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I was wondering if anyone has a couple of minutes to fill me in on what traps and pitfalls I could run into at customs when buying stamps from OS?

I recall reading somewhere that they should be marked as 'printed matter only' and assigned a minimal value but I'm a bit sketchy on the details.

Thanks in advance.

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I really should be doing something else...

Hi Trent,

I had an issue with customs a couple of years ago when I bought a collection from the USA.

The declared value of the collection was over AU$1000, so I copped GST on the value of the collection plus the postage.

I also had to pay a Customs clearance fee, which from memory was about AU$50-60.

At the time, I didn't realise you had to pay GST on anything you bought from outside Australia with a value over AU$1000.

The collection was held until I completed the paperwork and paid the GST & clearance fee.

It is illegal to falsely declare a low value on a parcel to avoid import duties.

I learnt my lesson, it is not worth the hassle if it is over AU$1000.

Cheers

Bill

That's tax evasion - if you're happy to try it..... better just to factor the likely costs into your purchases.

I always declare the contents as philatelic material (except if they are just picture postcards when I can describe them as postcards no matter how good the postal history might be!).

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Ian Billings - Norvic Philatelics GB stamps info: http://www.norphil.co.uk - also /catalog for our ecommerce site, blog.norphil.co.uk, shop.norphil.co.uk and Ian_norvic on twitter

Funny story. And a true one.

A client declared he wanted to bid on a scarce Roo shade at the Arthur Gray sale in NYC.

I asked if he wanted me to do so that, eyeball it in person FIRST, and bring it back. All for a modest fee, as I was there anyway.

Being of short pockets, he declared against that as of course he knew it all.

So he bids by email, supplies his visa card details, and goes on holiday.

Stamp was invoiced to him at $A1,200 approx.

All overseas auction houses and SG etc will of course declare the actual price paid on invoices and outer of box, and will not lie to save you a few bucks.

So Customs assess him the applicable $120 GST, and sends him the note, and Demmurage also starts ticketing. (That the bit most folks forget about from AP - $3 a day.)

So he arrives after his holiday to find all these official notes in his mail.

He argues the toss, and the Demmurage ticks along merrily at $3 a day.

By now it is over a month, and he cannot self clear, and needs a formal customs agent.

Final bill for his "$1,200" stamp .. around $1,500.

AND hours of wasted time, and raised blood pressure.

As a stinger, the stamp had a small tear he noticed well after he received it - as I pointed it out! He proudly showed it to me well after the sale and I noticed it right away. (And heard the story above!) And I am sure would have seen it in New York. Too late to return for credit so his $1500 "bargain" is worth maybe $500.

There are some true geniuses out there in stamp buying land.

Thanks

I couldn't really see how you could ask a seller to insure your package for one amount and then ask them to write a different value for customs.

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I really should be doing something else...

Nice one Glen,

Fancy doing that with all the great dealers of Australia live at the sale.

You learn something new everyday, I didn't realise you had to pay customs duty on stamps bought overseas over a certain amount. No danger of me ever spending that much on a stamp unless I win the lotto . As an aside, the Euro Lottery jackpot this week is sitting at £91 million...

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In search of the Kingdom of the Schwaneberger Albums....

John,

Talking of "Lotto", the whole customs issue is a bit of a lottery in a number of respects, at least in UK:

Firstly, some sellers will describe the contents as "printed matter" or "photos only" - whether this is to try to avoid tax as Ian (Norvic) said earlier, or whether simply to "disguise" the package and make it less likely to be stolen in the post.

Secondly, even with a "correctly" completed customs declaration, it is pretty random whether a particular package will be selected for duty or not - in my experience some get picked up and some don't - some just drop through your letter box with a clear indication of the value, but no action taken by the PO.

And don't forget, you could end up paying not only the tax but an "Admin Fee" to the Post Office as well. That can add about another £8 on top

Yes I would have thought that writing on the outside of a package that the contents are worth thousands is an open invitation to have it stolen.

It's one thing to trust the OS seller with whom you have little legal recourse and then it's another leap of faith to trust the handlers at either end of the journey.

I guess this is why insurance and a good parcel tracking system are essential.

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I really should be doing something else...

In lakatoi lover's story, I'm suprised that they charged GST on the postage.

Yesterday I received a letter from Australia Post that a mail item is being held by Australian Customs awaiting payment of Duties & GST. The Australia Post letter states "Contents: Philatelic, Sender: Stanley Gibbons, Country of Origin: United Kingdom, Declared Value: GBP 2400".

Australia Customs state because the auction lot is worth more than A$1000, I have to pay 10% GST. So I will have to pay an extra approx. $400 GST + $49 processing fee to receive this item through the mail. (I do not have to pay extra customs duty on top of this because the cutoms duty rate is 0% for collectable postage stamps.)

