My experience - importing a used bike from the USA

[Beeza]

Ship ALL the bikes you want to bring to NZ right into your container when you first move here as part of your other shipped household effects and you'll duck all the GST and other sundry drama.

Do not get here and only THEN hunt down the great bikes from home that you always wanted.

That's my experience.

[Mully]

Ship ALL the bikes you want to bring to NZ right into your container when you first move here as part of your other shipped household effects and you'll duck all the GST and other sundry drama.

Do not get here and only THEN hunt down the great bikes from home that you always wanted.

Hi Beeza,

I, for my sins, am a Customs Broker. Whether or not you are subject to GST depends on how long you have owned the vehicle(s).

As it appears to me, you simply bought the bikes "remotely" as it were. Same as buying anything off the internet from another country, GST is payable on the CIF value (Value of the goods, value of the insurance and value of the freight @ 12.5%) of the items. For your purposes, Duty is not relevant, as motorcycles are duty free in their own right.

For those playing at home, I will hereby present my condensed "how-to:" guide;

First, familiarise yourself with this section of the NZ Customs website: http://www.customs.govt.nz/traveller...es/default.htm
This will tell you when charges apply and when they don't.
Also http://www.ltsa.govt.nz/importing/ will tell you the requirements for getting it on the road.

Second, approach several forwarders (ask if they are interested in motorcycles, some will have a go even though they have no interest/knowledge of the procedure) at origin for quotations. Here is the rub: You need to ask for a DDP quote. Specify that you want a price for all-in to a compliance centre in whatever city you are in. You need to give them a week or so to respond, as they will have to get all charges from NZ. Tell them that you expect any additional charges (cleaning, etc) to be charged at cost plus 5% and you want the supplier invoices to verify. Prepay for as much as you can BEFORE you leave (ideally, you only want any additional charges to be paid in NZ). The NZ forwarder will want to clip the ticket on everything you pay here.

Third, get a written valuation from a dealer (especially if you bought privately) for the value EXCLUDING local taxes (GST/VAT, etc).

Fourth, clean the bastard like it's never been cleaned before. Under mudguards, inside fairings and sidecovers even the toolkit. Remember; doing it yourself means it'll save you big $$ at this end, as MAF insist on approved cleaners only.

Fifthly, get a metal crate. Mentioned earlier was Harley crates. These are good. Some crates are metal framing with a cardboard sleeve. If you strap it in, use NEW straps only. MAF will happily mistake grease on an old strap for mud and order cleaning. Do not use: wood, rope, old tyres (yes it has been done) to pack.

Sixthly, get marine insurance. If it all turns to shit, the Bills of Lading and the Carriage of Goods act will absolve everyone of liability and you could be left with some expensive scrap metal.

Any dramas, PM me and I'll advise as best I can.

(Disclaimer; this information is true and correct to the best of my knowledge, and assembled with due care. No liability for mis-information will be accepted. This is my opinion and experience only, and no warranty as to it's current or future accuracy is expressed or implied. Rinse and repeat. Do not wash with dark colours, as the colour may bleed. Your results may vary. If symptoms persist, please see your doctor.)

[Beeza]

I bought the bikes 4 years ago, and rode them on my visits to S.Africa but without registering them --- they were ridden on private roads and race tracks.

And GST levied on the CIF invoice is clearly iniquitous -- it should legitimately be only on the FOB (free-on-board ) value as they are "goods" entering NZ.

The insurance and freight are provided by non-New Zealanders and should therefore be GST exempt as no NZ service has been rendered in any way, shape or form for either the insurance or freight. And the cost of these services was not even paid for out of NZ funds, but from the offshore, non-NZ bank a/c of the vendor.

Section 12 is a huge ripoff.

[Mully]

Hmm, seems to me that they should have been GST exempt then (certainly under the reference 80 concession). AFAIK, the legislation says "owned and used" overseas, and says nothing about it not coming with you at the time.

(Warning, I have never had this situation occur, so I could very well be wrong)

Do you know why Customs said GST was payable when you had owned them for so long? Not really relevant anymore, but more for my own curiosity.

And yes, I agree Section 12 is a rort, but most countries use the same system (GST on CIF value). Despite Chester Burrows's sympathies, I doubt this government revenue stream will be closed off in a hurry. (regardless, it only affects private individuals, as companies simply claim the GST back on their tax return)

EDIT: Hang on, what does this mean?

