Custom Ring & AUSFTA

[Lestat]

Hi Everyone,

I''ve been doing a bit of searching and haven''t been able to find what I''m after. Maybe some of the Aussies on here can help!

I''ve purchased my diamond and am having a custom ring made in the USA (total cost approx. $8000). I''d like to consider the possibility of having it shipped to my home in Australia versus having it sent to my family in Canada. I know that the standard duty on diamonds set in a ring shipped to Australia is 5% duty plus 10% GST plus some minor fees.

My question is.... With the free trade agreement between Australia and USA, shouldn''t there be a way to avoid the 5% duty? I''ve e-mailed customs here, but their answer was a bit elusive. They basically said that if I could get a "Certificate of Origin USA" from the manufacturer, that I "may be able to get it free of duty, but GST is still payable".

I can''t seem to find anywhere online stating that jewellery is covered in the free trade agreement, and I can''t find any information about how to go about getting a certificate of origin. So far the only information I could dig up is that you can''t use the same certificate used for NAFTA, it has to be a different one for Australia.

The only reason I''m considering having the ring sent here is so I can propose on our Anniversary of the day we met, and unfortunately it looks like I''ll have to pay 15% tax plus fees if I do so, instead of just 5% GST if I have it sent to Canada. I''m hoping there''s some savvy person out there that''s had a ring sent to Australia and tried to use the free trade agreement to their advantage... Any advice would be most appreciated.

Maybe if it''s all too complicated and too much expense, I might just have to do a bit of searching on how to propose with no ring and we''ll just pick it up when we get to Canada. I just thought it would be nice to surprise her with the ring here in Australia

 

[Lestat]

Any Aussies out there that have thought about using the free trade agreement when shipping their rings in? *Shameless Self Bump*

 

[arjunajane]

Lestat, never even crossed my mind!

But if you find anything out, I would love to know too - preferably in the next day or 2

I''ve paid a hefty amount of GST and duty in my days on PS, so if what you''re considering is possible it would be of great advantage to know going forward..

Perhaps try phoning customs instead of emailing, so they can''t be as evasive?
However I can''t really see them telling you a way to avoid extra taxes I guess

 

[arjunajane]

Lestat, sounds like it may be very complex.

Just to provide background to anyone else reading, this is what I'm referring to:

"The preferential tariff rates negotiated under AUSFTA apply only to goods which qualify as ‘originating’ in either country (and are then exported to the other). To qualify as ‘originating’, products must be:

1.wholly obtained or produced in Australia or the United States (for example, minerals extracted, vegetables grown, and live animals born in the country)
2. produced in Australia or the United States wholly from originating materials; or
3. produced in Australia or the United States partly from non-originating materials. In this case, the non-originating materials must meet the requirements of the origin rules in the Annex 4-A (Textiles) and Annex 5-A (Goods other than Textiles). The goods must also satisfy other requirements where applicable."


Let's take my situation for example:

My incoming ring has
a) a sapphire mined in Sri Lanka and cut and polished in the US - clearly does not meet criteria 1 or 2, but may meet 3?
b) platinum from BGD - I have no idea where this is mined/originates from. Any clues?
c) diamonds from BGD - I understand these are produced in Antwerp, but does where they are mined also count?

That said, the platinum and diamonds were put together and made into the final product in the US - so, again does this meet criteria 3?

Honestly, unless you have a sympathetic vendor who is willing to help you answer all these questions (and then you have the patience to fill out all the corresponding ppwk), I may just rather pay the 5%

 

[Lestat]

Date: 11/22/2009 11:30:56 PM
Author: arjunajane

3. produced in Australia or the United States partly from non-originating materials. In this case, the non-originating materials must meet the requirements of the origin rules in the Annex 4-A (Textiles) and Annex 5-A (Goods other than Textiles). The goods must also satisfy other requirements where applicable.'

Let's take my situation for example:

My incoming ring has

a) a sapphire mined in Sri Lanka and cut and polished in the US - clearly does not meet criteria 1 or 2, but may meet 3?
b) platinum from BGD - I have no idea where this is mined/originates from. Any clues?
c) diamonds from BGD - I understand these are produced in Antwerp, but does where they are mined also count?

That said, the platinum and diamonds were put together and made into the final product in the US - so, again does this meet criteria 3?

