Custom Ring & AUSFTA

[D2B]

Hi

Quick Question please, I read your description Lestat, about origin,


My question, my australian e-ring stones are being used as sidestones in the new WF 3 stone e-ring setting. Do you think this still woulld be OK as it is an australian stone with US???? Love to know a bit more before I speak to customes and just get brushed off by the wrong person iykwim.

THANKS so much, even if it doesnt apply to me, it is still so good for all us aussies to know

d2b

 

[Lestat]

Date: 11/26/2009 3:58:56 PM
Author: D2B
Hi

Quick Question please, I read your description Lestat, about origin,

My question, my australian e-ring stones are being used as sidestones in the new WF 3 stone e-ring setting. Do you think this still woulld be OK as it is an australian stone with US???? Love to know a bit more before I speak to customes and just get brushed off by the wrong person iykwim.

THANKS so much, even if it doesnt apply to me, it is still so good for all us aussies to know

d2b

Hi D2B,

Unmounted precious & semi precious stones, pearls and raw precious metals on their own are outside the classification of "jewellery", so if an article of jewellery is manufactured using them, their original origin does not matter. All that matters is the finished article of jewellery was manufactured in the USA.

If things were the other way around and you were using an Australian setting and having a USA diamond put into it in the USA, I believe things would be different because the Australian setting falls under one of the jewellery classes, so not enough change has happened to the article to qualify as originating in the USA.

 

[D2B]

Thanks Lestat,

Sorry I am being a bit obtuse here,

but to clarify I have two old aussie sidestones that are being put into a custom US WF setting with a new US WF center stone, to make a new 3 stone e-ring. Just re-using my old sidestone, do I am a bit confused how to read this, does this qualify for the exemption.

Thanks for your time, help and patience

d2b

 

[arjunajane]

Date: 11/26/2009 6:15:45 PM
Author: D2B
Thanks Lestat,


Sorry I am being a bit obtuse here,

but to clarify I have two old aussie sidestones that are being put into a custom US WF setting with a new US WF center stone, to make a new 3 stone e-ring. Just re-using my old sidestone, do I am a bit confused how to read this, does this qualify for the exemption.


Thanks for your time, help and patience

d2b

Hey D2B, as I understand it and from Lestat''s confirmation above, the answer you''re looking for is "yes"

The important thing is that your ring is being manufactured in the US - just like in my example, I had a sapphire from Sri Lanka, some diamonds from Antwerp, etc - but mine still qualifies because all those components were created into their ultimate format (the ring) in the US. Basically Lestat is saying it is irrelevant where the sidestones came from, so you''re in the clear.

 

[D2B]

Yeahh

, it will be nice that PS saves me money for a change, rather than giving me ideas on ways to spend it

Thanks so much.

D2B

 

[arjunajane]

Date: 11/26/2009 9:17:19 PM
Author: D2B
Yeahh

, it will be nice that PS saves me money for a change, rather than giving me ideas on ways to spend it

Thanks so much.


D2B

Absolutely! although we all know what we''re going to spend it on

BTW, new info for others needing it:
direct line for Australian Customs'' dedicated refund centre (03)9244 8054.
email address: [email protected]


I don''t know how realistic my reasoning process is, but I''ve been thinking - if say 5 or 6 PS''ers suddenly begin applying for refunds for thousands of $$ based all on the same ruling/reasons - perhaps one/some of them are less likely to be approved?
I''m kind of looking at the "big picture" here, if you kwim.

So I know I have no right to tell people what to do with their money, but perhaps those of us who have multiple claims we can make (like myself) - we try to spread them out a little? I mean, the same staff member is bound to be receiving a number of these and if it were me processing them, I''d notice a pattern, correct?

Of course, we are legally entitled to these monies - but I was specifically told they still *don''t have to* approve it. And we all know what govt''s are like with taxes

Just a thought..

