Customs and releases

[Hailwood]

Just wanted to share an experience..it has nothing to do with importing vs local buying so please no need for the "you are hurting our local economy" type postings.....I purchased an after market muffler for the Buell WHICH YOU CANT BUY IN NZ (hence the internet purchase) and had it sent.

I received a letter yesterday from NZ Post saying it was being held by NZ Customs pending Customs release. The letter went on giving me 3 options:

1/ Contact NZ Post who would arrange clearance for me
2/ Get a Customs Broker to do same
3/ Contact Customs to get information needed on obtaining a release.

I took option 1 and called NZ Post. Big mistake!!! The person on the end of the phone told me that all imports over NZD400 were subject to a customs release. I asked her when this changed and she said it has been like that for ages. I asked her what ages meant and she didnt know. I asked if it was every package and she said yes. I asked her why saddle bags I bought costing $1200 had not had any issues...she stammered and had no answer. I asked her what was needed and how much it would cost....I need an invoice and it is $85 + GST plus customs fees. I said to her that all the paperwork was attached to the parcel and asked her if that would be ok...she got quite abrupt and said.."I will put you through to customs " and then cut me off. Top service from NZ Post as per normal. :no:

I got hold of Customs this morning who advised I needed to pay a fee and that they would email me the amount required...email arrived within 5 minutes and all sorted. parcel now on ist way to me via courier.

My advice is this...if you are importing something and get this letter from NZ Post..have nothing to do with them and talk to Customs directly...saved $85 + GST and a fair better level of service..especially when I was delaing with Customs at Aukcland Int Airport mail centre who must be absolutely snowed under with mail right now...............:clap::clap::clap:

[Kiwibaconator]

The basics are:

GST applies to everything, but customs don't bother collecting if the amount would be less than $50. With the old 12.5% GST $400 was the magic mark. Now it's 15% but they've kept the same $400 threshold.
Your $1200 saddlebags got through because customs don't have the resources to check everything. In short you were lucky that time.

I don't know when these rules started, but it's well over a decade ago.

NZ Post are just one of several customs brokers, they all charge clearance fees. There may be a lower $ limit for not having to use a broker, but I'm not sure what they are.

[fastoyz]

why did you need a broker for just 1 part? its usually just pay the gst and they send it out. only time i got the broker letter was when i had about a dozen parts for 3 different model bikes and they mentioned commercial or some crap

[Laava]

Just wanted to share an experience..it has nothing to do with importing vs local buying so please no need for the "you are hurting our local economy" type postings.....I purchased an after market muffler for the Buell WHICH YOU CANT BUY IN NZ (hence the internet purchase) and had it sent.

I received a letter yesterday from NZ Post saying it was being held by NZ Customs pending Customs release. The letter went on giving me 3 options:

1/ Contact NZ Post who would arrange clearance for me
2/ Get a Customs Broker to do same
3/ Contact Customs to get information needed on obtaining a release.

I took option 1 and called NZ Post. Big mistake!!! The person on the end of the phone told me that all imports over NZD400 were subject to a customs release. I asked her when this changed and she said it has been like that for ages. I asked her what ages meant and she didnt know. I asked if it was every package and she said yes. I asked her why saddle bags I bought costing $1200 had not had any issues...she stammered and had no answer. I asked her what was needed and how much it would cost....I need an invoice and it is $85 + GST plus customs fees. I said to her that all the paperwork was attached to the parcel and asked her if that would be ok...she got quite abrupt and said.."I will put you through to customs " and then cut me off. Top service from NZ Post as per normal. :no:

I got hold of Customs this morning who advised I needed to pay a fee and that they would email me the amount required...email arrived within 5 minutes and all sorted. parcel now on ist way to me via courier.

My advice is this...if you are importing something and get this letter from NZ Post..have nothing to do with them and talk to Customs directly...saved $85 + GST and a fair better level of service..especially when I was delaing with Customs at Aukcland Int Airport mail centre who must be absolutely snowed under with mail right now...............:clap::clap::clap:

So if NZ post were going to charge you 85+GST and you saved 85+GST by going straight thru to customs, how much did you have to pay customs?

[Hailwood]

So if NZ post were going to charge you 85+GST and you saved 85+GST by going straight thru to customs, how much did you have to pay customs?

$132 to Customs for duty and other fees..that's ok

[DrunkenMistake]

Shit,
I have imported a full exhaust system $1000,
Full set of fairings $550,
An exhaust muffler $500
etc etc,
I have never been charged GST on any of it, its just the luck of the draw

[Kiwibaconator]

$132 to Customs for duty and other fees..that's ok

So how much was the GST?