Honestly, unless you have a sympathetic vendor who is willing to help you answer all these questions (and then you have the patience to fill out all the corresponding ppwk), I may just rather pay the 5%

Thanks arjunajane for the replies! I'll have to try phoning them on my day off, maybe it is all too much hassle to worry about.

Regarding the origin of your ring, I've done some reading up and I believe the following links related to rules of origin and how to determine may interest you:

http://www.dfat.gov.au/trade/negotiations/us_fta/final-text/Annex_05_roos.pdf - This is the "Annex 5-A" you mentioned. On the 30th page of the PDF, is a section regarding jewellery, section XIV. They are basically saying what changes have to happen to the original materials in order to qualify as originating in the USA. The 7000 numbers are reference numbers in the custom's tariff file linked below. Of interest to us is the line mentioning 7113-7117.

http://www.customs.gov.au/webdata/resources/tariff/chapter71goods_a.pdf - This link contains the numbers that the first file is referring to.

http://www.customs.gov.au/webdata/resources/files/roUSBusGuide_041104.pdf - This link explains how to work out the rules of origin.

Here is my theory based on the files above. We are concerned with reference number 7116 (jewellery containing precious & semi-precious stones) in both of our cases. When we look at the first link, it states that for articles with reference numbers between 7113-7117 to meet the origin rules, they have to be changed TO 7113-7117 from any other reference number EXCEPT from 7113-7118.

Using your ring as an example, we have your sapphire which I believe is reference number 7103, your platinum would be reference 7110, and your diamonds would be reference 7102. Now since you're taking these numbers which are all out of the range of 7113-7118 and changing them into 7116, in theory it should now qualify as originating in the USA and be eligible for duty-free. The next question if I'm correct in my assumption is what paperwork needs to be filled out. I'm not sure of that yet.

It's all pretty confusing to me at this stage, but it might be worth looking into if you would like to save the 5% or are importing more than once. I can see your point that if 5% isn't much hassle maybe it's easier just to bite the bullet this time!

Unfortunately in my case the extra 5% will mean the difference between proposing with a ring or without...

 

[Deelight]

No idea about the free trade but if your flying soon you may be exempt from duty possibly you might like to check that ave out

Good luck

 

[Lestat]

Date: 11/23/2009 3:50:39 AM
Author: Deelight
No idea about the free trade but if your flying soon you may be exempt from duty possibly you might like to check that ave out


Good luck

Thanks Deelight! I briefly looked into items being duty-free if only being imported temporarily, but I haven''t done too much research on that field yet. I''ll definetly ask customs when I contact them. The little information I did find seemed to focus more on vendors bringing in large quantities of jewellery temporarily for trade shows and the like.

I''ll likely be in Australia for up to 2-3 months after I import the ring, so that timeframe may be too long to be considered temporary. I''ll ask though, thanks for the tip!

 

[arjunajane]

Date: 11/23/2009 3:42:27 AM
Author: Lestat

Date: 11/22/2009 11:30:56 PM

Author: arjunajane


3. produced in Australia or the United States partly from non-originating materials. In this case, the non-originating materials must meet the requirements of the origin rules in the Annex 4-A (Textiles) and Annex 5-A (Goods other than Textiles). The goods must also satisfy other requirements where applicable.''


Let''s take my situation for example:


My incoming ring has


a) a sapphire mined in Sri Lanka and cut and polished in the US - clearly does not meet criteria 1 or 2, but may meet 3?

b) platinum from BGD - I have no idea where this is mined/originates from. Any clues?

c) diamonds from BGD - I understand these are produced in Antwerp, but does where they are mined also count?


That said, the platinum and diamonds were put together and made into the final product in the US - so, again does this meet criteria 3?


Honestly, unless you have a sympathetic vendor who is willing to help you answer all these questions (and then you have the patience to fill out all the corresponding ppwk), I may just rather pay the 5%

Thanks arjunajane for the replies! I''ll have to try phoning them on my day off, maybe it is all too much hassle to worry about.


