Duty from Buying Graphics Cards from The US (Newegg Australia) ?

Smilence03 on 17/01/2023 - 15:43
Last edited 17/01/2023 - 15:46

So I'm trying to buy a card shipped from the US on the Newegg Australia site and the price is say $2200 ($2000 for the card + 10% GST so $200 in tax).

However, when I try to checkout and made payment, the actual surcharge is AUD$275.98, and is named "Est. Duty & GST". The total price has gone up to AUD$2275.98. So, instead of 10% GST, I'm paying 13.799% GST.

Has anyone encountered this before? Why is there the extra 3.799% of Duty or Tax they are claiming to have?

Thank you in advance guys!

Edit: Is this actually the import tax by the government? Isn't the import tax for goods over $1000 5%, instead of this 3.799%?

Computing Computer Component Video Card

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Comments

  • Jimothy Wongingtons on 17/01/2023 - 16:01
    +1

    Isnt the customs duty SEPERATE to gst? (IIRC its something like 5%)

  • Shadowsfury on 17/01/2023 - 16:16

    I'd say its the customs fee yes, which is on top of GST

    You sure this is cheaper than buying locally?

  • GloveM8 on 17/01/2023 - 17:25
    +1

    When you import stuff, you are charged 10% GST and import duties which can be another 0% - 10% based on the classification of the item (its usually 5% for most things.)

    To work it out, take the price of the item converted to AUD, add 5% of the AUD converted item price on top for duties, then add freight and insurance on top of this - and multiply the total by 10%.

    Eg let's say the card is $2000aud. Shipping and insurance is $50 aud.

    $2000 x 1.05 = $2100 (for duties)
    $2100 + $50 = $2150 (for GST Calc base).
    $2150 × 1.1 = $2365 (end cost to you Inc GST).

    You do end up paying a fair whack on top - usually better to buy items over $1k locally unless exchange rates are good enough to justify it

    That's your total imported price.

    The website is giving you an estimate. If there's a discrepancy you'll usually need to pay it via the shipping company when it gets to customs. Check the store policy on if their final price is shipped and fully cleared/delivery duty paid - which means they'll cover any variances. Otherwise it'll end up with the onus on you to pay

  • Ocker on 17/01/2023 - 18:48
    +1

    The USA has a FTA with Australia, meaning goods manufactured in the USA can enter Australia duty free, viz. not subject to the 5% normal import duty.
    In this case I would suggest if the seller properly declares the item is not manufactured in the USA, then the 5% rate of duty, ply 10% GST, plus customs clearance fees will apply.

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