Subject:
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Re: aust. customs and duty, lego & GST
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Newsgroups:
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lugnet.loc.au
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Date:
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Tue, 14 Mar 2000 02:48:05 GMT
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Viewed:
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884 times
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In lugnet.loc.au, Aaron Coghill writes:
> Today i called the Aust customs to find out about duty and tax rates for
> buying goods from out side the country. hears the lowdown;
>
> any item valued at over A$50 is subjected to a tax of 32.7%. if an item costs
> A$100 and costs A$20 for p&h then the cost will be: $100 + $20 + $32.70 (32.7%
> of $100) = A$152.70.
>
> i asked about how the gst will affect things so here goes.
> The same item for the same postage goes like this;
> =($100(item) + 5% duty + $20 postage)+ 10% GST
> =($100 + $5 + $20)+ 10% GST
> =($125) + 10%
> =$125 + $12.50
> =$137.50
>
> This info i got could explain why the coast of lego is aust is higher than
> other countries
This is helpful, thanks. I did a little estimating exercise which yielded some
interesting results. See below.
LEGO is shipped in bulk, so $20 p&h is a bit steep for each set. I can get a
40 foot sea container shipped from the US to Australia for about $7,000.
That's 72.5 cubic metres of volume. Take an average box size of say 30cm x
25cm x 7cm, and applying an 85% bulking and storage factor (that's real
generous), that's room for 11,740 sets, or about $0.60 per set. OK, ad a few
dollars for packing and unpacking the container.
So if I buy 11,740 sets of 7140 (comparable size to set dimensions quoted) in
the US for MSRP of US$29.99, that's AUD$576,240 (after converting using
USD$0.611 = AUD$1.00). Multiply by the duty and you get $764,670. Add $7,000
for shipping, $4,000 for packing/unpacking the container and $20,000 for
distribution of the sets ($24,000 worth of labour which is about 750 man hours
(based on $32/hr which includes all on-costs), or 3.6 minutes per box), you
have a total cost of $795,670. Factor that by sat 128% for profit and
overheads and you get $1,018,460 all up. Divide that by 11,740 sets gives you
.... AUD$86.75. Wow! 7140 RRP's for AUD$87.95! Of course there are two retail
profit margins in here, which is not the real case, but that's not bad, if I
do say so myself. OK, bump the distribution man hours up a bit and it'll be
spot on.
So we can blame the government (again) for these rediculous tariffs and the
price of LEGO! I thought tariffs were to protect local industries. I don't see
any local industries making LEGO. Now if this tariff goes down to 5%, with a
10% GST, that will make my 7140 set estimate price AUD$76.30. Lets see what
happens after July 1, shall we?
Pete Callaway
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Message has 2 Replies:
 | | Re: aust. customs and duty, lego & GST
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| WOW!! This is fascinating. In lugnet.loc.au, Peter Callaway writes: <SNIP> (...) Bear in mind that our Lego gets shipped from Europe I believe, although there was talk of plan for a factory in Asia (perhaps Korea?) for Lego Products. I thought I (...) (25 years ago, 14-Mar-00, to lugnet.loc.au)
| | | Re: aust. customs and duty, lego & GST
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| Peter Callaway wrote in message ... (...) I'd be interested to know the price comparison between the LEGO sets sold in NZ and Australia. The GST over the ditch is 12.5% Below are the cheapest SW sets I was able to find (converted into Australian (...) (25 years ago, 15-Mar-00, to lugnet.loc.au)
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Message is in Reply To:
| | aust. customs and duty, lego & GST
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| Today i called the Aust customs to find out about duty and tax rates for buying goods from out side the country. hears the lowdown; any item valued at over A$50 is subjected to a tax of 32.7%. if an item costs A$100 and costs A$20 for p&h then the (...) (25 years ago, 13-Mar-00, to lugnet.loc.au)
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