Help on import duty to Australia

[halcyonau]

Hi !
First off i would like some help regarding importing a yacht to Australia from Europe. The reason being the yacht pool and selection is so much bigger.

I am looking at purchasing a 2008 Bavaria Vision (no VAT paid) for
$156 000.00 AUD (Australian). If i was to eventually sail this back to Australia
what would the price of importing this vessel into Australia be.

I understand it is 10% GST + 5% import duty as well as 15% on costs incurred to bring this vessel back.

Now if i pay $150 000.00 for this yacht and i have paperwork from a broker attesting to this will this be what they base the import duty and GST on or would i get slugged on Australian market value on what they believe the vessel could be worth.

I am not out to make any profit from this yacht i just want to understand my my tax implications.

Also a bit off the subject if i was to sail it back over several years and i stayed in Indonesia for several months would i be able to import it from Indonesia or would they slug me from Europe.

Hope this makes sense...

[tdw]

Originally Posted by halcyonau

Hi !
First off i would like some help regarding importing a yacht to Australia from Europe. The reason being the yacht pool and selection is so much bigger.

I am looking at purchasing a 2008 Bavaria Vision (no VAT paid) for
$156 000.00 AUD (Australian). If i was to eventually sail this back to Australia
what would the price of importing this vessel into Australia be.

I understand it is 10% GST + 5% import duty as well as 15% on costs incurred to bring this vessel back.

Now if i pay $150 000.00 for this yacht and i have paperwork from a broker attesting to this will this be what they base the import duty and GST on or would i get slugged on Australian market value on what they believe the vessel could be worth.

I am not out to make any profit from this yacht i just want to understand my my tax implications.

Also a bit off the subject if i was to sail it back over several years and i stayed in Indonesia for several months would i be able to import it from Indonesia or would they slug me from Europe.

Hope this makes sense...

Get in touch with a customs agent, they'll give you the complete gen.

However, as far as I know, the valuation is based on the cost of the boat + transport cost allowance for calculation of GST and Import duty. You have the rates correct but Oz Customs use their own exchange rate calculation that does not always agree with the official rate at the time. Remember also that the exchange rate is calculated at time of import not at time of purchase. So don't think you are paying AUD$150.000 for the vessel, you are in fact paying for the boat in Euros (or GB Pounds if its British.)

As regards importing from Indonesia (or any other nation) the only way you could make this legal would be to officially import the boat into Indonesia or wherever first, and then re export to Australia.

[Hartley18]

Originally Posted by tdw

Get in touch with a customs agent, they'll give you the complete gen.

The best advice right there...

Originally Posted by tdw

As regards importing from Indonesia (or any other nation) the only way you could make this legal would be to officially import the boat into Indonesia or wherever first, and then re export to Australia.

I'm not so sure about that, TD. Could be wrong, but I'm led to believe that, if you buy off-shore and sail it back over some time, they based the fees on the original purchase price in whatever currency it was bought in. ..and if it was bought more than 12 months ago, they asked for a valuation and based the fees on that.

I guess, technically speaking, if you buy a boat in, say, Europe, and sail it to Indonesia, then it would be viewed by the Indonesians as a visiting European boat sailed by someone with a tourist visa..

[SimonV]

Before you leave the country in which you bought the boat you must have the boat registered as an Australian ship. There is no way around this, unless you have duel citizen ship with the country where you got it. If you don’t the boat may be arrested at the first foreign port of call. Registration will set you back $799.

[Hartley18]

Originally Posted by SimonV

Before you leave the country in which you bought the boat you must have the boat registered as an Australian ship. There is no way around this, unless you have duel citizen ship with the country where you got it. If you don’t the boat may be arrested at the first foreign port of call. Registration will set you back $799.

..and takes a few weeks and a few Stat Decs to complete.. and you'll have to mark the boat with a few details and select a Home Port.. and, if you're REALLY unlucky, you might have to pick a different name to the one she has or that you really want.

See here for the list of names already in use. I see "Goodonya" is already in use.

[Ilenart]

When I was researching this a couple of months ago I rang the Australian Customs enquiries line (1300 363 263, outside Oz +61 2 6275 6666) and found the them very helpful on all points. He even suggested that you could get a more favourable outcome by going to one of the smaller Ports, rather than the larger Ports.

One thing I remember him saying was to keep as many receipts as possible to prove your expenses for the trip to Oz. Otherwise they may determine their own figures.

Ilenart

[chall03]

On the Australian Registrtation issue, am I right in thinking that you have to be able to list all prior owners????
This for some older yachts with several unknown owners could be a potential sticking point?? ummm I wonder Is there anyway around this.......

[tdw]

Originally Posted by chall03

On the Australian Registrtation issue, am I right in thinking that you have to be able to list all prior owners????
This for some older yachts with several unknown owners could be a potential sticking point?? ummm I wonder Is there anyway around this.......

Chall....if the boat is already registered previous owners will be available from the registrar. I know this is the case down here and in UK and any Commonwealth or ex Commonwealth countries, I'm presuming it is the same in the USA .

As for registering a boat that has no previous registration I believe there is a way around this. Go have a look at the AMSA web site or give them a call. They are exceptionally helpful.

[rmeador]

Originally Posted by tdw

Chall....if the boat is already registered previous owners will be available from the registrar. I know this is the case down here and in UK and any Commonwealth or ex Commonwealth countries, I'm presuming it is the same in the USA

I'm a noob, so take with a grain of salt, but I'm fairly sure this is not true. I've heard a couple of times that the US Coast Guard only keeps records for the most recent two names/owners of a vessel. If it has had more than that, you may be SOL. State registration with the US may go back further, and there may be tax records or such... Anyways, this is besides the point because the USA isn't involved in the OP's transaction anyways.

[tdw]

Originally Posted by rmeador

I'm a noob, so take with a grain of salt, but I'm fairly sure this is not true. I've heard a couple of times that the US Coast Guard only keeps records for the most recent two names/owners of a vessel. If it has had more than that, you may be SOL. State registration with the US may go back further, and there may be tax records or such... Anyways, this is besides the point because the USA isn't involved in the OP's transaction anyways.

You may well correct.

I'd think though that exsting US registration would be sufficient to register as an Australian vessel.

The difficulty has always been in registering an older boat that has never been registered previously. Theoretically you need to have docs going back to the original builder but I do believe there is a way around this. I looked into it when we bought Raven as one of the boats we were looking at was not a registered ship.