Aussie Customs

[johnswatch]

Hi,

I've bought a rolex here in Australia and I'm going overseas for a couple of days and wish to claim the GST back.

Do I need to present all the packaging for the watch or can I just wear it and bring the receipt?

Thanks

[Kenny147]

I got my GMT II last year in Brisbane and got the GST back at the airport. You'll need the receipt/tax invoice and the watch.

This will explain everything.......

http://www.customs.gov.au/webdata/re...__english1.pdf

[ROLEXUS]

Originally Posted by johnswatch

Hi,

I've bought a rolex here in Australia and I'm going overseas for a couple of days and wish to claim the GST back.

Do I need to present all the packaging for the watch or can I just wear it and bring the receipt?

Thanks

Johnswatch

The kicker here is that although you claim the GST refund on leaving Oz, as the value of the watch is over $900aud you are supposed to declare it on re-entry (they'll slap the GST straight back on).... As they already have on their system that they've given you the refund on an expensive item they might be on the lookout or question you when you come back through to see if you've brought the watch back...??? (just a thought, never been in this situation myself). Although it's perfectly ok to use the Tourist Refund Scheme to claim GST it is meant for tourists who buy items in Oz and take them out of the country for good..

[Lol-x]

I think Rolexus makes a good point

[Jedi]

But you see, once you take it out of the country, and use the watch, and then bring it back in, it's no longer new. It's actually something in your possession/ownership that's been used. Or else, why would they tout duty-free cameras to Aussie's travelling overseas and the like?

[2careless]

No. When you come back into Aus, on the customs declaration card, you're asked the question whether you've got any goods over $900 value that you have not paid GST/duties in Australia.
This is a very trick question because after you claimed and collected the GST refund, you wouldn't have paid GST on this item so you'll have to declare it when you re-enter, and they'll put back the 10% GST onto it!

Whether the goods was new or used is immaterial to the GST / duty qualification.

The Tourist Refund Scheme is there to allow travellers not to get whacked double taxation - say you're an American tourist, you buy your camera here in Aus, you paid the Aus GST, and you return to US and their customs charges you duties - double taxation.

Of course, when you re-enter and don't declare the camera you risk getting fined.

Having said that, it's still possible - last year I bought my wife a LV bag approx $2k and we went to NZ for holidays afterwards. We claimed the GST refund through TRS for the bag, and came back without declaring it because our pooled duty free allowance was 2x900 + 450 = $2250 (2 adults + 1 kid), higher than the bag cost of $2k. Not even a question asked.

[ROLEXUS]

Jedi,

It doesn't matter. In Australia you can wear the watch once you've bought it in Oz and claim the GST when you leave the country within 30 days (??). On re-entry the customs declaration specifically asks you to declare if you purchased any duty free items in Australia, took them out of the country and are now bringing them back or any items purchased overseas to a cumulative value of $900. I'm sure many people who buy watches overseas don't declare them and bring them straight through but in this case, as the GST has already been refunded and customs have records of this alarm bells may ring when you come back into Australia and they may ask if you're bringing the watch back (and slap the GST back on)????

[Jedi]

Okay, here's what I think (as an Aussie citizen living abroad) and what I know:

Customs have a record of you claiming the GST on exit. But there is no link between them and immigration when you return into the country. Upon reaching Customs at the airport when exiting, they check your form, but do not run it through the computer unless they pull you over, which they generally only do if they see something suspicious inside your luggage via the X-ray machines (in sydney and Melbourne).

Anyhow, it's a bit double ended I agree and duplicitous.

I came home in March for a wedding and had 4 watches (all mine, and I carry them because I'm an idiot who likes to have my watches with me) in my carry on luggage. If they'd asked for a customs declaration and tried to slap tax on me I would have done an about turn and caught the first flight out.

[2careless]

When I claimed the TRS refund, I had to show them my ticket, goods, tax invoice, and my passport. The clerk keyed in everything including my passport number and details to the computer.

When I re-enter, they have your passport and the declaration card. Usually the immigration officer (who has a computer), writes a codeword on the customs card. Collect the luggage and the customs officer reads this card with the codeword and decides whether to search u or not. So, do I want to take a chance of not declaring? Not really as I don't know if the TRS computer system is linked with immigration's computer system, unless you can produce evidence that the goods has paid aussie GST :-)

Lee, in your case you can always argue that you're working overseas on a semi-permanent basis and all those watches were acquired privately in Malaysia and you'll be taking them back to Malaysia when you exit Aus. No worries - worst case they'll write something on your passport saying you've got these items in Australia on a temp basis.

[Porsche]

interesting thread. I'm going to Hawaii at the end of the year, so I called Customs last Monday and made these exact enquiries.

