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Were you charged import duty in Australia?

Were you charged import duty on your order to Australia?

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Mar 15, 2010
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Taking advantage of the weak UK pound, I recently bought a new Focus Cayo from Wiggle.co.uk.

I've bought items before from wiggle and never been charged any import duties when the items arrive in the UK. But I was this time. This poses the question...

...Who else has been charged import duties in Australia after buying from the UK?

Anybody know the details? Do customs always check? Is there a threshold?
 
Mar 15, 2010
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I'm really sorry, that came out wrong. I simply want to know how to stay within the boundiaries so I can buy, taking advantage of the exchange rate and not lose the savings in import duties.

Do UK bike shops offer advice for this?
 
Jun 20, 2009
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$1000AUD is the threshold anything above is charged GST and import taxes which vary from what exactly you import and what category it is classified under. Out of interest what was the % rate you were charged? as i have considered this myself but customs will not give any guarantee until the item is actually imported.
 
Mar 15, 2010
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gogo is on the right track. The importation of bike equipment attracts 10% GST on any order that has $1000 or more stated as the purchase price on the package it arrives in.
There are NO import taxes on bike equipment at any price, unless this rule has changed recently.
While I was living in Aus I purchased alot of parts (wheels, tyres, tools, etc) as well as supplements and kit from the UK.
The two websites I use (PBK and CRC) both state 'bike parts' (or similar) on the paperwork, even if there is a mix of stuff in the box (clothes, gels).

To find out the current rules, call customs. Their number is in the phone book and on the net. They are very helpful.

Good luck stretching your dollar!
 
Mar 15, 2010
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Thanks for your help gogo and waxed. I was taxed 10%gst but I have friends who bought higher value bikes too and didn't get taxed. Is it that my package was unlucky enough to be checked as they might impose a 'spot check' system. Perhaps only one in ten packages get checked?

Who knows. Seems like a gamble. I still saved money though, so I'm not too bumbed.
 
Mar 10, 2009
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George, i can't speak with authority on local Aus customs duty rates but in the EU, if you import a BIKE then you will pay import duty at a MUCH higher duty rate (14-15%) than if you import BIKE COMPONENTS (5%). perhaps this is why you have been collared. Enjoy the bike though! :)
 
Mar 12, 2009
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Think before you buy

I for one really wish that they would bring the threshold for import tax down to about the $200 - $300 mark.

The reason for this is the fact that all the o/s purchasing of bike gear is killing the LBS.

I am the first to realise that price does impact in the decision making when it comes to gear and when you can get tires off the likes of PBK for less then a shop can get them off the wholesaler here in Australia then the temptation is huge.

You should realise that every time you buy off the net you are part of the reason why it is so expensive here. As long as the distributors are constantly kept with low volume orders you will never see prices anywhere near what you can get in Europe.

Also you should note how those of us who work in the local industry will treat you. Don’t expect any discounts what’s so ever, or any little favours. You come in for a simple check of your gears or some advice, expect to pay for it. Why I hear you ask, because it’s the only way the shop can make any money back from its staff and stock.

Also if you come in with a warranty problem, please don’t be offended if we won’t even look at it or provide any advice. Go back to the website that sold it to you and see how much help you can get.

Greatest example of this was recently when a rider came in and needed help with a wheel that he got of the net. We knew exactly what the problem was and if it had been bought from us would have been fixed within the week. Instead we told him to go back to the supplier and get help. In the end it took 3 months and over $300 in various postage costs to get the wheel fixed. The up side is that the whole scenario has been a wealth of entertainment for us at least.
 
Mar 8, 2009
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James, i'll definately give your shop a miss next time I'm in Canberra. I don't like the fact that the overseas websites sell products online that are cheaper than Aus retailers can purchase them for but this isn't going to change and businesses need to adapt if they are going to survive.
I support my local shop(s) as much as possible but why would I pay $200 from my local shop for something that i can buy online for $100 online especially when it's a tyre or component that is going to wear out with time & isn't really too important to have a warrantee on.
You make good points about warrantee's etc but I would still being going out of my way to help all customers so as to ensure they returned with services & other purchases in the future, not the shop down the road!
If the Aus bike industry wants someone to blame, it should be the greedy manufacturers at the source who flood the market with product that then gets picked up dirt cheap by these now huge online retailers. Go talk to Zipp, Shimano, Michelin, 3T, Continental, etc, etc, etc but don't blame the end consumer for purchasing the same product for half the price.
 
Apr 16, 2009
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James Jordan said:
I for one really wish that they would bring the threshold for import tax down to about the $200 - $300 mark.

