Buying a bike mail order - Lessons learned

[ScottDavis]

I recently ordered a bike mail order from Wiggle. It's a Focus Raven Expert 2009. I'm very pleased with the whole price of the deal, but the charges you'll face from Australian Customs are not completely clear. For anyone interested this is the breakdown of the bike cost and charges.

To Wiggle
Bike – $2178.90
Pedals – $109.41
Delivery – $121.78

To Australian Customs
Customs Duty – $108.94
GST – $251.90
Processing Charge – $48.85

So the complete cost of the bike (with pedals) has been – $2819.78.

My advice - don't add the pedals to the same order or you'll just pay duty and tax on them too. Put them in a separate order and they'll likely be tax free as they're under $1000. If they arrive from same supplier, on the same day customs may get smart and group together, but I don't know if they do or not.

Full details - http://700x23.wordpress.com/2009/08/10/buying-a-bike-mail-order-lessons-learned/ if you're interested.

[2WheelsGood]

Cheers for the info! I was tempted to go down this route - after all when the Germans make something, they make it well! I decided not to after factoring in the customs and GST charges...

I guess you will be one of few people with a Focus bike

[Skexis]

Bloody ATO getting their little rat claws into everything.

It's only because you're a normal person. If you were rich you'd get loads of avenues to offset tax, including personal rulings if you were rich enough to kiss Michael D'Ascenzo's ass.

[mylesau]

There's no magic to the calculation, though I can't work out why they didn't charge you Duty on the pedals?

Bike: $2178.90
2178.90 (AT) 5% Duty = $108.94
Pedals: $109.41 (they should have added this to the total before duty was applied?)
Delivery: $121.78 (you don't pay duty on shipping)

Sub Total: $2519.03

GST: 2519.03 (AT) 10% = $251.90 (GST paid on everything)
Processing Charge: $48.85 (you can save a few dollars if you do this electronically)

Total: $2819.78

Good buy by the sounds of it.

Would be interested to know how the bike arrive - was it assembled (or mostly)?

[ScottDavis]

I haven't received it yet. Hopefully that will be Wednesday. I'll let you know.

Cheers
Lee

[r2160]

The only problem with lodging electronically is Customs require you to purchase a secure certificate. This costs $1200. I used to import quite a few products, and even then, the savings I would have made would never have made up for the $48 they charged me.

The worst part about having to organise customs clearance is the 3-4 weeks they muck around.

cheers
Glenn

[mylesau]

There's an electronic Single Payment method available that doesn't require registration. I thought the Processing Charge was a bit less if you use that method - could be wrong though.

[timbo]

There's no magic to the calculation, though I can't work out why they didn't charge you Duty on the pedals?

Bike: $2178.90
2178.90 (AT) 5% Duty = $108.94
Pedals: $109.41 (they should have added this to the total before duty was applied?)
Delivery: $121.78 (you don't pay duty on shipping)

Sub Total: $2519.03

GST: 2519.03 (AT) 10% = $251.90 (GST paid on everything)
Processing Charge: $48.85 (you can save a few dollars if you do this electronically)

Total: $2819.78

Good buy by the sounds of it.

Would be interested to know how the bike arrive - was it assembled (or mostly)?

Wiggle's website says that all bikes are checked and assembled, and all you have to do is open the box, turn the handlebars, add pedals and get on it and ride it away.

[vaporjet]

There's no magic to the calculation, though I can't work out why they didn't charge you Duty on the pedals?

Bike: $2178.90
2178.90 (AT) 5% Duty = $108.94
Pedals: $109.41 (they should have added this to the total before duty was applied?)
Delivery: $121.78 (you don't pay duty on shipping)

Sub Total: $2519.03

GST: 2519.03 (AT) 10% = $251.90 (GST paid on everything)
Processing Charge: $48.85 (you can save a few dollars if you do this electronically)

Total: $2819.78

Good buy by the sounds of it.

Would be interested to know how the bike arrive - was it assembled (or mostly)?

Wiggle's website says that all bikes are checked and assembled, and all you have to do is open the box, turn the handlebars, add pedals and get on it and ride it away.

http://www.wiggle.co.uk/h/option/BikeDelivery#intbike

Bikes despatched internationally (outside of the UK and Ireland) are fully assembled and safety checked here at Wiggle before being disassembled and packaged into two separate boxes ready for delivery. The frame will be in one box and the wheels will be in the other box and both boxes will be shipped together.

Some assembly will be required when you receive your bike and full instructions and tools will be provided. For more information on what you need to do when you receive your bike, please see our International Bike Delivery instructions.

