Shipito and Customs Value [Archive]

simonl

16th May 2015, 08:16 AM

Hi Stuart,

I was always under the impression the custom declaration was for the actual cost of the item, not including any transport costs. Last year I was contacted by customs, they wanted to "audit" a purchase I brought back through shipto. The order consisted of 3 vernier calipers that I bought for myself and two others. They wanted receipts, and copies of emails etc. Luckily, I was exact with my declaration and I kept all the receipts eventhough it was about 3 months after I purchased them. I didn't include the shipping costs in the declaration and I never heard anymore from customs so I assume they were happy with me. Phew, no one likes to be contacted by customs, not that I did anything wrong! :D

Simon

markgray

16th May 2015, 08:56 AM

Hi Stuart,
I also have never included postage and never had a problem. Try and not go over $1000 Au as your parcel will definitely be reviewed and this can cause significant delays. Always keep all receipts and be accurate with your declaration and you will have no problems.

Mark

Pac man

16th May 2015, 09:04 AM

If you choose to use TNT there is a message on the Shipito site about having receipts up to the value of $750. My last experience with them was painful. Basically I had to get every receipt, paypal, EBay, email etc and provide it to TNT to prove the stated value before they would release the items. This was via Sydney.

bob ward

16th May 2015, 10:26 AM

No, just what you paid for it. But be accurate, customs have no sense of humour if they catch you trying to pull a swifty.

barkersegg

16th May 2015, 11:06 AM

From my understanding, basically in these type of importations, duty is calculated on the FOB (Free On Board) price of the goods...that is all those charges incurred on the goods up until it is placed on board the ship/aircraft for delivery at the place of export...that is the general valuation they take for calculation purposes and that includes all internal charges to get your parcel to the place of export - there are some exceptions but that's the general rule adhered to. If you are sending through the postal system, best to keep your values below AUD$1000 as Customs does not normally collect Duty and GST on values less than that....BUT they can legally charge you duty/GST on any amount as the $1000 is just a procedural instruction for them somewhere along the lines they estimated that for what they obtain in duty etc, the cost of collecting it is more than received....so they normally don't bother.

As suggested, keep all receipts and invoices in case you need to verify any details and equally you as the importer are required under the Act to provide such when asked.....Hope that helps...

.RC.

16th May 2015, 02:19 PM

cba_melbourne

16th May 2015, 03:32 PM

I always feel a bit torn when the subject of importing stuff comes up...

I like the cheap prices we can get from overseas, but the other side is all those people losing their skilled productive jobs because we import so much... And those jobs are replaced by essentially low skilled paper pushing non productive jobs as we create ever more jobs in the regulation industry to oversee what remaining productive jobs we have, which raises costs even higher...

But I still import from overseas...

I do not think the kind of metalworking things under $1000 that we import, take away any "skilled productive jobs" at all. Remember, the vast majority of these jobs were lost long before the advent of online shopping some 10 or 15 Years ago. And before 2000, how many did bother to import their own goods? Was it in 1980, when Victoria derived more than 30% of GDP from manufacturing? It has been quite stable around 10% for the last 15 years, no big changes.

What these imports do is reduce some of the excessive importer and dealer margins, that we have been forced to put up with for far too long. I personally see that rather as a healthy thing.

Did I mention the Husqvarna chainsaw I bought from the USA for under AU$600 including the postage and two genuine extra chains? The exact same model costs here $1,290 - and no matter how good one is at haggling, they won't give you more than 15% discount. The American seller was still making an honest profit. But the profit that the Australian importer makes is anything but honest, its blackmail and theft.

Evanism

16th May 2015, 04:11 PM

Comgateway split my shipment up into two packages so they would come in under $1000.

They are good.

Stustoys

16th May 2015, 09:05 PM

Thanks guys, its going to be a multiple piece shipment anyway(at least 3 maybe more), so as I'd likely be nudging the limit anyway, so I'll include postage and just leave some of it there until item 16 turns up and then being the rest in. Internal US postage is up over $215AU. It will cost me more in postage but will save me any issues with GST.

