Import duties on cycling goods

[Lexx]

Give us some insight on how the valuation is done on items deemed undervalue

We actually use 6 Methods to determine if the goods are undervalued and or Determine the Correct Value for Imported Goods:

1. Transactional Value
2. Identical Goods Value method
3. Similar Goods Value method
4. Deductive value Method
5. Computed Method
6. Fall-Back Value Method

But its rarely that we use Method 4-6. We usually end up using method 2 or 3. That's where we get the correct value. And seeing that CWC,Spez Concept Srotes etc are importing Bikes etc, there are already a good baseline to check values of the goods.

 

I hope this clear things up a bit..

[Capricorn]

We actually use 6 Methods to determine if the goods are undervalued and or Determine the Correct Value for Imported Goods:

1. Transactional Value
2. Identical Goods Value method
3. Similar Goods Value method
4. Deductive value Method
5. Computed Method
6. Fall-Back Value Method

But its rarely that we use Method 4-6. We usually end up using method 2 or 3. That's where we get the correct value. And seeing that CWC,Spez Concept Srotes etc are importing Bikes etc, there are already a good baseline to check values of the goods.

 

I hope this clear things up a bit..

 

Thanks for that. So with methods 2 or 3, do you ask the retailers for their cost price, or work on the sale price excluding VAT?

[Lexx]

Thanks for that. So with methods 2 or 3, do you ask the retailers for their cost price, or work on the sale price excluding VAT?

We will get the Commercial value, what it actually cost. No Discount or cost price.

[DieTakalani]

Hi everybody , i was thinking about importing an frame from oversea but, i can not find if i just import an frame or do i need an license for importing?

[Capricorn]

Hi everybody , i was thinking about importing an frame from oversea but, i can not find if i just import an frame or do i need an license for importing?

 

it will be treated as a bicycle component, with no import duties, just 10% ATV, further inflated by 14% VAT, and whatever shipping costs you have to pay.

[DieTakalani]

it will be treated as a bicycle component, with no import duties, just 10% ATV, further inflated by 14% VAT, and whatever shipping costs you have to pay.

So anything bicycle related i can import without an license?

[rock]

So anything bicycle related i can import without an license?

 

 

the rules keep changing, if it arrives via the PO it will be fine, if it arrived via a courier and a formal clearance is required an importers code may be required based on how many times you have imported before, the value of the shipment and if its considered to be a commercial shipment.

 

usually an importer's code/license is needed if it is more than your 3rd import or the value exceeds R20K (these goal posts seem to shift frequently though)

[love the ride]

I've been in the cycling industry for more than 15 years. If anyone thinks bike shops makes a killing they are mistaken. The local wholesalers are taking us all for a ride. For the last few years I have been importing most of my own stock. From CRC as well. And I can still sell it cheaper.

Oertel this is an often repeated story that the wholesaler/ distributor is ripping eveybody off but most of the time this simply isnt the case and if it was such a profitable business model then why after 15 yrs in the industry are you not importing and distributing yourself?

 

Just to give you a little insight , a distributor invests millions into product often having to commit to orders way in advance , then has to pay for this product before it is shipped,  they then receive the product up to 6 weeks later and must pay logistics and customs

 

The product then goes to warehouse ( cost involved) , and then is taken to market via reps or other channels ( cost involved ) and at this point what happens? Shitly run bike shops (75% at least) dont commit to ordering or do order and take 90 days to pay but still bitch if said distributor doesnt have every single last product that the brand produced in the last 5 yrs , on their shelves 

 

On top of that retailers who dont commit or invest in the brand still have larger markups than the distibutor who takes all of the risk

 

Quick breakdown, distributor invests millions with no commitment from his client base , spends the money and gets a trickle back return on this starting often only 4-6 months after initial investment and often taking up to 18 months for any meaningful return by which time he has had to re-invest all to make less on the product than the bike shop who commits to nothing and has tantrums when something isnt in stock

 

This is a simplification of the model which is often complex and is damn hard to make work!

 

So anyone out there wanting to invest a few million into being a distributor go ahead , according to many expert Hubbers it is easy and you get to rip off the shops and the end user ( money just grows on trees out there) 

 

Anyway......... 

[cfcjim]

Oertel this is an often repeated story that the wholesaler/ distributor is ripping eveybody off but most of the time this simply isnt the case and if it was such a profitable business model then why after 15 yrs in the industry are you not importing and distributing yourself?

