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26th April 2010, 01:15 PM #1Senior Member
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Costs of Importing Machinery from China - REPORT
Having just imported a HM-52G mill, and about 800kg of other mill/lathe accessories, I thought I might let everyone know what the result was in regards to duty, freight, and GST. I posted this info elsewhere, but thought it deserved its own thread.
There were over 100 accessories that appeared on my invoice, all of which had to be classified according to Customs tariff classification scheme.
This was done by a Customs Broker that was employed by the Freight Forwarder that I used to bring in my goods from Qingdao. I am glad that I paid them (AU$175+GST) to do the job - I would have classified the items differently. This fee is regardless of the shipment size. If I classified the items, some would have attracted Import Duty - they classified all items as Duty Free! Very happy with that!
Sea Freight was very cheap. It was charged at the actual cubic volume of the shipment to three decimal places - 4.491m cubed, at US$45 a cubic metre. Came to AU$219.57 - no GST. I have seen 20' containers being shipped from ports in China to OZ for US$300 - short notice shipping to fill up a vessel.
Unloading charges at Fremantle added much more to the cost than the freight. Cost twice as much to get it off the ship to a warehouse 2km away than it cost to get it from China to Australia. ?! These charges are charged at a rate of AU$110+GST per cubic metre. Came to AU$543.41 - inc GST. These charges are related to having a Less than a Container Load shipment - I believe this is where the Freight Forwarders make their money. A full container would still cost more dollars, but it would add less to each cubic metre.
Australian Quarantine charges were low - they accepted all the documents provided by my suppliers attesting to the treatment of the timber, and that the machinery was all new and had not been field tested/used. If these documents had not been in order, there would have been AQIS inspection and possibly treatment charges. But in my case the charges were AU$164 - no GST on this lot. There were two other charges as well - relating to Cargo Automation Fee and a Delivery Fee - came to AU$121 - inc GST. These charges are all on a per shipment basis - larger orders would attract the same costs.
Total invoice value from my suppliers was US$7660 - split between two suppliers at US$745 and US$6915. As one of these invoices is under AU$1000, no GST was charged. The other invoice was converted to AU$7513.47 - excluding GST. Freight was added to this value, and then 10% GST was applied. GST came out as AU$783.91 - obviously no GST is added to the GST!
So - totals. Invoice values of AU$8322.47. Total import/freight/Customs/Quarantine costs of AU$2024.40. This gives an import cost of less than 25% of the Invoice value. And this is for a small order - if you bring in a FCL (Full Container Load) it would be a lot cheaper per cubic metre/item.
IMPORT charges DON'T explain the large discrepancy between the cost from the manufacturer and the retail price in Australia - local suppliers seem to have a very, very healthy profit margin, obviously at our expense
So Import costs DON'T explain why we get ripped off by local suppliers- which is why I will continue to shop overseas. Don't be restricted by local pricing - look overseas for your goods. As we all know - they are made in the same factory anyway.Last edited by Big Shed; 28th April 2010 at 01:05 PM. Reason: Added text at request of OP
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26th April 2010 01:15 PM # ADSGoogle Adsense Advertisement
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26th April 2010, 02:23 PM #2
Interesting reading, ta
Have a good one
Keith
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26th April 2010, 03:37 PM #3Senior Member
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So have you worked out how much all this would have cost if you purchased from Australia?
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26th April 2010, 03:52 PM #4Visit www.inthewoodshop.com for tutorials on constructing handtools, handtool reviews, and my trials and tribulations with furniture builds.
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26th April 2010, 04:05 PM #5Dave J Guest
Interesting,
I have no problems with importing tooling, but when it gets to machine I think a bit different.
As we all know I had problems with 2 HM52's mills, they were picked up both times at there expense and returned to the store and was replaced with a better one.
If there is a problem with an imported one, it's a long way and expensive to send it back, and who is going to have to pay?
I have read and looked at a photo were a US fellow imported a lathe that had a hole in the main way. I am not sure how it's turned out, but thats the risk you run importing your own machinery.
Dave
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26th April 2010, 04:21 PM #6Pink 10EE owner
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One advantage of importing a machine is you get to choose what you want...
Don't be fooled into thinking what you see in the shops is all that is produced...Importers only import what they think they can sell.. There are a lot of various machines made in China and elsewhere that you will never see imported here as they would never sell them...
Large manual milling machines that for all intents and purposes are obsolete because of CNC are still made new in other countries, planers, shapers are still made new in other countries...
Even Takisawa still list a manual lathe on their Japanese website...Cost would be prohibitive but they still list it.... Even Monarch still list the 10EE as being available new for an ~US$80 000 sum of course..
