Import taxing questions for mtb parts?
- Thread starter Turley
- Start date
::RideSiK::
Pro Rider
just get someone to put second hand on it
If ya have a look on the Aust. Customs site
www.customs.gov.au & have a bit of a search there's a document on the specific taxes on different goods.
I rang up customs a while ago & I remember them saying that bicyle parts, as in what you have mentioned, maybe exempt from the 5% duty tax. Frames, complette bikes and forks incur the 5% duty.
The way to calc the total cost is first the price of parts in $US & convert that to $AU at the date you made the transaction. eg $290 / 0.65 = 446.15AUD
If it does incur the 5% duty add this on: 446.15AUD * 1.05 = 468.46AUD
Now get the price it will cost them in USD to ship the goods. For eg. 50USD & convert to AUD: 50USD / 0.65 = 76.92AUD.
Take this amount of 76.92AUD & add it to the 468.46AUD and get = 545.38AUD.
Last step add on little Jonny Howard's GST of 10%: 545.38AUD * 1.1 = 599.92AUD
If in fact there is no duty of 5% on the parts then just miss that step out.
I went with FedEx & they'll ring ya up when it gets to AUS & ask you to pay the duty and GST on ya package, then they'll send it to ya.
www.customs.gov.au & have a bit of a search there's a document on the specific taxes on different goods.
I rang up customs a while ago & I remember them saying that bicyle parts, as in what you have mentioned, maybe exempt from the 5% duty tax. Frames, complette bikes and forks incur the 5% duty.
The way to calc the total cost is first the price of parts in $US & convert that to $AU at the date you made the transaction. eg $290 / 0.65 = 446.15AUD
If it does incur the 5% duty add this on: 446.15AUD * 1.05 = 468.46AUD
Now get the price it will cost them in USD to ship the goods. For eg. 50USD & convert to AUD: 50USD / 0.65 = 76.92AUD.
Take this amount of 76.92AUD & add it to the 468.46AUD and get = 545.38AUD.
Last step add on little Jonny Howard's GST of 10%: 545.38AUD * 1.1 = 599.92AUD
If in fact there is no duty of 5% on the parts then just miss that step out.
I went with FedEx & they'll ring ya up when it gets to AUS & ask you to pay the duty and GST on ya package, then they'll send it to ya.
mtbdh_girl
Likes Dirt
my experience has been that nything over $250 gets taxed...
sprucas_fab3
Likes Dirt
dude - i bought some new stuff from Mud Sweat and Gears in the USA and they put bike parts - total cost USD$5 and ticked gift - came through sweet
just quiz em and see if they can help out - i reckon they will
just quiz em and see if they can help out - i reckon they will
taxing
Like Dillon said 10% GST and a Customs fee $55 sounds about right. Yes you will get taxed if it comes in via a FedEX , i would ring FedEX in Australia when the traking website say's it's landed that way you can pay it over the phone and it will get sent straight out to you.
When it comes in via the post so USPS, you are less likely to get taxed, you will still get taxed even if the stuff is second hand trust me i have before. You may even get taxed if it is put down as a gift, particuly if you get lot's of gifts, dont be surprised if customs logs down everything that comes into the country and to what person if you start getting a gift evey month they will know somthing is up. I'm pretty sure there supposed to tax gift's they just usually dont and let um go. I was told gift's get taxed, but a mate i know got told they wouldent especially around Christmas.
If it's under over $1000 U.S the post office wont get it, it will be sent to customs and you will have to go there and pick it up and pay all the fees. If it is under $1000 you may still have to pay the 10% gst but you wont be required to pay the formal entry customs fee, you will also be able to pay this at the post office when you pick it up. However i have found if it's genrally under $500 AUD they wont charge you anything and will let it go. Your best off trying to find a seller that is willing to devalue the product and send it via USPS (there genrally the cheapest anyway)
Tim
Like Dillon said 10% GST and a Customs fee $55 sounds about right. Yes you will get taxed if it comes in via a FedEX , i would ring FedEX in Australia when the traking website say's it's landed that way you can pay it over the phone and it will get sent straight out to you.