[thecharmed01]

why did you need a broker for just 1 part? its usually just pay the gst and they send it out. only time i got the broker letter was when i had about a dozen parts for 3 different model bikes and they mentioned commercial or some crap

Was it addressed to a business?

If it's addressed to a residential premises, you are more likely to avoid being snagged.
But if it's addressed to a business address, they immediately assume it's a business purchase, hence the broker letter.
I've found that a few times.

Also, it really sucks when the sender puts a dodgy amount on it (and you have no idea they have done so) and you get pulled up on it :facepalm:
Was in that rather awkward position recently, bought a camera lens and got a call about paying GST, I said that's fine just let me know how much (still cost me half the price of buying in NZ) as I didn't have a calculator handy. They guy then demanded proof of my purchase price, I had to provide a receipt and when I asked why, they told me that they didn't believe it was a 300-odd dollar item.
I was mighty confused too as I paid about $600NZD but I did as they asked, sent the paypal receipt and paid the GST. Lens arrived within two days.
Had a bit of a giggle as I guess the company I bought off knew the $400 threshold and were trying to save me some hassle, but tut tut on their part :bash:

[ajturbo]

ooooo.. you got new parts for the buell....ooooo can i pop around and see PLEASE:banana:

[PeeJay]

Just wanted to share an experience..it has nothing to do with importing vs local buying so please no need for the "you are hurting our local economy" type postings.....I purchased an after market muffler for the Buell WHICH YOU CANT BUY IN NZ (hence the internet purchase) and had it sent.

I received a letter yesterday from NZ Post saying it was being held by NZ Customs pending Customs release. The letter went on giving me 3 options:

1/ Contact NZ Post who would arrange clearance for me
2/ Get a Customs Broker to do same
3/ Contact Customs to get information needed on obtaining a release.

I took option 1 and called NZ Post. Big mistake!!! The person on the end of the phone told me that all imports over NZD400 were subject to a customs release. I asked her when this changed and she said it has been like that for ages. I asked her what ages meant and she didnt know. I asked if it was every package and she said yes. I asked her why saddle bags I bought costing $1200 had not had any issues...she stammered and had no answer. I asked her what was needed and how much it would cost....I need an invoice and it is $85 + GST plus customs fees. I said to her that all the paperwork was attached to the parcel and asked her if that would be ok...she got quite abrupt and said.."I will put you through to customs " and then cut me off. Top service from NZ Post as per normal. :no:

I got hold of Customs this morning who advised I needed to pay a fee and that they would email me the amount required...email arrived within 5 minutes and all sorted. parcel now on ist way to me via courier.

My advice is this...if you are importing something and get this letter from NZ Post..have nothing to do with them and talk to Customs directly...saved $85 + GST and a fair better level of service..especially when I was delaing with Customs at Aukcland Int Airport mail centre who must be absolutely snowed under with mail right now...............:clap::clap::clap:

Jeez mate all you had to do was say good morning, give her the notice number and credit card details, say thank you and it would have been done.
She would have sorted the invoice and everything.
Getting all technical and trying to show people up pisses them off and they become unhelpful.
I bet you didnt talk so tough to the customs person. If you did you would have been told to use a broker

Generally speaking customs allow you one freebie, where they do the brokers job for you.
Next time they will probably tell you to get a broker
Different delivery address may get you another freebie

[NordieBoy]

$132 to Customs for duty and other fees..that's ok

There's no duty on motorbike parts according to the customs website.

[BIG DOUG]

Nordie you are right,there is no duty on m/c parts but it didn't stop UPS trying to charge me duty on an oil pump had a massive argument with a women there and had to get her boss to come down and he still wanted to charge me duty.I had to remind them I worked(at the time) for a m/c parts importer so knew there was no duty and he decided to "let me off this time" makes you wonder though how many people have been charged duty when they didn't have to pay any.

[ajturbo]

ok Hailwood... go and get the "duty " back...:brick::brick:

[bsasuper]

You will find that a running total is kept too, and this can looked back on to decide if they want to sting you for that BIG purchase.

[Laava]

There's no duty on motorbike parts according to the customs website.

Bastards have had more than a few dollars off me in the last few months!
edit, I have had a good look at the NZ Customs website and can find no reference to any motor vehicle parts at all. can you direct us?

[pete-blen]

HI..
I just got a exhaust system from the UK...
When it got here... FedX called me and told me there
was GST owing... gave her my card number over
the phone all done.. tuned up 3 days later..
system $791nz ... GST $160...

I have a Tank on its way... $650nz... hope
that comes though fedX... they seem the
hassel free way....

