New customs fees on goods imported to NZ

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#340650 11-Jun-2010 15:15

markh14: But how does customs know what is inside the box and how much it's worth?

How can customs contact me if only my name and address is on the box on not my phone number?

I guess they'll find you the same way the package would find you if they sent it along its way...

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#340653 11-Jun-2010 15:17

bazzer: Really, the only part you can be unhappy with is the customs charge. GST and duty are payable. Why shouldn't they be? Is your argument any less strong if you say "looking at total fees of in excess of NZD$75?"

No, I am unhappy about the total charges including duty and GST. Why should they be payable? And when GST rises to 15%, then the threshold is going to shrink even further...

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#340654 11-Jun-2010 15:26

Satch: No, I am unhappy about the total charges including duty and GST. Why should they be payable? And when GST rises to 15%, then the threshold is going to shrink even further...

"In this day and age where it is easy to purchase goods online from overseas" Perhaps you could explain why you think private importers should avoid taxes paid on local retail. Eventually there will be so much coming in that Customs will just make courier firms add a GST charge to all items.

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#340655 11-Jun-2010 15:27

Satch: No, I am unhappy about the total charges including duty and GST. Why should they be payable? And when GST rises to 15%, then the threshold is going to shrink even further...

Why shouldn't you pay GST?

Edit: ↑ What he said... ↑

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#340660 11-Jun-2010 15:41

Bung: Perhaps you could explain why you think private importers should avoid taxes paid on local retail. Eventually there will be so much coming in that Customs will just make courier firms add a GST charge to all items.

I'm not sure this even makes sense...

But to this and Bazzer - why should I pay a goods and services tax on an item I purchased overseas, and paid shipping to an overseas company too, when it is for my personal consumption only? (this is a serious question).

I guess the crux of my issue is that I believe that the import dollar limits are too low. They should allow for limited personal consumption items, but fully agree they should protect the local market as a whole from commercial importers intending on onselling the items to the local populace.

Let's put it another way. Had I purchased a USD$15 pair of jeans from Walmart and had them shipped to me, why shouldn't they incur a duty as opposed to the USD$200 pair of jeans I did import? One pair of jeans, one recipient. (yes I realise that it would not be practical to base limits on quantities etc, but I'm just giving an example).

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#340661 11-Jun-2010 15:45

old3eyes: Sounds like the Gov is trying to gouge back the tax cuts they are giving us . ETS, GST to 15%, ACC increases and now this. Sounds like this Gov has got the European government disease of increasing taxes until you can't afford to buy anything..

Quite right. The recent income tax cuts benefited the top few percent of income earners in New Zealand in an incredibly disproportionate way. To pay for their income increases, we're all being taxed more in various ways. It was nothing but a transparent wealth transference play that we see happened in the US during Reagan. It will only lead to the sort of wealth disparity we see there. I don't want that for our country. I'm surprised we haven't seen more of a backlash.

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#340667 11-Jun-2010 15:56

Satch: Let's put it another way. Had I purchased a USD$15 pair of jeans from Walmart and had them shipped to me, why shouldn't they incur a duty as opposed to the USD$200 pair of jeans I did import? One pair of jeans, one recipient. (yes I realise that it would not be practical to base limits on quantities etc, but I'm just giving an example).

Exactly. I believe that some US States require internet traders to add their State taxes to all sales to that State. The only reason there's a value cut-off is to stop the system clogging up with small transactions. If Customs could shift the collection to point of sale you'd pay on all transactions.

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#340727 11-Jun-2010 17:40

Satch:
bazzer: Really, the only part you can be unhappy with is the customs charge. GST and duty are payable. Why shouldn't they be? Is your argument any less strong if you say "looking at total fees of in excess of NZD$75?"

No, I am unhappy about the total charges including duty and GST. Why should they be payable? And when GST rises to 15%, then the threshold is going to shrink even further...

The biggest con is that the total also includes freight. With freight potentially costing a significant amount this can mean we're paying fees on goods for no good reason.

The $700 personal limit on personal goods is also unfair, it's low by international standards and hasn't changed for many years now.

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#340755 11-Jun-2010 19:10

sbiddle: The biggest con is that the total also includes freight. With freight potentially costing a significant amount this can mean we're paying fees on goods for no good reason.

The $700 personal limit on personal goods is also unfair, it's low by international standards and hasn't changed for many years now.

I can see why they want to include shipping in the calculations so it prevents places selling goods for 1c and charging a couple of hundred for "shipping" to get around import duties. But where the goods and shipping amounts are accurate, it is a con I agree.

NZ is an isolated destination where a number of things are simply not available (maybe not a pair of jeans as is the case with my situation...), but I also agree that the $700 personal limit is very low, and hasn't changed with inflation like the price of goods have. And it is clear to see that with this upcoming revamp of the fee situaton, NZ Customs are not going to review the limits.