 

[katebar]

I hear what you are saying AJ and will leave it till after Christmas.
Thanks for the direct info re refunds

+ my is not thousands of dollars when I take out the stone.
Just 3 diamond studs and an under a 1000 ring so i might get $100 tops but better than nothing and the info is great for the future

 

[arjunajane]

Date: 11/27/2009 12:02:38 AM
Author: katebar
I hear what you are saying AJ and will leave it till after Christmas.

Thanks for the direct info re refunds

+ my is not thousands of dollars when I take out the stone.

Just 3 diamond studs and an under a 1000 ring so i might get $100 tops but better than nothing and the info is great for the future

Hey Kate,
thanks for understanding. I haven''t looked at adding mine up yet (not sure if I want to!) - but I have now 3 different diamonds from GOG and my legato, my Jim Meyer ring, and now the sapphire ring - so fingers crossed I''ll get it all back, but one step at a time.

Exactly, I''ve also filled BGD in on it so they can let their Aussie customers know.

 

[D2B]

Just a slight threadjack (Ok a huge one, but while we are here). has there ever been an aussie GTG? a state one I suppose given the distances? I am in Melbourne. Just a quick thought. I might flag it in the new year and see what the response is, it would be so lovely to see and talk diamonds without being thought of as a crazy obsessed etc etc woman.

d2b

 

[blingmemore]

Hi everyone!

I am a fellow Aussie looking at purchasing a 3 stone diamond ring from James Allen in the next few weeks, so thanks for the developments re: AUSFTA.

Just wondering how I go about setting the purchase up so that I don''t get charged the duty. Do I contact James Allen regarding this first or do I wait until my package has been shipped to Fed Ex? Just still a little confused on the whole subject!

On the other hand very excited about being able to add a couple of hundred bucks to my budget

Thanks again for your research

 

[arjunajane]

Date: 11/28/2009 5:52:45 PM
Author: blingmemore
Hi everyone!

I am a fellow Aussie looking at purchasing a 3 stone diamond ring from James Allen in the next few weeks, so thanks for the developments re: AUSFTA.


Just wondering how I go about setting the purchase up so that I don''t get charged the duty. Do I contact James Allen regarding this first or do I wait until my package has been shipped to Fed Ex? Just still a little confused on the whole subject!


On the other hand very excited about being able to add a couple of hundred bucks to my budget

Thanks again for your research

Hi blingme, glad you found the info.
I think advising your SA at JA of your intentions is a good idea, because you may also end up needing some paperwork (just an official letterhead) stating that the goods are manufactured in the US.

From earlier in the thread, here are my steps:
-When your shipment is ready to leave and you have an Airway Bill Number (tracking nbr), call FedEx on 1800 111 112 - keep pressing 0 until you get an operator, and then ask to speak to a FedEx customs broker.
-Advise them that you have sufficient information from the manufacturer to claim preferential tariff 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 and he / she will need to notw it on the import declaration for it to be granted by customs.
-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 (because you can bet they are likely to forget).

To back that up, here is what Lestat was told:

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.



hope that helps you bling and let us know if you''re successful!

 

[arjunajane]

Date: 11/27/2009 1:29:07 AM
Author: D2B
Just a slight threadjack (Ok a huge one, but while we are here). has there ever been an aussie GTG? a state one I suppose given the distances? I am in Melbourne. Just a quick thought. I might flag it in the new year and see what the response is, it would be so lovely to see and talk diamonds without being thought of as a crazy obsessed etc etc woman.

d2b

hey d2, it''s come up a couple of times. Personally, I kinda like my PS / real life separation if you kwim, although it would be nice to meet many of you and see your great bling IRL!

Its looking like I may have an opportunity to head east for work in the new year, if so I will post about it at that time..
fingers crossed it will be Melbs - but more likely Sydney or Queensland I think..

 

[Lestat]

Date: 11/23/2009 11:44:47 PM
Author: arjunajane

-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!

