Ridiculous Import Fees

17th of December, 2007

I'm about to import a bunch of stuff (photography junk mostly), and since I've previously been lucky (or clever) enough to avoid the $1,000 threshold for any one shipment, this is the first time I'm going to be subject to import duty.  I understand taxing imports, I really do, but what is leaving me a little annoyed is that I will be taxed locally on a service that isn't even provided to me, and is sold by an overseas entity, to another overseas entity.

See, outrageously, the taxable amount includes the value of postage.

I don't understand why I'm to be taxed on a service provided by UPS or FedEx or whatever, to the company that I'm buying my goods from.  Presumably the relevant taxes have been paid in the country of origin by the company sending the goods, the fees for which are passed onto me at the time of sale.

I understand that I must pay for that service, but I'm not importing postage, am I?  So why then must I pay import taxes on it?

In the grand scheme of things, the tax on the postage isn't going to be a big deal... like $20 or so, but given the number of imports and enormous transport fees paid by the larger distributors, this must come to quite a lot of money and of course it's always passed onto the consumer at the checkout, where we pay our tax on that tax.

That's not particularly cool.

I completely understand having to pay GST (10%) on inbound goods, and I'm even willing to swallow the 5% "buy from your local asian importer" tax, but import tax on the postage that isn't even strictly provided to me?  Rude.

Four Responses

  1. #1 17th of December, 2007 at 17:11

    That’s execrably obscene.

    Are you telling me that things can actually be made in the same place/country they are sold?  Does Wal-Mart know this?

  2. #2 18th of December, 2007 at 00:58

    Hey, I’m all for globalisation!  I like being able to get cheaper stuff, and I don’t really care which other culture has to suffer to make it happen!

    Contrary to available evidence, it’s not my country’s responsibility to manage the welfare of and dictate the lifestyle for any other.  So, if they’ll work for $2 a week, I say LET THEM.

    I’m all about the ‘prime directive’ baby… don’t interfere with lesser developed worlds, et al.  Live long and prosper at someone else’s expense.  Nanoo-nanoo.

    Perhaps that’s why I think that our local manufacturers should be able to compete, or stop producing X and start producing Y.  These import fees are designed to protect local industry, and frankly, I think its counter-productive.

    There are heaps of American companies here producing crap for whatever other market, so clearly we’re good at something.  We don’t have to be good at everything.  Nix the import fees and let the Chinese price us out of the low-end mass-market.

    Who really wants to compete in the cheap-n-shitty end of the market anyway?  Can’t provide the lowest cost crap? produce quality boutique stuff instead.  Can’t do that? then you’re bloody useless talentless hacks who don’t deserve to be producing goods!

    *cough*

    Every market has an infinite number of niches.

  3. #3 18th of December, 2007 at 05:11

    I wholeheartedly fully and totally agree(d) with you.

  4. #4 18th of December, 2007 at 10:45

    I was just going to say that, Milorad.  In my opinion, that is just protectionism at work, aimed at supposedly “helping” the local industry (but hurting the consumers).

    It eventually wears out (e.g. American auto industry) — you just have to give the market some time to work its magic.  Otherwise, kicking the politicians in the nuts helps, too!

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