Having contributed to this thread I must say that I've never actually been charged any duty or GST on imported items though. Perhaps I've just been lucky? But I don't like my chances with my current purchase, especially given it is being shipped by DHL and they probably stick to the letter of the law. Also a colleague of mine is also being stung as we speak due to his sister sending him and his mother a package from Italy, and she "unfortunately" declared it at full value (which is above the limit).

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#340763 11-Jun-2010 19:21

Satch: Also a colleague of mine is also being stung as we speak due to his sister sending him and his mother a package from Italy, and she "unfortunately" declared it at full value (which is above the limit).

You've mentioned the gift allowance, can they each claim $110 before the stinging is calculated?

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#340829 11-Jun-2010 23:12

GBristow:
old3eyes: Sounds like the Gov is trying to gouge back the tax cuts they are giving us . ETS, GST to 15%, ACC increases and now this. Sounds like this Gov has got the European government disease of increasing taxes until you can't afford to buy anything..

Quite right. The recent income tax cuts benefited the top few percent of income earners in New Zealand in an incredibly disproportionate way. To pay for their income increases, we're all being taxed more in various ways. It was nothing but a transparent wealth transference play that we see happened in the US during Reagan. It will only lead to the sort of wealth disparity we see there. I don't want that for our country. I'm surprised we haven't seen more of a backlash.

the top earners also tend to spend more and therefore will now be paying more GST. GST which is much harder to dodge than PAYE. the total tax take from the top brackets will probably increase as part of this, not decrease.

mortgages and rent do not incur GST so the extra you earn in the tax cuts can be spent without incurring the extra GST.

savings also do not incur GST - a big win there for people who like to save to buy a house.

with GST you get a choice too - buy the cheaper items and pay less tax. income tax got you no matter what your spending habits were (unless you were rich and had a good accountant)

i think that the tax cuts will be good for the economy. perhaps we'll get to keep more skilled people in the country instead of losing them all over the world. the country wont grow richer as a whole if we only have unskilled people left.

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#340838 11-Jun-2010 23:29

Personally, I think the government has no business charging GST on goods bought from overseas. What service did the government perform to assist in getting that product to me? Was it providing credit card services? No, the bank did that. Shipping? No, Fedex did that. The internet? No, Telecom did that. Ah, I know, customs! No, wait, the GST doesn't go to customs, the levy on top of it does. So what right does the government have to collect money for nothing again?

That said, we should consider ourselves fortunate that the government isn't seriously considering the suggestion from the retailers association that GST should be forcibly charged on every transaction paid via the banking system by the banks - so GST gets whacked on by Visa to your World of Warcraft monthly payment and everything. And then they also say we should have no personal allowance (so even a $20 book you purchased at Barnes and Noble would get GST added on the way back into NZ, even if it's the only thing you bought).

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#340876 12-Jun-2010 07:06

Kyanar: Personally, I think the government has no business charging GST on goods bought from overseas. What service did the government perform to assist in getting that product to me? Was it providing credit card services? No, the bank did that. Shipping? No, Fedex did that. The internet? No, Telecom did that. Ah, I know, customs! No, wait, the GST doesn't go to customs, the levy on top of it does. So what right does the government have to collect money for nothing again?

What is your reason for that logic? You've said you don't believe GST should be charged but haven't provied any real reason why.

GST is a tax that all end consumers have to pay on goods - why should something you buy from overseas be exempt from that? If no GST was charged there would be a massive loophole in the system. Right now anybody who imports goods pays GST, if you're a company this is cancelled out by the charging of GST on the retail product that is then sold. What would happen if no GST was collected on the importation of those goods but collected only when they were sold?

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#340882 12-Jun-2010 08:59

Regs:

savings also do not incur GST - a big win there for people who like to save to buy a house.

True but they put tax on your savings though and I believe it just went up.

Regards,

Old3eyes

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#340888 12-Jun-2010 09:21

sbiddle: What is your reason for that logic? You've said you don't believe GST should be charged but haven't provied any real reason why.

GST is a tax that all end consumers have to pay on goods - why should something you buy from overseas be exempt from that? If no GST was charged there would be a massive loophole in the system. Right now anybody who imports goods pays GST, if you're a company this is cancelled out by the charging of GST on the retail product that is then sold. What would happen if no GST was collected on the importation of those goods but collected only when they were sold?

It's simple. Taxation is supposed to pay for services the government provides society. Road User Charges for road upkeep, ACC levies for healthcare, demerit taxes on cigarettes and alcohol for the increased burden on healthcare, GST for the consumer protection on private sales. Ideal world, anyway.

However, the government provides no services in an overseas transaction. It's allllll private business. Well, they provide customs services - but customs charges a levy to pay for that. Ergo, the New Zealand government is demanding money for nothing.

The idea that we should have to pay GST on imports at all is just a form of protectionism. You know what would stop people importing so much stuff? If the local prices weren't bloody ridiculously high.

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