Have a browse on this site to see what is available http://www.machinery-china.com/web/index.asp
Takisawa lathe http://www.takisawa.co.jp/products/index-02.htm
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26th April 2010, 05:15 PM #7Dave J Guest
Hi RC,
I saw your posting on PM about other types of Chinese machines. The only thing with a 1 off machine in the country is parts. If you buy something that is also sold here you have a better chance of getting parts for them, especially if the company ever folds in the future.
Dave
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26th April 2010, 07:58 PM #8
Hi Mark,
Congratulations on successfully importing the HM52, I would have been a bundle of nerves waiting to see if it arrived. I'm still waiting on my HM52 from H&F.
That said, I buy most stuff (electronic components) direct from US distributors, and I get my PCB's from a company in China, but importing a whole container load, wow, that is a whole other ball game.
Thanks for the details on the shipping charges, very interesting.
Regards
Ray
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26th April 2010, 10:22 PM #9Senior Member
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The value of the goods I have imported, when added up from H&F's catalog is over AU$24000.
The terms of the warranty agreement I negotiated with the company owner while I visited him in China was 12 months parts, all shipping at their expense via Courier/Air Mail. Items would not need to be returned for repair - just replaced, or the parts to repair would be sent if possible.
I didnt go into this like a lot of people would - they see the prices and dont consider the medium/long term picture. I did my research, I sent hundreds of emails, I requested photos, I went to China, I visited the factory, I meet the companies owner, I dined with the factories manager. The company has been making tools for 20 years, and they export all over the world, including to H&F.
A saving of AU$14000 is worth risking some hassles over IMHO - if someone was to think it isnt then they should buy from Australia and shouldnt whinge about being overcharged. Join the "global village" and buy where you get good service and prices, regardless of the location. This isnt for everyone - but my situation/needs allowed this approach.
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26th April 2010, 10:44 PM #10SENIOR MEMBER
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Thanks for the report!, I'd been tempted to import direct based on the obvious price differences I'd paid for identical dial gauges and micrometers at CDCO in the USA vs H&F in Australia. If I recall correctly the one inch to three inch micrometer set was US$39 vs AU$121 for exactly the same item (Measumax) so I bought a heap of stuff that fit into a US$40 prepaid box and it arrived in nine days.
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26th April 2010, 11:19 PM #11Pink 10EE owner
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Wow, that must have been a lot of accessories.. 800kg worth...
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27th April 2010, 12:36 PM #12
Did you include in your costings your trip to China and the amount of actual time you spent setting up this import?
Cheers.
Vernon.
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Bite off more than you can chew and then chew like crazy.
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27th April 2010, 04:31 PM #13GOLD MEMBER
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27th April 2010, 05:17 PM #14Senior Member
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Did you include in your costings your trip to China and the amount of actual time you spent setting up this import?eskimo - Probably not but how revelant is it anyway...
going overseas is as good as a holiday<
one own time is your own...you aint forking out hard earned cash for someone to do what one can do himself,
and can/would it really all add up to what the retailers want anyway?
2 days of meetings out of a ten day trip was not a great sacrifice - every meal during those two days was at their expense too. I went to China because of the machines and made a small holiday out of it. Visited Hong Kong for some duty free, visited the Industrial Autonation trade show in Shanghai to collect some VSDs and check out some DROs and tooling(imported two DROs and 6 scales from EASSON direct for about AU$800 - the same ones that H&F will sell to you for AU$3454 according to their catalogue), got to meet lots of the locals, travelled on some fast trains(380km/h), climbed the Great Wall in 6" of snow, and walked Tianamen Square in Beijing. Not that much of an imposition is it?
As for my time - it isnt factored in. At the minimum wage(which I am NOT on) it would be about 6 months full time work to equal the savings I made of AU$14000 - apart from the China Trip it wouldnt have taken more than 5 days of my time - after work, surfing the web, looking at catalogues and sending emails. I dont get paid AU$2800 a day, so it saved me money!
Given the number of PMs I have received in relation to this story, it has given lots of people options about where to buy their gear.
I was considering posting up photos of all the gear I purchased, some results after I have tested them - TIR, photos of finished work, etc, and prices for the gear - but only if people are interested. It would take a while - I am off for 2 weeks at the end of April - but I will be getting stuck in to everything when I get back. Lots of cleaning to do to get rid of packing grease, and then take the photos.
Interested or not? Let me know.
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27th April 2010, 06:36 PM #15
The notion that Aussie suppliers are ripping us off was brought up in this thread and it was justified by comparing your costs to what the suppliers charge retail. Now that is really not fair, when you don't include ALL of your costs and also don't factor in additional costs the suppliers have, that you don't (overheads, employees, warehousing, warranty costs, etc) and a reasonable profit margin.
It's all fine and good to extol the virtues of buying direct from a manufacturer/supplier overseas (and I do it often myself), but to then use that as ammunition against local retailers without the proper analysis, is in my book, poor form.Cheers.
Vernon.
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Bite off more than you can chew and then chew like crazy.