Ok, so I've now received my ring via Fedex, so I'm a bit more familiar with the process. Just to add more info to this thread, here's what I did:

Basically I wanted to cover all bases, so I sent an e-mail (which may or may not have been necessary, but didn't hurt) to my vendor stating:

"When talking to Fedex to ship my ring, please tell them I want preferential duty rates as per the Australian-USA free trade agreement (AUSFTA). If they need to know what preference rule, in my case it is rule PS (goods manufactured in the USA from materials that may have come from outside the USA). Please include in the box with all the other things, all receipts. This will help me prove that the ring is made in the USA. The invoice must state "Eligible for AUSFTA" somewhere. Once I have the tracking info from you, I will also contact Fedex here in Australia and provide them the same information, just to be double-certain."

Then, once the vendor arranged shipping and provided me with the tracking number, I called Fedex in Australia and notified them of the parcel that was coming using the tracking number, and that I wanted preferential duty rates on it using the free trade agreement between USA and Australia. I called as soon as I had my tracking number so the parcel wasn't actually on their system yet, so the person I spoke to made a note so that as soon as it hit Australia, the broker would see my note. They also took my contact details.

Once the parcel arrived in Australia, a Fedex broker called me to discuss the note that was in their system. To be blunt, it seemed like they didn't know much about the customs regulations, as they told me that loose diamonds are duty free, but set diamonds might not be, and they asked if I knew where my diamond was mined, etc. I was confident in my knowledge of the free trade agreement, and I basically told them over the phone that if a loose diamond and raw materials produced from countries outside the USA are manufactured into a ring inside the USA, that item qualifies for the free trade agreement. The person on the other end of the phone was still unsure but agreed to put through the claim to customs, but warned me that it would be on my head if customs declined it (just covering himself I'm sure). Again, I was confident that they had no legal ground to deny my claim under their own rules, and I had the invoices to prove that the ring was made in the USA, so I told them to go ahead.

Another small snag was that the vendor had declared the value of the item as slightly higher than the actual value on the invoices (my guess is maybe that was done for extra shipping insurance) and I was told that customs likes everything to match, so I had to write an e-mail to the Fedex broker declaring that the actual value of the ring was stated on the invoice provided by the vendor, and the higher amount written by the vendor while shipping was not the actual value. It would have saved a small step if all the numbers had matched.

Then the Fedex broker faxed me a form to fill in, which I have attached to this post. I've blanked out my name, and I was the one who crossed out "company name" since I didn't want anyone to think that this was a ring imported for resale (I was asked this by Fedex, probably since I had the ring shipped to my work address). You can see that I've chosen rule 153YE PS, since I could not prove that the raw materials for my ring originated in the USA, but I could prove that the ring was manufactured in the USA from those raw materials. I faxed the form back to the broker and he entered the claim to customs.

A few hours later, I received a call from Fedex notifying me that customs had released the parcel and that I had to pay the 10% GST and their small brokerage fee, but definitely no duty charges!! Once the ring was released from customs, it was passed on to Fedex's preferred domestic courier in Australia which was Australian Air Express who delivered it to me!

I hope this information can help someone else down the line, it was a lifesaver for me, it basically meant I can propose with my ring instead of without, so I'm very happy now!

Ring pictures will be posted online as soon as the proposal has happened!

 

[pancake]

Thank you Lestat for that update, and AJ for your research too - this is so helpful! Lovely of you to post everything here for the benefit of all of us

 

[kkaramacoska]

hey guys!!!
This stuff has got me so cunfused! can anyone simplify this for me please. If were spending $4000 US on a ring and I want it shipped to me In AUS I have to pay 10% gst and Poss a further 5% for this fedex thing, is that right???
So all together it would cost approx $4600 unless i ring fedex and and get that form which will take the 5% off making it about $4400???? have i got it right?
im just looking for a simple answer, i know you have all gone into great depth finding all this out. I just want to know what the total cost will be complete, for EVERYTHING so theres no surprises later.
Thankyou people................... so very helpful!!!

 

[Lestat]

Date: 1/14/2010 8:10:58 PM
Author: kkaramacoska
hey guys!!!