I have purchased many stamp auction lots from overseas (UK and USA) worth more than A$1000 and this is the first time I have had delivery held up by Australia Customs wanting payment of GST & fees. I blame Stanley Gibbons UK for this, because they stupidly put the value of the purchase on the outside packaging. All other auction houses sensibly put the value of purchase (copy of invoice / receipt of payment) inside the packaging, or do not put a customs declaration on the outside of the packaging with the value of purchase.

As a secondary issue - why is 10% GST payable on an auction lot when purchased from overseas, but not when purchased in Australia? This is not logical. The reason for customs charging 10% GST on imports over $1000 is to make a 'level playing field'. i.e. Stop avoidance of paying GST for items purchased overseas when they have GST in Australia, but this should also apply equally where there is no GST in Australia there should be no GST on the import.

So SG should break Australia law as that is convenient for you?

The outer label has a "VALUE OF CONTENTS" box on the label that they need to fill in, and forging that label leaves SG open to prosecution.

I am sure they value your input. They are not "stupid" - they are acting within the law, as most except you, would expect them to do I'd guess.

As to "all" other overseas senders doing as you say, you clearly get a ton less inwards packages than I do.

It is the law.

Write to your MP if you'd like it changed.

Do it with this clueless rabble, and they'll crank it up to 20% from 10%, and your problem will double.

The sooner our government wakes up that re-instating the $400 per person limit will solve their deficit issues at a keystroke, the better.

Any citizen that buys online from overseas, a $1000 camera, ipad, lap top computer, stamp or software etc presently pays zero GST or tax on that item.

The Australian Government makes ZERO on that sale. Not the $100 they should, and therefore all retailers of those goods are going out of business. Stamp dealers included.

Electronic retailers like Harvey Norman not only collect the $100 GST on that camera, but they also employ staff, pay rent, and consume masses services here. All of whom pay tax and fees to the Feds.

So that $1,000 ipad or Camera purchase might add $150 to the Australian economy, and adds zero if you order it from 49th Street Camera in Manhattan.

How that makes any sense whatever to our economy sure beats me.

If I mail a stamp TO the UK and write value £500 on the packet they clobber the receiver 20% VAT - or £100. To Scandinavia 25% in many cases.

Same in NZ, same in Canada, same in many places. You pay GST when you import valuable goods. Welcome to the real world.

I'd rather a company put the value on the customs label on the outside, then risk having the invoice/receipt of payment inside and having customs open the package and see if anything is valuable inside.


Depends on which auction houses you deal with. Local club auctions don't levy 10% GST as they don't need to collect GST. Many auction houses do add GST - it really depends on what they are selling - if they have purchased the collection then they will add 10% GST; if they are selling the collection on behalf of a client then GST is often only added onto the commission and packing charges. Most of the time your GST liability is explained in the auction's terms and conditions.[


Glen, I believe a reason for them not lowering the $1000 minimum is IIRC that the costs involved in collecting GST on imports of less than $1000 outweigh the revenue that would be obtained. If GST was 20%, then it is likely the $1000 limit would be lowered, but at the current 10%, it seems unlikely they will lower the $1000 minimum.

I would also suggest that even if GST was levied on imports $400 and above, you can quite often purchase items overseas for prices less then in Australia even if you add on the 10% GST.

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Chris de Haer
Author of 'A Closer Look at Modern Australian Stamps' in Stamp News Australia.
Latest news on my blog http://stamps.chrisdehaer.com.au Follow me on Facebook twitter.com/stampchris

Small o/seas vendors do seem to reduce the value of the purchased item shown on the Customs declaration but as Glen said auction houses just don't, it isn't worth the potential trouble.

I agree that it's ludicrous to be paying any GST on an item that cost over $1,000 when that item is not subject to GST in Australia.

However, it would be simply too hard for Customs to differentiate between items if some were GST exclusive and some GST inclusive. Also it would be easy (though illegal) to just ask that the imported purchase be renamed to something that doesn't attract GST. Far simpler to have a blanket over $1,000 rate.

That's due to the pure volume of imports now coming into Australia due to ever increasing online buying.

On that same subject, I see Westfield are contemplating reducing their exposure in the large retail market, a real sign that online sales will be the way of the future

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Tony

[quote="stampchris"]
Glen, I believe a reason for them not lowering the $1000 minimum is IIRC that the costs involved in collecting GST on imports of less than $1000 outweigh the revenue that would be obtained.
/quote]

Chris sorry this is arrant nonsense that some MP spouted that defies belief. Costs are near ZERO to collect it as they work off invoice value of label.

The Brits and the Canadians collect it even on a $100 shipment - trust me. It think in the UK anything over £20 value they will clobber for tax.

They both add a 'handling fee' as well, that MORE than covers the true collection cost which in reality is near zero.

All POs have always been set up to collect it - they get an 80c fee for it, and my PO says it takes no more time than him process than a phone bill account payment.

Parcel is marked at $500 value, a sticker is placed on it stating it has a $50 GST bill, and a $$5 collection fee, and is waiting at Woop Woop PO for collection and payment.

