Posted by
bluetooth
18 yrs ago
I've heard that one can buy a car in HK, and AFTER A YEAR can take it along to Australia when they move there WITHOUT paying any duty in Oz. Once in Australia the car can be sold for a profit since cars there are more pricey and have much more miles on the odometer. Does anyone know any of the details about this? It seems that a more luxury/expensive car would offer the most in terms of gains. Any suggestions?
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ceeh
18 yrs ago
We've sent a couple of cars over to Oz in the last few years and have not been burnt but have friends who have been!
First of all you have to realise that if you are doing it to make a profit you cannot compare the price you expect to get against the price of the same car in Oz. You will get much less as it is an import car and not one 'imported for Australia'.
For example we took out a Merc CLK 320 convertible which we paid HK$300,000 for and the same car imported by Merc in Oz was selling for twice that amount. It cost us AUD$12,000 to get it from HKG to 'on road' in Australia. That included freight, container, customs, gst, quarantine and on road costs. We sold it later for AUD $50,000 which was in effect an AUD$8,000 loss but we had the use of it for 2 years in HKG and almost 1 year in Oz for our visits there so consider that we got our money back.
You have to remember to keep the cost of the car you are going to import down below the luxury car limit of 47,000 which will include the freight costs menitoned above. Tax is much higher if you go above the luxury car limit so you have some homework to do before you start this exercise. Lots of information on the website.
And yes, even if you are moving back to Aust for good there is stil duty/tax to pay. Also important to remember that the 12 months means 12 months. If you leave HKG for holidays you have to factor that in to the 12 months ownership.
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Thanks for your detailed reply, ceeh. You mention: "Lots of information on the website."
What site are you referring to?
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If it was that easy the Aus government would have clamped down by now! The only way it would seem is if you are a diplomat (as they don't pay sales tax) you could then ship and make money... Otherwise I doubt its that easy
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I'm not suggesting that its 'that easy' nor am i going to try to make a business out of it. My point was simply that I want to buy one car now, and use it for the next year or so. If i do, then does it qualify for duty-free import into Oz when i move there in a couple of years time. If so, then why not buy a luxury car thats 1 year old, then sell it a few years later and at least break even on the transaction... Know what i mean?
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Got you on that point - Not disputing your plan at all just that you won't make a living (but if you do let me know and I'll join in!)
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ceeh
18 yrs ago
Sorry I forgot to mention the website is the Australian Customs and they will reply to questions via email as well. Try this site:
http://www.customs.gov.au/webdata/resources/files/importguidePrivOwnMV.pdf
Lots more information if you go to www.google.com and type in: importing a car into Australia.
We started by sending a car back after 18 months then keep it in Oz until the one we have here has been 'owned' for the 12 month mandatory period then sell the one in Oz.
Reason for doing that is although our Employer says we are here for a few more years things could change and we could be given our marching orders with just a few months notice. Feel this is a win/win, get our money back and be sure of having a nice car when we repatriate.
Doesn't matter whether you have had the car for 12 months or 36 months when you send it back you will ALWAYS have to pay duty. The amount depends on the value you have on it and whether Customs in Australia agree with your valuation.
Do your homework, check out the prices of second hand cars in Australia, cost of getting one back not forgetting that you may have to have work done on it before it is registered to comply with Australian Safety Standards. We have been lucky and not had to have any work done to our cars but others I know have. We have only imported Mercs sports but I believe Merc and BMW's comply to the Aust Safety Standards.
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dasia
17 yrs ago
Hi Adrian,
You need to own the car for 12 months. If you leave HK during the first 12 months of ownership you add thhe time out of HK to the 12 months, i.e. you are out of HK for 2 weeks leave, 4 days for work you add the 2 weeks and 4 days to the 12 months of ownership.
It doesn't matter how long you have owned the car beyond the 12 months you will always pay customs + GST. You put a value on your car AND support that by documentation for the payment of the car in HK but bear in mind the value of your car on entering Australia can be compared to the value of a similar car in Australia at the same time. Exchange rate used is the one on the day of entry of the car into Australia.
The car also needs to be compliant to Australian Standards. BMW and Merc are usually compliant.
Also keep in mind Luxury Car Tax on anything above the luxury car value which was AUD$57,000+ but may have changed.
The following link is also very useful:
http://www.customs.gov.au/webdata/resources/files/importguidePrivOwnMV.pdf
And yes, you can send a car back to Australia even though you are not going back to live.
If you are doing it to make money remember that it will be classed as a 'grey' import and will not achieve the same price as a car imported by a dealer in Aust.
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MrsC
17 yrs ago
Hi Adrian
There is a lot of paperwork involved - you need to photocopy every page of your passport etc. You also need to get the air-con gas certified as compliant with Australian standards, and the car will have to be steam cleaned. If there are any problems with the documentation on the HK end, Customs will not unload the car in Aus.
Bear in mind, used car prices have come down substantially in Aus in the last couple of years, so it may no be worth importing if you are going to sell it. If you are going back to live, it will be shipped as a personal effect.
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BV
17 yrs ago
How do you distinguish between shipping as a personal effect and shipping as an export? Does the car have to go with all your household stuff in the same container? Is this cheaper? Thanks!
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anyone know who can arrange the car preparation & freight forward?
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dasia
17 yrs ago
The Automobile Association can do everything for you.
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weon7
15 yrs ago
are there agents based in hk who actually do all the paperwork and shipping for you?
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What is the story with motorbikes?
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