 

Just to give you a little insight , a distributor invests millions into product often having to commit to orders way in advance , then has to pay for this product before it is shipped,  they then receive the product up to 6 weeks later and must pay logistics and customs

 

The product then goes to warehouse ( cost involved) , and then is taken to market via reps or other channels ( cost involved ) and at this point what happens? Shitly run bike shops (75% at least) dont commit to ordering or do order and take 90 days to pay but still bitch if said distributor doesnt have every single last product that the brand produced in the last 5 yrs , on their shelves 

 

On top of that retailers who dont commit or invest in the brand still have larger markups than the distibutor who takes all of the risk

 

Quick breakdown, distributor invests millions with no commitment from his client base , spends the money and gets a trickle back return on this starting often only 4-6 months after initial investment and often taking up to 18 months for any meaningful return by which time he has had to re-invest all to make less on the product than the bike shop who commits to nothing and has tantrums when something isnt in stock

 

This is a simplification of the model which is often complex and is damn hard to make work!

 

So anyone out there wanting to invest a few million into being a distributor go ahead , according to many expert Hubbers it is easy and you get to rip off the shops and the end user ( money just grows on trees out there) 

 

Anyway......... 

He's now got 21 years...

[DieTakalani]

the rules keep changing, if it arrives via the PO it will be fine, if it arrived via a courier and a formal clearance is required an importers code may be required based on how many times you have imported before, the value of the shipment and if its considered to be a commercial shipment.

 

usually an importer's code/license is needed if it is more than your 3rd import or the value exceeds R20K (these goal posts seem to shift frequently though)

So to be safe if , i want to import in the future i should get an importer license?

 

I think i should just do that to be future proof.

 

Do itac or Sars charge for Registration?

[Captain Fastbastard Mayhem]

Damn, so the correct sum would be:

 

value of item + import duty + 10% + 14%

 

 

No. Not like this

 

The value of the item is inflated by 10% before VAT is calculated. It's not another 10% levy, it just increases the VAT rate to 15.4%

 

Ie VAT = 14% x (value of item + 10%)

 

So calculation would be

 

((Item + duty + 10%) x 14%) + (item + duty)

 

Or

 

(Item + duty) x 1.154

 

So for a full bike it's (cost+15%)x(vat+10%)=(costx1.15)x(14%x1.1)

 

Ends up being a 32.71% total levy

[Capricorn]

i think its less confusing to rather refer to effective VAT of 15.4% as combined effect of ATV and VAT, than to simply state that VAT is 15.4%. Technically, that's wrong. VAT is VAT is 14% until Gordhan changes it again.

 

We should encourage full understanding by example and explanation, as Myles just did, as opposed to throwing out convenient simplifications that result in confusion. There are clearly many of us, especially the newcomers, that don't understand this calculation.

[Captain Fastbastard Mayhem]

i think its less confusing to rather refer to effective VAT of 15.4% as combined effect of ATV and VAT, than to simply state that VAT is 15.4%. Technically, that's wrong. VAT is VAT is 14% until Gordhan changes it again.

 

We should encourage full understanding by example and explanation, as Myles just did, as opposed to throwing out convenient simplifications that result in confusion. There are clearly many of us, especially the newcomers, that don't understand this calculation.

100%

[nimthor]

30 iirc

Rich990, on 29 Aug 2016 - 5:59 PM, said:

Read the last three pages and didn't see, ate helmets (like a super 2r) still at 25%?

Hi,

 

Just to check.  Does bicycle helmets fall into tariff heading 6506.10.90 which is for:

Other headgear, whether or not lined or trimmed:

  Safety headgear:

    Other

If it does it attracts 25% duty?  See page 404 of “LAPD-LPrim-Tariff-2012-04 - Schedule No 1 Part 1 Chapters 1 to 99”.

Or am I wrong in this assumption?

[Cippo]

Out of interest. If I send a pair of shoes to UK for custom painting, when I receive it back from painting do I have to pay any duties when picking it up? The cost of having a pair bought their by artist and then shipping is astronomical excluding the 40% duty and 14% vat added.

[Christian van Zyl]

This message from Toll Group, our freight forwarder:

 

Dear Valued Customer,

 

Please note that certain Europe rates on duties has increased, especially on textile material, clothing and carpets.

 

From what we could see on the changes, it ranges from about 3% to 8% increasing on the EUR 1 rate of duty.

Amendment of schedule No.1 (NO. 1/1/1552) is from the Government Gazette No.40356 No.R1284

 

Should you have any further queries, kindly contact your Toll Representative.