Thread: Importing Tools from USA & Canada

Don't know about Canada, but don't we have an FTA with the US?

Therefore, if the item was manufactured in the US, shouldn't it be duty free?

Or am I missing something?

Originally Posted by Island Nomad

I have been importing hand tools for some time now. However all of my purchases have been in the cost range of $200-$700 Aus.

Does anyone know if there is a problem doing this for orders over $1000 Aus? As I have heard that it may present some problems with Duty & Customs.

regards

Nomad

I don't know about nowaday but you did have to pay duty on other items that came from O/S, you best ring them up and ask!

Nomad

From my experience, if the package (goods plus postage) is worth less than about $250 AUD it costs more to collect the duty than the duty is worth so Customs usually let the shipment through. However, if you make a habit of regularly importing small quantities (to slip under the net so to speak) don't be surprised if Customs remind you occasionally that they're there by hitting you for duty and GST.

If the package is worth more than $250 AUD consider yourself lucky if it gets through without custoims charging duty and GST. For an item made in the US which costs $760 USD, equivalent to about $1000 AUD, with shipping adding a further $100 AUD say expect to pay 3% duty on $1000 (=$30 AUD) PLUS 10% GST on the total shipment cost $1100 (=$110) i.e. the "customs duty" = $140 AUD.

Packages marked "gift" are usually duty free but you need to watch the frequency and total value.

Rates of duty vary with country of origin and the type of goods. Cotton shirts from China (via the US) attract a different rate compared to tools from either the US or Europe. The $250 figure predates the Aus-US FTA agreement, so the amount may have been increased a bit when the duty dropped to 3% from 5%, so treat the $250 figure as a good rough guide.


ian

I recently had a package from Lee Valley intercepted by the ACS, and had a purchase cost of CAD$360; however, the GST component (duty didn't apply in this case, I was told) was under AU50, the chap at Customs that I spoke with said that they didn't collect any monies owing if the sum was less than $50.

Given the fact that what the package contained was on the shipping note, plus a declared value in CAD$, I'm not sure why they bothered at all - unless just to give an innocent Basson a gentle nudge

Anyway, said package arrived next day - only for AP to take it back to their deport as there wasn't anyone at the delivery address to sign for it. Gahhh!

Cheers!

Just spoke to customs and they pointed me out to the latest rule which applies from 12 Oct 2005.
Yippeeeeeeee !!!!!!!!!!!!!!!!!!!!!!

AUSTRALIAN CUSTOMS NOTICE NO. 2005/57

Formal import entry and revenue collection thresholds in the ICS

On 8 October 2005, the

Customs Amendment Regulations 2005 (No. 6) - No. 230 of 2005 – and Customs By-laws Numbers 0540003 and 0540004 will commence.

Entry/declaration

The Amendment Regulations prescribe a value of $1,000 for subparagraph 68(1)(f)(iii) of the

Customs Act 1901. This means that goods imported other than by post, that is by sea and air cargo, that have a value not exceeding $1,000 will not have to be the subject of a formal import entry. This amendment aligns the threshold value of such goods with those imported into Australia by post.

Revenue liabilities

New Customs By-laws Numbers 0540003 and 0540004 apply the ‘Free’ duty rate under Item 32A or 32B of Schedule 4 of the

Customs Tariff Act 1995 to a consignment of goods imported into Australia if the customs value does not exceed $1,000. Section 42-5 of the A New Tax System (Goods and Services Tax) Act 1999 specifies that if these goods are duty free, they are also non-taxable importations. As with the By-laws they replace (Numbers 0040019 and 0040020, which have been revoked), the new By-laws specifically exclude consignments containing tobacco, tobacco products or alcoholic beverages. This means that duty and tax must be paid on these products, irrespective of value.

By increasing the formal entry threshold for air and sea cargo from the levels established in 1975, and directly aligning the formal entry and revenue collection thresholds, the Government intends to simplify the customs clearance process for a large number of importers of low value goods.

Application provisions within the regulations and the by-laws apply the new formal entry and revenue collection thresholds to goods due to arrive at or after the import cut-over time for the Integrated Cargo System that is planned for 12 October 2005.