When it comes in via the post so USPS, you are less likely to get taxed, you will still get taxed even if the stuff is second hand trust me i have before. You may even get taxed if it is put down as a gift, particuly if you get lot's of gifts, dont be surprised if customs logs down everything that comes into the country and to what person if you start getting a gift evey month they will know somthing is up. I'm pretty sure there supposed to tax gift's they just usually dont and let um go. I was told gift's get taxed, but a mate i know got told they wouldent especially around Christmas.
If it's under over $1000 U.S the post office wont get it, it will be sent to customs and you will have to go there and pick it up and pay all the fees. If it is under $1000 you may still have to pay the 10% gst but you wont be required to pay the formal entry customs fee, you will also be able to pay this at the post office when you pick it up. However i have found if it's genrally under $500 AUD they wont charge you anything and will let it go. Your best off trying to find a seller that is willing to devalue the product and send it via USPS (there genrally the cheapest anyway)
Tim
Dirtsystems
Likes Bikes
It depends how you get it sent.
Generally, by using freight forwarders like UPS, DHL, TNT, Fedex, they will pay the GST/Import Processing Fees (if applicable) to Customs for you and you pay them. When you ship using this method, you are generally allowed up to and including AUD$250 before they start worrying about it. Anything over this, and they work out the difference.
If you use a common carrier such as Australia Posts' EMS, or the United States Postal Service (USPS), you have a AUD$1000 limit.
You pay duty on the dutiable goods, and GST on shipping, the goods' cost and insurance. Some stuff is dutiable, some not. Depends on if it's new, has been assembled, if there's competition in Australia for that item. For example, I own a snowboard company, and I do not pay duty on the snowboards anymore since Force started making boards in China and Austria i.e. there is no local industry to protect. Also when I brought some boards in with me back from Canada/LA, I got asked by the floor manager all sorts of questions that reduced my duty by half. I was totally honest and by asking me the right questions and getting the right answers, he reduced the duty. Things to consider for bringing MTB stuff in.
If it's been attached to a bike, duty is reduced.
If it's not for commercial sale (as my snowboards are), duty is reduced
All sorts of caveats like these exist.
As has been mentioned you can get the invoice emailed or fax'd to you, thus customs can't ascertain it's value...
Will they worry about something like this? Chances are no. I always get nervous and be honest though, mainly because I pass the costs on to customers, but since you're operating in a non-commercial sense, I'd go with the no-invoice option. If you're using Fedex I doubt they'll do it, as they are totally above board, so the supplier can jimmy up a false invoice. This is illegal and substantial penalties apply. You have to weigh up the risk/return factors.
Also though, USPS will be easier than dealing with a freight forwarder.
They will take the item and deliver. Getting a supplier to ship with USPS could be a problem, mostly they like to use Fedex and/or UPS.
Any other questions, email me at contact@dirtsystems.com, got a bit of experience dealing with customs and also have contacts if you need, such as customs brokers etc
And, a shameless plug. Dirtsystems is a new MTBers apparel company I have started with a mate.
dirtsystems.com (sorry Admin, it had to be done)
-Cheers
//Edit: My mate just got stuff from Jensons and I don't think he got a call from Fedex. He paid Jenson, they paid Fedex, and Fedex delivered. Maybe if the shop puts "third party to pay" when I use Tolls I have that option.
Also if your total GST/Duty is under $50, customs will NOT GET INVOLVED.
Generally, by using freight forwarders like UPS, DHL, TNT, Fedex, they will pay the GST/Import Processing Fees (if applicable) to Customs for you and you pay them. When you ship using this method, you are generally allowed up to and including AUD$250 before they start worrying about it. Anything over this, and they work out the difference.
If you use a common carrier such as Australia Posts' EMS, or the United States Postal Service (USPS), you have a AUD$1000 limit.
You pay duty on the dutiable goods, and GST on shipping, the goods' cost and insurance. Some stuff is dutiable, some not. Depends on if it's new, has been assembled, if there's competition in Australia for that item. For example, I own a snowboard company, and I do not pay duty on the snowboards anymore since Force started making boards in China and Austria i.e. there is no local industry to protect. Also when I brought some boards in with me back from Canada/LA, I got asked by the floor manager all sorts of questions that reduced my duty by half. I was totally honest and by asking me the right questions and getting the right answers, he reduced the duty. Things to consider for bringing MTB stuff in.
