Import Levies - some final clarity?

VellaJ

So I know this has been quite extensively discussed a few times on the forum, but I'm still rather confused, and was rather hoping someone could give me a bit of final clarity?

Apparently, if I understand correctly, there is no duty on guitars, but VAT does apply, and the formula for this is:
(Invoice value + Duty amt. + 10% CAF levy) x 14%

I'm just trying to fill in the blanks here. Assuming I want to import a guitar worth R5,000, what are the values to plug into this?

(R5,000 + 0(?) + 10%(of what?)) x 14%

I never was very good with financial maths... Any help would be greatly appreciated ?

Tone

Here goes

5000 + 10% =5500x 14%=770 VAT ??? ???

Final value is original 5000 plus 770 (vat on 5500) equals 5770

Please check local suppliers before you import it might be cheaper ?

VellaJ

Well my interest was piqued today when I saw a limited edition American Standard Strat available in the US for $1,050. Unlikely to find something like that at that price here...

guitarguy321

What are the levies and custom's costs for importing gear from the USA into our country? thinkin of buying some stuff from Sweetwater.com

Bob-Dubery

There were some good calculations done in another thread on GFSA about pricing.

See http://www.guitarforum.co.za/amps-speakers-and-valves/whats-with-fender-amp-pricing-in-this-country-are-we-being-ripped-off/msg131572/#msg131572

The example is for a Fender amp.

Alan Ratcliffe wrote: Sweetwater.com (they will not ship Fender to SA, but serve as an example)
Cash price: $ 899
Shipping: $ 357.17 (Fedex "Economy")
Total: $1,256.17

Rand Total (today's exchange rate): R 8,639.47
VAT: R 1,209.53
Bank "International currency" Fees: R 98.59
Duties: R985.90
FedEx Processing fee: R137.06
FedEx Disbursement fee: R50.54
TOTAL RAND COST: R 11,121.09

For guitars you can exclude duties but note the other "add ons" - bank and courier charges. You can't just take 14% of the rand cost of the item.

Sweetwater and other like stores will not ship some lines to SA in order to not tread on the toes of local franchisees - so first check that they will supply you with the items you want. Then try to calculate the ENTIRE cost to you, factor in not having any guarantee locally (you'd have to send the items back to Sweetwater at your cost) and possible conversion from 110 to 230 volts.

bassman

I have just received my self imported Fender American strat in tweed case and Fender Superchamp amp. Quick no hassels, door to door. Yipeeee.

Bassman

Norman86

Herman Pretorius wrote: I have just received my self imported Fender American strat in tweed case and Fender Superchamp amp. Quick no hassels, door to door. Yipeeee.

Bassman

And what did it end up costing?
What duties / levies and such??

Cheers!

AlanRatcliffe

I just got the clearance bill from FedEx for my Carvin NS-1. Here are the details of all the costs:

Guitar cost: R10,344.38
Shipping: R2,145
Bank charges: 224.79
VAT: R1,666.98
FedEx Processing Fee: R120.23
FedEx Disbursement Fee: R93.99
Total Cost: R14,595.37

So total delivery, duties and all charges on a R10K guitar = R 4,250.99 ...about 40% of the purchase price.

StephenG

Alan Ratcliffe wrote: I just got the clearance bill from FedEx for my Carvin NS-1. Here are the details of all the costs:

Guitar cost: R10,344.38
Shipping: R2,145
Bank charges: 224.79
VAT: R1,666.98
FedEx Processing Fee: R120.23
FedEx Disbursement Fee: R93.99
Total Cost: R14,595.37

So total delivery, duties and all charges on a R10K guitar = R 4,250.99 ...about 40% of the purchase price.

to be fair - i dont think you should be indicating a percentage for the additional costs - as some costs are fixed and some are variable... if the guitar was a R40,000 guitar being imported then the percentage additional costs would be a lot lower.

and for further clarity there was no duties charged on your imported guitar.....

AlanRatcliffe

Absolutely right on both counts Stephen. I should have mentioned both of those things. Hopefully it still serves as a good example though.

StephenG wrote: if the guitar was a R40,000 guitar being imported then the percentage additional costs would be a lot lower.

Conversely, the fixed charges for things like shipping stay constant with a cheaper instrument too, pushing the percentage up and making it even less viable to import.

and for further clarity there was no duties charged on your imported guitar.....

Yup. On something like a combo amp there would be duties too.

While it doesn't change the total above, it's worth considering that the the FedEx and bank fees already include VAT, so the taxman is getting his cut on those already. Also when calculating VAT ahead of time one should always remember that it is charged on the delivery charge too.

StephenG

Alan Ratcliffe wrote: Also when calculating VAT ahead of time one should always remember that it is charged on the delivery charge too.

Alan - you must learn to stand up for yourself dude and stop letting these people walk all over you ..!! ? ? ? ?

there is NO VAT on shipping - VAT ia payable on the cost price of the item EXCLUDING shipping.. international shipping costs are zero rated in terms of VAT laws...

AlanRatcliffe

StephenG wrote: there is NO VAT on shipping - VAT ia payable on the cost price of the item EXCLUDING shipping.. international shipping costs are zero rated in terms of VAT laws...

That's my mistake. :-[ I just checked and the VAT did not include the shipping amount. That's my "something learned" for today... Thanks!

Highway-Chile

Levi's!!! >☹ Real cowboys don't wear Levi's.....it's Wrangler all the way. Boot cut........ to boot. Import some of those. ?

I hate that you guys gotta get shafted on the guitar prices and availability....all gear for that matter. It's BS. I'd like to ask about the situation there but so as to not hijack I will start a thread. I mean at the end of the day, with what your salaries are compared to ours......does it come out about even?