Regarding the origin of your ring, I''ve done some reading up and I believe the following links related to rules of origin and how to determine may interest you:


http://www.dfat.gov.au/trade/negotiations/us_fta/final-text/Annex_05_roos.pdf - This is the ''Annex 5-A'' you mentioned. On the 30th page of the PDF, is a section regarding jewellery, section XIV. They are basically saying what changes have to happen to the original materials in order to qualify as originating in the USA. The 7000 numbers are reference numbers in the custom''s tariff file linked below. Of interest to us is the line mentioning 7113-7117.


http://www.customs.gov.au/webdata/resources/tariff/chapter71goods_a.pdf - This link contains the numbers that the first file is referring to.


http://www.customs.gov.au/webdata/resources/files/roUSBusGuide_041104.pdf - This link explains how to work out the rules of origin.


Here is my theory based on the files above. We are concerned with reference number 7116 (jewellery containing precious & semi-precious stones) in both of our cases. When we look at the first link, it states that for articles with reference numbers between 7113-7117 to meet the origin rules, they have to be changed TO 7113-7117 from any other reference number EXCEPT from 7113-7118.


Using your ring as an example, we have your sapphire which I believe is reference number 7103, your platinum would be reference 7110, and your diamonds would be reference 7102. Now since you''re taking these numbers which are all out of the range of 7113-7118 and changing them into 7116, in theory it should now qualify as originating in the USA and be eligible for duty-free. The next question if I''m correct in my assumption is what paperwork needs to be filled out. I''m not sure of that yet.


It''s all pretty confusing to me at this stage, but it might be worth looking into if you would like to save the 5% or are importing more than once. I can see your point that if 5% isn''t much hassle maybe it''s easier just to bite the bullet this time!

Unfortunately in my case the extra 5% will mean the difference between proposing with a ring or without...

Thankyou so much Lestat for working all that out, you are a true champ!

I came back to this thread intending to do more research on this (as I couldn''t view the the links to the PDF''s at work earlier).
I''ve followed your reasoning and believe you have a good point / case.

In my case, I think what I will do is actually pay the 5% and then jump through all the hoops to get a refund after (as Fedex won''t release my ring until the charges are paid and I have No patience, lol).

I forgot your currently O/S - I will phone the customs dept. tomorrow and see what I can find out about paperwork re. the above rulings, and get back to you

 

[arjunajane]

hold on..I wonder if I will be able to do this retrospectively for my engagement ring..

Like you say Lestat, 5% doesn''t sound like much but when you''re talking thousands of dollars it does add up quickly.!

 

[Lestat]

No worries Arjunajane, hopefully even if I don''t end up benefiting from it, someone else might

I''m actually living in Australia at the moment, I''ll be here until somewhere between Feb-April when I''ll head overseas to visit my family in Canada. If possible, I''d like to have the ring in my posession before the end of January (our 1 year Anniversary is on the 25th, and that would be lovely timing).

I won''t be free to call the customs dept. until Wednesday, so if you''d still like call them tomorrow and pick their brains yourself, I''d be more than happy for any help or advice you can provide! Don''t go out of your way if it''s any inconvenience!

 

[arjunajane]

Date: 11/23/2009 5:46:42 AM
Author: Lestat
No worries Arjunajane, hopefully even if I don''t end up benefiting from it, someone else might

I''m actually living in Australia at the moment, I''ll be here until somewhere between Feb-April when I''ll head overseas to visit my family in Canada. If possible, I''d like to have the ring in my posession before the end of January (our 1 year Anniversary is on the 25th, and that would be lovely timing).


I won''t be free to call the customs dept. until Wednesday, so if you''d still like call them tomorrow and pick their brains yourself, I''d be more than happy for any help or advice you can provide! Don''t go out of your way if it''s any inconvenience!

oh ok, sorry I misunderstood.
Yeah that''s awesome that you''ve bought this up, I never would''ve though of it.
I''ve just put everything you posted above into a logical argument in a Word Doc and I''m convinced reading through it that you are correct.

I would be happy to call tomorrow if I have the time at work, shouldn''t be a problem. I''ve gotten mixed levels of service when phoning customs in the past, so hopefully I will get someone who knows their stuff.
I may also ask BGD if they know what a Certificate of Origin is and see if they can provide one..

Your plan to have the ring available fo your one year anni sounds lovely

I''ll let you know what I find out, and cross your fingers that I can do this retrospectively too - momma may be able to buy a new sparkly with all my tax refunds

ha ha ha..

 

[arjunajane]

Lestat,
I am currently awaiting a returned call from Customs as they called whilst I was in a meeting.

