Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




87 posts

Master Geek


#115435 26-Mar-2013 02:19
Send private message

My sister had ordered a Nexus 4 8GB from the USA Google Play store and had it sent to her Youshop address. She declared it at a value of $299 USD (I remember reading on here somewhere that a Youshop representative said you only declare the value of the parcel, not including the domestic shipping used to get the parcel to Youshop).

So her package arrives in New Zealand but gets stopped by customs with details on her package being declared at $358 USD (??) and shipping at $20.66 USD (??) with a total value of $437 NZD. It seems they had converted the value twice, seeing as $299 USD -> NZD = $358~. They also stated the Youshop shipping fee in USD. This results in a tax of $108~.

My sister then goes into a customs office with proof of purchase etc to try and sort out this issue. She was told that because she was charged $387.55 (Phone + domestic shipping) on her bank statement, they have to use that value when taking into consideration of tax (even though she had the Google Play receipt which clearly states the phone was only $299 USD) and thus, $387.55 + $20.66 = $408.21 meaning she still gets taxed.

Part of that $387.55 on her bank statement was a $9.46 currency conversion fee (says incl. Currency conversion fee of $9.46 as a transaction comment) and I'm pretty sure that already gets taxed with the bank. Are customs even allowed to charge tax on that fee? Doing so would result in that being taxed twice. If they're not, the total cost would be $378.09 + 20.66 = $398.75 meaning no tax.

They kept telling her that "because $387.55 appears on your bank statement, that is the value we have to use!" and made her pay anyway.

Also, are customs allowed to charge tax on domestic USA shipping services to get the parcel to Youshop? Their reasoning was "If you didn't pay for that shipping, you wouldn't have been able to get it into NZ anyway".

Anyone able to offer any advice on what to do? Seeing as she already paid, the best outcome would be a refund.

View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3
1821 posts

Uber Geek

Trusted
Lifetime subscriber

  #786991 26-Mar-2013 06:30
Send private message

I don't think they can include the currency conversion fee as this is a fee that was charged by a NZ company in NZ and applicible tax etc have already been included in this charge.

As far as the domestic shipping in the USA, you might have to live with that.

Here is a free tip, use paypal (if possible) for overseas credit card purchases, paypal charge you credit card in $NZ so you avoid the greedy bank conversion fees



87 posts

Master Geek


  #786993 26-Mar-2013 06:38
Send private message

I see. Even removing the bank tax alone should be enough to not be charged duty.

Also, cheers for the tip, but sadly not every store accepts PayPal :(

 
 
 
 


2514 posts

Uber Geek
Inactive user


  #786994 26-Mar-2013 06:58
Send private message

rule of thumb, customs think they are gods, MAF knows they are.

***MAF are now known as MPI***

You always take a risk importing from overseas, your sister lost this time.

16206 posts

Uber Geek

Trusted
Subscriber

  #786996 26-Mar-2013 07:36
Send private message

gregmcc: Here is a free tip, use paypal (if possible) for overseas credit card purchases, paypal charge you credit card in $NZ so you avoid the greedy bank conversion fees


Have you compared the PayPal and Visa rates? I did, PayPal rates can be 2% worse than bank rates.

29119 posts

Uber Geek

Moderator
Trusted
Biddle Corp
Lifetime subscriber

  #786997 26-Mar-2013 07:47
Send private message

gregmcc:
Here is a free tip, use paypal (if possible) for overseas credit card purchases, paypal charge you credit card in $NZ so you avoid the greedy bank conversion fees


Here's another tip - avoid Paypal's currency conversion at all costs. Their conversion rates are an absolute ripoff.


29119 posts

Uber Geek

Moderator
Trusted
Biddle Corp
Lifetime subscriber

  #786998 26-Mar-2013 07:51
Send private message

Etcman:
Also, are customs allowed to charge tax on domestic USA shipping services to get the parcel to Youshop? Their reasoning was "If you didn't pay for that shipping, you wouldn't have been able to get it into NZ anyway".



Customs assess value including shipping to NZ, so I don't see why shipping inside the US to facilitate shipping to NZ would really be any different.

At the end of the day I don't think you're going to get anywhere debating the issue with them. As already pointed out importing things can often be a case of Russian roulette. Sometimes you get lucky, other times you don't.

948 posts

Ultimate Geek

Trusted

  #787078 26-Mar-2013 10:54
Send private message

When you order a Nexus 4 via youshop you have to declare the value in USD.  Did she write USD$299 or USD $358?



