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      02-04-2015, 12:22 AM   #1
CashedUpBogan
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customs clearance from UPS advice

I purchased a set of wheels from a reputable American retailer and when I asked how much shipped to my tire shop, they said $500.

The wheels arrive in a few days and I got a call from UPS Australia saying that I had to pay the following :

"Below are the costs, not including any duties, taxes or possible Australian Quarantine Service fees:

Customs Brokerage charge = $145.00 (if you elect to utilize the UPS brokerage service)

Terminal Transfer on Airport = $115.00

Import Service Fee = $99.00"

The wheels were declared at $600 USD value so no duty, tax or quarantine fees should apply. The wheels haven't even landed yet so they can't assess if tax needs to be applied. From experience, that gets calculated on arrival. Regardless, if they needed to be paid, I would do so but not these additional delivery costs. I emailed the seller and they said that sorry, they are not responsible for clearing customs. They mentioned nothing about additional costs.

Does this sound right to anyone who has imported wheels before or were they misleading? They asked for my delivery address upon purchase so one would assume delivery door to door in the quoted $500 shipping quote
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      02-04-2015, 12:51 AM   #2
DR-JEKL
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Hmm whats the subtotal price of the rims and shipping?

If the combined price is > $1000 AUD you will get slugged...

I had an exhaust recently that was valued @ $1600 ish by memory and the BS duty was $230 odd... They're making a killing from essentially nothing (they're not providing a service)
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      02-04-2015, 12:54 AM   #3
aiball
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Don't quote me but:

If the wheels were shipped as "freight" (ie inside a shipping container) it will need customs clearance which is what they are charging to get the paperwork done once it arrives in Australia.

Unless you work in the industry or know of a shipping broker / customs broker who can do it cheaper for you then you will have to pay UPS those fees otherwise the shipment will not be released.

You're not getting charged GST/duty as it is under $1000.
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      02-04-2015, 01:01 AM   #4
CashedUpBogan
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Quote:
Originally Posted by DR-JEKL View Post
Hmm whats the subtotal price of the rims and shipping?

If the combined price is > $1000 AUD you will get slugged...

I had an exhaust recently that was valued @ $1600 ish by memory and the BS duty was $230 odd... They're making a killing from essentially nothing (they're not providing a service)

I am happy to pay the duty and taxes if that's what is required by law. But these charges are separate to that. Charges which were not explained to me at any point. It should have been a door to door shipping quote given to me, not unexpected charges for terminal transport on airport or brokerage fees. Import Service fee I can kind of accept. I have had large, heavy and expensive boxes arrive from N54tuning.com without an issue.

Who has had experience dealing with sellers using UPS and having to clear customs?
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      02-04-2015, 01:05 AM   #5
CashedUpBogan
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Quote:
Originally Posted by aiball View Post
Don't quote me but:

If the wheels were shipped as "freight" (ie inside a shipping container) it will need customs clearance which is what they are charging to get the paperwork done once it arrives in Australia.

Unless you work in the industry or know of a shipping broker / customs broker who can do it cheaper for you then you will have to pay UPS those fees otherwise the shipment will not be released.

You're not getting charged GST/duty as it is under $1000.
Damn. So that means it is my cost to pay even though I was quoted $500 to the door? Actually, now that Dr J has mentioned, I will have to pay GST/Duty because the total of wheels plus shipping is over $1000 and it is calculated on item and shipping costs, right?
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      02-04-2015, 01:29 AM   #6
aiball
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I've re-read your first post.

I think what they quoted you was "DAP" (delivered at place) not "DDP" (delivered duty paid).

Meaning they are not responsible for customs fees, but it will get delivered to your door after you pay those fees.

check out this link for more info

http://en.wikipedia.org/wiki/Incoter...destination.29


maybe speak to the seller again and see if you can work something out..

good luck
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      02-04-2015, 01:54 AM   #7
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Quote:
Originally Posted by CashedUpBogan View Post
I am happy to pay the duty and taxes if that's what is required by law. But these charges are separate to that. Charges which were not explained to me at any point. It should have been a door to door shipping quote given to me, not unexpected charges for terminal transport on airport or brokerage fees. Import Service fee I can kind of accept. I have had large, heavy and expensive boxes arrive from N54tuning.com without an issue.

Who has had experience dealing with sellers using UPS and having to clear customs?
Nah its not the responsibility for a us base seller to know or incur foreign duty costs.

Sounds like you'll have to pay them, then they will release the goods for delivery dude!
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      02-04-2015, 02:41 AM   #8
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Just bumped an old thread bogs.
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      02-04-2015, 02:51 AM   #9
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GST and duty is not applicable if the value of the goods (excluding shipping and insurance) is AUD $1000 or less.

