international delivery charges

Uilleann Pipes
1

Dear Pipe Buyers,

After the long wait for your new pipes, the last thing you want is to be hit by excessive charges for delivery of your new treasure from pipemaker to piper.

I have recently had the experience of getting a letter from the delivery company informing me of alarming charges owing before that can deliver my new chanter. Since I couldn’t afford to pay, and since the charges were not appropriate for the goods in question, I had to send the chanter back to the maker! I actually had the box in front of me and could almost smell the wood! But it had to go back from whence it came…

After some research, I discovered the following practical information about importing goods into the UK and Australia (the two places relevant to me).

The Tariff code for bagpipes (woodwind musical instruments) is 9205900000. This is used in Europe and Australia.

Imports to the UK

The rate of duty is 3.5%.
The sales tax is called VAT (Value Added Tax). The rate is 17.5%
The VAT is applied after the duty.
The total effective rate of combined duty and VAT is 21.6%

Gifts (from generous pipmakers!)
If the value is under EUR45/£36 there is no duty or VAT payable. Above that, the standard rates of duty (3.5%) and VAT (17.5%) apply

Temporary Import:
It is possible to declare good for temporary import by make a declaration on the parcel. In this case no duty or VAT will be charged, but the goods must be returned. The relevant possible declarations are:

“UK Customs Procedure Code 53 00 25 for Temporary Import (Samples)”.
Conditions: imported in reasonable quantities and solely used for being shown or demonstrated within the Community.

“UK Customs Procedure Code 53 00 28 for Temporary Import (Goods for approval)”.
Conditions: where they cannot be imported as samples and the consignor wishes to sell the goods, which the consignee may decide to purchase after inspection. The period for discharge is 2 months.

“UK Customs Procedure Code 53 00 31 for Temporary Import (Spare parts,
Accessories & Equipment)”.
Conditions: for use in the repair and maintenance, including overhaul, adjustments and preservation of TI goods. The goods must not be used to upgrade or in any way enhance the performance or quality of the goods originally entered to TI.

NB The quoted declarations above must be written on the parcel.


Imports to Australia (NB Free Trade Agreement with the USA from 2004!)

There is NO duty on bagpipes (or flutes) (Usual rate is 5%).
The sales tax is called GST (Goods & Services Tax). The rate is 10%.
The GST is applied after the duty.
The total effective rate of combined duty and GST is therefore just 10%.

Gifts:
Customs will not collect duty or GST on unsolicited gifts where:

  • the consignment value of the included item(s) is AU$200 or less; or
  • in the case of a consignment exceeding that value, on the first $200 of the consignment’s value.

Note the following:
“While imports of low value will generally be released by Customs for delivery direct to consignees, importers are responsible for obtaining a formal Customs clearance for consignments of goods above set value limits (currently $250 for goods imported by sea or air cargo and $1,000 for goods imported through the postal system).”

In other words, below AUD$1000 (approx US$775), the goods will most likely just be delivered without customs charges.

Temporary Importation is also possible, but complicated.

It all points strongly to the conclusion that it is far cheaper to import goods into Australia.

Conclusion

Importing goods into Australia costs approximately half that of the UK.

Note

Commercial goods that have been paid for should not be sent in the same parcel as samples of tempoary import goods. Those items should be sent separately and declared as “gifts” or “samples” as appropriate. That way the recipient will not be liable to pay for duty and/or sales tax on the combined value of the paid goods and the samples.


Slan,

Brett

2

Now that’s self control!! I’d have ripped the box from the postman and ran screaming to the hills :boggle:

I had a similar experience recently with Canadian Customs. In April I met Nick Whitmer in Quebec and gave him my chanter so he could add 3 keys. He agreed to return it by post and to insure it for US$600 (estimated replacement cost of the chanter w/o keys). A few weeks later it was ready and Nick posted it. I got a note from the post office telling me that a parcel had arrived but that there was sales tax to be paid. I got a bill of approx. CA$110. They had charged me tax on the value of the chanter instead of the value of the work done in the US. Anyway, I have appealed the assessment and am waiting a refund of the difference.

3

Good luck on your appeal PJ, I hope it gets returned to you, but don’t count on it. Within the last year, I too have been looking into regulators from overseas in Northern Ireland, and I’ll have to figure out an exact financing plan to pay on top of the STG value. Now I have the means to raise the capital…

4

That chanter, scheduled for work or repair, should have been declared when it exited the US and probably was not. Customs merely matches up exit and return in those cases.

‘Items for repair’ can be shipped with ‘items purchased’ because your intent/declaration is all spelled out in the Commercial Invoice.

5

The invoice accompanying my chanter contained full details of the transaction. Canadian Customs didn’t read it. They just looked at the insurance slip, saw it was insured for $600 and charged 15%. They should have only charged it on the amount of the invoice. What’s the point in sending an invoice with goods if Customs don’t bother to read it. :confused:

6

I had a couple of chanters I bought a few years ago from oversea’s sent to me DHL and the box said Free samples on it… So I’m guessing thats why I never had to pay import taxes.. etc…

7

How can you live with yourself? :cry: :sniffle:

8

… quite easily, I suspect. :laughing: :laughing: :laughing:

9

Texasbagpiper can rest easy, as bagpipes are duty-free into the USA (the usual import duty on woodwinds is 4%). In theory, you’re supposed to pay sales tax to your state of residence, but the Feds don’t care about that.

No taxEs

10

… the mighty financial wizard has spoken… all hail the No E, he’s the best! :smiley:

11

I’m very tempted to send an email to squeeler@irs.gov :laughing: :laughing:

12

… you wouldn’t dare, besides, only an evil person would do that… and you’re not evil… you’re only a few sandwiches shy of a picnic. :smiley: :stuck_out_tongue: :smiley:

13

Since I recently accepted delivery of Texas-made bellows which, as far as Customs was concerned, was valued at US$10, I’m now going to retreat discretely from the thread …

14

:laughing: :laughing: :laughing:

Wasn’t it IRATU.com :laughing: :laughing: :laughing: :laughing:

For the linguistically challenged… :sunglasses:

15

The $600 duty charge is appropriate since you have not provided evidence that the item was exported from Canada to the US.

16

… Retreat as far as you wish to, or are able to… but your words are now a permanent testimony to your overwhelming guilt me’bucko. :laughing: :smiling_imp: :laughing:

17

Do you work for Canada Customs?

Seriously, it’s all in my appeal - notarised declarations of ownership, copies of bill of lading from when I emigrated, photos of me with long hair and no beer belly playing the chanter (that was years ago), etc.

18

And finally…

… waiting in the post this evening, a cheque for $55 courtesy of Canada Customs. They reassessed sales tax on the basis of the work done as opposed to the value of the chanter. Victory, albeit Pyrrhic, is sweet. :laughing: :laughing: