The good oil: Tax on importing parts.

ponyride · Post by **ponyride** » Sun May 29, 2011 11:44 pm

Thanks Hawko, sorry I posted my flippant comment before I saw your post. That's OK, I'm sure the stuff I want to get in is made in the good old U S of A, I'll double check.

ponyride · Post by **ponyride** » Mon May 30, 2011 6:50 pm

OK, I rang Customs and spoke to a very helpful gentleman there - that's our (multiple) taxes at work. Here's the drum:

As per Hawko's post with table, both duty @ 5% and GST @ 10% are payable on items > $1,000 and it is calculated as per the table (ie shipping/freight/insurance etc).

Items under $1,000 do not attract duty/GST.

If you have more than one package delivered at one time and their sum total is > $1,000 then duty and GST are payable.

The taxes apply to the whole value, not just for every dollar over $1,000.

The Free Trade Agreement is applicable to goods made entirely in the U.S. (eg Scott Drake parts made in China/Thailand wouldn't count) and you would need to get some form of declaration from the source to confirm that. In that case, parts are "possibly" exempt from duty, they would be assessed at the time. Apparently there is a complicated table regarding types of items imported and their country of origin, so you need to check with Customs about specific items. GST is applied regardless.

As an example, I want to bring in a disc brake conversion kit which is apparently entirely manufactured in the U.S., this I was told would be exempt from duty however if the total value including freight and shipping is > $1,000 then GST applies.

Hopefully this helps clear up things a little.

donoauto · Post by **donoauto** » Mon May 30, 2011 8:14 pm

I just guess within $500 what it will cost me , pull the trigger , grab my crayons & run like hell. I then like to block the memory of the purchase til it arrives. :gimmebeer:

Hawko · Post by **Hawko** » Tue May 31, 2011 11:13 am

ponyride wrote: As an example, I want to bring in a disc brake conversion kit which is apparently entirely manufactured in the U.S., this I was told would be exempt from duty however if the total value including freight and shipping is > $1,000 then GST applies.

Hopefully this helps clear up things a little.

Funny I rang them yesterday as well as I have some parts coming and I got a different answer.

I was told because my parts are under $1000AUD then I don't have to pay any duty or GST. It was only if my parts were over $1000 would they look at the freight cost.

ponyride · Post by **ponyride** » Tue May 31, 2011 1:16 pm

Hawko wrote:
ponyride wrote: As an example, I want to bring in a disc brake conversion kit which is apparently entirely manufactured in the U.S., this I was told would be exempt from duty however if the total value including freight and shipping is > $1,000 then GST applies.

Hopefully this helps clear up things a little.
Funny I rang them yesterday as well as I have some parts coming and I got a different answer.

I was told because my parts are under $1000AUD then I don't have to pay any duty or GST. It was only if my parts were over $1000 would they look at the freight cost.

That's my understanding too Hawko. Sorry if I was unclear or wrote something wrong. Basically, if it's under $1,000 (including all costs) then zip, if it's over then GST and duty apply.

Hawko · Post by **Hawko** » Tue May 31, 2011 3:10 pm

ponyride wrote: Basically, if it's under $1,000 (including all costs) .

This is the part different. I was told parts only have to be under $1000. Freight didn't come into it until the parts went over the $1000.
Rang again today and got the same answer.

Post by **hybrid** » Tue May 31, 2011 3:47 pm

That's right Hawko.
I've brought in stuff that was over $1k including shipping, but under $1k excluding shipping and they have come through fine.

ponyride · Post by **ponyride** » Tue May 31, 2011 7:04 pm

That's excellent then. It's a different interpretation of their own formula but suits me!!

Pinto-Pete · Post by **Pinto-Pete** » Wed Jun 01, 2011 7:00 pm

looks like drip feeding the parts in is the go then......

donoauto · Post by **donoauto** » Wed Jun 01, 2011 7:03 pm

unless it's already been mentioned , but if it is proven that all the parts were made in the US (with the free trade agreement) , then we dodge GST etc with over $1k purchases?

Pinto-Pete · Post by **Pinto-Pete** » Wed Jun 01, 2011 7:07 pm

dono,thats a statement not a question yeh ? easily confussed me...

ponyride · Post by **ponyride** » Wed Jun 01, 2011 7:23 pm

donoauto wrote:unless it's already been mentioned , but if it is proven that all the parts were made in the US (with the free trade agreement) , then we dodge GST etc with over $1k purchases?

Nope. You only dodge the 5% duty. GST is whacked on top regardless.

donoauto · Post by **donoauto** » Wed Jun 01, 2011 7:26 pm

Ah Ha! Thanks.

Hawko · Post by **Hawko** » Wed Jun 01, 2011 9:35 pm

Pinto-Pete wrote:looks like drip feeding the parts in is the go then......

Depends on how many and size of parts. You may find that multiple lots of freight will add up to more than the duty and GST.

Pinto-Pete · Post by **Pinto-Pete** » Wed Jun 01, 2011 9:47 pm

good point Hawko..

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