Customs charges on low value goods

x853 on 05/03/2017 - 18:01

Hi all,

I was just wondering if anyone knew the answer to my problem.

I recently ordered a monitor from eBay during the 10% off storewide sale.

Now the cost of the item would have exceeded the GST threshold by $10 without the discount, but with the discount the cost was only $900.

So my question is how is the worth of the import calculated? Is it on how much the person pays or is it based on the value the seller gets paid?

The seller still got paid the full value as PayPal paid the difference, yet I paid well under the GST threshold.

I tried to look on the ATO site and the Border Force site but they did not help. They simply stated the worth of the godlod needs to be under the $1k threshold.

Has anyone else experienced this?

Any advice would be appreciated.

Cheers

General Discussion

Comments

  • jason101 on 05/03/2017 - 18:14
    +1

    This depends entirely on the declaration of the value the seller makes when completing the shipping documentation. If Cost + shipping exceeds $1k AUD you'll be up for the GST and depending on shipping method may also have to engage a broker to facilitate the import. Fedex, DHL etc have internal processing teams which make the process easy but standard post using a standard mailing service may require you to engage a broker which is a giant slow costly pain (usually $200-300 of additional expense).

    If you can prove item + shipping (with the discount applied) was under the $1k threshold and the commercial invoice is inaccurate (if declared at more than this amount) you may be able to successfully argue your case.

    • x853 on 05/03/2017 - 18:18

      Thanks for the response. So if I can obtain an amended invoice from the seller - and provide this to FedEx I might be able to convince them that the amount is under the threshold, then I could be in the clear?

      I made a tactical error and should have negotiated a lower price prior to purchase to ensure I would be under.

      • jason101 on 05/03/2017 - 18:21
        +1

        I've provided a credit card statement before showing that the amount I paid varied from the declared value of the sender (ie the sender made an incorrect declaration) and been able to avoid the necessity to pay GST and engage a broker.

        I honestly wouldnt worry about it until you need to.

        • x853 on 05/03/2017 - 18:25

          That's fantastic because I have a PayPal statement showing that I paid 900AUD.

          I'll try my luck thanks for the advice

        • x853 on 06/03/2017 - 14:55
          +2

          Just wnated to give you an update out of politeness. I did what you said and it worked.

          Thank you very much

  • tomclancy on 05/03/2017 - 18:16

    They simply stated the worth of the goods needs to be under the $1k threshold.

    Exactly this. It's not based on any amounts paid/received. Based on worth.

    The seller declares the value of the item, most likely what it says on the invoice - in this case $1,010.

    • tebbybabes on 05/03/2017 - 21:22

      My understanding is leaning a lot closer to this.

      e.g, even a gift that the recipient receives for free may be subject to tax if it's value exceeds the threshold.

      • x853 on 06/03/2017 - 14:57
        +1

        I had a look at the Boarder Force guide on how to fill out a customs declaration. It says the most common valuation method is the transaction method. The transaction method looks at how much the person brining in the good paid.

        So I guess that is the answer on how do you determine worth.

        Cheers

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