GST on an imported second-hand camera? Say what!

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geekIT

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Topic # 205846 29-Nov-2016 15:30

Guys, I need urgent Kiwi advice.

Coupla days ago I bought a used camera from a store in New York - B&H Photo.

The $US550 price translated, with freight, to $NZ833. It was more than I wanted to pay, but I did the deal.

Just got a call from NZ Customs. They've got the camera and tell me I have to pay them 15% GST plus another $50 for some other damn thing. Around $170. Sheez!

Anyone know if this is a legit charge?

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Banana?
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Reply # 1679557 29-Nov-2016 15:33

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Yep.

Legit, you are importing goods. You pay GST (and the Levy). Check www.whatsmyduty.org.nz

jnimmo

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Reply # 1679561 29-Nov-2016 15:36

Definitely legit unfortunately

I got stung the other day - I had purchased something and paid $394 NZD for it including shipping, but Customs use a different exchange rate than the money transfer service I used - so they calculated the value at $410 NZD and I was up for $150. Would have never purchased it if I knew it was going to cost me 40% more :(

maoriboy

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Reply # 1679563 29-Nov-2016 15:39

According to the NZ Customs website...

GST is charged on all imported goods, including mail order and internet purchases, and is
calculated on the Customs value of the item, plus any duty, plus any freight and insurance costs.

It doesn't seem to differentiate between brand new or second hand goods there.

networkn

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Reply # 1679566 29-Nov-2016 15:47

My sister got pinged on a warranty replacement from an international vendor about 18 months ago.

geekIT

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Reply # 1679567 29-Nov-2016 15:47

My wife routinely buys jigsaw puzzles from the UK, at around $NZ35.

She's never been asked to pay anything extra.

sbiddle

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Reply # 1679569 29-Nov-2016 15:49

geekIT:

My wife routinely buys jigsaw puzzles from the UK, at around $NZ35.

She's never been asked to pay anything extra.

That's because at that price there is no duty or GST to pay.

Going back to the OP - the fact something is 2nd hand makes no difference at all. You pay duty, and/or GST on all imported goods.

geekIT

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Reply # 1679571 29-Nov-2016 15:53

What if I'd bought the camera in New York and brought it back with me?

sbiddle

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Reply # 1679574 29-Nov-2016 15:58

geekIT:

What if I'd bought the camera in New York and brought it back with me?

You are allowed to being back NZ$750 worth of goods before you need to declare these and pay duty and/or GST.

Dairyxox

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Reply # 1679589 29-Nov-2016 16:15

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networkn:

My sister got pinged on a warranty replacement from an international vendor about 18 months ago.

I don't think this is right. I had something similar happen, and raised it with customs who happily waived the fee as long as I provided the original proof of purchase.

trig42

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Reply # 1679590 29-Nov-2016 16:17

geekIT:

What if I'd bought the camera in New York and brought it back with me?

That would have probably been OK, given that it was probably not in its packaging, and you could conceivably have taken it with you. If Customs knew you had bought it overseas, they are within their rights to make you pay the GST and levys.

The reason your wife doesn't pay any extra, is that Customs will not collect payment if the total amount of GST and Duty (you pay Duty on some items like clothes and shoes) does not total more than $60 (NZD). That equates to NZD400 worth on (non-dutiable) items as $400 x 15% = $60. Where an item attracts duty as well, the number goes down (for clothes, the total before duty/GST is payable is around the $240 mark).

Once they charge you GST and duty, they will also charge you the levies (about $45 I think). That is a fixed cost, so if you know you are going to go over, better to go way over so the fixed portion becomes less proportionally.

Geektastic

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Reply # 1679598 29-Nov-2016 16:25

I struggle with the logic, since no good was sold in NZ and no service provided, plus the disparity between what you can carry in and what you can send to yourself.

I've certainly sent watches to Australia that are worth far in excess of the duty threshold. (for repair) and never been charged.

I'd like to say that you wouldn't be charged but I expect you will be.

MikeAqua

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Reply # 1679604 29-Nov-2016 16:40

It's very simple. If you import anything it is subject to GST and import duty (if applicable) and a border levy. That is the 'rule'

Like many rules there are exceptions.

I think one of those exceptions is when you send something overseas for repair.

Mike

MikeAqua

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Reply # 1679606 29-Nov-2016 16:47

Geektastic: I struggle with the logic, since no good was sold in NZ and no service provided, plus the disparity between what you can carry in and what you can send to yourself.

If GST wasn't charged on imported goods it would place local sellers at a dis-advantage.

Why would any government want to do that (while also forgoing revenue)?

Mike

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Reply # 1679610 29-Nov-2016 16:54

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MikeAqua:

Geektastic: I struggle with the logic, since no good was sold in NZ and no service provided, plus the disparity between what you can carry in and what you can send to yourself.

If GST wasn't charged on imported goods it would place local sellers at a dis-advantage.

Why would any government want to do that (while also forgoing revenue)?

As if that was all that places them at a disadvantage.

Do we need local sellers? We can order everything from wherever on the planet it is cheapest.

andrewNZ

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Reply # 1679625 29-Nov-2016 17:21

Had a workmate get pinged for GST and duty on his own tools. He put them in a container with a machine going to Aus, then flew over to install and commission the containers contents. He then sent them home by courier to avoid excess baggage charges. They got held at the border, and as he had no documentation to prove they had been exported, he had to pay about $400.

He could have tried to argue it, but needed the tools so he could work.

Location: Dunedin

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