[Hailwood]

ooooo.. you got new parts for the buell....ooooo can i pop around and see PLEASE:banana:

As soon as everything arrives and i fit it, i will give you a yell...

[Hailwood]

Jeez mate all you had to do was say good morning, give her the notice number and credit card details, say thank you and it would have been done.
She would have sorted the invoice and everything.
Getting all technical and trying to show people up pisses them off and they become unhelpful.
I bet you didnt talk so tough to the customs person. If you did you would have been told to use a broker

Generally speaking customs allow you one freebie, where they do the brokers job for you.
Next time they will probably tell you to get a broker
Different delivery address may get you another freebie

Thanks for your input (Do you work for NZ Post perhaps?) hahaaa. At no time was she interested in my credit card details nor even trying to help regarding finding an invoice. If she ahd suggested that she could help me I would have given her the credit card number on the spot. All I wanted to know was some answers. I was not trying to get all technical but merely trying to find out why I needed to pay NZ Post for something that I found out I could do myself with one phone call for free rather than pay them another $85 + GST.

I have no interest in changing addresses and trying to get freebies but I do object to poor customer service when I am trying to find out some info..

[Hailwood]

Was it addressed to a business?

If it's addressed to a residential premises, you are more likely to avoid being snagged.
But if it's addressed to a business address, they immediately assume it's a business purchase, hence the broker letter.
I've found that a few times.

Also, it really sucks when the sender puts a dodgy amount on it (and you have no idea they have done so) and you get pulled up on it :facepalm:
Was in that rather awkward position recently, bought a camera lens and got a call about paying GST, I said that's fine just let me know how much (still cost me half the price of buying in NZ) as I didn't have a calculator handy. They guy then demanded proof of my purchase price, I had to provide a receipt and when I asked why, they told me that they didn't believe it was a 300-odd dollar item.
I was mighty confused too as I paid about $600NZD but I did as they asked, sent the paypal receipt and paid the GST. Lens arrived within two days.
Had a bit of a giggle as I guess the company I bought off knew the $400 threshold and were trying to save me some hassle, but tut tut on their part :bash:

No it was addressed to my home adress...The Customs lady said it had been held up as a commercial purchase because of the email address of the vendor???????? She sorted it all out and its on its way.

Sorry I said duty I meant GST paid..no issues with paying it but rather the point of my initial post was the poor service from NZ Post and as a heads up to anyone if you get this type of letter...

[grbaker]

For packages over $1000 you will need to register for a Customs Client Code. Easily done... and worth it. Simplifies imports as you can have that number put on your 'shipping details' thus customs immediately know whom to contact (since most courier companies suck).

I found all this out the hard way ordering in some camera gear that I couldn't get here.

btw there are some items that don't incurr GST.. and I don't know the full of it, but the last $1200US lens I ordered incurred only a small fee from customs.

[NordieBoy]

Bastards have had more than a few dollars off me in the last few months!
edit, I have had a good look at the NZ Customs website and can find no reference to any motor vehicle parts at all. can you direct us?

"Customs duty rates" on this page...
http://www.customs.govt.nz/features/charges/feetypes/Pages/default.aspx

It's a bugger to find...

In the "M" section is...
Motor cycle parts 0%

[bsasuper]

Thanks for your input (Do you work for NZ Post perhaps?) hahaaa. At no time was she interested in my credit card details nor even trying to help regarding finding an invoice. If she ahd suggested that she could help me I would have given her the credit card number on the spot. All I wanted to know was some answers. I was not trying to get all technical but merely trying to find out why I needed to pay NZ Post for something that I found out I could do myself with one phone call for free rather than pay them another $85 + GST.

I have no interest in changing addresses and trying to get freebies but I do object to poor customer service when I am trying to find out some info..

You probably dont even realise how you are talking to the person, pissed off that customs are doing a job, the first person you talk to gets it.:tugger:

[Hailwood]

You probably dont even realise how you are talking to the person, pissed off that customs are doing a job, the first person you talk to gets it.:tugger:

As before thanks for your input however before anyone else reads between the lines let me make this clear......I have no issues whatsoever with Customs doing their job and I have no issues paying GST and all the other fees charged on the importing of the muffler.

I spend a huge amount of my day delaing with a wide range of people requiring information and service from me so am fully aware of how I speak to people...........I am well aware that the next comment will be viewed as negative..but FFS get off your high horse and actually read the f*%king post properly before commenting...and your last emoticon speaks more about you than me............

[Laava]

"Customs duty rates" on this page...
http://www.customs.govt.nz/features/charges/feetypes/Pages/default.aspx

It's a bugger to find...