The reason for this is the fact that all the o/s purchasing of bike gear is killing the LBS.

I am the first to realise that price does impact in the decision making when it comes to gear and when you can get tires off the likes of PBK for less then a shop can get them off the wholesaler here in Australia then the temptation is huge.

You should realise that every time you buy off the net you are part of the reason why it is so expensive here. As long as the distributors are constantly kept with low volume orders you will never see prices anywhere near what you can get in Europe.

Also you should note how those of us who work in the local industry will treat you. Don’t expect any discounts what’s so ever, or any little favours. You come in for a simple check of your gears or some advice, expect to pay for it. Why I hear you ask, because it’s the only way the shop can make any money back from its staff and stock.

Also if you come in with a warranty problem, please don’t be offended if we won’t even look at it or provide any advice. Go back to the website that sold it to you and see how much help you can get.

Greatest example of this was recently when a rider came in and needed help with a wheel that he got of the net. We knew exactly what the problem was and if it had been bought from us would have been fixed within the week. Instead we told him to go back to the supplier and get help. In the end it took 3 months and over $300 in various postage costs to get the wheel fixed. The up side is that the whole scenario has been a wealth of entertainment for us at least.

Your post if far more entertaining. I'll tell you why. If bike shops could purchase a Vittoria Rubino Pro from an overseas online retailer for say $30-$35 then why have I seen them in bike shops for more than double that price? It's called price gouging. Stop blaming the customers and parts manufacturers. How much do you pay those "mechanics" most of which aren't properly trained? Let me tell you about the service I hve received from a bike shop. I purchased a saddle and the rail broke. Took it back to the shop who suggested my rough riding had broken the rail. A load of rubbish. I had to get my money back via the Department of Fair Trading. So, cut your prices and improve your service, otherwise yuo will be going out of business in a hurry.
 
Mar 12, 2009
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dse1969 said:
James, i'll definately give your shop a miss next time I'm in Canberra. I don't like the fact that the overseas websites sell products online that are cheaper than Aus retailers can purchase them for but this isn't going to change and businesses need to adapt if they are going to survive.

I can understand your frustration and annoyance with my comments, but ask you to look at it from my side. I get really frustrated with customers who come in and talk gear with me for ages and then go off and use that discussion to purchase on line. My thoughts go to my boss who has just paid my wages and has not gotten anything out of it. You are quite right that shops will have to change their operating model, unfortunately this is going to make things worse for the customer as It will come down to charging for every little service.

For example the other day a regular came in with a broken spoke on his only set of race wheels. Normally we do not do anything mechanical on the weekends, but it was quite so I just fixed it and changed him for the spoke. Just to add some more background the bike was not purchased at our store, but he has been coming in and out of the shop for as long as I can remember. If we are forced to go to the future model that you are implying that type of loyalty will just not be able to be rewarded.

dse1969 said:
I support my local shop(s) as much as possible but why would I pay $200 from my local shop for something that i can buy online for $100 online especially when it's a tyre or component that is going to wear out with time & isn't really too important to have a warrantee on.
You make good points about warrantee's etc but I would still being going out of my way to help all customers so as to ensure they returned with services & other purchases in the future, not the shop down the road!.[/QUOTE]

I feel that one. It is so hard to see tires being sold from so of those sites for less then what the distributer can sell for. The problem is that those prices will never go down untill the volume is there. Bit of a Catch 22.

I should point out that we are actually not as grumpy as I may implied in my last posting. During the recent competition at Mt Stromlo I happily ripped a derailleur off a new bike (and fitted it for no charge) just so that a interstate competitor would not miss out.

dse1969 said:
If the Aus bike industry wants someone to blame, it should be the greedy manufacturers at the source who flood the market with product that then gets picked up dirt cheap by these now huge online retailers. Go talk to Zipp, Shimano, Michelin, 3T, Continental, etc, etc, etc but don't blame the end consumer for purchasing the same product for half the price.

Maybe if they started to force distributer zoning this would help.
 
Mar 12, 2009
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biker jk said:
Your post if far more entertaining. I'll tell you why. If bike shops could purchase a Vittoria Rubino Pro from an overseas online retailer for say $30-$35 then why have I seen them in bike shops for more than double that price? It's called price gouging.

I am sure my boss would love to put in a order with PBK or the like for tires. We would get them in a lot cheaper then what we can from the local distributor. The problem is that we can’t for various tax reasons (i.e. GST accounting) and the fact that the local distributor would shut us out from purchasing anything here in Australia. As not everything a shop needs can be sourced online this would make operations really difficult.

biker jk said:
Stop blaming the customers and parts manufacturers. How much do you pay those "mechanics" most of which aren't properly trained? Let me tell you about the service I hve received from a bike shop. I purchased a saddle and the rail broke. Took it back to the shop who suggested my rough riding had broken the rail. A load of rubbish. I had to get my money back via the Department of Fair Trading. So, cut your prices and improve your service, otherwise yuo will be going out of business in a hurry.