This stuff has got me so cunfused! can anyone simplify this for me please. If were spending $4000 US on a ring and I want it shipped to me In AUS I have to pay 10% gst and Poss a further 5% for this fedex thing, is that right???

So all together it would cost approx $4600 unless i ring fedex and and get that form which will take the 5% off making it about $4400???? have i got it right?

im just looking for a simple answer, i know you have all gone into great depth finding all this out. I just want to know what the total cost will be complete, for EVERYTHING so theres no surprises later.

Thankyou people................... so very helpful!!!

Ok, I''ll try to help

Normally when you ship a ring in from overseas (assuming from USA using Fedex International Priority), you will pay your vendor in the USA the cost for shipping and insurance. When the ring arrives here in Australia, a customs broker who works for Fedex will deal with Australian customs to clear your ring for release into Australia. If you don''t tell Fedex you want to apply for preferential duty rates using the Australian-USA free trade agreement, you will be charged 5% duty on your ring as well as 10% GST and all the normal smaller fees and charges such as brokerage fees and fuel surcharges etc.

If you follow the procedure listed earlier, you can avoid paying the 5% duty on goods that are duty-free under the agreement. If you are unsure of whether your ring is eligible for preferential duty under the free trade agreement, you can contact Australian customs on 1300 363 263 and check with them. If the person you speak to is uncertain, it may be best to try to call again, some people seem to be a bit unclear on the free trade rules, and they seem to think it''s safe just to say NO.

The form I posted is not specifically to remove the duty, it''s a form used by Fedex when submitting a claim to Australian customs. This form shows what section of the free trade agreement you want to claim under, and the details of the item. Fedex sent this form to me when it was needed, so don''t worry about having to have a form ready.

Basically, Fedex needs to ask Australian Customs for the ring to be duty free, and tell them what section applies, or you will be charged duty. If you don''t let Fedex know before they receive the ring in Australia that you would like to claim preferential duty, they will likely submit the ring to customs as normal and you will be charged duty. You can later try to claim the duty back if you were charged, but I believe there is a lot of paperwork and possibly fees involved and that it may be more trouble than if you would have just claimed on arrival it in the first place. Just call them when you have your tracking number and let them know you want to claim the ring as duty-free when it arrives here, so they know it''s coming.

Regarding the exact total including all the other small fees charged by Fedex, I''m not familiar enough with how they calculate brokerage and all the small fees to give you an exact figure. You could always ring them and ask for an estimate of fees and charges, or check with your chosen vendor, maybe they could help.

As an example to help you out, my ring cost just over $7800 Australian excluding the shipping costs I paid to my vendor (which were $130 US), and when it arrived in Australia and Fedex submitted it as duty-free, I was charged $829.51 for GST and all the other small fees. Basically all you''re looking at is the 10% GST and a few other tiny fees, nothing to worry about in my opinion, but please check with your vendor and Fedex for more detailed information.

Just remember, this is a case of "If you don''t ask, you don''t get" so make sure you tell Fedex you want the ring to be duty-free if it is eligible, and don''t take NO for an answer!

Hope this helps!

 

[libtech]

Hi guys,

Thanks for all the research and sharing your experiences with us.

For those who purchased a diamond+ring from a US vendor and successful used the AUSFTA to their advantage, which vendor did you guys used and who was the consultant. I''m thinking of purchasing a diamond and setting from either WF or other US vendors very soon.

 

[Lestat]

Date: 1/19/2010 5:09:48 AM
Author: libtech
Hi guys,

Thanks for all the research and sharing your experiences with us.

For those who purchased a diamond+ring from a US vendor and successful used the AUSFTA to their advantage, which vendor did you guys used and who was the consultant. I''m thinking of purchasing a diamond and setting from either WF or other US vendors very soon.