Do not get here and only THEN hunt down the great bikes from home that you always wanted.

Were you a permanant resident in NZ when you bought them? Or were you living in ZA and left them there for a while?

That could explain the "owned and used while outside NZ" bit.

[Beeza]

I was a NZ permanent resident when I bought these bikes, but I went over to SA and rode and raced them over there and have now brought them here.

[Mully]

I was a NZ permanent resident when I bought these bikes, but I went over to SA and rode and raced them over there and have now brought them here.

Ahh, I see. It all becomes clear.

My deepest condolences in having to deal with MAF and Customs.

[Beeza]

MAF and Customs are "jobsworths". Cutting you even half a millimetre of fair and reasonable slack is simply "more than my job's worth, mate -- sorry, I can't help you".

I appreciate the sympathy.

[YellowDog]

I guess I was just lucky with my experieces. I found them a nice bunch of guys to deal with.

Especially Mully

[Beeza]

I dare say some may import machines and encounter not a single hitch, and they meekly accept the idea of paying GST on the whoppingly huge foreign shipping costs.

But when you hit one NZ-sourced speedbump, you don't only hit one. There are several more waiting for you. And it gets uglier and uglier.

Be warned!

[R6Genesis]

very good information I will make sure the Bike is cleaned to the hilt.

[longwayfromhome]

Do you know why Customs said GST was payable when you had owned them for so long? Not really relevant anymore, but more for my own curiosity.

That is a good question....in my own case I was surprised to have to sign the undertaking to pay GST when I had owned the bike for 8 years, 4 of them outright (i.e. after paying off the finance company). My guess is that any permanent resident, upon returning, is deemed to be "speculating" in some way if they sell the bike within a certain period, no matter how long they have owned it....hence the GST undertaking.

[kiwigazza]

So, here is my experience....I moved back to NZ from the US recently and brought back my 2000 BMW K1200LT. Some relevant starting facts:
1. The bike has been owned by me from new. This is important in determining how much GST is payable and if GST is to be paid at all.
2. I was coming to NZ to live here, not as a visitor. This is important in determining what is required to get the bike on the road.
3. The bike was unpacked from its container in Dunedin and I live in Auckland.

Here is what I had to do to get the bike on the road legally/permanently.
1. Get the bike to the shipping agent in suburban LA. The bike took some 6 weeks to get to NZ from drop-off in LA.
2. Have an original title in my name, my passport and current registration in my name available for the agent. I also found the original bill of sale which proved to be necessary later in NZ. The shipper kept the original title and took a copy of my passport and rego (I am not sure the rego was absolutely necessary).
3. NOTE: I didn't get the bike insured for the trip. It would not have been covered by my normal US bike insurance.
4. On arrival in NZ, the agent arranged Customs and MAF clearance. Here “arranged” means that he contacted them, they came to where the bike was sitting and he facilitated email exchanges between me and Customs. This included:
a. Customs: Ownership – confirmed with the CA Title and the rego.
b. Customs: Length of Ownership – confirmed with original Bill of Sale and Finance Release letter from BMW Finance.
c. Customs: Determination of amount of GST to pay (more about this below).
d. MAF: Inspection and possible cleaning. As it was, the bike was clean enough and didn’t need a subsequent (expensive) MAF-arranged cleanup.
5. I had been led to understand that after the bike has been yours for a given number of years, then no GST is payable on an import. My experience is that they do in fact value the bike at current value, calculate what GST would be on this then, if you are over the # years, make you sign a deed that states if the bike is resold in NZ within a certain period (mine is 18 months I think), then the GST is due. This is a bit different to advice given by others. In the end I signed an undertaking that if I sold the bike within 18 months of my return, then I would have to pay approx $1800 in GST (I don’t have the exact amount with me as I write). I went into Customs in Auckland and signed the form, they faxed to Dunedin (where the bike was) and this released the bike from MAF and Customs.
6. I had hoped to pick up the bike from the agent in Dunedin, but this was thwarted by the following: If you are a visitor to the country you can ride the bike away (there is some paperwork I am sure, but I don’t know what it is), but if you are a resident, then the bike has to be Rego’ed and WOF’ed before riding on public roads. In order to get that you have to undertake Compliance which is added work as well. All three of these are done at a DMV and Inspection Station (not all inspection stations are capable of motorcycle inspections evidently).
7. What stopped me doing all this in Dunedin was that the headlight had to be changed (so it dips the other way) and their being no BMW dealer in Dunedin etc etc I decided in the end to have it shipped to the BMW dealer in Auckland. He undertook to arrange the shipping, change of headlight, and getting the bike thru Compliance/Rego/WOF. This he did most competently.
8. Eventually, I picked up the bike from the Auckland BMW dealer, fully road-ready and legal some 9 weeks after I dropped the bike off in LA.