I spoke to Lesley at BGD who informed me they''ve done Certificate of Origins for Canadian clients before and its easy to do.

However, I''ve dug further and I''ve found out a bit more.
From this customs page, document "Australia - United States Free Trade Agreement - Supporting a claim of origin". (Sorry, for some reason my computer won''t let me give the direct link) :

Article 5.12: Claims for Preferential Treatment
1. Each Party shall provide that an importer may make a claim
for preferential treatment under this Agreement based on the
importer’s knowledge or on information in the importer’s possession
that the good qualifies as an originating good.
2. Each Party may require that an importer be prepared to
submit, on request, a statement setting forth the reasons that the good
qualifies as an originating good, including pertinent cost and
manufacturing information. The statement need not be in a
prescribed format, and may be submitted electronically, where
feasible.

Is a certificate of origin required?
No.
Article 5.12 of AUSFTA does not require a certificate of origin. The information can
be in any form that the manufacturer wishes to provide, so long as it shows that the
imported good meets the rules of origin requirements of AUSFTA.

And also:
"Customs operates in a self-assessment environment, where information provided to it
is treated in the first instance as true and correct.
When a customs entry states that a US preference rate of duty applies, this will be
taken to indicate that the importer of the goods possesses information, or knowledge,
as required in Article 5.12, paragraph 1, above, that this declaration is correct."




on that page is a bunch of other helpful links/documents.

 

[arjunajane]

I am also looking into whether I can apply for a refund of customs duty paid in the past (the ruling allows for items imported in the last 4 years).

If/when I get some definitive info on this, I will start a new thread for the attention of all the Aussies as I''m sure they''d love to know!

 

[arjunajane]

Just spoke with a lovely guy called Phil who is a customs broker for FedEx - it can be done!

he is emailing me the necessary form and instructions later today.

Lestat, for me as my shipment had already been processed, I will need to do this as applying for a refund of duty (which will also bring the GST down as they are calculated in a compound fashion - woot!).
Phil advised that this is the best method in my case, because if I tried to apply for an adjustment now, it would mean being "Red - lined" back to Customs, and another couple days to be processed (at least).

I realize your situation is different, but I can advise that you Phil
1. Confirmed the goods we are both importing are eligible under the FTA
2. That a certificate of origin is not needed.

I''m sorry I know this doesn''t really answer your question of how do you move on this proactively (ie. before your shipment is processed).

For that, I did call Customs helpline and didn''t really get much. I asked is there a specific form to be filled out and he said no. He said the FedEx customs broker just has to make a notation on the import declaration that it is being claimed under the FTA.

From what he told me and what I''ve learned, here is what I''d do:
-When your shipment is due to leave and you have an Airway Bill Number, call FedEx on 1800 111 112 and ask to speak to a broker.
-Advise them that you have sufficinet information from the manufacturer to claim preferntial tarrif rates under the AUST-US FTA.
-Ask that a note be put on the system stating as much, so that when your shipment arrives the broker handling it is made aware of your intentions.
-Keep a close eye on your tracking, and the moment you see it arrives in Australia get back on the phone and make sure whoever is processing your declaration adds the information about the FTA.


I know it sounds pretty involved and there *must* be a better method, but this was the best I could come up with at the moment...

If you are able to get better info, do let me know!


oh, and I will start a fresh thread on this with clear instructions for any Aussies once I have gone through the process - watch this space!

 

[D2B]

Ok, quickly skimming the thread, whilst doing other work, so, BUT, arijuanjane, and lestat, Please let us know your findings, I am in the process of having a diamond shipped here from the US and am very interested in what you can dig up. I will try and have a look as well over the next few days, but at the moment with a sick child, I dont have the time to put into it.

Fingers crossed


d2b

 

[arjunajane]

Date: 11/23/2009 11:47:15 PM
Author: D2B
Ok, quickly skimming the thread, whilst doing other work, so, BUT, arijuanjane, and lestat, Please let us know your findings, I am in the process of having a diamond shipped here from the US and am very interested in what you can dig up. I will try and have a look as well over the next few days, but at the moment with a sick child, I dont have the time to put into it.


Fingers crossed



d2b

D2B,

its absolutely do-able. Pls see my most recent post above yours.

At the moment, these are the most concrete instructions I have.