Hi libtech,

I purchased my diamond through Whiteflash, but I had my setting manufactured by Leon Mege. Regarding AUSFTA, it doesn''t really matter who your vendor is, as long as the ring is manufactured in the USA from raw materials. A simple change of an existing setting does not qualify. Basically, if your vendor orders the pre-made setting from overseas, I don''t think it would meet the requirements to be duty-free.

Neither of my vendors mentioned the AUSFTA to me (even Fedex and Australian Customs seemed unsure about the rules at times), I did my own research and instructed them how to ship my ring in order to make the process as easy as possible. Actually, nobody in my ring search mentioned free trade agreements at all, I was actually thinking to have the ring shipped to my parents in Canada because I knew about the North American free trade agreement, and that got me thinking about whether Australia would have such a thing as well. It''s important to understand the rules and then you can be confident when you tell them that your ring should be duty-free.

My consultant with Whiteflash was Chris Gonzales, he was very helpful and Whiteflash was great at providing all the information I could post here to get reviews from the prosumers. Leon Mege himself and Rachael both helped me with the setting design process, Leon has a bit of a reputation (read some of the threads on Pricescope), but I found him to be pleasant and helpful throughout the process, and the quality of his work is excellent!

 

[arjunajane]

Great job on the update Lestat, thankyou for doing so!

It is really quite straight-forward it would seem from your report - and hopefully now with you and I speaking to different vendors, it will raise the profile of the FTA so that US vendors can start mentioning it to their AU clients..
I know BGD are already on board after I explained it to Brian..

pretty funny that the Fedex people knew less than you - I swear after all my research I could be a broker by now, lol!

well done lestat, we all owe you a huge debt of gratitude for posting about this

 

[arjunajane]

As a second update to other Aussies following this thread - I submitted my first refund application for what I plan to be a round of about 3 or so for different pieces I''ve imported - I did so in the first couple days of Jan, and earlier this week I received my refund direct in my bank account

I was happy as it even took less than the stated 30 days to process

The forms and paperwork is a bit more intensive if you are going the refund route rather than the import route like Lestat did above - but imho, easily worth it for the kind of $$ we are talking.

You can apply for these refunds for any item imported up to 4 years ago...I know there are many PSers who, like I, have done plenty of importing in 4 years, lol!

So, the system does work and I now know how to make it work - the info is contained earlier in this thread on what to do, but if you are having trouble figuring out how to apply for a refund, please post your question here and I will happily walk you through it.

But basically it''s a matter of filling out 2 customs forms, making sure all your invoices are in order, and asking your vendor to write a simple letter confirming the goods were manufactured/originated in the US, than emailing them all off and waiting for your direct deposit!

 

[Lestat]

Date: 1/30/2010 7:13:34 AM
Author: arjunajane
Great job on the update Lestat, thankyou for doing so!

It is really quite straight-forward it would seem from your report - and hopefully now with you and I speaking to different vendors, it will raise the profile of the FTA so that US vendors can start mentioning it to their AU clients..

I know BGD are already on board after I explained it to Brian..

pretty funny that the Fedex people knew less than you - I swear after all my research I could be a broker by now, lol!

well done lestat, we all owe you a huge debt of gratitude for posting about this

Thanks Arjunajane, I''m glad I could be of help to everyone in Australia who''s been thinking of purchasing from the USA but was turned off because of duty charges, or who actually has bought from the USA and been unfairly charged duty by the Australian customs department.

It''s a shame that the customs department here expects the average consumer to question the rules and go to the amount of research that we had to go through just to find out if a ring can be duty free, when it''s really their job to know and it would be nice if they could share their knowledge a bit. I''m sure most people just trust that the customs agents know what''s best and do their job accordingly. In my job, it''s my responsibility to know as much as I can about my field, and to let my customers know what''s best for their situation, rather than just let them make mistakes through lack of knowledge. This situation is definitely a case of "if you don''t ask, you don''t get".

Well, green light now for all the Aussies, feel free to buy rings made in the USA without threat of having to pay duty on top of the GST and charges, and get back that duty that you were wrongly charged over the last 4 years!

