Thread: Importing Goods and GST

Hi all,

I am looking at importing some wheels from the UK that currently have a value of $990 on current exchange rates.

I will pay in advance and the wheels will be depatched in about 5 weeks (have to be made), then 6 days delivery door to door.

So the question is - when Customs review the value will they use the exchange rate at the time the payment was actually made (like tomorrow) or the exchange rate at the time the wheels finally arrive - as you can see the cost is close to the magic $1000 figure and I would prefer not to have to pay GST.

Thanks

Garry

Originally Posted by garrycol

Don't worry about freight - just concerned about the timeline for Customs calculating the cost of the goods. The $990 does not include freight.

Cheers

Garry

Importing Goods by Post FAQ

How is duty and GST calculated?

The Customs value of goods imported into Australia is known as the ‘transaction value’. It is usually the amount you paid for your goods, converted to Australian currency. The exchange rate that is used is the rate applied on the day the goods were posted (exported).
When the goods you import are valued at more than A$1000, or include alcohol or tobacco products of any value, a Customs value is used as the basis for calculating the amount of any duty and/or GST and other taxes payable.
Duty payable is calculated on the Customs value of the goods. Relevant duty rates are determined by the Customs Tariff Act 1995 and are applicable at the time an import declaration is made.
GST is paid on the Value of the Taxable Importation (VoTI). The VoTI is the sum of the Customs value, transport and insurance costs (or postage and insurance) plus any duty payable and WET payable.
Below is an example calculation for an electric sound amplifier with a duty rate of 5%. The purchase price was US$1,274 and the exchange rate on the day it was exported was 0.9100 (A$1 = US$0.91). The postage and insurance was US$118.30
Customs value converted to Australian currency = US$1274/0.9100 = A$1,400.00
Postage and insurance converted = US$118.30/0.9100 = A$130.00
Duty (amount payable) = 5% of A$1,400 = A$70.00
VoTI = (customs value + duty + postage and insurance)
= A$1,400 + A$70 + A$130 = A$1600.00
GST = 10% of VoTI (amount payable)
= 10% of A$1,600 = A$160.00
Amount payable to Customs and Border Protection
Duty + GST = A$70.00 + A$160 = A$230.00
Plus import declaration (lodged by document) processing charge of A$48.85
Total payable = A$230.00 + A$48.85 = A$278.85

Martyn