It looks like only bikes delivered within the UK are delivered "ready to ride".

[ScottDavis]

When you order they send you instructions for International deliveries. They also provide all of the required tools for assembly free of charge (15mm spanner and Hex wrench I suspect).

Assembly should require attaching of handlebars, attaching of rear derailleur, insertion of seat post and attaching of front wheel. Oh and put the pedals on!

Also when you order the outbound team ask you how you would like it configured (i.e. front brake on the left or right, etc).

Hoping it is all that simple!

[ainsy]

Scott,

Make sure that you don't pay the duty. There is a tariff concession for complete bikes. Don't have access to the TCO number but let whoever is delivering the bike and has done the clearance on your behalf that you will not be paying the duty and want the import declaration amended to reflect the rightful duty free entry of the bike.

Also the pedal should be considered part of the complete bike and also free of duty.

[ScottDavis]

Already paid it, but if you can point me at anything that officially confirms this please let me know. I'm pretty sure that since the order form and invoice Customs received does state it's a bike they would know this if it were true!?

[thomas_cho]

Thanks for sharing .. I am tempted to order a Cervelo S1 frameset now.

[mylesau]

Working Tariff Chapter 87 - Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof has Bicycles listed as 5% duty?

[lukas]

Working Tariff Chapter 87 - Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof has Bicycles listed as 5% duty?

Bicycles are listed at 5%, but as ainsy mentioned there is a tariff concession order available for all complete bicycles. Your average customs broker at a courier company is just going to pump this entry through and not look for ways to minimise your costs, but the TCO certainly exists, and if you can get through to the broker clearing your shipment to advise him/her, then it should be an easy process for them to apply it.

It's only complete bikes though.. for framesets you'll still be up for 5%. And you'll still be up for your GST.

[ScottDavis]

You have to pay Customs Duty and Goods and Services Tax (GST).

Example 3 shows how it's calculated so I knew what to expect before bike arrived. Only thing I didn't expect was the $48.85 handling charge, but in the scheme of things its fairly insignificant.

http://www.customs.gov.au/site/page.cfm?u=5549#e989

[ainsy]

Tariff Concession (0104891) below

Tariff Code: 8712.00.00
Reference No: 0104891
Schedule4 Item: 50


BICYCLES
Op. 18.06.01 Dec. date 31.08.01 - TC 0104891 50

As advised by Lukas 5% on framesets unfortunately Thomas. Lee/Scott make sure you get your money back for the duty as you are entitled to get the bike in duty free.

[thomas_cho]

Yes I know ... but Cervelo framesets are approaching the 2.3K mark here ... just not sure when to pull the trigger, before or after selling one of my existing bikes!

[lukas]

Yes I know ... but Cervelo framesets are approaching the 2.3K mark here ... just not sure when to pull the trigger, before or after selling one of my existing bikes!

How much are you looking at paying online?

[ScottDavis]

Guys,

Thanks for this. Just spoke to customs and they confirmed I can apply for a refund for the 5% duty using this form

http://www.customs.gov.au/webdata/resou ... s/b653.pdf

She said it should have been added. I used the correct codes so mistake their end.

Thanks again.

[casual_cyclist]

Guys,

Thanks for this. Just spoke to customs and they confirmed I can apply for a refund for the 5% duty using this form

http://www.customs.gov.au/webdata/resou ... s/b653.pdf

She said it should have been added. I used the correct codes so mistake their end.

Thanks again.

Sweet . That is another lesson and a good pickup for anyone else bringing in a complete bike. Even factoring shipping the prices are way less than local.

[Ellipsis]

Hi Scott/Lee,

From when you brought it, how long till it arrived? Assuming you get it today. Did you sort out the customs stuff first i.e get a broker or just wait until you heard from them? I'm wondering if there's a chance it will slip through customs.

Cheers,

[Ellipsis]

...Just read your blog. That’s pretty good service from customs - A Government Department that seems to be efficient

Edit: grammar

[ScottDavis]

Hi,

I ordered on July 30th, the bike was assembled by Wiggle and despatched on 2nd, arrived in Perth on 4th, customs write to me on 7th for me to clear, this was received by me on 10th (due to weekend in the middle), completed paperwork and returned and paid customs on 11th and delivered on 12th.

So about 2 weeks from order to delivery.

I'll post some pics on my blog later tonight. Just been for a ride! The bike was very well packaged.

Cheers

[ScottDavis]

Pics of bike assembly and description of what's involved now on my blog if you're interested.
http://700x23.wordpress.com/2009/08/12/assembling-a-mountain-bike/

Cheers
Lee