Import duties/GST and multiple packages

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seanmonaghan

11 posts

Geek

#143136 4-Apr-2014 11:22

Hi all,

First post and I couldn't find any definitive answer on here.

I realise that most imported items have a duty fee (5% for the item I am querying about) and GST applied at customs. If the combined total of these two is less than $60 NZD, they let it slide and you do not have to pay for the package to be released.

Say for example I had I had a single package totalling $400 NZD ($360 for goods + $40 shipping) - duty = $20, GST = $63, hence I would have to pay $83 (+ any admin fees) for the packgae to be released to me.

What if I had the package split up into two packages each valued at $210 ($180 for goods + $30 shipping). Duty + GST = approx $43.60 per item so this would be waived. A total of $20 additional shipping but $0.00 at customs..

What if I did this with, say, 10 identical packages? Separately, they all come under the threshold. But combined the duty + GST might be around $400.

My question is, do customs have an issue with this? If simultaneously a bunch of packages are addressed to the same person at the same address are arrived at customs, do they still treat each package as an individual?

Thanks in advance.

trig42

5809 posts

Uber Geek

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#1018382 4-Apr-2014 11:28

No easy answer, they may pick it up, they may not. I would think they would have software that would detect lots of parcels going to the same recipient, and if they felt you were trying to circumvent, they would ping you.

They might not too - you hear of parcels getting through over the $60 threshold with no charge.

surfisup1000

5288 posts

Uber Geek

#1018387 4-Apr-2014 11:33

i just shipped 3 packages which summed to way more than $400 and they all arrived within 3 days -- customs did nothing.

And, nor do I see that they should either.

seanmonaghan

11 posts

Geek

#1018399 4-Apr-2014 11:43

Cheers for the responses.

I have just ordered two identical packages totaling approx $500 in value but have had them shipped to two different recpients/addresses (one to myself and one to gf). They are paid for with the same credit card but I'm fairly sure they will make it through fine.

Would be great to avoid this in future and have them both sent to me. Separating the packages by 5 days or so would probably avoid the fees but it would be ideal to not even have to go to extent haha. Just trying to beat the system..

seanmonaghan

11 posts

Geek

#1018401 4-Apr-2014 11:44

surfisup1000: i just shipped 3 packages which summed to way more than $400 and they all arrived within 3 days -- customs did nothing.

And, nor do I see that they should either.

3 packages all from the same supplier? When you say "way more than $400" - how much more?

tigercorp

668 posts

Ultimate Geek

#1018403 4-Apr-2014 11:45

From the What's My Duty FAQ

What if I split my purchases to keep the value below the amount where duty or GST are payable?
The value of an importation is based on all goods imported by a company or person at one time and is not limited to a single financial transaction. If a group of several items, purchased separately by the same person or company, arrive in New Zealand at the same time, the value of these items may be combined which could result in charges becoming payable.

seanmonaghan

11 posts

Geek

#1018407 4-Apr-2014 11:49

tigercorp: From the What's My Duty FAQ

What if I split my purchases to keep the value below the amount where duty or GST are payable?
The value of an importation is based on all goods imported by a company or person at one time and is not limited to a single financial transaction. If a group of several items, purchased separately by the same person or company, arrive in New Zealand at the same time, the value of these items may be combined which could result in charges becoming payable.

Great response. Thank you. So if the packages arrive in NZ a few days apart, I'm good?

dacraka

766 posts

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#1018454 4-Apr-2014 12:30

seanmonaghan:
tigercorp: From the What's My Duty FAQ

What if I split my purchases to keep the value below the amount where duty or GST are payable?
The value of an importation is based on all goods imported by a company or person at one time and is not limited to a single financial transaction. If a group of several items, purchased separately by the same person or company, arrive in New Zealand at the same time, the value of these items may be combined which could result in charges becoming payable.

Great response. Thank you. So if the packages arrive in NZ a few days apart, I'm good?

Exactly - if you can't wait, just ship to another address to someone else and pick it up!

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Parewanui

30 posts

Geek

#1018479 4-Apr-2014 12:51

Hmmm... is there guidelines...?

I got 2 packages before xmas...
arriving at 2 different addresses in NZ.
both $400 USD in value declared.
both were Nexus 5 phones.
2 weeks apart arriving.

Package 1 was not taxed by customs.
Package 2 was hit with $124.44 for fees and taxes.

andrewNZ

2487 posts

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Inactive user

#1018483 4-Apr-2014 12:57

Think of it as roulette.

timmmay

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#1018522 4-Apr-2014 14:06

I had two packages arrive on the same day a couple of years ago, combined value over the threshold but individual value below, I was charged the fees.

surfisup1000

5288 posts

Uber Geek

#1018538 4-Apr-2014 14:28

seanmonaghan:
surfisup1000: i just shipped 3 packages which summed to way more than $400 and they all arrived within 3 days -- customs did nothing.

And, nor do I see that they should either.

3 packages all from the same supplier? When you say "way more than $400" - how much more?

$475.

I guess maybe not way more. but, definitely over the triggering point. And, there is something else due to arrive shortly for an extra $67 usd.

I'm guessing, they have a copy of all of the shipped goods in their db so it would be easy to do a simple query listing multiple shipment groups by either address/phone number or even name.