Personally I blame Bob ;)

No aussie manufacturing jobs harmed here, its almost all second hand and I dont think any of this sort of gear was ever made here, if it was it was almost certainly a long time ago.

Stuart

simonl

17th May 2015, 08:53 AM

You're killing me Stuart. What did you buy this time?

WesP

17th May 2015, 11:44 AM

But the profit that the Australian importer makes is anything but honest, its blackmail and theft.

Yet, they crying "Buy Australian" that means: from them - regardless where the stuff was made indeed.

.RC.

17th May 2015, 12:10 PM

But the profit that the Australian importer makes is anything but honest, its blackmail and theft.

The importer being Husqvarna Australia and the RRP is dictated to the retailers.... Of course I do know what you mean though with other importers/retailers...

But with engines and such you can run into unexpected things... US has strict emissions controls that are now mandatory for everything imported/made in the US...

Australia still has zero emission requirements for off road engines... We recently bought a Stihl MS660 chainsaw... I looked at grey imports, but the US version outputted 6hp, the Australian version 6.5hp... The american one is crippled due to US emission regulations.. So no warranty, crippled chainsaw and only $200 more expensive for the AU version.... We went with the local seller..

Efficient diesel engines like Listeroids are not able to be imported as complete units into the US, they do not comply with emissions regulations..
A day will come when these laws will come into Australia....

cba_melbourne

17th May 2015, 02:35 PM

..........
But with engines and such you can run into unexpected things... US has strict emissions controls that are now mandatory for everything imported/made in the US...

Australia still has zero emission requirements for off road engines... We recently bought a Stihl MS660 chainsaw... I looked at grey imports, but the US version outputted 6hp, the Australian version 6.5hp... The american one is crippled due to US emission regulations.. So no warranty, crippled chainsaw and only $200 more expensive for the AU version.... We went with the local seller..

....

Yes, with engines one has to do his homework first. In my case, I consciously choose a model where the only difference was the OHS stickers and the carburetor, and of course the fact that there is no warranty in Australia. They had put plastic collars around the jets to limit adjustment range, apparently the US EPA requires that. Apart from that, power etc is all the same. I bought in 2012 when the US$ was below the AU$ exchange rate, and I really paid half the local price postage included. But I know what you mean, there are new model chainsaws out in the US with computer controlled engines to reduce emissions, probably with poor power and short lifespan and certainly a nightmare to maintain.

As for Stihl, I have tried long and hard but I could not find sellers prepared to export from the USA. Despite big price differences. Mind you, many Stihl products are manufactured in the USA (not in Germany as most seem to believe). The American Stihl factory seems to have a firm grip on their US dealers - looks like if you get into grey exporting, you will instantly loose the dealership. Essentially that is cartel behaviour, and I am surprised that it is legal in the supposedly free market ultra-capitalist USA.

Stustoys

17th May 2015, 06:07 PM

You're killing me Stuart. What did you buy this time?
Mostly metrology gear, from a 0.2 arc second autocollimator, a 0.00002" DTI + stand for my 0.00001" DTI to wiggler(ok the wiggler came with a set of 1/2 small hole gauges). I might have gone a little crazy for a few weeks there ;)

Stuart

p.s. Of course it has to all survive the trip

Bushmiller

17th May 2015, 07:26 PM

So I've been doing "a little" shopping and its time to get it all home.
Do I need to include the cost of postage to the shipito warehouse in the customs value?

Stuart

Stuart

No you don't. However you do need to be wary of the exchange rate (currently diabololical).

Recently, we kept the consignments to US$690 maximum to make sure we were well under the A$1000 limit for customs.

Fence Furniture is the Shipito expert.

Regards
Paul

FenceFurniture

17th May 2015, 08:39 PM

Domestic shipping cost within the USA is not included.

