Potential additional costs for those importing from overseas.

Forums › Off topic › Potential additional costs for those importing from overseas.

Geektastic

16802 posts

Uber Geek

Trusted

Lifetime subscriber

#138967 23-Jan-2014 13:29

I was speaking with NZ Post yesterday about an inbound delivery from the USA.

They asked me whether it was business or personal. I asked what difference that made and was advised that if it was business, I must use a Customs Agent for clearance and pay their fees on top of the duty and tax.

So just be aware - unless you can't possibly claim it is personal, it will cost you less if you say that regardless of the reality!

Buzz Bumble

332 posts

Ultimate Geek
Inactive user

#972949 23-Jan-2014 16:00

I don't know about these days, but getting the sender to mark it as a "Gift" (if possible) also used to be a way to get around extra costs. Some webstores still do that.

Trend Micro

Affiliate link

Affiliate link: Trend Micro provides enhanced protection against viruses, malware, ransomware and spyware and more for your connected devices.

mattwnz

18760 posts

Uber Geek

#972977 23-Jan-2014 16:27

That is interesting to know. I imported something large, and had to use an agent, so had to pay their fees too, even though it was for personal use. I didn't get any option either.

KevinL

656 posts

Ultimate Geek

Trusted

#972986 23-Jan-2014 16:32

Buzz Bumble: I don't know about these days, but getting the sender to mark it as a "Gift" (if possible) also used to be a way to get around extra costs. Some webstores still do that.

This is a fallacy.

Ordering and paying for goods over the Internet, to be sent to someone other than you, does not count as a gift and the recipient will be liable for any duties and taxes that are payable.

On the other hand, a gift – which is something sent directly by one private individual to another – will not attract duties or charges if its value is less that NZ$110.

Geektastic

16802 posts

Uber Geek

Trusted

Lifetime subscriber

#973067 23-Jan-2014 18:19

KevinL:
Buzz Bumble: I don't know about these days, but getting the sender to mark it as a "Gift" (if possible) also used to be a way to get around extra costs. Some webstores still do that.

This is a fallacy.

Ordering and paying for goods over the Internet, to be sent to someone other than you, does not count as a gift and the recipient will be liable for any duties and taxes that are payable. On the other hand, a gift – which is something sent directly by one private individual to another – will not attract duties or charges if its value is less that NZ$110.

Seems a bit mean.

What happens if your overseas relatives buy you a Rolex as a surprise? I don't see why that should suddenly land you with an unexpected $2000 tax bill and there is no reason to assume that they would know it would, either.

Buzz Bumble

332 posts

Ultimate Geek
Inactive user

#973074 23-Jan-2014 18:55

KevinL:
Buzz Bumble: I don't know about these days, but getting the sender to mark it as a "Gift" (if possible) also used to be a way to get around extra costs. Some webstores still do that.

This is a fallacy.
Ordering and paying for goods over the Internet, to be sent to someone other than you, does not count as a gift and the recipient will be liable for any duties and taxes that are payable. On the other hand, a gift – which is something sent directly by one private individual to another – will not attract duties or charges if its value is less that NZ$110.

Obviously it's not a fallacy since the last sentence in the quote you provided proves it (assuming it's actually a lgitimate quote from somewhere like NZ Post!).

Of course if your parcel is stamped all over with Amazon logos it's unlikely to be a real gift, but many of the smaller webstores do send items marked as "gift" and are not identifiable as to where they came from, so do bypass the extra cost.

KevinL

656 posts

Ultimate Geek

Trusted

#973081 23-Jan-2014 18:59

Buzz Bumble:
KevinL:
Buzz Bumble: I don't know about these days, but getting the sender to mark it as a "Gift" (if possible) also used to be a way to get around extra costs. Some webstores still do that.

This is a fallacy.
Ordering and paying for goods over the Internet, to be sent to someone other than you, does not count as a gift and the recipient will be liable for any duties and taxes that are payable. On the other hand, a gift – which is something sent directly by one private individual to another – will not attract duties or charges if its value is less that NZ$110.

