Customs and Taxes involving a present from TireRack ??

[AlexRO]

So ive heard varying stories on how you get charged if your order from the US is expensive ..

I want to buy 4x Pirelli PZero's 225/40/18 and they scrape in at $996USD for the set
shipping will cost an additional $375 USD

the two varying stories ive heard are that you have to pay GST and a customs fee IF
a) the value of the goods only is over 1k
b) the combined value of the goods and shipping exceeds 1k

so which one is it ?

if its the value of the tires only .. does that mean that if the exchange rate changes and the 996USD turns into >1000AUD
i will get charged ?

im thinking of just splitting the order and avoiding headaches .... fees will be around the $300 mark im assuming ..

what to do ....



in return ... vw's !

[OEM G60]

I think you'll be alright having a quick read of this - hope it helps...

http://www.customs.gov.au/webdata/resources/files/ValueofImportedGoodsApril2011WEB.pdf

http://www.customs.gov.au/site/page4368.asp

[rayray086]

I think you'll be alright having a quick read of this - hope it helps...

http://www.customs.gov.au/webdata/resources/files/ValueofImportedGoodsApril2011WEB.pdf

general imports

Someone provide cliff notes please? I do enough reading for uni as it is

[zbeasty]

Basic answer is that, no, freight paid to get the goods to Aus is not included in the customs value upon which GST and duty are charged. If you pay freight to get the goods from a vendor to a port then the goods are shipped from that port then technically that portion of freight would be included. Eg would be if you bought from a company who wouldn't export but would send it to a mate in that country who could ship for you. The freight cost from the company to your mate should be included in the total cost but customs would have to know what that cost was.

[Corey_R]

Basic answer is that, no, freight paid to get the goods to Aus is not included in the customs value upon which GST and duty are charged.

Be careful there! Whilst freight and insurance are NOT included in that $1000 goods threshold calculation, once the goods value have been exceeded, the freight and insurance (and custom duty) are DEFINITELY included in the GST charged.

As per this customs.gov.au page

[AlexRO]

thanks all for the input,

cliffs -
- the transaction value is the value you have paid for the goods
- freight charges and insurance charges do not contribute to this (However - "any inland freight and inland insurance costs incurred
by the purchaser before the goods leave the ‘place of export’ are included in the Customs value ")
- The cost of packing overseas, such as labour and packages, is included in the Customs value of the goods (how would they ever figure this out??)
-Rate of exchange on the day of purchase is used


So i should be in the clear with the $996 purchase if they dont add on any "inland(US) freight or packaging charges" to tax me with
taxes come to ~200 if it goes over .. ill take the chances rather than willingly paying more for a split purchase

[MattyT]

Have purchased rims from tirerack at just over $1k and wasn't charged. Lucky me I guess. Others I know who have bought from tirerack have been stung with fees though. It's just the luck of the draw really.

[kapowww]

I recently bought wheels from the US worth over a grand and got money ready to pay duty (plus duty on the $650 for shipping), but to my surprise I received the goods and saw the seller wrote $800 as the price of the goods on the receipt.

[airofu]

Reading up on the Custom's site they base the tax on the "Australian Value" of the product? So if you purchase a set of tyres for $500US but the retail value here is $2000AU they will just get you based on that amount?? So really it's got nothing to do with the amount written on the original invoice in american dollars?

[Corey_R]

airofu, the section you were reading discusses how the value is determined if there is no invoice of purchase, the invoice is determiend to not be valid, or there are other factors (such as it being intra-family or intra-business or something).

If there is a valid legitimate invoice and no other reason for customs to believe the transaction isn't valid and reasonable, it will go on the invoice.

[airofu]

Ah ok - that sounds a bit better I assume they convert the currency to AU? Does this include shipping costs? Reason I ask is that Tirerack stuff tends to be quite borderline on the $1000 cut-off EG. $900US for tyres - $300 shipping .....

Have most people actually ended up paying customs when they ordered from Tirerack?