Once I receive my email from the FedEx customs broker, I will update if it adds any more info.

But the steps I''ve outlined above would be my recommendation to you at this time.

Good luck, let us know how it goes.


Lol, I''m just imagining a customs officer in the next couple weeks slamming his fist on the desk, saying "Who told them all?!"

 

[Lestat]

Arjunajane, you ROCK! Thanks for all of your help! I''m happy to know that even if for some reason I had to pay the duty, at least I should be able to get it refunded. Money now or later is still money to me! Your advice has been hugely helpful! I''ll ring customs tomorrow as well and see if I can dig a bit more and just to confirm.

If it all works out according to plan, I just have to hope and pray that I can convince Leon Mege to write up something saying the ring was made in USA

D2B: If you''re shipping in a diamond that hasn''t been set into a ring, there should be no duty from what I can understand. Loose diamonds are item number 7102, and I think they are free of duty. You still will have to pay GST though. You may want to confirm this with customs. If it''s mounted in a ring made in the USA, you''ll be in the same boat as us

 

[arjunajane]

Date: 11/24/2009 3:35:06 AM
Author: Lestat
Arjunajane, you ROCK! Thanks for all of your help! I'm happy to know that even if for some reason I had to pay the duty, at least I should be able to get it refunded. Money now or later is still money to me! Your advice has been hugely helpful! I'll ring customs tomorrow as well and see if I can dig a bit more and just to confirm.


If it all works out according to plan, I just have to hope and pray that I can convince Leon Mege to write up something saying the ring was made in USA

D2B: If you're shipping in a diamond that hasn't been set into a ring, there should be no duty from what I can understand. Loose diamonds are item number 7102, and I think they are free of duty. You still will have to pay GST though. You may want to confirm this with customs. If it's mounted in a ring made in the USA, you'll be in the same boat as us

You're very welcome Lestat - You Rock for bringing it to our attention

.
Yep, hopefully you can consolidate further with customs -
oh, and unless customs challenge your claim, you won't actually need anything written by Leon.

Like in that article, they say they take the FTA claims on face value.
You will only need to provide written proof if they decide to challenge it..

If you can though, do try to get the discounted tariff *before* and not after like me. One thing that Phil said that stood out to me, is that we are entitled and Customs will assess any claim for a refund, but could still be jerks and refuse it.
I don't see how they could, seeing as we have all our ducks in a row etc, but you know how government agencies are with

You are 100% right re. D2B's post, no need to confirm that one - I didn't catch that it may just be a loose diamond. But yep, D2B if it's mounted you're up for a lil bit of work like Lestat and I

To be honest, I am kind of feeling pretty swindled at the moment. Since I first joined PS and imported my upgraded ering, I have always been told from customs in no uncertain terms "10% GST plus 5% duty". I have since imported....ummm..I think four now other jewellery items that required charges, and not once through my many various points of contact with Customs people has *anyone* mentioned the FTA - doesn't that seem a lil bit unfair?
I mean, this is money that we are entitled under law not to have to pay, yet Customs helpline/officers all over the country are telling Australians something different...

If I wasn't so worn out by dealing with Fedex all day, I would think about who to complain to, lol...

oh, btw - vent alert - I

with Fedex today. My package is here at my local delivery centre. It's been processed by customs. I've paid all my charges (even the extra ones, lol!). They can see the receipt number for the payment. I left work early to drive a half hour there. Yet they refused to hand me my package, as some ding bat in Sydney didn't enter one or two key strokes into their system

Yes, you could say I'm rather frustrated, lol..

 

[Lestat]

Here''s a link which is very helpful (found it through one of your links Arjunajane, thanks again!) to a sample statement to be filled in by the vendor which can be used for claiming duty-free status on jewellery which originates from the USA. It''s only a sample (there''s no specific format to follow, but this is a good start), and might be very useful to vendors who are exporting goods to us in Australia to help us hold onto that 5% duty for buying more rings later on!

http://www.customs.gov.au/webdata/resources/files/Smpl1AUSFTA_050707.pdf

Basically, the vendor would type something like this on their letterhead and fill in the blanks as indicated. The tricky section is the product specific rule of origin section - for rings made in the USA containing precious or semi-precious stones (this does not include pearls), insert the following:

7116.20 - A change to heading 7116.20 from any other heading, except from heading 7113 through 7118.