I had to call back after the first person at customs failed to expalin clearly exactly how the scheme operated.

Second person told me very firmly, and without question, THEY DO record your name at the TRS desk when you leave and make a claim for GST, and THEY DO cross-reference on your return!

She told me the scheme is really in place to encourage tourist spending in Australia, NOT to help AUssies avoid paying GST!

There is no "duty free" system anymore, (except for limited quantities of ciggies, booze and low cost items)

BTW, once you go over the threshhold spending, then GST is payable on the whole amount, PLUS I was told very clearly that you CAN'T add all your families threshhoolds together...

I suppose it all comes down to how diligently they are enforcing it on the day you travel!

[2careless]

Originally Posted by Porsche

BTW, once you go over the threshhold spending, then GST is payable on the whole amount, PLUS I was told very clearly that you CAN'T add all your families threshhoolds together...

This is in direct contradiction to their web based advice:
http://www.customs.gov.au/site/page.cfm?u=4728

It wrote: "You can pool your duty free concessions if you are a family travelling together".

[chevycorvette]

i am glad no such GST stuff in the states,

playing games with uncle sam. big no no

[Porsche]

Originally Posted by 2careless

This is in direct contradiction to their web based advice:
http://www.customs.gov.au/site/page.cfm?u=4728

It wrote: "You can pool your duty free concessions if you are a family travelling together".

Hi 2careless

thanks for the correction. Just goes to show you can't believe everything they tell you over he phone, maybe they haven't been given enough "training"... (but you CAN believe everything you read on the internet, he he).

Although the first half of my post was correct... here it is from the link you supplied, thanks... "NOTE: However, if you exceed any of the concession limits set out above, Customs will charge you duty and tax on the entire importation or purchase within that group of items."

So, if I pool all 4 of us (me, wife 2 kids) 2 x $900 = $1800 + 2 x $450 = $900 (kids limit is only $450) TOTAL = AU$2700
and I buy a Rolex for AU$2800 in Hawaii (not bloody likely!) then I STILL have to pay 10% GST on the WHOLE AMOUNT.

[gmtobsessed]

I did this 2 years ago, bought laptop here in Aust, claim GST when I went to Bali and come back with the laptop 1 month later, but I wasn't aware of the exact rules, so didn't declare the laptop and there is no problem with custom.
But then although reside in Aust, I'm not Australian citizen.

[2careless]

Originally Posted by Porsche

So, if I pool all 4 of us (me, wife 2 kids) 2 x $900 = $1800 + 2 x $450 = $900 (kids limit is only $450) TOTAL = AU$2700
and I buy a Rolex for AU$2800 in Hawaii (not bloody likely!) then I STILL have to pay 10% GST on the WHOLE AMOUNT.

Yup. that's why I only claim through TRS $1-2k stuff, not watches - yet to buy a watch in Aus after nearly 20 years here

[2careless]

Originally Posted by gmtobsessed

I did this 2 years ago, bought laptop here in Aust, claim GST when I went to Bali and come back with the laptop 1 month later, but I wasn't aware of the exact rules, so didn't declare the laptop and there is no problem with custom.
But then although reside in Aust, I'm not Australian citizen.

Ah, you should have bought it through salary scarifice... a colleague did it and the net effect was that he got nearly 50% savings. Unfortunately you can't do it now as Swan has removed this perk.

BTW the bottom line is that one can bring in lots of things without declaration and may get through, but if they got picked up they'll pay for it

[jac67]

Originally Posted by 2careless

Ah, you should have bought it through salary scarifice... a colleague did it and the net effect was that he got nearly 50% savings. Unfortunately you can't do it now as Swan has removed this perk.

Well, that's not quite right. You can still salary sacrifice a laptop (one per year), BUT must be prominately for business use.


John.

[f16570]

I always wondered about this at Heathrow, or any International Airport?

[Parachrom]

Ah yes the never ending threat that the authorities will "get you" if you step out of line.
We had more freedoms and rights 20 years ago than we do today. Pity though as it seems that we took it for granted and now we have these bureaucraps inexorably tightening the noose around our necks. When government and Police demand more power, some one has to sacrifice their rights for them to get it. It just aint right.

Geeze i just got depressed.. think I will go fondle my Sea Dweller that will brighten my day

[SSD]

Geez, and I thought the American IRS could confuse things!

[Woody]

Originally Posted by f16570

I always wondered about this at Heathrow, or any International Airport?

