Quote:
Originally Posted by Agent_Orange
I had never heard of AUSTFA, so if a product is made in the USA it doesn't attract GST regardless of cost?
Dave I didn't think everything was subject to import duty, only certain products? I once ordered a suit and shirts, both had different imports. 15 on the suit and 5% on the shirts due to different categories.
Can we just clarify that if you order an item worth $999 AUD, freight wont be calculated to form part of the total price and you won't pay GST on any of it. If it's over $1,000 the item will be subject to possibly import duty as well as GST which will be calculated on the total including freight.... do I have that right?
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AUSFTA = Australia-United States Free Trade Agreement
AQIS = Australian Quarantine inspection service (they are supposed to check for soil on goods etc)
We have a reciprocal agreement with USA, anything that is manufactured here (entirely) or manufactured in USA (entirely) is free from import duty (5%) but everything is subject to GST once the estimated value hits 1K
Where if falls down, if you buy a set if wheels from USA and the rims were made in USA it is covered under AUSFTA but if you mount Michelin tyres that are made in France there is import duty on the tyres.
There is no GST on freight BUT... the estimated value of the freight is added to the price shown on the commercial invoice attached to the goods and the combined value is deemed to be the value of the goods. Say something worth $600 , if the freight is estimated to be $400 they add the 2 together and the goods are deemed to be worth $1000. And another twist, its the estimated value of the freight too, not what you pay for it.
Example a retail cost of Fedex freight might be $400, the supplier gets a 60% discount so the real cost of freight is $160 but the freight is still estimated at full retail. Large packages are hard to get through the system because of the estimated freight component. A bit long winded Chris but hope that clarifies
I know every item I've every brought in has been the subject of a dispute and the paperwork is a nightmare even with a pre printed Fedex weighbill