Question around buying something over the threshold in duty free

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Loismustdye

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Topic # 138815 17-Jan-2014 13:15

A question for those more clever than I: Ive always wondered, how does buying something worth more than the $700 threshold in duty-free work when you bring it back in to the country.

I.E. Duty free in AKLD airport an ipad mini costs $900 ish, how does this work (ie duties/customs etc.) when bringing it back into NZ? such as buying it at AKLD dutyfree when you come back to NZ from overseas.

I always thought you got duties on something over a set value when bringin it through from dutyfree, so how can buying something quite expensive be seen to be better than paying retail?

thanks

itxtme

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Reply # 968893 17-Jan-2014 13:54

Most people buy the Ipad min, throw away the boxes and use it, coming back into the county with a used device does not attract duty

LennonNZ

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Reply # 968916 17-Jan-2014 14:23

http://www.aucklandairport.co.nz/ShopAndEat/Duty-Free-Allowances.aspx

"When entering New Zealand you are entitled to a personal goods concession. This allows you to bring in goods free of duty (excluding alcohol and tobacco products) obtained overseas and/or purchased duty free in New Zealand, which have a total combined value of NZ$700. If the value of your goods is over NZ$700 then they may attract Customs duty and goods and services tax (GST)."

So things _can_ work out more expensive if you buy them duty free if you pay the GST and Duty when you go thru customs..

If you want to compare the prices of (if something is over $700)

- Buying it from NZ
- Buying it Duty Free and then paying the GST+Duty going thru customs
- Buying it in AU.. Getting AU GST back in AU..getting to NZ.. Paying NZ GST+Duty..

Loismustdye

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Reply # 968969 17-Jan-2014 15:27

Thanks for the replies, clears things up a bit.

guess the rule of thumb is buying something expensive duty free then make sure you exit the country with it and ditch the packaging if you want to try and avoid customs fees.

Found the customs website (or similar) which showed that (using an ipad mini as an example) buying duty free and bringing it back in and declaring it costs $50 more than buying it outright at an NZ retailer, go figure!
Cheers

sbiddle

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Reply # 968977 17-Jan-2014 15:46

Duty Free is pretty much a sham these days unless you're buying booze or cigarettes (and even then it's hit and piss with booze - you can often buy wine/champagne cheaper in supermarkets).

Most electrical goods they're selling are only going to be the RRP less GST. With many retailers running on very slim margins these days their discounts can easily be less than the Duty Free store price.

I laugh every time I fly to Aussie and see big gift packs of Tim Tams at the airport duty free stores that work out 2-3 times the price of buying packs of Tim Tams at a supermarket.

nova

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Reply # 968992 17-Jan-2014 16:26

Loismustdye:
Found the customs website (or similar) which showed that (using an ipad mini as an example) buying duty free and bringing it back in and declaring it costs $50 more than buying it outright at an NZ retailer, go figure!
Cheers

You shouldn't be paying duty in this case. If you are accompanying the goods, the first $700 doesn't count. So if it was a $900 item, the duty would be calculated on $200, and you only have to pay if the calculated amount is more than $60 (which it wouldn't be). If you were importing by mail, then you don't get any concession, so you would have to pay in this scenario.

jpoc

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Reply # 969030 17-Jan-2014 17:49

sbiddle: Duty Free is pretty much a sham these days unless you're buying booze or cigarettes (and even then it's hit and piss with booze - you can often buy wine/champagne cheaper in supermarkets).

Most electrical goods they're selling are only going to be the RRP less GST. With many retailers running on very slim margins these days their discounts can easily be less than the Duty Free store price.

I laugh every time I fly to Aussie and see big gift packs of Tim Tams at the airport duty free stores that work out 2-3 times the price of buying packs of Tim Tams at a supermarket.

Indeed and NZ duty free stores are on the same game as restaurants. They source their wine from producers who do not sell to the general public through supermarkets and bottle stores. That makes it hard to price check. I think that the only reason to buy duty free wine here is if you are flying to one of the dry states in the US.

freitasm

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Reply # 969057 17-Jan-2014 18:44

nova:
Loismustdye:
Found the customs website (or similar) which showed that (using an ipad mini as an example) buying duty free and bringing it back in and declaring it costs $50 more than buying it outright at an NZ retailer, go figure!
Cheers

You shouldn't be paying duty in this case. If you are accompanying the goods, the first $700 doesn't count. So if it was a $900 item, the duty would be calculated on $200, and you only have to pay if the calculated amount is more than $60 (which it wouldn't be). If you were importing by mail, then you don't get any concession, so you would have to pay in this scenario.

Nope. Once you have to pay GST + duty it is over the entire amount not the excess.

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surfisup1000

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Reply # 969077 17-Jan-2014 19:44

Yes, duty free hasn't been any good for at least the last 10 years and is more targeted at impulse buyers flush with holiday cash.

sbiddle

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Reply # 969106 17-Jan-2014 21:06

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surfisup1000: Yes, duty free hasn't been any good for at least the last 10 years and is more targeted at impulse buyers flush with holiday cash.

Or people who want cigarettes - and I still don't understand why these are sold duty free.

I think everybody who arrives into NZ should get a coupon allowing them to fill up a tank of petrol duty free at their local service station!