If you are going to send multiple items, make sure they don't arrive on the same day (or preferably the same week). If two shipments for a receiver arrive on the same day even from different suppliers in different countries then they will be bundled together for customs assessment. If they are assessed as GST and Import duty liable then the international shipping cost will attract GST as well (but is not included in the $1000 threshold for assessment).

If you are using TNT as the freighter from Shipito then <$700 means you do not have to upload the invoice. For >=$700 the invoice has to be uploaded before they will let it leave CA. This is why with Bushmiller recent purchases we kept it under $700 - didn't fancy uploading 30 or more different eBay invoices, and I very much doubt that the system would take that many anyway.

Stustoys

17th May 2015, 09:46 PM

Thanks guys. I thought the postage to Aus would be included in the $1000 limit. If its not then its not an issue either way as I'll come in under $1kAU anyway. I'm not that fussed about paying an extra $100 if it came to it, its more the paper work I'm thinking about and also being sure not to get the tax man angry.

I've only used Shipito once and that came DHL and most of my calcs have come out as DHL for this lot. They will be coming as multiple piece shipment as I don't fancy shipping a 12kg autocollimator with an 11kg Dial indicator stand(its not a DTI as I called it in my last post.) I'm up to 35kgs(though that will change a little)

Stuart

FenceFurniture

17th May 2015, 10:02 PM

Just one other point which is relevant if you are getting close to the $1000 mark. It doesn't matter what the exchange rate was on the day that you paid for it. Customs use the mid-market rate on the day of shipping from the USA. That is, if the rate has dropped since you paid for it then it could push over the $1000 limit. Best to keep it to around $950-965 to allow for a few % fall in the AUD. I'd be very surprised of DHL wasn't considerably more than TNT Express (which is somehow cheaper than TNT Economy). Sometimes the TNT Express option doesn't come up on the calculator, or even on the "Set Shipping" function, but it usually will if you change the address to another receiver because you have to go through the whole shipping process then anyway. There's a hint in that last bit on how to get two separate packages sent on the same day with a value of over $1000 too.... If you still can't get THT Express to apply then have a chat with one of them, and they should be able to help. Also, if the goods are second hand (and I think I remember reading that they are) then GST doesn't apply anyway, but you'd do well to check the Customs site for that: http://www.customs.gov.au/ Apologies if this post isn't formatted into separate paras - something weirdo happening.

FenceFurniture

17th May 2015, 10:39 PM

Also, if the goods are second hand (and I think I remember reading that they are) then GST doesn't apply anyway, but you'd do well to check the Customs site for that: http://www.customs.gov.au/ Doesn't look like that's the case (which is a surprise). See here: http://www.customs.gov.au/faq/ClearingCustoms-ImportsbyPost.asp and go down to "My goods are for my private or personal use...." where it says second hand goods are assessable.

Stustoys

17th May 2015, 11:10 PM

ok While we are all here, an idea I had was to "consolidate" for e.g. the autocollimator (25.80 lbs (11.7 kg)23"×15"×10" (57×39×25 cm), keeping the outside box into a 36" × 17" × 17" box and adding bubble pack and a couple of books. Just to get some extra padding, crazy waste of time?

Stuart

FenceFurniture

18th May 2015, 12:25 AM

The more stuff you send in one box (of less than $1000) the cheaper per kilo it gets. You would to use a "Special Instruction" to tell them how you want it packed - cost is $5 from memory. Make sure your instructions are idiot proof - there's a very good reason for that.

Bushmiller

18th May 2015, 09:18 AM

I did a calculation to see find the most economical weight (per Kg) and it was 39Kg.

This took into consideration the penalties for >30lbs,>70lbs, >100lbs etc. The cost per Kg went from about $11.89 for 19Kgs to $7.64 for 39Kgs. Bear in mind this was through TNT Express and was some months ago: Things can change.