 
 
 
 


1995 posts

Uber Geek

Lifetime subscriber

  #787103 26-Mar-2013 11:23
Send private message

Still, its a saving compared with the local paralell importers.



87 posts

Master Geek


  #787120 26-Mar-2013 11:43
Send private message

BigMal: When you order a Nexus 4 via youshop you have to declare the value in USD.  Did she write USD$299 or USD $358?




She wrote USD $299. Youshop messed up and typed $358 USD. The form on youshop asks for the value of the package in USD so there shouldn't be any confusion.

1995 posts

Uber Geek

Lifetime subscriber

  #787129 26-Mar-2013 11:54
Send private message

So what have Youshop said in relation to this simple mistake?
Did you ask them to provide written clarity for you so you could show the customs guys?

3311 posts

Uber Geek


  #787131 26-Mar-2013 11:55
Send private message

So have you complained to Youshop?



87 posts

Master Geek


  #787132 26-Mar-2013 11:57
Send private message

They just told her to talk to customs to correct the mistake. Its interesting that youshop asks for the value of the parcel, but customs only care about how much the statement reports. It makes me wonder why youshop doesn't ask the same to declare.



87 posts

Master Geek


  #787138 26-Mar-2013 12:00
Send private message

CYaBro: So have you complained to Youshop?


Yup, seeing as they messed up twice (first they enter the weight of the packagee as 4kg instead of 0.4, making it cost $58 to send to nz , taking a week to solve. Now a wrongly declared item that would have passed fine if it was declared correctly in the first place.)


Of course, the complaint is being redirected to different departments at the moment and not really getting solved.

1339 posts

Uber Geek


  #787196 26-Mar-2013 13:09
Send private message

Somebody was complaining about similar on the Trademe forums recently, seems Youshop have a habit of calculating $XX USD to $YY NZD but writing on the package $YY USD; then of course customs does $YY USD to $ZZ NZD when it enters NZ - double conversion.

I'm pretty sure that {currency conversion fee} already gets taxed with the bank. Are customs even allowed to charge tax on that fee?


Financial transactions are GST exempt, so no there is no tax on that fee applied by the bank. And I think it is an entirely valid argument that customs should not be applying GST on that portion of the amount either.

On domestic shipping.... I'd say fair enough for customs to add GST on that (if they catch wind of it).




---
James Sleeman
I sell lots of stuff for electronic enthusiasts...


3316 posts

Uber Geek

Trusted

  #787202 26-Mar-2013 13:18
Send private message

The thing is that you're still liable for GST on the total cost including shipping (less any GST already paid I suppose, i.e. the bank fee or youshop's postage, I'm not sure there's any GST on either of those).

Regardless of what mistake youshop made, the total cost is over $400 so GST is over $60 so you need to pay it.

 1 | 2 | 3
View this topic in a long page with up to 500 replies per page Create new topic




News »

Freeview On Demand app launches on Sony Android TVs
Posted 6-Aug-2020 13:35


UFB hits more than one million connections
Posted 6-Aug-2020 09:42


D-Link A/NZ extends COVR Wi-Fi EasyMesh System series with new three-pack
Posted 4-Aug-2020 15:01


New Zealand software Rfider tracks coffee from Colombia all the way to New Zealand businesses
Posted 3-Aug-2020 10:35


Logitech G launches Pro X Wireless gaming headset
Posted 3-Aug-2020 10:21


Sony Alpha 7S III provides supreme imaging performance
Posted 3-Aug-2020 10:11


Sony introduces first CFexpress Type A memory card
Posted 3-Aug-2020 10:05


Marsello acquires Goody consolidating online and in-store marketing position
Posted 30-Jul-2020 16:26


Fonterra first major customer for Microsoft's New Zealand datacentre
Posted 30-Jul-2020 08:07


Everything we learnt at the IBM Cloud Forum 2020
Posted 29-Jul-2020 14:45


Dropbox launches native HelloSign workflow and data residency in Australia
Posted 29-Jul-2020 12:48


Spark launches 5G in Palmerston North
Posted 29-Jul-2020 09:50


Lenovo brings speed and smarter features to new 5G mobile gaming phone
Posted 28-Jul-2020 22:00


Withings raises $60 million to enable bridge between patients and healthcare
Posted 28-Jul-2020 21:51


QNAP integrates Catalyst Cloud Object Storage into Hybrid Backup solution
Posted 28-Jul-2020 21:40



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.


Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.