Obviously it's not a fallacy since the last sentence in the quote you provided proves it (assuming it's actually a lgitimate quote from somewhere like NZ Post!).

Of course if your parcel is stamped all over with Amazon logos it's unlikely to be a real gift, but many of the smaller webstores do send items marked as "gift" and are not identifiable as to where they came from, so do bypass the extra cost.

Items that cost less than $400 generally don't attract GST anyway (the threshold is somewhat lower for things like clothing that attract duty as well), so the NZ$110 limit on gifts is effectively meaningless.

i.e. send item worth $100 marked as gift, no GST/duty. send item worth $100 not marked as gift, still no GST/duty. send item worth $500 marked as gift, attracts GST/duty. send item worth $500 not marked as gift, attracts GST/duty.

Hence it's a fallacy.

http://www.customs.govt.nz/features/internetshopping/Pages/tipsforinternetshopping.aspx

KevinL

656 posts

Ultimate Geek

Trusted

#973082 23-Jan-2014 19:01

Also, items that bypass GST/duty are generally due to the fact that Customs don't screen all mail, so good being shipped via e.g. EMS/Airmail may not necessarily be identified for GST/duty assessment. If goods are sent via courier (i.e. DHL/UPS/Fedex) then they're automatically submitted to customs and will always attract duty/GST if over the threshold.

Marking something as a gift isn't going to make a difference.

jeffnz

2870 posts

Uber Geek

Trusted

Lifetime subscriber

#973091 23-Jan-2014 19:18

I wasn't aware you had to use a customs agent if you knew your way around the system its just most business's choose to as its easier.

"Customs’ online declarations website www.cusweb.co.nz is designed for regular importers who have sufficient knowledge of Customs requirements to clear their own imports with Customs. If you are unfamiliar with how to determine the tariff classification, value or permit requirements for the goods you import, Customs suggests you engage your freight forwarder or a Customs broker to lodge import clearances on your behalf"

source: customs.govt.nz

the above would suggest the same.

Galaxy S10

Garmin Fenix 5

Geektastic

16802 posts

Uber Geek

Trusted

Lifetime subscriber

#973115 23-Jan-2014 19:41

jeffnz: I wasn't aware you had to use a customs agent if you knew your way around the system its just most business's choose to as its easier.

"Customs’ online declarations website www.cusweb.co.nz is designed for regular importers who have sufficient knowledge of Customs requirements to clear their own imports with Customs. If you are unfamiliar with how to determine the tariff classification, value or permit requirements for the goods you import, Customs suggests you engage your freight forwarder or a Customs broker to lodge import clearances on your behalf"

source: customs.govt.nz

the above would suggest the same.

That may be so.

However, I suspect most people who get caught by the rule won't do it often enough to do their own calculations and NZ Post seem to be treating it as a requirement. This may be because they also act as Customs Agents for a fee, however...!

jeffnz

2870 posts

Uber Geek

Trusted

Lifetime subscriber

#973170 23-Jan-2014 20:55

Geektastic:
jeffnz: I wasn't aware you had to use a customs agent if you knew your way around the system its just most business's choose to as its easier.

"Customs’ online declarations website www.cusweb.co.nz is designed for regular importers who have sufficient knowledge of Customs requirements to clear their own imports with Customs. If you are unfamiliar with how to determine the tariff classification, value or permit requirements for the goods you import, Customs suggests you engage your freight forwarder or a Customs broker to lodge import clearances on your behalf"

source: customs.govt.nz

the above would suggest the same.

That may be so.

However, I suspect most people who get caught by the rule won't do it often enough to do their own calculations and NZ Post seem to be treating it as a requirement. This may be because they also act as Customs Agents for a fee, however...!

that was my thoughts as well.

Galaxy S10

Garmin Fenix 5