In the "M" section is...
Motor cycle parts 0%

Thanks Nordie, it is a bugger to find and now I feel like I need a refund!

[ajturbo]

by rights.... if everyone we deal with is by "Free Trade".. we should only pay GST.....
or am i barking up the wrong tree..

:banana:

[grbaker]

As before thanks for your input however before anyone else reads between the lines let me make this clear......I have no issues whatsoever with Customs doing their job and I have no issues paying GST and all the other fees charged on the importing of the muffler.


I agree... the last two customs administration staff I have talked to have gone out of their way to be helpful (even had one hunting around under others peoples desk to find my paper work that had fallen off a pile and behind a desk).

I do feel a little sorry for them.. it sounds that in this 22nd centry of IT wizz bang, 3D intranet porn :eek5: and appliances that give you verbal abuse... customs is still a very paper based process.

[grbaker]

by rights.... if everyone we deal with is by "Free Trade".. we should only pay GST.....
or am i barking up the wrong tree..

:banana:

additional to the sales tax from the country you imported from (AUS GST or UK VAT).

IMHO if you import then the only GST payable here should be for the local courier... not the other contries sale price nor their international shipping fee... If it is not a Sale or Service you can get here why should you pay any tax on it?

For example would you expect to pay New Zealand tax on a website sucscription to Playboy.com??

[NordieBoy]

additional to the sales tax from the country you imported from (AUS GST or UK VAT).

IMHO if you import then the only GST payable here should be for the local courier... not the other contries sale price nor their international shipping fee... If it is not a Sale or Service you can get here why should you pay any tax on it?

For example would you expect to pay New Zealand tax on a website sucscription to Playboy.com??

But there's no VAT on stuff from the UK.

[pritch]

I posted a thread about all this recently.

No duty on bike parts, but there is GST.

GST is payable to IRD

Customs charge you for collecting the GST.

Then you pay GST on the sum Customs charged you for charging you GST.

Then for good luck a MAF levy is added even though the MAF guys were somewhere else ignoring a ton of infected pork produucts from China.

Of course, you guessed it, GST is then also added to the MAF levy.

By the way, the current level at which imports attract GST is relatively recent. It used to be anything over $700. Now it's more like $400.

[BMWST?]

additional to the sales tax from the country you imported from (AUS GST or UK VAT).

IMHO if you import then the only GST payable here should be for the local courier... not the other contries sale price nor their international shipping fee... If it is not a Sale or Service you can get here why should you pay any tax on it?

For example would you expect to pay New Zealand tax on a website sucscription to Playboy.com??

you pay gst on it because you would have paid gst on it if you bought it here so they get their tax no matter who you buy off

[Mully]

I do feel a little sorry for them.. it sounds that in this 22nd centry of IT wizz bang, 3D intranet porn and appliances that give you verbal abuse... customs is still a very paper based process.

Not if you're in the business - it's all electronic...

[Mully]

btw there are some items that don't incurr GST.. and I don't know the full of it, but the last $1200US lens I ordered incurred only a small fee from customs.

That's a whole different can of worms. Probably best not to open it, really.

Simply put - allow 15% (plus ~$40 in levies) on top of anything you price overseas.

And if you've imported before (privately), Customs will make you get a broker - who will charge probably ~$100 or so.

[Robert Taylor]

That's a whole different can of worms. Probably best not to open it, really.

Simply put - allow 15% (plus ~$40 in levies) on top of anything you price overseas.

And if you've imported before (privately), Customs will make you get a broker - who will charge probably ~$100 or so.

Indeed, if businesses have to pay this why shouldnt private individuals? Its an inequity that is plain wrong.

[Kiwibaconator]

Indeed, if businesses have to pay this why shouldnt private individuals? Its an inequity that is plain wrong.

Businesses who import often get very good rates from brokers, the gst comes back in the next GST Return and the other costs are tax deductions. It's not the hassle it sounds as the volume of stuff coming through for a business makes the fees quite small per item.

In short, there are two economies of scale when importing.
1. Below the GST threshold.
2. Big enough that the fees become minor.

In between the $450-500 mark is the most painful, the fees become a big proportion of the items value.

[Robert Taylor]

Businesses who import often get very good rates from brokers, the gst comes back in the next GST Return and the other costs are tax deductions. It's not the hassle it sounds as the volume of stuff coming through for a business makes the fees quite small per item.

In short, there are two economies of scale when importing.
1. Below the GST threshold.
2. Big enough that the fees become minor.

In between the $450-500 mark is the most painful, the fees become a big proportion of the items value.

Sounds plausible, until you relate that many businesses importing low volume specialty products will not have the buffer of volume to spread the cost.