I agree with you in regards to training of mechanics here in Australia. Unfortunately we don’t have the equivalent of a Parks Tools School here, or any other accredited training, which leads to the inconsistencies that we see everyday in the workshop. My only suggestion is to use the recommendations of other riders when choosing a shop.
 
Mar 15, 2010
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Good job I am a competent mechanic with all correct tools including wheel jig, stand and even headset press and facing tools then.

Warranty is the only slight worry, but Wiggle claim they will credit shipping upto £25gbp for warranty returns and return your item forthwith. $41 is about right for most items shipped back to the UK. If I break the frame (unlikely), then I'm willing to pay alittle extra, for the amount i've saved.

My LBS makes plenty of profit from odds and sods I need quickly (like tyres, chains/cassettes etc).

My LBS are much more friendly than your shop Mr Jordan. They are just plain nice guys and help out anybody who needs it. And their shop is doing really well. Seems good attitudes attract business.

LBS's benefit from those people who don't know what they're looking for. A small majority (like me) really know exactly what's right for them, so can shop online without trying first. Somebody new to cycling, would always go to their LBS to get fitted properly and this is where the real profit is anyway.
 
Mar 12, 2009
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GeorgeEllis said:
Good job I am a competent mechanic with all correct tools including wheel jig, stand and even headset press and facing tools then.

Warranty is the only slight worry, but Wiggle claim they will credit shipping up to £25gbp for warranty returns and return your item forthwith. $41 is about right for most items shipped back to the UK. If I break the frame (unlikely), then I'm willing to pay alittle extra, for the amount i've saved..

I am with you I would prefer to do the work myself then let someone I don't know at my bike. Unfortunately this option is not always available, either due to not having the tools or lack of knowledge.

Check the return policy. Most of the on line websites only cover postage for the first 30 days.

GeorgeEllis said:
My LBS makes plenty of profit from odds and sods I need quickly (like tyres, chains/cassettes etc).

The problem is that unless they can make that profit then they will not be around to provide you with the option.

GeorgeEllis said:
My LBS are much more friendly than your shop Mr Jordan. They are just plain nice guys and help out anybody who needs it. And their shop is doing really well. Seems good attitudes attract business.

The fact that we did not help one guy who bought stuff on line and suffered for it does not make us unfriendly just realists.


GeorgeEllis said:
LBS's benefit from those people who don't know what they're looking for. A small majority (like me) really know exactly what's right for them, so can shop on line without trying first. Somebody new to cycling, would always go to their LBS to get fitted properly and this is where the real profit is anyway.

The problem is that a lot of people feel that they are in that small minority and are just not up to it and then for some reason feel that they can come into a shop and expect it to be fixed on the spot free of charge.

I put this to you. If someone comes in with a bike they bought on line (not from another shop in Australia) and have tried putting it together and stuff the job up would you charge to fix it? Personally I do for two reasons. Firstly, it will cost the shop labor and possibly parts to do it right. Secondly, people learn best when there is a little suffering involved.

All the same though I will never leave a rider in distress. Had plenty of people come in with small problems that I can fix on the spot and will happily do so.

Just to clarify its only my shop in the sence that I work there. Also call me James or Skippy (long story, got jumped on while riding), everyone else does :D
 
Jun 16, 2009
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Another thing to remember about warrantee and service for parts bought online is that the spares may not be available in Australia. And one of the reasons as a shop I would never buy online is most of what is for sale is OEM product and may not have the same specs as what's in the retail catalogue.

I recently had to source a replacement spoke for a wheel bought online by one of our customers. The wheel was "OEM" spec'ed and needed a non-standard spoke not carried by the Australian distributor of that brand of wheel (as that model wasn't normally brought into Australia) nor by the distributor of the company that made the spoke. After a lot of d***ing around I managed to find another spoke that I could modify so I could lace into the wheel. I had to charge a premium because none of the d***ing around was anyone in Australia's fault. If the wheel had been bought in Australia, I would expect the wholesaler to carry necessary spares for up to five years after the product is discontinued.

Similarly, look carefully at the tyres you buy online, many of the OEM tyres sold online have half the thread count of the very similarly label retail version of the same thing. Forks, saddles and some other components are often in the same boat, sometimes it's just cosmetic (lacking fancy stitching) sometimes it's fundamental (Fe rails instead of Ti).

