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Customs
& import approval
Valuing
your vehicle for customs
Special consideration should be given as to the method of valuation
that will be used by the Australian Customs Service for any particular
vehicle. A definitive ruling as to which method of valuation is used is
determined by the Customs Officer at the Australian Port however an
indication and further information can be advised by contacting a
destination customs clearance agent. The Australia wide Customs
Information Centre can be contacted on Tel: 00612 8339 6000. The
Customs value of an imported private motor vehicle (whether new or
used) is assessed by one of the following methods:
NORMAL
METHOD
OF VALUATION (called ‘Normal’ but not normally used
by
Customs): The Customs Value for Vehicles purchased before 2nd March
1998 (or if when purchased the sale under consideration took place with
the purpose of shipping it to Australia for Vehicles purchased after
1st March 1998) is normally assessed as the Purchase Price actually
paid in the UK for the Vehicle less an allowance for depreciation if
the vehicle was purchased prior to 2nd March, 1998. This allowance is
deducted from the Purchase Price and is calculated at a maximum of 76%
depreciation for vehicles owned for more than 6 years.
However, this method of valuation is not ordinarily used in cases
where: Satisfactory evidence cannot be presented (invoices, receipts
and documents) to Customs at the port of importation to verify the
vehicle purchase price, or the vehicle was purchased in the UK at only
a token or nominal price, or use of the depreciation allowance outlined
above would result in an unrealistic Customs value for the vehicle, or
the vehicle value alters considerably between the dates of its purchase
in the UK and its importation into Australia, due to the addition of
significant accessories, fittings or options, major restoration,
modifications or any improvements (excluding any necessary running
repairs and maintenance) to the vehicle during that time, or
significant damage (as opposed to normal wear and tear) caused after
the purchase of the vehicle, or the vehicle was not purchased in an
actual sale but was otherwise acquired, such as by donation, gift,
prize of bequest or was personally built wholly or in part. In these
instances the Customs value would be taken as 40% of the Australian
Market Value.
IN NEARLY ALL CIRCUMSTANCES, For Vehicles purchased IN THE UK after 1st
March 1998, the sale under consideration (CAR PURCHASE) did not take
place with the purpose of exporting it to Australia AND SO FOR 90% OF
CAR OWNERS THE FOLLOWING WILL APPLY…
ALTERNATIVE
METHOD OF VALUATION (called ‘Alternative’ but is
more
normally used by Australian Customs): Where the normal method of
valuation is not used, then the Customs Value will generally be
assessed using the Fall Back Deductive method. This involves obtaining
an ‘Australian Landed Valuation’, as imported, and
as
valued by an independent Australian Motor Specialist less the cost of
shipment and the figure remaining is deemed to be the
‘Customs
Value’ upon which Duty and Gst is levied. The Importer is
responsible for obtaining, as well as the cost of, the
‘landed’ valuation.
In the majority of circumstances that the Australian Customs Service
applies the ‘landed cost’ valuation
method’ it has
normally been found that valuations of cars whilst they are still
‘As Landed’ sitting at the Australian Port have
been very
much lower than the actual ‘Market Value’ of the
Vehicle
once it has been imported, had duties / taxes paid and has been made
roadworthy and registered.
An expert appraiser may at first consider the Market Value of a similar
vehicle in Australia and make a significant reduction for the fact that
the vehicle has not yet been imported and registered. From this figure
can be deducted all the subsequent costs of getting a vehicle
‘on
the road’ and then deducting the 10% Gst and then the 10%
Duty.
From the remaining figure Customs would then deduct all the costs of
shipping the car to Australia to arrive at the ‘Customs
Value’. The resulting ‘Customs Value’ can
be as low
as 50% of the actual ‘Australian Market
Value’.
In many instances this method of valuation results in a fair assessment
for taxes payable as quite often it seems to equate to a figure very
similar to the UK Value at the time of shipment rather than the
probable higher UK price paid when the vehicle was originally purchased
that may have been applied under the ‘normal method of
valuation’.
