# Help on import duty to Australia



## halcyonau (Jun 30, 2010)

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 (Oct 2, 2006)

halcyonau said:


> 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
> ...


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.


----------



## Classic30 (Aug 29, 2007)

tdw said:


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


The best advice right there... 



tdw said:


> 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 (Jul 6, 2006)

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.


----------



## Classic30 (Aug 29, 2007)

SimonV said:


> 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 (Jul 23, 2007)

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 (Oct 14, 2002)

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 (Oct 2, 2006)

chall03 said:


> 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 (Jan 16, 2010)

tdw said:


> 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 (Oct 2, 2006)

rmeador said:


> 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.


----------



## SimonV (Jul 6, 2006)

If the boat has US coast guard documentation, the person selling you the boat has to have the documentation cancelled, they then hand you a document from the coast guard with all the details for the vessel stating Us Documentation is cancelled and you attach this to your AMSA Registration application.


----------



## Classic30 (Aug 29, 2007)

tdw said:


> 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.


In a similar train to what Simon says, it actually isn't all that difficult over here - and, yes, fortunately the AMSA Shipping Registration people are very friendly and helpful.

I know because we came unstuck registering Bungoona because the PPO (previous-previous owner) moved to Queensland without telling AMSA (an offence under law) and sold it to the PO without the Registration Certificate.. In the end, with both the PO and PPO dead and buried, we had to cancel 50 years of history and pay $799 to re-register... but I'm getting off track.

All you need to do is get a Builders' Certificate from the builder (there will usually be one) and/or have the boat measured by a Marine Surveyor, be able to show a "Contract of Sale" document signed by the PO and then sign a Stat Dec declaring you are the legal owner and another declaring you've got the name, port etc marked as per the regs, all witnessed by a JP.

Given that ANY vessel entering or leaving Australian waters must be registered, it's not in their interests to make it TOO difficult to do..

On a side note: It's actually illegal in this country to fly the Red Ensign without being a Registered Ship. If ever you see some fancy new stinkpot roaring though the mooring field flying the Red Ensign to impress their friends, check to see if their name and port appears in the AMSA list - AMSA will happily book them if it doesn't!!..


----------



## graemefromdownunder (Mar 11, 2009)

*Importing our Yacht into Australia*



SimonV said:


> 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.


How can I register boat in Australia (say Qld) when she is resident in UK? At what point do I pay duty / gst - at time of registration or when I arrive?

Can you clarify this for me? We own a Hanse 461, bought second-hand in UK 2009, I have dual nationality my wife UK. Boat is registered in UK Small Ships register.

I was advised that Aussie customs calculate freight cost from last port of call, so if we stop at Fiji before arriving Qld then it is the cost of that leg. I haven't been able to find out whether they charge duty/gst on the price we paid (£146,000) at the exchange rate at the time we arrive in Aus (say $1.6 = £1) or its equivalent at the time we purchased (£2.3 = £1). It would certainly help to know what we will be up for when we arrive as it is certain Custom's won't take a post-dated cheque?


----------



## delite (Nov 2, 2009)

Be sure to be honest with the price you paid. Custom agents often look on-line and find what price a boat was advertised for sale at. To good of a deal and they are likely to use their own price.


----------



## tdw (Oct 2, 2006)

graemefromdownunder said:


> How can I register boat in Australia (say Qld) when she is resident in UK? At what point do I pay duty / gst - at time of registration or when I arrive?
> 
> Can you clarify this for me? We own a Hanse 461, bought second-hand in UK 2009, I have dual nationality my wife UK. Boat is registered in UK Small Ships register.


You can register a foregn vessel as an Australian Registered Ship (ARS) from anywhere in the world. Simply go on line to the AMSA website (


> www.*amsa*.gov.au/).


They will take you through the whole process. It will take a certain amount of time as they require original docs in some areas but overall it should not be all that painful.

One thing I am not 100% certain about is whether your ARS needs to be wholly or just majority owned by Australian citizen. If majority you are OK , you just have to convince your good lady wife that she now only owns 48% of your ARS and not a majority as she undoubtedly thinks. OTOH if your ARS has to be 100% Oz owned then you will need to become sole owner of your ARS. 



> I was advised that Aussie customs calculate freight cost from last port of call, so if we stop at Fiji before arriving Qld then it is the cost of that leg. I haven't been able to find out whether they charge duty/gst on the price we paid (£146,000) at the exchange rate at the time we arrive in Aus (say $1.6 = £1) or its equivalent at the time we purchased (£2.3 = £1). It would certainly help to know what we will be up for when we arrive as it is certain Custom's won't take a post-dated cheque?


I think you are ill advised re the freight issue. My business imports from Europe and I can assure you freight component for GST purposes is for entire journey not simply from last port.

Duty is payable on price paid plus gst if under 12 months ownership. If over 12 months then customs will concoct a valuation for import duty and gst purposes based on value of AUD at time of import. A freight component will be added for gst purposes. If you were to allow a worst case scenario of realistic value (from their perspective not yours) plus freight (if shipped commercially) at currency valuation (at IMT/TT rate which is lower than official) then add 5% duty and then add 10% GST you should be well covered. Yes you do pay gst on customs duty.

Currency - Today the AUD is worth GBP.6637 official but in reality IMT/TT rate is only GBP.6217.


----------



## Classic30 (Aug 29, 2007)

Given the way currency rates are fluctuating right now, as a UK registered boat, would you be better off (if you can handle it) getting the boat delivered to Singapore or Malaysia and aim to sail to Darwin via Bali once you get the paperwork and final arrangements made?

Just a thought..


----------



## shanedennis (Feb 10, 2012)

We recently went through the Australian rego. The cost was about AUD$1250.

AMSA is very helpful but will not answer too many stupid questions and do everything by the book. I am pretty sure the boat needs to be at least 50% owned by an Australian citizen.

Regarding paying duty, I read somewhere you can opt for a survey if you bought the boat more than two years ago. Anyone done this?

How do you pay the import duty and how much time do you have to pay it? Can you use a credit card, for example? We will not have Australian bank accounts until after arrival.


----------



## tdw (Oct 2, 2006)

Boat definitely needs to be at least 50% owned by Australian citizen.

Not sure about the survey business but it sounds about right.

AMSA take credit card payments either online, in person or over the telephone.


----------



## mummamea (Dec 8, 2016)

Hi, My son has rescued a 54 ft ferro cement yacht... It has a diesel engine but sails and masts have not been fitted.
This occurred in New Zealand over eight years ago. After a trip from New Zealand four years ago ( where he had been living) he was refused re-entry.
This boat had been his home for about 3 years. Approximately what approximate duty would it incur if it was brought to Australia to resume its purpose of being his sole home.


----------