Buyer beware, and don't be surprised if your LBS isn't as excited about your latest online purchase as you are. It'll be part of the reason why it's increasing pointless for us to carry high-end and interesting parts and accessories.
 
Mar 13, 2009
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http://www.customs.gov.au/site/page5549.asp

May find this useful.

The interenet bike shop is a present problems and opportunities. I may be an odd person, but i appreciate both. For example if I want a pair of shoes, I may do some shopping on the net compare prices and then head to my local bike store. Try on the pairs that I'm interested in, then purchase online. Whoever is helping me from the shop is offered a choice, depending on the time they've given me and the price of the product. I'll give them the internet price +20 for the shoes, or I'll give them 20 dollars for their help. Your Local Bike Shop cannot compete on price, they compete on service...pay them for it. Also if I can't fix something myself, no matter how quick a fix it is, I pay the shop.

Fair or not?
 
Mar 13, 2009
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A lot of stores are actually charging up to $25 for you to try on shoes. If you buy them, the $25 comes off the price obviously. I guess its to combat people coming in, checking out sizes and buying online. Understandable.
 
Jun 10, 2009
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OT rant about bike shops' mis-placed sense of entitlement

Don't be surprised if after you're visibly 'un-excited' about my latest internet purchase, I choose another LBS next time I'm buying local...moaning is _really_ bad for business.

And complaining about somebody bringing in a wheel for you to service requiring "d***ing around" because of some unAustralian, seriously? Xenophobia aside, while I would fully expect to be charged a profitable rate for your materials and labour, and would listen with interest and be thankful for said "d***cing around", if you don't appreciate the work, why do it at all? If "I had to charge a premium" doesn't equate to "I billed enough to cover all my costs plus the usual profit margin, plus covered my wages for time which otherwise would have been spent tidying shelves", that's hardly the customer's fault!

I'm sure your statement about OEM product is true some of the time, but online kit certainly isn't OEM "most of the time". Besides, it's not just OEM stock that doesn't always match the catalogue - you need to look just as carefully at the stock on the shelf in your LBS, as often the part for sale may not match the spec on the manufacturer's website.

I've spent literally several thousands of $$ on both road and MTB kit online (separate sub $1000 orders, not taxed), and the only things that haven't come in retail packaging were _advertised_ as OEM (a Manitou Black IT fork, and some XT cassettes). Just today I unpacked a set of SRAM Red compact cranks, Speedplay pedals, Ultegra cassette and GXP BB to go on my wife's bike. In the last couple of years I've also bought XT cranks and chains, SRAM X9 shifters, Truvativ Stylo crankset, Dura Ace and Easton EA90 wheelsets, Look Keo pedals, Nokon cable sets, stems, clothing etc etc: all came in pretty retail boxes, and match the expected specs. Stores like chainreaction (who do also have a fantastic full service retail outlet btw) and Wiggle are massive, operate under strict EU trading regulations, have well-honed warranty and returns departments, and are very good at customer service (though in the worst case this may take an international phone call) - they simply wouldn't get away with dodgy substitution of sub-spec parts.
So long as you RTFM, and ask questions if unsure, there's no particular reason you should be surprised by what turns up in the post.

I'm well enough off that if there's something I need (want), and the LBS have it in stock, I'm likely to buy it from them. I'm personally principled enough not to rip them off by trying on clothing or asking opinions on kit then buying on line, but retail is a tough gig, and plenty of people do take advantage. I'm more than happy to pay them to do messy suspension services for me, and pay for assistance with fit/positioning. But I don't feel any particular need to spend twice the online price for a part they have to order in, when I've made up my own mind what part I want, and when in my experience I'm much more likely to have it in my hands sooner shipped from Wiggle than from the distributor in Australia. Least of all when I know the shop is making a lousy margin on the product anyway.

In this day and age, most local agencies/distributorships/wholesalers do nothing for the end customer except double the price, and very little for retailers (and yes, I have managed a retail store in a similar industry in Sydney). God forbid anyone tries to re-introduce restrictive local "agencies" again - an excuse for poor service and price gouging, with little additional profit going to retailers. All my bike porn spending is discretionary - I'm happy to buy myself a bling new DA wheelset at $830, but at twice that I'll just stick with the Aksiums that came on the bike, thanks all the same. And is the guy who was looking at a Focus Cayo Lightweight Milram replica on Wiggle before they stopped selling Focus to Australia going to go and drop an extra $4000 to buy the bike locally, because he had to have that bike? No, he'll buy some other brand online for a good price instead. The guy who buys the Focus bike at the LBS was always going to bike a bike from the LBS, he's just buying the Focus instead of a Cannondale.