The Clearance Agent or Australian Customs may be able to advise the
details of a local valuer at destination that may be able to give an
indication of an ‘as landed’ value to enable an
estimate of
taxes to be ascertained. It is well worthwhile contacting a Clearance
Agent to discuss the best valuation procedure. Some States have lower
valuations than others. A rough initial guide can be assessed from the
new and used Australian market values on the Internet at: www.redbook.com.au
and at www.drive.com.au
and at www.autotrader.com.au.
Personal
import approval from DoTaRS
All vehicles permanently imported into Australia require import
approval from the Department of Transport and Regional Services in
Canberra (DoTaRS). Import Approval should be applied for before
shipment and takes 4–6 weeks. Vehicle Approval is either as a
Personal Import or if the vehicle is older than 1989. Personal Import
qualification is for vehicle owners with long term residency for one
car per person that has been owned & used in the UK for a
minimum
period of 12 calendar months.
The Vsb10 ‘Personal Import Approval’ Application
Form
should be completed in conjunction with the Vsb Instruction Brochure
both of which can be downloaded from the www.dotars.gov.au
website. Part 1 should have an Australian address, Part 3 the car
details and then either Parts 4 and 12 for cars older than 1989 or for
vehicles newer than 1988 Part 8 and 12 (answer ‘No’
to
Parts 4, 5, 6 & 7) – all other sections can be left
blank.
Please note that if the vehicle qualifies for an approval under both
Part 4 & Part 8 then Part 8 is the best section to apply for.
If
time is of the essence then it can sometimes be quicker to fax
(0061262746013) or email (Vimports@dotars.gov.au)
a copy application and follow it up with the original in the post and
sometimes a call or email to DoTaRS 10 to 14 days later can get a
positive reply. Approvals for those without permanent residency but
with 410 retirement or 457 business visas are occasionally delayed and
are sometimes only issued once the importer has actually arrived in
Australia themselves. Companies, Corporations, tourist and short term
visa holders cannot qualify a vehicle as a Personal Import.
A Personal Import Application must include copies of every page of a
vehicle owners passport and their drivers licence, a copy of the UK
purchase invoice and registration (V5C) document and a statement of
travel. The photo identification page of the passport must be certified
by an eligible person. An eligible person can be, amongst others, a
solicitor, doctor, nurse, teacher, vet, bank manager or chemist, who
must certify that the photo ID is true and correct with their
signature, name, address, telephone number and profession. The import
approval certificate in four parts is mailed by DoTaRS to the
Australian address provided – one part is for the Australian
Customs Service at the entry port, one is for the Registration
Authority, one is to enable a personal import plate to be issued and
one is for the car owner.
The ‘Statement of Travel’ should certify the date
of
purchase as on the invoice, the date of registration in your name as on
the registration document, the date of handover of the car for shipment
and your planned departure from the UK, details of any overseas trips
from the UK since the purchase date and the actual period that
qualifies for ‘the minimum 12 months period of use and
ownership’. An example of a statement, which can be
hand-written
or typed onto a separate sheet and which should be included with the
application form, the A$50 fee and supporting documentation, is:
Example
“TO WHOM IT MAY CONCERN”
Mr.
John Smith,
1,
High Street,
Anytown,
Buckinghamshire,
SL8 1PQ.
RE: 2002 BMW 525I SE, CHASSIS NO. WBAHD123456BJ78910.
I, Mr. John Smith, hereby certify that I purchased the abovementioned
motor car in the UK on 5th August, 2004 and registered it in my name on
the 6th August, 2004.
I propose to hand over my car for shipment in November, 2006 and plan
to leave the UK to travel to Australia in December, 2006.
I have ‘Owned and Used’ my car in the UK for over
two years
and during this time I have been away from the UK and the car for the
following periods…
October 2004 – day trip to France
November / December 2005 – 3 weeks visit/holiday to Australia
March 2006 – weekend in Paris
July 2006 – two week holiday to Spain
Certified true and correct,
(signed) Mr. JOHN SMITH.”
PLEASE
NOTE:
From time to time the Australian Customs Service conducts detailed
checks against some incoming motor vehicles. To avoid delays and
additional expense it is recommended that all vehicle owners keep as
much original supporting documentation as is available which could
include a legible copy of the page where a vehicle was advertised for
sale in the UK, copies of bank statements and method of payment for the
vehicle, insurance cover notes or certificates, service invoices,
parking or speeding tickets, old MOTs etc.
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