If it's been attached to a bike, duty is reduced.
If it's not for commercial sale (as my snowboards are), duty is reduced
All sorts of caveats like these exist.
As has been mentioned you can get the invoice emailed or fax'd to you, thus customs can't ascertain it's value...
Will they worry about something like this? Chances are no. I always get nervous and be honest though, mainly because I pass the costs on to customers, but since you're operating in a non-commercial sense, I'd go with the no-invoice option. If you're using Fedex I doubt they'll do it, as they are totally above board, so the supplier can jimmy up a false invoice. This is illegal and substantial penalties apply. You have to weigh up the risk/return factors.
Also though, USPS will be easier than dealing with a freight forwarder.
They will take the item and deliver. Getting a supplier to ship with USPS could be a problem, mostly they like to use Fedex and/or UPS.
Any other questions, email me at contact@dirtsystems.com, got a bit of experience dealing with customs and also have contacts if you need, such as customs brokers etc
And, a shameless plug. Dirtsystems is a new MTBers apparel company I have started with a mate.
dirtsystems.com (sorry Admin, it had to be done)
-Cheers
//Edit: My mate just got stuff from Jensons and I don't think he got a call from Fedex. He paid Jenson, they paid Fedex, and Fedex delivered. Maybe if the shop puts "third party to pay" when I use Tolls I have that option.
Also if your total GST/Duty is under $50, customs will NOT GET INVOLVED.
I suggest having a chat with NRG Gav Turley, I just ordered pretty much the same thing off Ashgrove Gav; X7 shifter, X7 derailleur, 2xLX cassettes (setting up 2 wheelsets) and a Sachs PC99 chain and got a price that makes all the hassle of ordering from O.S. pretty much irrelevant. Support locals and you might just get a pleasant surprise 
Dirtsystems
Likes Bikes
Ryan whilst I am all about supporting locals, ordering parts from the US is ridiculously cheap. All the middlemen make it hard for shops locally.
I mean, when I can get an XT rear DR from Jenson to my door cheaper than the local shop pays wholesale for it, there's something wrong there.
It's a pity Shimano is so anal about single dists, if shops were able to go straight to the source without threat of having their Shimano sellingness being cutoff, we'd all be better off.
-tm
I mean, when I can get an XT rear DR from Jenson to my door cheaper than the local shop pays wholesale for it, there's something wrong there.
It's a pity Shimano is so anal about single dists, if shops were able to go straight to the source without threat of having their Shimano sellingness being cutoff, we'd all be better off.
-tm
wombat
Lives in a hole
Shimano themselves weren't actually that concerned about the number of ditributors until Shimano Australia got their knickers in a know and wanted exclusivity. Bang! there goes the competition and all of a sudden prices climb dramatically.....increased costs my ass.... :xDirtsystems said:
Dirtsystems
Likes Bikes
Wombat, a-ha. Interesting. Whilst it's not fair shops get punished, I can't cough up for the prices asked (and yes I have no probs with shops making money, they're providing a service and need to pay rent etc) for single componentry. Bikes, however, still represent fair value. Though my friend got a Craftworks frame and a bunch of parts very very cheap.
I support the local for stuff like shoes, tyres, cables, etc etc
I support the local for stuff like shoes, tyres, cables, etc etc
Getting back to the topic...
I emailed Fedex Aust. and they said they charge the GST regardless of the amount of GST it is. Plus the $50 customs processing fee.
So the cheapest option but the longest (~2 weeks) is still USPS/AusPost. You will definately not pay any GST/charges if your goods and shipping are less than $1000. Even if they are more than $1000 it is still a maybe, a lot of stuff slips through.
I emailed Fedex Aust. and they said they charge the GST regardless of the amount of GST it is. Plus the $50 customs processing fee.
So the cheapest option but the longest (~2 weeks) is still USPS/AusPost. You will definately not pay any GST/charges if your goods and shipping are less than $1000. Even if they are more than $1000 it is still a maybe, a lot of stuff slips through.