Australian tax and duty costs: Help Please

[silverwillow]

Any Aussies here that can tell me what I am likely to pay in GST and any other duties on a $20,000 purchase my hubby is freaking out that it is going to cost us a lot?

 

[fige]

Assuming you’re not paying for insurance or shipping it’s just the 10% GST.

You’re able to apply for concessional rate of duty as per the Australian - US Free Trade Agreement (AUSFTA) (usually 5%), under shedule 5 of the Tariff Act!

There are many threads from others that have successfully utilised the AUSFTA and depending on your vendor, may have previous experience with it.

 

[Bron357]

I’m in Australia and fed ex did the shipment from a US manufacturer. I paid $120 shipping / insurance ($12,000 value) plus $55 plus 15% tax (10 GST plus 5 import). You’ll pay 10% in any regard but to avoid the 5% because of the free trade agreement you have to get the seller in the US to do the importation document properly otherwise you’ll get hit with the extra 5% and then have to go through a process of trying to recover It back.

 

[Mondayschild]

Ah, currently in position where vendor possibly hasn't done paperwork correctly. Do I have to just deal with it and pay?

 

[fige]

I’m no expert but I can see two potential options. You could refuse the shipment so it is returned to the sender. They could resend with correct paperwork.

Alternatively you could pay and seek a refund: https://www.border.gov.au/Busi/Duty/Refu

 

[WinkHPD]

I’m no expert but I can see two potential options. You could refuse the shipment so it is returned to the sender. They could resend with correct paperwork.

Alternatively you could pay and seek a refund: https://www.border.gov.au/Busi/Duty/Refu

Before you refuse it and send it back, please know that the retailer will have to pay the tax and then you will have to pay it again when it is returned. There will be a round trip shipping and insurance cost as well.

Please do not do that! Your retailer may well have done things correctly and still be told that it is incorrect.

It has been my experience that when the shipping is done through FedEx that their importation department can call the retailer and using this incredible device known as a Fax, it is possible to send the corrected documentation.

We have had several instances where Customs claims the proper documents are not in the document pouch, we send the needed document, and then our client tells us that there are now two copies in the document pouch. It can be frustrating to deal with, but it can be dealt with. We have found that FedEx does a great job of dealing with the customs people around the world for us and we use them exclusively for our international shipments.

My recommendation for Mondayschild to talk with Customs, ask them exactly what they need done differently and then get her retailer to either fax or scan and email that document to her and what ever email address for customs that they will give to her. It will be much quicker and way less expensive for all concerned.

Wink

 

[Mondayschild]

It has been my experience that when the shipping is done through FedEx that their importation department can call the retailer and using this incredible device known as a Fax, it is possible to send the corrected documentation.

a fax you say!

My FedEx contact was a nightmare!! "we haven't got the AUSFTA paperwork"
"it is not our job to chase it, you have to contact your retailer" (different time zones)
I think it's bizarre that the default position is onus on the buyer if it is a well-recognised, commonly used exemption. As I don't have either the package or the documents, it's hard for me to know what's been done/not done.

I have seen from other threads that sometimes the paperwork is inside the package, but for whatever reason it isn't identified by customs - perhaps that is the issue in this case (my item isn't tracked as arrived in AUS yet)

I've contacted the retailer to see if they have an electronic copy or can provide it to FedEx..... panic not!!

 

[Mondayschild]

Retailer had included it - but have resent copy to me & Fedex.

 

[WinkHPD]

I once tried to argue with the customs people. Told them three different times that it was in the documents packet. They told me it wasn't. I sent them a new copy.

Client got the package and said there were three copies inside, since I put one in for the FedeEx person and one for the customs people. they put the third one in because there was, supposedly, not one in there already.

Sigh.

Took an extra few days, but all was well.

Wink

 

[Crystal_Dreams]

It's ALWAYS Fedex's fault. Every single time my vendors have included all the relevant paperwork, they don't even bother to check the pouch and demand that I send it to them or will threaten to send my shipment back if I don't pay.

They are beyond frustrating. The staff there are typically obstructive and very unhelpful till you manage to escalate the issue...

Just get the vendor to email you a copy of the forms and send it through to fedex. And make sure they give you the correct email to send it through to too!! That has been an issue for me before as well.

IF they still stuff it up and you can't get things sorted, I have been able to lodge the AUSFTA agreement myself once through a declaration they sent me. It's a pain in the ass imho.

 

[Mondayschild]

The saga continues. Apparently customs have the form but don't see the "link" between the form and the package.....ie nothing identifies the shipment on the ausfta form. My response was - isnt there a physical link if the form is inside the box??? Seems extremely pedantic. Worst comes to worst ill pay the 5% but it's getting near farcical stage imho.

 

[Mondayschild]

It's ALWAYS Fedex's fault. Every single time my vendors have included all the relevant paperwork, they don't even bother to check the pouch and demand that I send it to them or will threaten to send my shipment back if I don't pay.

They are beyond frustrating. The staff there are typically obstructive and very unhelpful till you manage to escalate the issue...

Just get the vendor to email you a copy of the forms and send it through to fedex. And make sure they give you the correct email to send it through to too!! That has been an issue for me before as well.

IF they still stuff it up and you can't get things sorted, I have been able to lodge the AUSFTA agreement myself once through a declaration they sent me. It's a pain in the ass imho.

Just saw your reply after i posted

Yes this is exactly my issue. Vendor has been great, no issues there. Fedex downright unhelpful and .....almost belligerent.

It shouldn't be this hard. The fedex contact i was given isnt at work today (then why not use generic email account?) So had to re-forward everything. It's frustrating.

 

[Mondayschild]

I once tried to argue with the customs people. Told them three different times that it was in the documents packet. They told me it wasn't. I sent them a new copy.

Client got the package and said there were three copies inside, since I put one in for the FedeEx person and one for the customs people. they put the third one in because there was, supposedly, not one in there already.

Sigh.

Took an extra few days, but all was well.

Wink

How frustrating! Looks like vendors are doing the right thing but perhaps disconnect between customs & fedex.

 

[misskittycat]

FedEx are pretty much useless here in Australia. The issue is that they are preclearing parcels into Australia in an effort to make delivery quicker, but they aren't opening the document packets so they don't see the paperwork. They just go off the declared value. They prepay the customs and GST to the Australian Government which is why they insist you pay for it. When your Vendor sends the documentation to FedEx, ask them to send you a copy too, then contact FedEx once you have the shipping information and send them a copy of the documentation.

OP, you will need to pay the 10% and assuming your vendor fills out the AUSFTA documentation correctly, the 5% will be waived. You will also be charged Inspection fees, AQIS fees, and a clearing fee. A couple of hundred bucks all up, in addition to the 10%.

I hope that has helped!

 

[Bron357]

Accept the package and sort out the 5% refund later, that’s what I did.

 

[Mondayschild]

got sorted. Involved escalating it at Fedex. Package released yippeeee