Home – New Forums Logistics Confused about customs charges – do I need a broker?

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  • #995596
    summerdeb
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    • Total posts: 4
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    Hi guys
    I’m new to importing but I designed and purchased some fabrics to be made in China.

    The terms I paid for were including air freight via TNT and the order cost USD2780.00 This included air delivery via TNT.

    I expected to have to pay duty. TNT customs broker contacted me I did an FID on the order value of $2780 (AUD 3686) I sent the contract of sale and evidence of money paid (bank transfer receipt as requested)

    Customs has added a charge called OSEA(2) of AUD842.00 which they added to the $3686 then gave me a CIF total of 4538.20 added a duty bill of $185 = GST bill of $472 plus other charges of $84 – total import charge around $740.

    (I expected to pay $185 duty plus 10% gst of $368 = $550. I have tried to contact TNT to explain the OSEA charge but the only responses have been unhelpful.

    Then on top of that (and 2 week delay in customs) the fabric quality was not to the printed sample I’d been supplied. The manufacturer has agreed to replace it – do I have to pay customs duties again?

    If you are an import broker and can help me and provided a reasonably priced service to help me manage these headaches I’d love to hear from you!

    Thanks
    Deb

    #1202859
    FreightSelect
    Member
    • Total posts: 25
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    Hi Deb,

    The customs side of thing is very confusing at the best of times so don’t feel defeated! Based on what you’ve listed here it unless there is something I can’t see it looks like there are some charges that need further explanation.

    We provided an all inclusive managed service for importers and exporters inclusive on consulting if you need it (including customs advise). In short, we exist to help small businesses, even those trying to get up and running like yourself.

    In terms of some tips and pointers ..Take a look at our website http://www.freightselect.com.au and download the white paper which will give you some good tips.

    Here some of the things we do as part of the service and 99% you’ll get a better rate (not an expense).

    • We ensure all freight is picked up
    • We proactively track all of your shipments to ensure they are on track
    • We proactively email you with updates confirming the follow item, in addition we manage any exception with the carrier on your behalf …
      • Pickups
      • In transit location updates
      • Customs clearance updates
      • Exceptions – when we see these we manage them for you
      • Out for delivery
      • Failed delivery
      • Delivered
    • We also have access to Key Accounts with all Carriers and manager all problems through key accounts on your behalf to save you time
    • We consolidate all of you shipments and invoicing in one portal so it’s easy to manage

    Contact me directly if you’d like to 0434 185 587.

    Matt

    #1202860
    FreightSelect
    Member
    • Total posts: 25
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    … sorry Deb I should also just add that if you’d like to seek some advise from a party without a commercial interest http://www.austrade.gov.au/ is a great resource. They even have a number you can call for advise.

    Matt

    #1202861
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
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    summerdeb, post: 240646, member: 87496 wrote:
    Hi guys
    I’m new to importing but I designed and purchased some fabrics to be made in China.

    The terms I paid for were including air freight via TNT and the order cost USD2780.00 This included air delivery via TNT.

    I expected to have to pay duty. TNT customs broker contacted me I did an FID on the order value of $2780 (AUD 3686) I sent the contract of sale and evidence of money paid (bank transfer receipt as requested)

    Customs has added a charge called OSEA(2) of AUD842.00 which they added to the $3686 then gave me a CIF total of 4538.20 added a duty bill of $185 = GST bill of $472 plus other charges of $84 – total import charge around $740.

    (I expected to pay $185 duty plus 10% gst of $368 = $550. I have tried to contact TNT to explain the OSEA charge but the only responses have been unhelpful.

    Then on top of that (and 2 week delay in customs) the fabric quality was not to the printed sample I’d been supplied. The manufacturer has agreed to replace it – do I have to pay customs duties again?

    If you are an import broker and can help me and provided a reasonably priced service to help me manage these headaches I’d love to hear from you!

    Thanks
    Deb
    Hi Deb,

    Thanks for joining and posting.

    I am sorry to hear of your issues. It must be disheartening for you right now.

    Hoping you see some blue skies in amongst the clouds soon.

    #1202862
    summerdeb
    Member
    • Total posts: 4
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    Thanks for the responses Matt and Paul. Don’t worry Paul I don’t get disheartened that easily!

    Matt I will give you a ring today and see if you can help me navigate these rapids as I am about to place another order.

    Thanks
    Deb

    #1202863
    zayd687
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    • Total posts: 77
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    Thats easy to decipher. Send me the customs entry ( N10 ) entry, and show me what they done, i’ll tell you.

    I’m also curious on the imported samples part, why it was held in customs for that long 2 weeks ????? , send me the details i want to have a look at the job. No charge I’m just curious to see what TNT’s lodged and what Customs have comeback with, very interested hmm!

    forgot to mention u should be able to get a refund on the duty you paid to customs.

    #1202864
    Easysmb
    Member
    • Total posts: 84
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    Hi there,
    GST is calculated based on arrival price onto Australia, which include cost base, freight and insurance and related various charges, custom has their benchmark of freight and insurance etc.

    #1202865
    summerdeb
    Member
    • Total posts: 4
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    zayd687, post: 240688, member: 72406 wrote:
    Thats easy to decipher. Send me the customs entry ( N10 ) entry, and show me what they done, i’ll tell you.

    I’m also curious on the imported samples part, why it was held in customs for that long 2 weeks ????? , send me the details i want to have a look at the job. No charge I’m just curious to see what TNT’s lodged and what Customs have comeback with, very interested hmm!

    forgot to mention u should be able to get a refund on the duty you paid to customs.

    Thank you so much Ash I have emailed you and if you can look at it I’d really appreciate it.

    #1202866
    summerdeb
    Member
    • Total posts: 4
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    Easysmb, post: 240772, member: 80732 wrote:
    Hi there,
    GST is calculated based on arrival price onto Australia, which include cost base, freight and insurance and related various charges, custom has their benchmark of freight and insurance etc.

    Thanks Michael. But if you pay an invoice inclusive of freight, and send them the contract of sale and evidence of payment as proof is it normal they would add more freight charge?

    #1202867
    Gama
    Member
    • Total posts: 3
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    Hi Deb,

    I import from China. There is a free trade agreement between China and Australia. Most of the imported items are tax free. You need to get a document called “certificate of origin” from the supplier and produce it to customs. You can save a lot. A custom broker will be very helpful if you are going to import in large scale.

    Gama

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