The 7116.20 is also the 6-digit harmonized tariff classification used later in the form. This number will be different if you''re importing something other than a ring with a precious or semi-precious stone put together in the USA.

Please double-check this info, but I believe it should be correct.

 

[Lestat]

Date: 11/24/2009 5:40:41 AM
Author: arjunajane

oh, and unless customs challenge your claim, you won''t actually need anything written by Leon.

Like in that article, they say they take the FTA claims on face value.

You will only need to provide written proof if they decide to challenge it..

[snip]

To be honest, I am kind of feeling pretty swindled at the moment. Since I first joined PS and imported my upgraded ering, I have always been told from customs in no uncertain terms ''10% GST plus 5% duty''. I have since imported....ummm..I think four now other jewellery items that required charges, and not once through my many various points of contact with Customs people has *anyone* mentioned the FTA - doesn''t that seem a lil bit unfair?

I mean, this is money that we are entitled under law not to have to pay, yet Customs helpline/officers all over the country are telling Australians something different...

I submitted my above post before I saw your latest one, it''s great that I don''t officially have to have anything from Leon, but I suppose if he''s willing to fill in the statement that would make it all the more convincing for the customs people, and I''d have the proof ready if they ask for it. I''m impatient and I''d hate for my ring to be delayed! I would probably type it all out for him so he could just copy & paste it onto his letterhead to make things nice & easy.

I feel the same way about customs not telling people about the free trade agreement, it''s a big rip-off if you ask me. Imagine all the people out there just paying it without questioning. Just one more reason it''s great to be on Pricescope!

 

[arjunajane]

Date: 11/24/2009 6:45:33 AM
Author: Lestat
Here''s a link which is very helpful (found it through one of your links Arjunajane, thanks again!) to a sample statement to be filled in by the vendor which can be used for claiming duty-free status on jewellery which originates from the USA. It''s only a sample (there''s no specific format to follow, but this is a good start), and might be very useful to vendors who are exporting goods to us in Australia to help us hold onto that 5% duty for buying more rings later on!

http://www.customs.gov.au/webdata/resources/files/Smpl1AUSFTA_050707.pdf


Basically, the vendor would type something like this on their letterhead and fill in the blanks as indicated. The tricky section is the product specific rule of origin section - for rings made in the USA containing precious or semi-precious stones (this does not include pearls), insert the following:


7116.20 - A change to heading 7116.20 from any other heading, except from heading 7113 through 7118.


The 7116.20 is also the 6-digit harmonized tariff classification used later in the form. This number will be different if you''re importing something other than a ring with a precious or semi-precious stone put together in the USA.


Please double-check this info, but I believe it should be correct.

Great work on the above Lestat! You can bet I am taking all this down for the future

Just one *very small* correction (if you can call it that) for others reading - all of this info we''re posting would of course pertain to other precious metal and gem creations such as pendants, bracelets, earrings, and etc.
I know we are mostly focused on rings here, so I just wanted to clarify that

 

[Lestat]

Date: 11/24/2009 7:02:00 AM
Author: arjunajane

Great work on the above Lestat! You can bet I am taking all this down for the future

Just one *very small* correction (if you can call it that) for others reading - all of this info we''re posting would of course pertain to other precious metal and gem creations such as pendants, bracelets, earrings, and etc.

I know we are mostly focused on rings here, so I just wanted to clarify that

You''re absolutely right there! Sorry for the oversight, this will apply not only to rings containing semi-precious or precious stones, but any article of jewellery containing them as long as it follows the customs rules to meet origin requirements. There are quite a few other items that are duty-free as well (different types of jewellery and other items entirely), but for our experiment here I''m just focusing on jewellery.

 

[arjunajane]

Date: 11/24/2009 6:54:35 AM

I submitted my above post before I saw your latest one, it's great that I don't officially have to have anything from Leon, but I suppose if he's willing to fill in the statement that would make it all the more convincing for the customs people, and I'd have the proof ready if they ask for it. I'm impatient and I'd hate for my ring to be delayed! I would probably type it all out for him so he could just copy & paste it onto his letterhead to make things nice & easy.