Costs to do this (incl GST/taxes) were:
Shipping LA-to-Dunedin, including all clearances at both ends: US$ 700./ NZ$1220
Shipping Dunedin-to-AKL: NZ$ 650
New headlight: NZ$ 930
Compliance/WOF: NZ$ 200
Rego + initial paperwork NZ$ 330
Dealer Labour to do all aspects of the above: NZ$ 270
Total NZ$ NZ$ 3600

Who I dealt with:

USA-Dunedin Shipping: Contact= Robert Stevens at imperialfreight@msn.com
Robbie is well known to many travelers bringing bikes to NZ. He was SO easy to deal with and everything went exactly as he described. The drop off in LA was amazingly easy, quick and straightforward. Mine is a large touring bike…regular sports bikes are about US$500 for the trip. He only brings them into Dunedin, no other port. The container actually comes in via Auckland, but it doesn’t get unpacked until Dunedin, so no other options. Most highly recommended. Thanks Robbie.

Experience BMW Motorcycles: Contact= Sebastian at +64 9 8455950.
Sebastian, their Service Manager, was excellent to deal with, took it all in hand, knew the ins-and-outs and got everything done as and when promised. As well he is an experienced LT mechanic himself, so the extra confidence that gave me was a plus. This was a good start to an important relationship since there is only one BMW Dealer in NZ these days. Thanks Sebastian.

Would I do anything different…..
1. People have suggested its not worthwhile bringing in a “different” bike like an LT, especially with over 200k km on it. But as I would have got very little in the US for the bike…lets say US$3k in a forced sale….I am reckoning I have a nice tidy bike here, on the road for about NZ9,000, one I know the full working history of, running beautifully and one that is fitted out with all the extras (like Wilbers suspension etc) that would cost a packet to do here. So, I think I at least broke even on the project.
2. I could perhaps have gotten dealers plates on the bike and ridden up from Dunedin….I didn’t explore this as I forgot to for some reason after someone made the suggestion, but I am wondering if a dealer who I had no transactional history with would have been willing to do this anyway.
3. I should have got my speedo which reads 5mph high converted to be dead accurate before I came over…its tricky doing maths (mph-to-km + overage) in your head as you are leant over in a corner with an eye out for cops.

Timings:
1. USA-Dunedin: 6 weeks, but this can vary on voyages.
2. Dunedin-Auckland: 1 week
3. Auckland tech/paperwork: 1-2 weeks
I would say 2 months would be an absolute minimum you should allow.

Anyway, that’s my experience and I am happy to take any questions or a PM offline. Good luck to you US/Canadian importers.

is it possible to keep the CA rego? ie have NZ plates when in NZ but keep the CA plates for elsewhere?

[YellowDog]

is it possible to keep the CA rego? ie have NZ plates when in NZ but keep the CA plates for elsewhere?

You can buy the CA rego No. from plates.co.nz, but the actual plate colour has to be black, as per NZ. There is no reason as to why you can't keep the CA holder with the dealer/county logo on it (I did).

[Krusti]

As some of you know meon3 and myself are over here in the US for six months working. Have looked at buying a bike and bringing it home. Even had a dealer offer to take over $2000 US off a new xr1200 Harley.

Trouble is with the dollar the way it is and the cost of shipping, gst etc it is not much cheaper to buy a bike over here and bring it home.

Jap bikes seem to be comparable in price to NZ as well so not worth the hassle.

Will keep looking for a cheap big block Mustang......yeah right

[YellowDog]

I thought the HDs would be heaps cheaper.

My Triumph certainly was.

Kiwishipping charged US$495.

If there's only a couple of thou NZ$ in it, I wouldn't bother and would prefer to have the assurance of a local dealer.