Screwed again

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Rikkitic

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#172018 8-May-2015 14:03

Can they actually get away with this? Here is a cautionary note for anyone having stuff sent from overseas.

I just received a letter on behalf of Customs regarding a parcel. The letter says I have to pay an extra $100+ to obtain my item.

We all know that imports under $400, which means GST under $60, are tax-free. My item was valued at $360 so I thought I was sweet. Except that postage from the US came to $78 and the buggers added GST to that, bringing the amount to just over $60. Result: I have to pay extra GST, Import Transaction Fee, GST on Import Transaction Fee, Biosecurity Levy, GST on Biosecurity Levy, total well over $100 on a $360 item. In other words, more than 25%.

Surely there has to be something wrong with this. It certainly doesn’t feel right. Can any lawyers out there explain it to me in terms that don’t sound like I’m being royally shafted?

Anyway, be warned. If you are in a position to adjust the value you declare, make sure to include the postage.

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#1300697 8-May-2015 14:07

So what does it work out at if you use this: http://www.whatsmyduty.org.nz/whats-my-duty

khull

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#1300699 8-May-2015 14:09

Don't forget to leave a thank you note to the Revenue Minister. But the $400 magic number you refer to is not a line in the sand. You will be pinged for tax for clothing and certain items that incur duty regardless of the amount.

It is also very clear that the total value of the shipment includes the shipping cost which means a percentage portion of the tax you paid ends up going to the shipment cost as well.

SirHumphreyAppleby

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#1300700 8-May-2015 14:09

The limit of $60 applies to the transaction value, including both the item and shipping costs.

timmmay

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#1300702 8-May-2015 14:14

Those are the rules, just because you didn't understand them it doesn't mean you've been "screwed".

Inphinity

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#1300705 8-May-2015 14:22

I thought I could bring in up to $400 worth of goods tax-free?
There is a common misconception that goods purchased online from overseas websites for less than NZ$400 can come into the country (be imported) without incurring any duty, GST, or charges. This ‘rule of thumb’ does not apply to goods that attract both duty and GST, such as clothing, shoes, and accessories. Customs charges maybe payable when the value of these goods exceeds approximately NZ$225.

How is the GST calculated?
GST is calculated at 15 percent on the total of the value of the goods, plus duty (if applicable), plus postal/courier and insurance charges.

Rikkitic

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#1300733 8-May-2015 14:40

All maybe true but I still think 26% tax is excessive. Even Europe doesn't squeeze that much.

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dolsen

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#1300737 8-May-2015 14:43

Yeah, annoying as it is, not much we can do about it. Australia has a much healthier $1000 limit I believe, quite nice for importing things from overseas through the mail. They also allow you to pool the allowance for things accompanying you on return from a holiday, where NZ will give you $700 per person but not allow you to pool the allowance.

kiwiharry

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#1300738 8-May-2015 14:45

Rikkitic: All maybe true but I still think 26% tax is excessive. Even Europe doesn't squeeze that much.

Happy to be corrected if I am wrong but aren't some of the charges fixed amounts? Although the total amount of charges works out at 26% for you, it's not the case for everybody.

If you can't laugh at yourself then you probably shouldn't laugh at others.

old3eyes

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#1300740 8-May-2015 14:45

Rikkitic: All maybe true but I still think 26% tax is excessive. Even Europe doesn't squeeze that much.

And in Ozz it's a A$1000 limit before tax..

Regards,

Old3eyes

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#1300780 8-May-2015 14:59

Rikkitic:
Can they actually get away with this? Here is a cautionary note for anyone having stuff sent from overseas.

I just received a letter on behalf of Customs regarding a parcel. The letter says I have to pay an extra $100+ to obtain my item.

We all know that imports under $400, which means GST under $60, are tax-free. My item was valued at $360 so I thought I was sweet. Except that postage from the US came to $78 and the buggers added GST to that, bringing the amount to just over $60. Result: I have to pay extra GST, Import Transaction Fee, GST on Import Transaction Fee, Biosecurity Levy, GST on Biosecurity Levy, total well over $100 on a $360 item. In other words, more than 25%.

Surely there has to be something wrong with this. It certainly doesn’t feel right. Can any lawyers out there explain it to me in terms that don’t sound like I’m being royally shafted?

Anyway, be warned. If you are in a position to adjust the value you declare, make sure to include the postage.

What if you average it over all the things you've imported and not paid GST on?

nathan

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#1300782 8-May-2015 15:00

Get over it or leave the country to find a less taxed regime, or be happy that your tax is paying for schools, hospital, police, old age pension, prisons and defence.

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khull

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#1300790 8-May-2015 15:02

nathan: Get over it or leave the country to find a less taxed regime, or be happy that your tax is paying for schools, hospital, police, old age pension, prisons and defence.

don't forget the all important WINZ benefits + super payments and student loans

Rikkitic

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#1300791 8-May-2015 15:05

kiwiharry:
Rikkitic: All maybe true but I still think 26% tax is excessive. Even Europe doesn't squeeze that much.

Happy to be corrected if I am wrong but aren't some of the charges fixed amounts? Although the total amount of charges works out at 26% for you, it's not the case for everybody.

Yeah some are fixed but you really get hammered if you happen to be just over the limit. I guess 'proportionate' is an unknown concept.

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afe66

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#1300792 8-May-2015 15:05

In UK

gifts worth more than £36
other goods worth more than £15
alcohol, tobacco products and fragrances (eg perfume, eau de toilette and cologne) - of any value

Rikkitic

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#1300794 8-May-2015 15:08

nathan: Get over it or leave the country to find a less taxed regime, or be happy that your tax is paying for schools, hospital, police, old age pension, prisons and defence.

Good point! We always need more schools, hospitals, police, old age pension, prisons and defence so why don't we all just pay 26% on everything? What a lovely society this would be.

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