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GST and Duty

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I brought some gear from Turner Motorsport in the US to do my valve adjustment. Got picked up by NZ Customs for importation of Auto Parts (GST and duty = NZ$130 on NZ$750 of purchases). I have brought stuff from the states on 4 previous occasions but have never been hit with this. What is your experience - have I just been picked up on a random basis or is this normal? I am on the verge of another order so need to know whether this is likely to happen again

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I brought some gear from Turner Motorsport in the US to do my valve adjustment. Got picked up by NZ Customs for importation of Auto Parts (GST and duty = NZ$130 on NZ$750 of purchases). I have brought stuff from the states on 4 previous occasions but have never been hit with this. What is your experience - have I just been picked up on a random basis or is this normal? I am on the verge of another order so need to know whether this is likely to happen again

I've heard they sting you if it's valued over $400? Not sure if thats true though.

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Yup thats true, I got stung the first time i bought somthing in even though it was a private sale on a used item which struck me as cheeky. I now just assume its going to happen and add it to the price.

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This is the official wording ...

Customs does not collect tariff duty and GST where the total payable (tariff duty plus GST combined) on any one importation is less than $60

http://www.customs.govt.nz/news/resources/...0Sheet%2028.pdf

I have a lot come straight through while other consignments get stopped. If you send it to a business address then it is more likely to be stopped in my experience.

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I brought some gear from Turner Motorsport in the US to do my valve adjustment. Got picked up by NZ Customs for importation of Auto Parts (GST and duty = NZ$130 on NZ$750 of purchases). I have brought stuff from the states on 4 previous occasions but have never been hit with this. What is your experience - have I just been picked up on a random basis or is this normal? I am on the verge of another order so need to know whether this is likely to happen again

The $400 rule does apply. Part of the govt crack down on parallel imports. Ask the seller to write up the goods a being worth less than $400 a lot will. (not Pelican)

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Yep , got this on a few parts imports for 1960's mini & car audio bits. Worst it seems to be with DHL where I even needed some special import thing when the value was over $1000 NZ. (Re-11's from tyrerack) Would have worked out far cheaper to source NZ if Bridgstone NZ carried E46 M3 sizes

Tend to split orders up now. Better to have 3 items sent via 3 lots with individual items under $400 than trying to combine and save a few % on combined postage.

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i've had items sent as "Gifts" to prevent duty and gst fees. All those items were handled by NZPost when it arrives here, and posted internationally via EMS postage or the national post of the country of origin.

It is based on the experience and discretion of the customs officer on duty to choose which package to open and inspect, if they are suspicious of the item being mislabelled.

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I usually just keep prices per package around the 400 mark, or ask for the pricing to be reduced slightly if its in the 400-500 mark.

Not much fun in adding 15%+ to the cost of an otherwise good deal.

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The $400 rule does apply. Part of the govt crack down on parallel imports. Ask the seller to write up the goods a being worth less than $400 a lot will. (not Pelican)

custom has the power to put their own value on goods,and they will take dim view of false declarations of value.Just sayin

Edited by kiwi535

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Setting the value low will not always work, also the fines for falsely marking commercial goods as gifts if they decide to punish you will erode any savings you're making.

GST is the most fair tax we have, because everyone pays the same. Just pay your tax and stop trying to cheat the system.

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Setting the value low will not always work, also the fines for falsely marking commercial goods as gifts if they decide to punish you will erode any savings you're making.

GST is the most fair tax we have, because everyone pays the same. Just pay your tax and stop trying to cheat the system.

This is a pretty good way to look at it. Just factor it in when looking at the cost - you would pay GST if you purchased in NZ anyway. One thing to remember is to include the freight in your extra GST calcs.

I have been charged GST almost every time I am over $400. Sometimes you will get other charges too, like MAF inspections on marine parts. Companies like DHL and UPS will charge additional clearance fees to process the paperwork.

Normal parcel post services like USPS from USA have no extra charges and seem to be slightly less likely to get charged GST if only just over $400.

Despite the lack of cost saving i love the choice and availability of stuff from offshore.

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custom has the power to put their own value on goods,and they will take dim view of false declarations of value.Just sayin

Being charged with fraud would ruin your life too.

Plus... You try claiming for a loss/damaged item when the customs declaration says US$50 is the total value of the shipment. They're not going to pay out the $700 you spent...

I've ordered parts from Germany and had them Shipped by German Post, and the NZ$700 value wasn't picked up for customs or GST. Have done it twice now.

If you use DHL etc, they have their own customs brokers, so will sting you for whatever they can.

I always just assume I will have to pay it, and it's a bonus if I don't get charged B)

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GST is the most fair tax we have, because everyone pays the same.

Disagree.

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Disagree.

Why?

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Why?

It's very simple.

Those on a lower income spend a far greater percentage of their take home pay.

Some spent 100% of take home pay on necessities. That's a full 15% extra tax.

Whereby someone who spends 50% of their take home pay only pays 7.5%.

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Yup thats true, I got stung the first time i bought somthing in even though it was a private sale on a used item which struck me as cheeky. I now just assume its going to happen and add it to the price.

Yep, it is very cheeky considering you are getting no local service and the goods are from another country so cant see why they are taxed?

First and only time I brought some second hand wheels from OZ not only did I get done on GST I got done on a MAF inspection, the second hand wheels ended up costing the same as buying them new in NZ. Lesson learnt.

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I moved to Australia for over a year back in JAN 2004, came back mid 2005, bought all my gear over there, TV's some furniture e.t.c. and when I bought it all back they bought their hammer out and nailed me for what was about 1200 dollars in GST. No smiles on my face that day.

GST is bullshit here IMO, necessities such as food and residential tenancies shouldn't have a GST content.

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I moved to Australia for over a year back in JAN 2004, came back mid 2005, bought all my gear over there, TV's some furniture e.t.c. and when I bought it all back they bought their hammer out and nailed me for what was about 1200 dollars in GST. No smiles on my face that day.

GST is bullshit here IMO, necessities such as food and residential tenancies shouldn't have a GST content.

Residential tenancies DON'T have GST

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That is why is was called Grab, Steel, Take or God Save Trading when it was first introduced. It is the easiest revenue gathering measure the Government ever introduced they get you the business owner to do all the work and then they spend it. It is time for a review of the whole GST system in my opinion but in saying that it is only tinkering. What the Government give you in one hand they legally steel out of the other as they need to gather the revenue to keep the system a float. As other have said just know that $400 is the cut off point and tailor your purchase's accordingly.

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Residential tenancies DON'T have GST

Yep, only commercial/industrial has gst.

Re food, anyone thats done 5th form economics can tell you if gst is taken off prices arent going to drop by 15%. youd be lucky if they dropped 5%

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What does steel have to do with it?

I understand why they do it - to protect local business which is fair enough as we need local businesses to serve us when we need things in a hurry (thanks Gavin!). It annoys me that they include postage in the total price when calculating the taxable amount though.

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Have just ordered some parts from the states costing $406 NZD, will be interesting if I get stung by customs or not.

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Regarding the comment that the charges/GST are based on the total cost - my charge was based on the invoiced US$ cost less frieght divided by the exchange rate

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Regarding the comment that the charges/GST are based on the total cost - my charge was based on the invoiced US$ cost less frieght divided by the exchange rate

Here's my recent invoice with tax on the gross amount:

Posted Image

Edited for bigger pic.

Edited by maxmax

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Residential tenancies DON'T have GST

So the land lord isn't paying GST on the income?

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