P.S. You''re right, maybe we could get jobs at Fedex now! LOL!

 

[D2B]

Just to update that I have just received a call from Fed EX and have also not had to pay the 5% customs import tax. I spoke to a lovely gentelman at customs who helped me through the process and have started a seperate thread to raise the profile if any other aussies are looking for this information.

It definately is worth perservering as the first customs person had not idea and I got hung up on. The second one was great and made it sooooo easy. Just a simple note from WF to fedex and easy peasy after that.

Thanks again and good luck to the others.

d2b

 

[Aww]

Hi Guys, I''ve just laid down a deposit on a loose diamond from the USA and guess what...

I''ve completely forgotten about the 10% GST and 5% Duty that Greedy Australia has in place... *sighs*

I''m looking to set the diamond at Holloway here in Melbourne so I won''t qualify for the 5% Duty discount but there is something I am wondering.

What if in the chance I made a trip to the USA for a few days and return with the loose diamond instead of having it delivered? Would anyone happen to know if I would still incur any fees or charges?

I seriously do not understand why Australia is charging GST (Goods and Services) on a good that is not sold/service that is not carried out in Australia. Greedy greedy greedy...

Thanks in advance for your advice!

 

[pancake]

It''s not greedy, it''s the law as it has always been.

See this Customs link. From memory this is a more lenient rule than it used to be, but don''t quote me on that.

If you were bringing the diamond in yourself, having bought it face-to-face in the US, you would have to declare it and therefore pay the GST on it. Unless you didn''t declare it, which is fraud.

 

[arjunajane]

Hi Awww,

Pancake is correct - as I understand it, you are obliged to pay GST no matter which way the good is bought into the country.
As mentioned, if you don''t declare it this is illegal etc; so you could get found out after all and would be out more money than in the first instance due to the travel.


Seeing as you are bringing in a loose diamond only, there is no 5% duty applicable - only the 10% GST.

This thread is really focused on raising awareness amongst Aussie consumers about our rights under the Free Trade Agreement; I don''t want any readers to think we are attempting to flout the law.

 

[Aww]

Thanks for the advice guys, yes I wouldn''t want to do something that would be against the law!
That''s good news that I won''t have to pay the 5% duty

Sorry to derail the thread, another question I had was with the loose diamond. If all the GST was paid and on the unfortunate occurrence that the diamond had to be returned back overseas (return policy). Would the GST then be refunded?

 

[pancake]

Yes - I think there is a form that you lodge with Customs to receive the GST refund.

 

[lasscreative]

Hi Guys!!!

I have just purchased 3 Barbara Bezel pendants from Brian Gavin Diamonds!!!!

I hope this works for me too!!!

Ill keep you posted!

 

[Lestat]

On Brian''s website he states that the Barbara pendant is "Designed and created in house", so that means you''ll be able to get it duty free if you follow the process. Just make sure Fedex knows before it arrives here so they can claim it properly for you. Don''t take no for an answer! If by some accident you have to pay duty, you''ll be able to claim it back like Arjunajane has on her pieces that she has paid duty on in the past.

Good luck!

 

[arjunajane]

Date: 2/16/2010 4:45:16 AM
Author: Aww
Thanks for the advice guys, yes I wouldn''t want to do something that would be against the law!

That''s good news that I won''t have to pay the 5% duty

Sorry to derail the thread, another question I had was with the loose diamond. If all the GST was paid and on the unfortunate occurrence that the diamond had to be returned back overseas (return policy). Would the GST then be refunded?

not a problem aww - you''re not de-railing, all questions are welcome.

Yes, I do believe in the case you purchase the diamond and it needs to be returned you can apply for a refund of the GST I; although you would need to gain some advice on what reason code to use.

I did this a couple years ago on a loose vintage diamond purchased from ebay, in that the appraisal came back too many grades different from the advertised specs for me to be content in keeping it.
It took some perseverance with customs, but I was granted the GST back, minus processing fees.
Just make sure you keep time frame restrictions in mind..