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Tax when bringingEngagement Ring from USA to Australia

M

misshoneyeve

Rough_Rock
Joined
Sep 21, 2010
Messages
9
Hi

I am in the process of buying a ring in US - my aunt is "wearing" it over for me - so am v new to the situation and nice diamonds =)

Am just wondering what the process is for bringing a ring from USA to Australia - do you need to pay tax (and is it 10%GST)??

What happens if you don't - can you still have the ring insured??

And how do you pay the taxes? I.e. You declare the ring at Customs - then do you need to pay it on the spot before you leave the airport??

Many thanks in advance =)
 
Thanks Lewlew - yes I saw the first thread earlier but I didn't not understand a word it was saying!!

Am hoping that someone could break down the terms into layman's terms so I can understand what to do and how to get around paying more money than needed!!
 
Just wear it ! When I travel, I am never asked about my ring...
 
Yeah, I would just treat it like personal jewelry, which no one would question.
 
I recently purchased my engagement ring in NYC.

I wore it home to Melbourne on the plane... no issues.

I did however Fedex my receipt and GIA certificate back to myself in Australia, rather than risk carrying them on the plane with me, just to be on the safe side.

The taxes and duties comes closer to 18% when you bring something in to Australia. It's not just the flat 10% GST. So I wasn't going to risk adding that cost on top of my $$$$$ ring.

I've also had it valued here in Australia and my insurance company just needed a copy of the valuation, my original receipt, GIA certificate and some specific photos. Insurance companies are not in the business of doing Customs' job for them. So I don't believe you'll have any issues with this at all.

Congratulations!!!
 
Please note that I am not recommending you avoid your legal obligations to pay taxes.

Firstly, if you are having your aunt wear the ring in to the country, what are you going to do with any receipts/certification etc?

Secondly, what part of the duty/taxes are you trying to avoid? If you are trying to avoid the 10% GST, then you will have to resort to lying (or have your aunt lie on your behalf) and risk being caught. If you are just trying to not incur the 5% import duty, then there is paperwork you can complete, quite easily, to allow you to legally avoid paying that under the AUSFTA.

ETA: I see in another thread that you mention you've already had a valuation done by an Australian jeweller, who was "very impressed with my setting and the diamonds". So how can you not already have the ring in Australia? Or was that "valuation" done purely from paperwork?
 
Rae~ said:
Please note that I am not recommending you avoid your legal obligations to pay taxes.

Firstly, if you are having your aunt wear the ring in to the country, what are you going to do with any receipts/certification etc?

Secondly, what part of the duty/taxes are you trying to avoid? If you are trying to avoid the 10% GST, then you will have to resort to lying (or have your aunt lie on your behalf) and risk being caught. If you are just trying to not incur the 5% import duty, then there is paperwork you can complete, quite easily, to allow you to legally avoid paying that under the AUSFTA.

ETA: I see in another thread that you mention you've already had a valuation done by an Australian jeweller, who was "very impressed with my setting and the diamonds". So how can you not already have the ring in Australia? Or was that "valuation" done purely from paperwork?
Click to expand...

ditto everything Rae has said.

Not declaring the purchase upon entering customs, is avoiding 10% GST, is against the law. If you wish to ask your aunt to do this, its up to you. However if she is handling it any other way but wearing it, I imagine that would incur suspicion.

The only taxes that you are Not obliged to pay under the FTA (free trade agreement) between Au and US is the 5% duty, and the paperwork is quite straightforward.
If you look at the later pages of the first link, the "Custom Ring AUSFTA" thread, there are a number of examples posted.

If you wish to pursue this second option, I'd be happy to try and instruct you on the paperwork, however I won't be helping in advising you how to do the first option ;))
 
arjunajane said:
Rae~ said:
Please note that I am not recommending you avoid your legal obligations to pay taxes.

Firstly, if you are having your aunt wear the ring in to the country, what are you going to do with any receipts/certification etc?