You need to be resident in a country outside EU to be eligible to reclaim VAT via the UK VAT Export Refund Scheme - the same applies for goods purchased at UK airports that are described as "tax free" - you are only eligible to purchase such goods at the "tax free" price if you are resident outside EU - in practice though most shops/jewellers at UK airports wll sell you the goods simply on submission of a Boarding pass for an international flight (I guess they would argue that this is as much as they can do to comply with the regulations - this leaves the risk with the customer who has to decide wether or not to declare the watch or goods on their return) - many european airports do however apply the rules more stringently -so for example when I asked about the cost of a "tax free" Sub LV at Frankfurt airport it was made quite clear to me that as I was an EU resident (albeit travelling to a country outside EU) they would not sell me the watch at the "tax free" price. At the end of the day it is down to the relevant Customs authorities to police the system which is why I am astonished that Australian Customs would permit a GST refund to be made to an Australian resident - they must have money to give away!!!

[Mars]

Take the watch overseas (including the box & papers if you need to get the GST refund) & before you leave to come home, mail the watch back to yourself. Declare it as Used Goods & value below the threshold.

Would help if you had someone you trusted overseas for their address & send it to your sister or someone else here whose name is different to yours.

You can Express it & track it. So it arrives a couple of days after you get back. Also, send the box separately & stick the papers in your pocket.

If asked what happened to the watch, say you gave it to someone as a gift.

Just an idea

[Kenny147]

Gents,

Refering to my earlier post;

As an Aussie that currently lives in the US, I travel in and out of Australia about 3 times a year. I have yet to declare the GMT I bought in Australia over a year ago and I would be amazed if they "got" me for it.

As officious as Australian immigration and customs can be, they have thousands of individuals entering and leaving, every day. I'm pretty sure I'd have to give them a really good reason to pull me aside, before they'd start asking questions about the Rollie.


I've had the Spanish Inquisition about a deadly apple but never the watch!! That's another story, though.

[Andad]

Originally Posted by Mars

Take the watch overseas (including the box & papers if you need to get the GST refund) & before you leave to come home, mail the watch back to yourself. Declare it as Used Goods & value below the threshold.

Would help if you had someone you trusted overseas for their address & send it to your sister or someone else here whose name is different to yours.

You can Express it & track it. So it arrives a couple of days after you get back. Also, send the box separately & stick the papers in your pocket.

If asked what happened to the watch, say you gave it to someone as a gift.

Just an idea

How does you idea work.

You send the watch back to yourself and undervalue it. This value would need to be under $1000 so if they check it out you will have a big problem. Also how do you insure it if the delared value is so low? This all sounds like a very bad idea.

[Mars]

Originally Posted by directioneng

How does you idea work.

You send the watch back to yourself and undervalue it. This value would need to be under $1000 so if they check it out you will have a big problem. Also how do you insure it if the delared value is so low? This all sounds like a very bad idea.

It's been done & it's only bad if the watch gets lost. You insure it for the declared value - that's all you can do. Granted that the item is worth more than that. Hence pay extra for online tracking so you know exactly where your item is. All comes down to how much you stand to save on the GST - couple of hundred bucks to thousands depending on the watch. If one intends to defraud the government of its "rightful" income, then you run the quantlet of the consequences. You choose.

[2careless]

Put it this way - when I buy I ask the seller to declare full value for insurance purposes. The goods is sent via Post Office insured. When it reaches customs they have ample time to check it and open it to determine how much duty/GST I have to pay. If they just let it through I save money, if not, I pay for it and that's just budgeted. So far I have yet to pay the extra duty/GST, out of a number of > A$1000 purchases I got from overseas.
The situation is totally opposite when I had to use freight companies such as DHL, UPS, FedEx. These companies will charge you all kinds of customs clearance fees + duty/GST whenever the declared value is $1 higher than the threshold and it happened everytime.

[gmtobsessed]

sorry double post

[gmtobsessed]

Originally Posted by Mars

It's been done & it's only bad if the watch gets lost. You insure it for the declared value - that's all you can do. Granted that the item is worth more than that. Hence pay extra for online tracking so you know exactly where your item is. All comes down to how much you stand to save on the GST - couple of hundred bucks to thousands depending on the watch. If one intends to defraud the government of its "rightful" income, then you run the quantlet of the consequences. You choose.

Thats very dangerous IMO, I'd rather pay GST and have the peace of mind.
If I lost the watch that I've saving for, words can't described

[johnswatch]

Well, I'm back from my trip overseas and no issues.

[Porsche]

Originally Posted by johnswatch

Well, I'm back from my trip overseas and no issues.

Welcome back!

Just so I have this straight...

1. did you claim the GST under the TRS at the airport when you left?
2. did you then fill in the customs declaration form upon your return (and told a little white lie?)
3. No-one pulled you up or checked the computer and said, "where's the watch"?

I ask because I am travelling soon after Christmas and am hoping to pick up a watch :)