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532 posts

Ultimate Geek


  # 787869 27-Mar-2013 12:43
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Publius: Remember too that customs use their own published USD->NZD conversion rate, not the rate you paid, to determine the NZD value of goods/shipping.


Just adding to that -

The rates set by Customs used to be (relatively recently) for imports only updated every fortnight and on top of that the rates were set a week or so prior to that for publishing. I think it is still the same, in which case they can be disadvantageous or advantageous according to how much actual rates have moved in the meantime.

Moving on to earlier posts of others -

GST on the conversion fee has been mentioned. The OP DID get that fee applied zero rated WHEN the currency was bought i.e. it showed on the credit card statement without GST. Just because an input is zero rated that does not mean that it remains as zero rated for outputs (or subsequent transactions in the case of the non GST registered) in the proportion it comprises those nor that it flows into subsequent transactions. The GST system would become impossibly cumbersome and fail if that were not to be so. The fee was part of the conversion cost (in the same way as the banks/credit card spread - the difference between buy and sell - was).

So Customs handled the GST on the imported goods Transaction Value correctly. The only difference is that if events had transpired that they could have used their own table conversion rates, rather than sighting the OP's actual cost from the credit card statement, then that would have not included the conversion fee. However, as mentioned above this may or may not have been a good outcome for the OP.

15172 posts

Uber Geek


  # 787918 27-Mar-2013 13:13
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Perhaps the moral is to be careful when the price plus shipping is going to be be within $100 of the threshold, and be prepared to pay duties if it is. Just think of the money paid as a donation to New Zealand Inc, and it is being used to pay for our health and education system.

 
 
 
 




87 posts

Master Geek


  # 787958 27-Mar-2013 13:56
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John2010:
Publius: Remember too that customs use their own published USD->NZD conversion rate, not the rate you paid, to determine the NZD value of goods/shipping.


Just adding to that -

The rates set by Customs used to be (relatively recently) for imports only updated every fortnight and on top of that the rates were set a week or so prior to that for publishing. I think it is still the same, in which case they can be disadvantageous or advantageous according to how much actual rates have moved in the meantime.

Moving on to earlier posts of others -

GST on the conversion fee has been mentioned. The OP DID get that fee applied zero rated WHEN the currency was bought i.e. it showed on the credit card statement without GST. Just because an input is zero rated that does not mean that it remains as zero rated for outputs (or subsequent transactions in the case of the non GST registered) in the proportion it comprises those nor that it flows into subsequent transactions. The GST system would become impossibly cumbersome and fail if that were not to be so. The fee was part of the conversion cost (in the same way as the banks/credit card spread - the difference between buy and sell - was).

So Customs handled the GST on the imported goods Transaction Value correctly. The only difference is that if events had transpired that they could have used their own table conversion rates, rather than sighting the OP's actual cost from the credit card statement, then that would have not included the conversion fee. However, as mentioned above this may or may not have been a good outcome for the OP.


Sister just got off the phone with customs and they said they aren't meant to include the bank fee and that she has been wrongly taxed. However, as she already paid, she now has to go through their lengthy process of getting a refund.

1304 posts

Uber Geek


  # 788046 27-Mar-2013 15:51
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Etcman: 

Sister just got off the phone with customs and they said they aren't meant to include the bank fee and that she has been wrongly taxed. However, as she already paid, she now has to go through their lengthy process of getting a refund.


That's interesting. When the same thing happened to me I was told by two different people at customs, including the supervisor who decided on my appeal, that the fee is part of the cost I paid for the item and therefore that total amount is what is used by customs. If I was your sister I would get this confirmed in writing before taking it any further. 



87 posts

Master Geek


  # 788057 27-Mar-2013 15:58
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Elpie:
Etcman: 

Sister just got off the phone with customs and they said they aren't meant to include the bank fee and that she has been wrongly taxed. However, as she already paid, she now has to go through their lengthy process of getting a refund.


That's interesting. When the same thing happened to me I was told by two different people at customs, including the supervisor who decided on my appeal, that the fee is part of the cost I paid for the item and therefore that total amount is what is used by customs. If I was your sister I would get this confirmed in writing before taking it any further. 


However, the whole idea is not about how much is paid but rather, how much of that cost is actually taxable. It is common to use the $400 rule but it is more accurate to think whether or not the total tax exceeds $60. As currency conversion is tax exempt, it should not contribute to that value.

Sadly, as it was a phone call, there is no confirmation in writing and was instead, directed to e-mail the feedback address of customs. We'll see how this situation unfolds.

15172 posts

Uber Geek


  # 788133 27-Mar-2013 17:43
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These companies now often record phone calls, or at least they should, so there may be a record of it anyway.



87 posts

Master Geek


  # 788696 28-Mar-2013 15:13
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Received a reply from NZ Post. They are refunding $20.66 (cost of the YouShop shipping) for the double screw up. Now to see what happens on the custom's end.

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