Just looking back through the figures, you could send 27Kg for the same price as 19Kg at that time.

Regards
Paul

Stustoys

18th May 2015, 05:33 PM

Sometimes the TNT Express option doesn't come up on the calculator, or even on the "Set Shipping" function, but it usually will if you change the address to another receiver because you have to go through the whole shipping process then anyway.
It seems to be something to do with the postcode. If I use "3000" I get TNT, any other Melb suburb postcode I tried TNT wouldn't show. Though 3000 doesnt work for MPS. Really not sure about putting all my eggs in one basket ;)

I asked them about the postcode thing......

you can try adding a deposit to your account
and see if it becomes an option
at least for the package you are trying to mail out

So I dont like my chances of getting TNT lol
At 80lbs DHL is cheaper than TNT anyway.
This is doing my head in
1 package 80lbs 36*17*17 $700 to 3000
DHL $278.59
TNT $309.05
2 packages 40lbs 18*17*17 $350 to 3000
TNT $279.56
DHL $313.12
What the???

Stuart

FenceFurniture

18th May 2015, 06:01 PM

For the big package I get $257.57 to Katoomba 2780. Same for Melb 3000. Same for HEIDELBERG 3084. Same for CRIB POINT 3919

Stustoys

18th May 2015, 08:53 PM

From Minden NV by TNT? I am still getting $308.05. Even the discounts for silver, gold etc is only gets down to $292.65.

Ok I think I've found half my problem, for some strange reason I assumed it wasn't looking at the city and only using the postcode, so I had the city as Melbourne:wink:. So I seem to have that working, though I'm still not getting TNT on MPS.

Stuart

FenceFurniture

18th May 2015, 09:41 PM

No, from Hawthorne CA. Maybe you need to move it there? Dunno what that costs though. IIRC that's the cheapest place to freight out of.

Stustoys

18th May 2015, 11:17 PM

Thanks for that.

Stuart

Stustoys

19th May 2015, 03:28 PM

FenceFurniture

19th May 2015, 03:47 PM

Ok it seems shifting to another warehouse will cost more than I save....... though I might run the maths again.

I finally got to the bottom of the TNT issue. TNT seem to not like that I put "North" in front of my suburb and not after it.

StuartYairs.....beats the hell out of me why it doesn't just work on the postcode. It's not like the 'Mericans would know where the place is anyway.....

Stustoys

20th May 2015, 12:27 PM

I guess its used as a cross check, but boy did it lead to some head scratching lol

Well they should be on the way shortly.
Things don't seem to have gone exactly to plan. I asked them to consolidate 4 packages into 2 packages, a large item some what delicate item and a small unbreakable item and to add extra bubble pack..... the idea being to get the large delicate item some extra protection by adding another layer of bubble and cardboard. That doesnt seem to have worked, it looks like the small item was put into the large items box :( the only plus is its be plactis wrapped so at least I'm not likely to lose anything. I dicided to suck it up as I'd rather take risk than have someone repacking "angry".
The rest of the items went in one box. As TNT have a limit of 3 on MPS (DHL is 10, and unless you are going to remove a lot of packaging in consolidate, MPS can be about the same price)

Stuart

Anorak Bob

20th May 2015, 03:44 PM

Stu,

I mentioned to you that I was fearful of opening my consolidated package and finding the Reglus clinometer turned to Swiss confetti because I had asked Shipito to remove the original shipper's packaging. Well, to my delight everything was neatly encased in bubble wrap and everything survived the journey unscathed. The, still in it's unopened plastic wrappers complete with 1976 grease, TESA depth micrometer was the prize in the box. I do like Shipito.:)

I will be keen to find out how the collimator fares.

BT

Stustoys

20th May 2015, 04:06 PM

Great to hear it made it Bob, along with your other goodies (I assume pictures to follow ;) ).