The process has been in place for decades - it is not even a new system they need start.

Takes no more time for PO staff than Registered does now. AND rakes in $55 AND keeps Australian retailers alive, as folks will tire of this very soon.

The moron that upped the limit from $400 to $1000 is to blame for most of it.

Glen,

You've hit the nail on the head - it is the collection system in Australia that results in high costs. If it was streamlined then it probably would be possible to lower the limit.

However, it still won't slow down the shift to online buying - the high Australian dollar has made it cheaper to import goods, even with postage and GST added on. I also understand Amazon is setting up store here.

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Chris de Haer
Author of 'A Closer Look at Modern Australian Stamps' in Stamp News Australia.
Latest news on my blog http://stamps.chrisdehaer.com.au Follow me on Facebook twitter.com/stampchris

I am not saying SG should break Australian law. It is not breaking the law to have the value of purchase (copy of invoice / receipt of payment) inside the packaging, or to not put a customs declaration on the outside of the packaging. That simply means the value is not immediately obvious to Customs, and they have to open the package to find out the value. Also having the value on the outside of a postal item will increase the chances it is stolen, particularly if it of high value.

Glen you somewhat agreed with this on another thread:
viewtopic.php?f=21&t=8421




I realize it is the law, but i think it is an unfair law. I am sure many items over $1000 go through customs without detection, and people who receive these items do not go back to customs offering to pay the extra 10% GST because of a Customs mistake that they were not detected.

This is a problem for the end purchasers - collectors like you and me.

It is not a problem for dealers like Glen and businesses, because they can claim back on tax any GST costs as a business input, then add 10% GST when selling anything which is then passed on to the Tax Office.

Personally I would rather the company put the value inside the package, and have the chance that it goes through customs undetected, rather than highlight the value to Customs and get unfairly charged 10% GST.

Chris you might be confusing me with others? We have neither high cost nor a complicated system already in place here.

Our system is in place and it is dead simple. And costs near zero to operate, given the returns of it. The BUYER would more than pays any cost, via any fee.

Could not make more sense if we had a government who had a partial clue.

Instead of losing billions via idiot plans like free pink insulation batts and national NBN systems etc that will be obsolete way before completion this would MAKE money.

Invoice says $500, sticker is affixed saying $50 to be collected at PO, and case closed.

Could NOT be simpler or easier to follow, to understand, or to police. And will rake in BILLIONS. Hence our current crop of elected morons will not like it or understand it, but that is for another thread.

I agree with the current Government position of not imposing GST on imports under $1000. I believe this lowers prices to consumers overall due to increased competition from overseas purchases online.


I have to fill out "Import Declaration (N10) - Post (Form B374)" and pay a $48.85 processing fee plus the 10% GST to Customs. The mail item is being held at Customs, not the local Post Office. Are we talking about the same thing?

I stand corrected, and apologies if you think I've confused you others. My understanding, which is possibly outdated, and the reason for my reply, is that imported items with a value over $1000 have to be collected from customs.

If the money can be/is collected at the post office, then I completely agree that the cost of any fee would recoup the costs of the collection, and is more convenient for customers.

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Chris de Haer
Author of 'A Closer Look at Modern Australian Stamps' in Stamp News Australia.
Latest news on my blog http://stamps.chrisdehaer.com.au Follow me on Facebook twitter.com/stampchris

The current system for over $1000 must be as Austcollects says. Or maybe that is random, or if you are on a list, or if they doubt the declared figure even if over $1000?

That is how it USED to be 25 years back. You needed to go to customs in person or your agent. Pain in the neck.

Simplest thing is to simply refuse delivery and have it sent to a UK friend by SG when it returns if you are not happy about the fees.

I asked by PM only last week if the PO collection system still existed and he said yes, so not sure what criterion they use.

Right now they nett ZERO for all imports under $1000 so ANY system would be far more profitable for the Feds.

Even these bloated bureaucracies can't cost $90 to write an sticker saying $90 is due at your PO before item is handed over.

PO just logs it in as a signed for item, and does not hand over until $90 is paid.

I will be paying the 10% GST + fee to Customs because I want to receive the auction lot, it still should be good value for the stamps in it. I am just annoyed it was detected by customs because of SG putting the value on the outside of the package. This is the first time this has happened to me, I have received many other auction lots (invoiced for more than A$1000) from overseas without detection by Customs.

I recently purchased a collection from overseas, total value over $1000. It was sent in two cartons.

One of the cartons arrived 3 weeks later. I figured it would be easy for 2 cartons despatched at the same time to be delivered separately, so thought nothing of it.

Letter from customs arrived a few days later for the other carton.

Filled out my customs declaration and emailed it off, expecting an invoice before 2nd carton would be released by Australia Post.

10 days later 2nd carton was delivered to my door by my favourite postie! No duty or follow up from customs since emailing off the declaration. That was 2 months ago. I guess because the cartons were delivered anyway they decided to waiver the duty!

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