Need Help on Import Duty/GST

My phone is on its last legs (cracked screen, purple blotting everywhere).

Some relatives in Singapore are willing to ship their spare Samsung (a two year old S7 edge) over, but the Singapore post office warned that Australia Customs would slap a duty on it based on the value that they deem appropriate (versus what it was declared), and that there had been cases where the taxes could go into the hundreds.

Is this accurate information? I've made plenty of overseas purchases where tax is automatically calculated, but this is a bit of a unique case.

FYI, shipping by air costs about $20, versus buying a new phone this would be a really good option, but I want to be doubly sure about the taxes.

Comments

  • +1

    It's true.

    Stupid Liberal government imposed GST on goods less than $1,000. This is in effect TAXING us more even though the Liberals claim they don't.

    https://www.homeaffairs.gov.au/busi/cargo-support-trade-and-…

    • Thanks, I am aware of the GST on low value goods.

      But Singapore Post is claiming that even if you declare $50 on the mobile, customs will ignore it and assign a value they deem appropriate (e.g. $500), which does not sound reasonable but they apparently were very insistent on this point.

      • +1

        yes
        its to stop people under quoting value of goods

        hey a brand new iphone XS max BNTB is only 200 RMB
        i swear honest!

      • +3

        Yes. ABF will assign a duty to your goods depending on what you paid for it or the market value, whichever is higher.

        If this is not a purchase however and declared correctly, ABF should not be chasing you for any duties on this.

        They would need to take into account its new value, minus depreciation, loss in value for any damage, etc etc…

        This evaluation process would not be worth any potential duties they receive from the importer, hence your consignment is highly unlikely to be flagged.

        Besides, GST on goods less than $1,000 is collected at the point of sale, not when imported. In this case there is no "sale".

      • Thanks all. I'm not sure about how to declare it to be clear that it's not a purchase.

        Is it safe to say that in the very worst case, an S7 edge would not be deemed more than $500? I don't want to go ahead with shipping it and be stuck with a hefty bill.

      • customs will ignore it and assign a value they deem appropriate (e.g. $500),

        there is no gst and duty on lvt.

    • It's true.

      that is incorrect.

      op won't be charged gst and duty for lvt.

      a two year old S7 edge

      the current market price for an s7 edge ~$500.
      https://www.google.com/search?q=S7+edge&client=firefox-b-ab&…

  • +1

    I believe if you just ship the phone, and not the box + accessories, and label that as gift (which is honest truth), you might be able to get away with it. Don't quote my on that though.

  • +2

    Send some links to your relatives to print off some justification from a neutral source for what you have said the market value of the phone is and stick it in the box
    e.g. https://mobilemonster.com.au/sell-your-phone/samsung/galaxy-…, with 'Overseas device / Model' ticked, values it at $110.

    Highlight any flaws on the phone e.g. scratches, missing cable/charger etc.

    Just do the legwork for Customs, so if they are going to cross check your work and look for a market value, they know why you valued it the way you did

    • Great idea! Thanks!

  • +1

    The GST on low value items is levied on the seller or shipper and not the customer. If you buy an item for less than $1000 overseas and post it then it will NOT attract GST at the border. This has not changed. The new law forces overseas companies who have more than $75000 business in Australia to pay GST on the goods they sell in Australia.

    https://www.homeaffairs.gov.au/busi/cargo-support-trade-and-…

  • +2

    Customs continue to (only) assess GST on imports valued at over $1,000. For items of lesser value, if the exporter does not collect the GST at time of sale then it can and will be imported GST free.

    In the OP case no GST will be assessed.

  • I dont see customs spending much time trying to value a second hand phone especially when its sent by your family members…or even bothering to value it at all. If they ever did contact you, you could just point out that its a second hand phone sent by your family and not a purchase.

  • Ask your relative to register for gst. Send it you. No body pays gst.

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