GST Import Tax Triggered by Delayed Shipping - Light in The Box

jefftran91 on 15/02/2018 - 19:14
Last edited 15/02/2018 - 19:15

Hi ozbargain,

Going through some frustrations with LiTB and DHL. Basic summary:

  • Waited for a good deal and exchange rate. Paid $798 USD, $987 AUD was initially charged to my card (final charge was $993)
  • Processing time was supposed to be 1-3 days. After 3 days, new orders were showing as "ships within 24 hours". My order didn't 'ship' until day 6
  • Package didn't actually leave the country until day 15
  • Package arrives in Australia on day 16, along with a GST and customs tax invoice of $220

The exchange rate on the day the package left Hong Kong put the price at $1,016 hence the GST and customs charges.

DHL were helpful in guiding me through submitting a import tax refund form. They are holding onto my package while I wait for a response.

Are my grounds for disputing the import tax reasonable? And do I have any options if it's rejected?
I'm also considering requesting a refund from LiTB as they have a "I would like to reject the package due to the extra fee" option on their customer service page.

Grateful for any replies.

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Comments

  • [Deactivated] on 15/02/2018 - 19:29

    i dont think you can fight it.

  • edwardcr on 15/02/2018 - 19:46
    +2

    No grounds at all for disputing the GST/Duty.

    It's calculated on the exchange rate on the day the goods are shipped - that's it.

    With the AUD at its current level, you should always leave a AUD50.00 or so leeway, to ensure that this doesn't happen.

    • jefftran91 on 15/02/2018 - 20:34

      Thanks for your reply. This was my first time buying something close to the $1000 threshold and I guess I'll be much more aware of this next time.
      I'd seen some other ozbargainers waiting for deals to cross just below $1000 AUD before purchasing to avoid this, so it didn't even cross my mind.

  • garetz on 15/02/2018 - 19:46
    +2

    The value of an item for gst/import duties is based on when you purchased it, not when it was shipped, you should fight it. You have proof , just provide the statement with the card charge, then they cant refute that.

    • jefftran91 on 15/02/2018 - 20:38

      Thanks for your reply. I also hope that they'll consider this in my appeal.

      I've done some research myself, and unfortunately I think @edwardcr is correct. However, the DHL rep on the phone seemed to understand my objection, so I'm remaining hopeful for now.

  • D C on 15/02/2018 - 20:04
    +4

    Welcome to July 2018, courtesy of Gerry Harvey.

    • jefftran91 on 15/02/2018 - 20:34

      Sounds like a bleak future indeed. I wonder what kinda items would still be worth purchasing after the new import taxes start…

  • stratbargain on 15/02/2018 - 20:22

    It's calculated based on the "Customs value of the good" not what you paid/what was declared. It's the sum of:

    the customs value of the goods
    any customs duty payable
    the amount paid or payable to transport the goods to their place of consignment in Australia
    the insurance cost for that transport
    any wine tax payable.

    So if customers are saying it's worth $1000+ then you don't have much leg to stand on. I guess you could try and appeal it, but it's definitely not Lightinthebox's issue.

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