I feel the same way about customs not telling people about the free trade agreement, it's a big rip-off if you ask me. Imagine all the people out there just paying it without questioning. Just one more reason it's great to be on Pricescope!

yes, you're right. Having the paperwork ready to go would be the best mode of approach. I wish you luck with explaining things to Leon.

Ha ha, tell me about impatience! Can you imagine standing in the Fedex centre knowing your package is *right there* but they won't hand it to you...grrrrr

Yup, based on this info coming to light, without going back and adding it up I know I am entitled to *at least* 1.5k in refunds, likely more. Talk about rip-off.
Also, we have to remember that it's not just the 5% duty. Because the GST is calculated after the duty is added to the customs value equation.

I'm not good enough at math to work it what the actual % is, but basically it means you'll actually be getting an extra part of your GST back too if you ask for a refund..
To illustrate what I mean, I've taken the generic example from the Customs website and replaced the amounts with values more typical of our types of purchases:


Import of goods valued above $1000

Customs value (Cval) 7000.00
Customs duty (Duty) @ 5% of Cval 350.00 (Payable)
International transport and insurance or postage (T&I) 150.00
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) 7500.00
Goods and Services Tax (GST) @ 10 per cent of the VoTI 750.00 (Payable)
Total payable Duty + GST 1100.00 (!)


Now using the example above, if the duty is taken out of the equation (as its no longer payable), the whole thing would be adjusted quite significantly:

Customs value (Cval) 7000.00
Customs duty (Duty) @ 5% of Cval n/a
International transport and insurance or postage (T&I) 150.00
Value of the Taxable Importation (VoTI) (Cval+Duty+T&I) 7150.00
Goods and Services Tax (GST) @ 10 per cent of the VoTI 715.00 (Payable)
Total payable (No Duty), only GST 715.00

so that's a saving (or refund adjustment) of $385 - (not just the $350 duty you would expect from the first example - make sense?).
Well worth the effort I think in anyone's book!

btw, I hope my rudimentary lil example checks out and people can follow it ok !

 

[katebar]

Wowser AJ this is exciting stuff!!!
Unfortunatley I don''t think i kept any off my customs slips

.
But maybe they have a record I have probably spent over $15000 in the last 3 years and that a lot of duty!

 

[Lestat]

I''ve just finished my phone call with customs, I had a lady on the phone that sounded like she''d rather be somewhere else, but I managed to get the info I needed out of her eventually with a bit of patience...

Basically, she told me that my diamond engagement ring made in the USA does qualify to be free of duty. There''s different procedures depending on how it is shipped here, but since I felt my time was limited with her (it felt like she was hoping every question would be the last one), I focused on the most likely shipping method for everyone, which was Fedex.

She told me that if I''m using Fedex to ship my goods from USA to Australia, all I need to do is notify Fedex that my goods will meet the requirements to be duty free under the free trade agreement between USA and Australia, and their customs brokers will handle everything. Fedex will fill in the import declaration properly so that duty should not be charged. She also said that if for some reason, Fedex does not fill out things properly, it''s easier to get them to re-submit the import declaration than it is to try and get duty refunded after the fact.

I also asked about what kind of proof is needed on my end, and she said that certificate of origin is not needed (as we already knew) and that all I need is some kind of receipt from the manufacturer showing that it was made in the USA. Since I''ve got a work order from Leon and I''ll be getting another receipt when it''s all finished, she said that would be more than enough information to prove that the ring was made in the USA and I don''t need to worry about any other forms or statements.

I asked about the usual turnaround time at customs, and she told me that Fedex is usually treated with preference and that their usual turnaround is around 48 hours.

Finally, I double-checked about goods that have already gone through customs and had duty paid that were eligible for duty-free. She confirmed that anything that has had duty paid and was actually meant to be duty-free can be refunded up to 4 years back. All you have to do is apply for it. Arjunajane can be the expert on that field as it won''t apply in my case hopefully!

Sounds like good news all around people! Enjoy your tax refunds!

P.S. Please feel welcome to donate the 5% savings to me if you can''t think of anything to do with it!

 

[D2B]

Lestat, arjunajane, you two are my new PS heros.

How wonderful to be able to save a little on money we werent meant to pay in the first place. I just told my DH who responded in true PS fashion and said " well, that means more money for diamonds" he he. We have allready bought our diamond and now working with WF to set it, but his spirit is in the right place.

to be honest, it is nice, as it will recoup the shippment costs of sending stuff back and forwards etc......

yeahhhh..

