pay 10 GST on the goods value + shipping and insurance cost. You'll also be required to pay a ACS electronic entry fees around 180 dollars if the shipment is valued above 10k and a small FedEx brokerage amounting to around 30-40 dollars.

If there's no certificate or origin along with the goods the GST is applied on shipment value + 5% duty.

All the best.

 

[mcosme]

There are no sales tax on exports. But since one vendor would be buying from another vendor within the US I'm not sure how that comes in to play.

For the AUSFTA to kick in the vendor would need to send the goods with a certificate of origin. This will exempt the jewellery piece from getting a 5% duty. (loose diamonds don't attract duty).

On arrival you'll be required to pay 10 GST on the goods value + shipping and insurance cost. You'll also be required to pay a ACS electronic entry fees around 180 dollars if the shipment is valued above 10k and a small FedEx brokerage amounting to around 30-40 dollars.

If there's no certificate or origin along with the goods the GST is applied on shipment value + 5% duty.

All the best.

Hi gr8leo87
Thanks for your reply!

Does that mean that if the setting has a certificate of origin (Vatche is made in US), then my loose diamond will be exempt from duty also? My ring will be much less than 10k, so I only need to pay the brokerage fee..

Do I need to pay GST on shipping and insurance as well? Will the vendor shipping the diamond need to fill in the AUSFTA forms for both the diamond and setting? otherwise, how do customs know the value of it?

I've read about people still needing to pay duty even if all documents are provided, but you can apply for a refund, is that right?

Thanks again

 

[gr8leo87]

There are no sales tax on exports. But since one vendor would be buying from another vendor within the US I'm not sure how that comes in to play.

For the AUSFTA to kick in the vendor would need to send the goods with a certificate of origin. This will exempt the jewellery piece from getting a 5% duty. (loose diamonds don't attract duty).

On arrival you'll be required to pay 10 GST on the goods value + shipping and insurance cost. You'll also be required to pay a ACS electronic entry fees around 180 dollars if the shipment is valued above 10k and a small FedEx brokerage amounting to around 30-40 dollars.

If there's no certificate or origin along with the goods the GST is applied on shipment value + 5% duty.

All the best.

Hi gr8leo87
Thanks for your reply!

Does that mean that if the setting has a certificate of origin (Vatche is made in US), then my loose diamond will be exempt from duty also? My ring will be much less than 10k, so I only need to pay the brokerage fee..

Do I need to pay GST on shipping and insurance as well? Will the vendor shipping the diamond need to fill in the AUSFTA forms for both the diamond and setting? otherwise, how do customs know the value of it?

I've read about people still needing to pay duty even if all documents are provided, but you can apply for a refund, is that right?

Thanks again

Loose diamonds don't attract duty. But if loose diamond is set in a ring then it's considered finished jewellery and will attract a 5% duty on the whole amount of shipment. If however presented with a certificate of origin then there will be no duty. The certificate of origin must come from the designated govt department that has the mandate of issuing such certificates.

10% GST is applied on ( Shipment Value + Freight & Insurance + Customs duty if applied). If shipment invoice comes without a freight and insurance value an amount of such extent will be decided by the customs and added to shipment value in AUD to arrive at a GST value.

ACS electronic entry charge is about 185 dollars for goods valued above 10k AUD. A smaller amount will be applied if the goods value is less than 10K AUD.

Hope this helps.

 

[gr8leo87]

The vendor will need to fill in the form and obtain the certificate of origin from the designated department and include that certificate of origin with the customs/commercial invoice and mark the goods with the correct HS code. The HS code for finished jewellery is 71131911.

But your vendor would already know all of this and you shouldn't worry about it. As long there's certificate of origin with the shipment there's no 5% duty on it.

 

[mcosme]

gr8leo87, thanks a lot!! I really appreciate your help and you have clarified everything for me.

 

[diamondseeker2006]

What vendor has the stone you are considering? If it is somewhere like BN or JA, IDJ could likely just call in the same stone for you.

 

[WinkHPD]

Here is a copy of the letter I keep in my Microsoft Word program.

I have sent many packages to Australia and without any problems. Who ever is shipping the ring to you can properly fill this in for you. They should change the name in the first paragraph too... Oh, and also the description of the item near the bottom of the form.

Australia-United States Free Trade Agreement (AUSFTA)

Statement of United States origin


I Winfield G. Jones Jr of High Performance Diamonds (HPD on the shipping label) hereby state that the nominated goods below, meet the requirements of the legislation of the AUSFTA. I wish to claim the preferential duty rate using the rule type as marked.

___ 1) Section 153YB rule type W.O. -goods wholly obtained- relates to goods mined, grown, bred, fished etc

___ 2) Section 153YC rule type P.O.M. -goods produced entirely in the US from originating materials- relates to goods made in the US from US materials

_X__ 3) Section 153YE rule type P.S. -goods (except clothing and textiles) produced entirely in the US from non-originating materials- relates to goods made in the US from US materials and materials from other countries

___ 4) Section 153YF rule type P.S. –goods that are chemicals, plastics or rubber produced entirely in the US from non-originating materials

___ 5) Section 153YH rule type P.S. –goods that are clothing or textiles produced entirely in the US or the US and Australia from non-originating materials or a combination of originating materials and non-originating materials.

I agree to maintain and present on request, documentation necessary to support this statement.

Shipper’s name: High Performance Diamonds


Product name/description: 1.77 ct Round brilliant cut diamond set into a platinum ring.


Name: Winfield G. Jones Jr


_____________________
Signature:

Date: March 11, 2016

Just on a personal note, You are going to LOVE your Vatche setting.

Wink

P.S. Last summer I sent a ring to Australia that was made by another vendor using one of my diamonds. I included a copy of the invoice from the other vendor and a copy of my invoice along with the AUSFTA letter and it went through without the 5%.

 

[arkieb1]

If what you are purchasing costs over $1000 AUD or at the moment $740.00 USD you pay 10% GST on it, you cannot get out of that. With the correct declarations like WINK has kindly shown you above you will get out of paying 15% (ie the extra 5% duty) and only pay the 10% GST. Aussie customs also has handling fees and charges as well.

So on something that costs you say $10 000 AUD expect to pay around $1350 to $1420 AUD depending upon where in Australia you live not counting the 5% - if the vendor doesn't fill in the correct forms add another 5% to that amount.

 

[mcosme]

Thanks everyone, appreciate your help!