If the goods are valued at more than AUD $1000 then 5% duty is payable on the value of the goods, while GST is payable on the value of the goods, duty, shipping and insurance costs. The 5% duty may not be charged if the goods/service was made in / provided by a country with which Australia has an agreement, e.g. goods made in the USA should not attract the 5% duty, but you may need to specify that this is the case if you are instructed by Customs to pay duty and GST.

Furthermore, there is a import declaration processing charge of ~$50. There may also be brokerage fees to act on your behalf with Customs, which is what you have been requested to pay. Most, if not all, websites will have a disclaimer indicating that the buyer is responsible for all customs, duties and other fees related to the importation of products into their country. If it's of any consolation, it's usually in small print on a back page, otherwise, they provide a link to it, which no one (except probably me) reads because it's 10 or more pages long.

The AUD value is calculated based on the customs advertised exchange rate on the date of export.
So if you're calculating based on today's exchange rate (~78c) then keep it under USD $750 and you should be duty/GST free.

See the customs website, FAQ - How is duty and GST calculated?.

Quote:
How is duty and GST calculated?

The Customs value of goods imported into Australia is known as the ‘transaction value’. It is usually the amount you paid for your goods, converted to Australian currency. The exchange rate that is used is the rate applied on the day the goods were posted (exported).

When the goods you import are valued at more than A$1000, or include alcohol or tobacco products of any value, a Customs value is used as the basis for calculating the amount of any duty and/or GST and other taxes payable.

Duty payable is calculated on the Customs value of the goods. Relevant duty rates are determined by the Customs Tariff Act 1995 and are applicable at the time an import declaration is made.

GST is paid on the Value of the Taxable Importation (VoTI). The VoTI is the sum of the Customs value, transport and insurance costs (or postage and insurance) plus any duty payable and WET payable.

Below is an example calculation for an electric sound amplifier with a duty rate of 5%. The purchase price was US$1,274 and the exchange rate on the day it was exported was 0.9100 (A$1 = US$0.91). The postage and insurance was US$118.30

Customs value converted to Australian currency = US$1274/0.9100 = A$1,400.00

Postage and insurance converted = US$118.30/0.9100 = A$130.00

Duty (amount payable) = 5% of A$1,400 = A$70.00

VoTI = (customs value + duty + postage and insurance)
= A$1,400 + A$70 + A$130 = A$1600.00
GST = 10% of VoTI (amount payable)
= 10% of A$1,600 = A$160.00
Amount payable to Customs and Border Protection

Duty + GST = A$70.00 + A$160 = A$230.00

Plus import declaration (lodged by document) processing charge of A$48.85

Total payable = A$230.00 + A$48.85 = A$278.85
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      02-04-2015, 05:37 AM   #10
CashedUpBogan
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*insert confused Jackie Chan jpg*

So I was misled into thinking all I would pay would be 500 USD and just pay the additional costs... fuck this, parting out my car. FS BC Forged 18 inch rims, airbags, FBO bits, meth kit, 1M front bar lol
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      02-04-2015, 06:04 AM   #11
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Had similar experience bringing in a rear bar for a 4x4, was on a pallet in a shipping container and paid for the shipping with the vendor and then got slugged with a massive bill on top of that for all the shit you have been hit with and some more. My costs were around $800 on top of the $400 i had already paid.
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      02-04-2015, 06:49 AM   #12
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Quote:
Originally Posted by CashedUpBogan View Post
*insert confused Jackie Chan jpg*

So I was misled into thinking all I would pay would be 500 USD and just pay the additional costs... fuck this, parting out my car. FS BC Forged 18 inch rims, airbags, FBO bits, meth kit, 1M front bar lol
I need to see this 1m bar on
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      02-04-2015, 06:57 AM   #13
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Garage List
Yeah, if the goods a sent via sea the fees are so high it often works out better to send via air freight. Also the larger the item (m3) the more you get charged

This is some fees I was charged recently:

PORT SERVICE CHARGES A$ 125 /m3
TERMINAL HANDLING A$ 35 /m3
DELIVERY ORDER FEE A$ 90 /m3
SEA CARGO AUTOMATION A$ 25 /Set
CMR FEE A$ 25.00/SET
TERMINAL SECURITY A$ 20.00/SET
IMPORT PROCESSING SERVICE A$ 10 /m3
CISF US$ 25 /m3
CUSTOM CLEARANCE $ 300

Then if the total value inc shipping is more than $1000 you are charged GST on that value plus duty if it applies.
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      02-04-2015, 07:42 AM   #14
CashedUpBogan
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Quote:
Originally Posted by fo55il View Post
I need to see this 1m bar on
wait another 25-30 days and you will see it on a few top cars on this forum
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      02-04-2015, 07:47 AM   #15
CashedUpBogan
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Thanks everyone for their feedback!
The vendor has been extremely helpful, responsive and understanding of the situation and has agreed to foot part of if not all of the remaining delivery charges.
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