Keep us posted on when the it all actually happens and how easy it was ( or wasnt) in the end.

D2B

 

[arjunajane]

Lestat,
it sounds as if you were given very similar advice to me.

Although interesting that she thought you''d be better off asking for an adjustment, whereas my guy said go for the refund..ah well.
I haven''t received that follow up email yet - I have a feeling he took my address down wrong.
I will call customs again when I have time and start the process for my refund, I will keep this thread updated with my progress.

Lestat, as we constantly get queries from new Aussie posters on the logistics and costs of importing to Australia, plus in light of this new FTA info, I''ve decided its a great topic to write a journal article on, that we can then refer everyone to.
Seeing as the FTA stuff is a *lil* complex, I thought that would be easier than trying to explain each time ad-hoc, plus then other PS helpers can refer queries when an Aussie poster is not around..

Seeing as it was your "discovery", if you wish I am more than happy to collaborate on the article with you. I am equally happy to take both our research and write it on my own, I don''t mind either way - but thought I should offer.
I see you purchased your lovely em. cut from WF - they have my details. If you''d like to be in touch, let me know and I will let WF know to give you my email addy.

If you''d prefer not, I entirely understand either way

D2B, glad we could be of help and make sure you do it with your incoming shipment.

 

[katebar]

AJ I have spent a lot so I want to get the ball rolling

.
What is the contact number or email on how I claim this please!!!!!!
Thank you to you wondeful people for finding this out.
Is it only the jewellery or could I claim my diamond from GOG

 

[Lestat]

Date: 11/25/2009 10:13:07 PM
Author: arjunajane

Seeing as it was your ''discovery'', if you wish I am more than happy to collaborate on the article with you. I am equally happy to take both our research and write it on my own, I don''t mind either way - but thought I should offer.

I see you purchased your lovely em. cut from WF - they have my details. If you''d like to be in touch, let me know and I will let WF know to give you my email addy.

If you''d prefer not, I entirely understand either way

Hi Arjunajane! I agree with you completely and I think that a journal article would be a great idea. Writing articles is not one of my strong points, so I''m happy to leave it in your more capable hands if you don''t mind, but I''m happy to be of help if needed. I''m open to sharing e-mails through WF.

I hope all goes well with your refunds!

Katebar: I believe the best place to start would be to contact Australian customs on 1300 363 263. They''re open 8am till 5pm except on national public holidays. You should be able to claim your jewellery if it meets the rules of origin in the free trade agreement. They should be able to walk you through the process to obtain a refund on the duty already paid.

Basically, if they are articles of jewellery that have been manufactured or assembled in the USA, they should meet the origin rules. It only seems that if you''ve taken an existing article of jewellery or coins originating somewhere outside the USA and altered it into a different article of jewellery (like taking a ring from outside the USA and adding a diamond in the USA) that it would not meet the rules and duty would apply.

If you had a loose diamond shipped in from GOG, it should have been duty free already, without needing the free-trade agreement.

 

[arjunajane]

Hi Lestat,
that''s cool, I''m happy to do the article. I''m still studying, so writing research based reports is what I do, lol..I think there is tons of info just in this thread to keep me going, hopefully ppl will be able to make good use of it.

It won''t be straight away as I have alot of work commitments atm, but I will ask WF if I need your advice/help

It will have to be written under the assumption/clarification that this is for FedEx packages only, as I know from experience that if it comes in via USPS insured mail (for example), the procedures are different...it could get too confusing, do ya think?
I reckon that should be sufficient, as most PS vendors seem to use FedEx for Int. shipments..


Oh and kate - ditto Lestat''s advice. Unfortunately, it isn''t a "quick fix", you will have to do some phone calls and paperwork. And than it takes customs up to 30 days to assess your claim - just fyi. Knowing these folk, I would expect them to take the whole 30

But once you get the info it should be straight forward.
I believe you just submit a modification to the original import declaration, using the correct code for the ruling of the FTA that applies to your purchase (which customs can tell you).

If you don''t get much help from the Customs 1300 number, call Fedex (132610) and follow the prompts as if you are going to make a customs charges payment, which will get you to the right section. Than just ask for some advice from a customs broker - I have found their brokers to actually be a lil more helpful/informed than the government help line.