I have my fingers crossed. If things go as quickly as last time, I'll find out Monday. If only I had somewhere to put them lol

Stuart

FenceFurniture

20th May 2015, 04:55 PM

I booked my very first Shipito package at 9am one day and it arrived at the destination (Sydney) at 11am THE NEXT DAY! 26 hours from booking to delivery.

Never been the same since though (but still pretty good).

hiroller

21st May 2015, 10:24 PM

The other consideration is that if the amount goes over $1000, then Customs Duty may also apply.
There are import duties, usually around 5%, still applicable to 1000s of products.
This is applied before GST.

You can check them here: http://customs.gov.au/tariff/tariff2012.asp#Schedule3
Interestingly, this includes sharpening media such as cutoff wheels, grinding wheels, oil stones, water stones, diamond plates etc.
http://customs.gov.au/webdata/resources/files/HT68AW.pdf

Stustoys

21st May 2015, 11:15 PM

Happily I wont be going over $1000 :) I had a quick look at the links and my eyes started to close! lol I wasnt fussed about the GST but working out duty looks like it could be painful, makes me glad I didn't got to 1000

Tracking hasnt gone live yet :(

Stustoys

25th May 2015, 04:37 PM

Well it all made it here at 1pm today.... visual inspection its mostly intact. One book has a slash in the dust cover from shipito(you can even see it from their pictures) the auto-collimator's box had opened but it looks ok(for what thats worth).

I'll post pictures shortly in the normal place.

Thanks to all

Stuart

FenceFurniture

4th June 2015, 09:11 PM

Domestic shipping cost within the USA is not included.That's actually NOT the case. I have just read a PDF from the Customs site, and I quote:
"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."

FenceFurniture

4th June 2015, 09:33 PM

And some more info from the website:

http://www.customs.gov.au/faq/DutyGST2.asp
How is the exchange rate calculated? Rates of Exchange are determined by the export date of the goods. (i.e. NOT the day you paid for them)

If you have several mail articles arriving from the same sender within a few days of each other, the mail articles are considered to be a single consignment. If the total value of the combined mail articles exceeds $1000, an import declaration is required.

That first point is something I've long been aware of, and it can be a right PITA. If the value of the package is $990 on the day you pay for it, and the $A drops in between then and when it is sent then the value could easily go over $1000. That's why I aways work on getting the package filled to only about $950-960 which allows 4-5% fat in the ex.rate.

This is particularly important when you cannot govern when the goods will be despatched - say something goes on backorder for a while and the exchange rate drops in the interim.

Many is the time I've had to fool around getting things taken out of packages and put into others to stay within the limits.

Stustoys

4th June 2015, 09:38 PM

That's actually NOT the case. I have just read a PDF from the Customs site, and I quote:
"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."

Well its to late now!
It wouldn't have made a difference anyway, I was under $1k.... though it would have meant needing to do the TNT paper work for being over $700. I would have been over if I'd had to include postage to Australia but that's not the case.

I doubt there will be a "next time"

Seems barkers had it right. Why couldnt I find that pdf when I was looking?
http://www.customs.gov.au/webdata/resources/files/ValueofImportedGoodsApril2011WEB.pdf

Stuart

Oldgreybeard

5th June 2015, 10:03 AM

simonl

5th June 2015, 10:30 AM

I haven't imported much since retiring, but before then I always requested that quotes and invoices were "Free on Board" (FOB) and include insurance. This was on the advice of my accountant and we never had any problems or queries from relevant authorities.

Another option may be to request quotes and invoices based on "Cost, insurance and freight" (CIF). This was preferred by one supplier who claimed it overcame potential problems with customs at thier end - I don't know what those problems might have been.

Bob

I thought that was only relevant if you imported something and "rented" space on a container and used the services of a freight forwarder, paid port charges etc. etc. That's a lot different to just going through the post or using a freight company.

FOB or CIF is the go with importing, otherwise the supplier just dumps it at the port at their end and you have to organise the rest.

Simon