The amendment regulations and by-laws can be viewed on the Attorney General’s Department’s ComLaw website (http://www.comlaw.gov.au).

For queries concerning this ACN, please contact the Manager, Legislation and Development by phone on 02 6275 5977 or by fax on 02 6245 5446.

Regards
A very happy Les

Good pickup Les.

The old rule was $400, but the department would not collect tax of less than $50 so, where the tax was just the GST, you could bring in up to $500.

The new limit will make a difference to all of us who shop around outside of Oz.

Rob

Les,

That's pretty good news, as I read it any item shipped into Australia from anywhere in the world, which costs below Aus $1000 (goods & freight) does not incurr Import Duty or GST.

FANTASTIC!!!!!!!!!!!!!!!!!!!!!!!

thanks for the advice

Nomad
PS Thanks to all for your input!!

But watch out for UPS - the scumbags will still try to charge you over $60 for 'processing' your customs declaration, regardless of the fact that no duty or charges to customs are due.

They just tried to do that to me, but when I complained, my call got bumped from Bombay (or where ever) to an 'Oz' speaking manager, who claimed it was: an accident, all Customs fault etc. - the end result being they 'agreed' to waive any charges, so I then asked them where was the parcel? They are still looking for it apparently & haven't bothered to ring me back.

And if they think you are an easy touch, I suspect they will find all sorts of 'extras' to charge, even if not required, such as pest inspections etc., which they started doing to an acquaintance of mine - on fencing foils!

Needless to say, I always insist on items being sent Post rather than UPS - sometimes the shipper makes a mistake.

I just got smashed by DHL Express. Imported a small piece of timber from U.S which only cost AU$100. Item was delivered, then a few days later I receive a bill for $47 "Quarantine Processing Fee"
I was pretty sure the item was to be shipped by seamail, which I have never had problem's with before, but it must have been shipped by Air. Don't think there is much I can do, but bend over and.................!#^*

Note; always use surface shipping...............

I've had afair bit o stuff sent from LV, quite a number of times over the old $200, 0r $250.00 or $400.0 or whatever othr varied rate happened to be popular.

All i ever got was one package taped up with a mile of sticky tape and a note to say it had been opened by customs or quarantine, saying, sorry for the inconvenience have a nice day.

Always use U.S.Postal.Service. Private carriers, like UPS, Fedex and DHL, charge customs processing/brokerage fees, or whatever they like to bring it through. I knew this, but was not aware it was being sent by them............lesson learnt.

Regarding shipping...

I never ever use anything other than the USPS or Canada post or whatever.

Simply because...

If you use USPS, it flies on the same plane as the Fedex stuff does. At least to here it does anyway. Standard time for USPS is 4-6 days, Fedex (once only) was 3 days.

Just a tip.

BTW, if they won't send it USPS, then I'll go somewhere else to buy it. It usually works out cheaper in the end, and doesn't take enough extra time to worry me at all.

Originally Posted by lesmeyer

This means that goods imported other than by post, that is by sea and air cargo, that have a value not exceeding $1,000 will not have to be the subject of a formal import entry.

Sorry maybe I am confused but I read the line above to indicate that this law will not change anything for people like us that are buying online, rather it is an allowance for people (businesses) who are freighting goods in.

Hope I am wrong though!

Originally Posted by anthonyd

Sorry maybe I am confused but I read the line above to indicate that this law will not change anything for people like us that are buying online, rather it is an allowance for people (businesses) who are freighting goods in.

Hope I am wrong though!

Anthony,
previously the method of shipping always decided the threshold used to determine duty/gst payable or not. What has now happened, the shipping method is no longer used to determine that, ie. previously if a courier was used, it was not regarded as postage, but air cargo. In this case then if the duty + gst was less than $50 they did not collect. That is why some imports that came via post (USPS etc) did not have the problem if below AU$1000. When I spoke to customs yesterday, this was the explanation given to me. Previously I also thought that the $1000 limit was for all imports and burnt my fingers once.
Hope this makes it clearer.
Les