Secondly, what part of the duty/taxes are you trying to avoid? If you are trying to avoid the 10% GST, then you will have to resort to lying (or have your aunt lie on your behalf) and risk being caught. If you are just trying to not incur the 5% import duty, then there is paperwork you can complete, quite easily, to allow you to legally avoid paying that under the AUSFTA.

ETA: I see in another thread that you mention you've already had a valuation done by an Australian jeweller, who was "very impressed with my setting and the diamonds". So how can you not already have the ring in Australia? Or was that "valuation" done purely from paperwork?
Click to expand...

ditto everything Rae has said.

Not declaring the purchase upon entering customs, is avoiding 10% GST, is against the law. If you wish to ask your aunt to do this, its up to you. However if she is handling it any other way but wearing it, I imagine that would incur suspicion.

The only taxes that you are Not obliged to pay under the FTA (free trade agreement) between Au and US is the 5% duty, and the paperwork is quite straightforward.
If you look at the later pages of the first link, the "Custom Ring AUSFTA" thread, there are a number of examples posted.

If you wish to pursue this second option, I'd be happy to try and instruct you on the paperwork, however I won't be helping in advising you how to do the first option ;))
Click to expand...

Also, if you choose to go ahead with the first option and have the paperwork mailed over, there is a chance that customs will open the package and you will cop the 15% taxes and possibly a fine for trying to avoid it.

To me the risk wouldn't be worth trying to save the 10% on tax.
 
Regardless of what choices you are making (illegal or not), congrats on your new ring.

Can someone explain why there is such a high import tax?
 
bean said:
Regardless of what choices you are making (illegal or not), congrats on your new ring.

Can someone explain why there is such a high import tax?
Click to expand...

Hi Bean,

I can't really explain it except to say we pay GST (goods and services tax) on pretty much any consumer goods here - it was introduced here in 2000, and was designed to phase out or replace a variety of other taxes.

I understand it is the equivalent of the VAT (Value Added Tax) that operates in the UK.
Not sure what the equivalent would be in the US..?

So, essentially it is not actually an "import tax" - the thing is, if you are bringing/importing anything like consumer goods into Australia with a value of over $1000AUD, it automatically has GST applicable (the import cut off amounts are different for things like cigarettes and alcohol, don't ask me what they are!).
The only actual import tax per se is the 5% import duty..once you factor in processing fees by FedEx or a customs broker, it usually amounts to 16-17% of the purchase value.
However, as mentioned here and discussed in many prior threads, as our two countries hold a Free Trade Agreement, and jewellery/diamonds is one of those items included in the FTA, consumers are entitled to avoid the 5% import duty when the correct paperwork is lodged, hence its really only the 10% GST that is payable.

The 10% GST is not avoidable, its just a fact of life.

HTH! :wavey:
 
Rae~ said:
Please note that I am not recommending you avoid your legal obligations to pay taxes.

Firstly, if you are having your aunt wear the ring in to the country, what are you going to do with any receipts/certification etc?

Secondly, what part of the duty/taxes are you trying to avoid? If you are trying to avoid the 10% GST, then you will have to resort to lying (or have your aunt lie on your behalf) and risk being caught. If you are just trying to not incur the 5% import duty, then there is paperwork you can complete, quite easily, to allow you to legally avoid paying that under the AUSFTA.

ETA: I see in another thread that you mention you've already had a valuation done by an Australian jeweller, who was "very impressed with my setting and the diamonds". So how can you not already have the ring in Australia? Or was that "valuation" done purely from paperwork?
Click to expand...

Hi Rae, it was actually me who had made mention of my Australian valuation, as I brought my ring back into the country on my finger myself on my return flight from the US. It was not the original poster who said that. I had my valuation done by my jeweller as soon as I got back and had my ring resized there.
 
D'oh!! Thanks for the clarification, Loveis - I thought that sounded weird; I obviously got my people mixed up there!

Apologies for the mis-remembering, misshoneyeve!
 
Not a problem Rae... I tend to get mixed up with what I say myself often enough! :)
 
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