I fully expect to pay more for labour on a repair than if the item had been bought locally at full RRP, and wouldn't be surprised if getting a part took a while. All the same, I'm not sure I fully buy that local distributors are reliably carrying spares for low-volume items 5 years discontinued. In practice, in the last 10 years I've often found esoteric parts (whether bike, electronics, photographic or outdoor-sports related) easier to come by on line than from the nominal australian distributor, who: doesn't know if they have one lying around somewhere; might have a look for it some time in the next week, if you remind them every day; will make up a price for it on the spot that is 10 times it's cost; and charge you $15.50 for "handling and express courier" charges to stick it in a $5.50 express post bag, and post it 3 days after charging your card.

The doom and gloom scenarios of "the internet will kill your LBS" aren't happening. In the small town where I live we are blessed with 4 good bike shops within 3 blocks of each other, more than there were 5 years ago. There is just as much bling on the shelves, and I don't see any starving employees or owners.

I've spent plenty of money at all of them over the years. One of these shops now *****es and moans if they see any part on your bike that they didn't sell or don't stock. Two of them don't outwardly care one way or another, they'll do business with you either way. The fourth shop are open and friendly, everyone is their mate, or treated with the respect you would show a new friend on a bunch ride - "don't see those very often, how do you find them? really hard to get here" etc... Where would you rather shop?







badboyberty said:
Another thing to remember about warrantee and service for parts bought online is that the spares may not be available in Australia. And one of the reasons as a shop I would never buy online is most of what is for sale is OEM product and may not have the same specs as what's in the retail catalogue.

I recently had to source a replacement spoke for a wheel bought online by one of our customers. The wheel was "OEM" spec'ed and needed a non-standard spoke not carried by the Australian distributor of that brand of wheel (as that model wasn't normally brought into Australia) nor by the distributor of the company that made the spoke. After a lot of d***ing around I managed to find another spoke that I could modify so I could lace into the wheel. I had to charge a premium because none of the d***ing around was anyone in Australia's fault. If the wheel had been bought in Australia, I would expect the wholesaler to carry necessary spares for up to five years after the product is discontinued.

Similarly, look carefully at the tyres you buy online, many of the OEM tyres sold online have half the thread count of the very similarly label retail version of the same thing. Forks, saddles and some other components are often in the same boat, sometimes it's just cosmetic (lacking fancy stitching) sometimes it's fundamental (Fe rails instead of Ti).

Buyer beware, and don't be surprised if your LBS isn't as excited about your latest online purchase as you are. It'll be part of the reason why it's increasing pointless for us to carry high-end and interesting parts and accessories.
 
Mar 10, 2009
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dsut4392 - that's an excellent post. although not in australia, this discussion crops up often with my peers, some of whom are LBS employees/owners. my reasoning with them is that the internet has changed retail and they need to change their model to accommodate the technology.

we're in process of investing our hard earned savings in a 'lifestyle' retail space incorporating a workshop, a bike fit studio and a cafe that will air all of the big UCI races live on a big screen. we will actively encourage own-sourcing of components and are happy to advise on compatability questions/etc. we will hold very little inventory outside of cassettes/chains/cables/brake blocks/tubes/tyres/bar tape etc. we will not buy in to distributor minimum orders and may carry a limited range of frames although we're leaning away from this at the moment. the hope is that we will end up with a bike hub for committed riders be they commuters or racers or weekend warriors. we're positive that we're not the first to try this model but we're certainly the first to try it locally. hopefully it works, at least we'll have a decent supply of java from our local blender! :D
 
Mar 13, 2009
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LugHugger said:
dsut4392 - that's an excellent post. although not in australia, this discussion crops up often with my peers, some of whom are LBS employees/owners. my reasoning with them is that the internet has changed retail and they need to change their model to accommodate the technology.

we're in process of investing our hard earned savings in a 'lifestyle' retail space incorporating a workshop, a bike fit studio and a cafe that will air all of the big UCI races live on a big screen. we will actively encourage own-sourcing of components and are happy to advise on compatability questions/etc. we will hold very little inventory outside of cassettes/chains/cables/brake blocks/tubes/tyres/bar tape etc. we will not buy in to distributor minimum orders and may carry a limited range of frames although we're leaning away from this at the moment. the hope is that we will end up with a bike hub for committed riders be they commuters or racers or weekend warriors. we're positive that we're not the first to try this model but we're certainly the first to try it locally. hopefully it works, at least we'll have a decent supply of java from our local blender! :D

sounds pretty cool
 

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