Author Topic: Importing  (Read 4819 times)

pwatts

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Importing
« on: September 21, 2006, 09:54:31 pm »
For those who are or are planning to import some goods from overseas, the following guidelines may be of much help. I had to find out most of it the hard way. Much DIY stuff can be bought in SA via people who import audio components, but often you can get away cheaper and quicker if following the right guidelines. The same also applies to new gear that can cost much less than when bought at the local shops.

Even if you disregard everything here you'll still get your package, but these guidelines will just help to avoid unnecessary effort and fees, and to know what to expect in the various circumstances.

1) Wherever possible, order from the USA. For example even though SEAS is Norwegian and Scan-Speak Danish, they will be cheaper in the USA than in Norway and Denmark respectively. Furthermore, the United States Postal Service (USPS, not to be confused with UPS) is by a large margin the cheapest shipping method available from any country. Same applies to e.g. a Linn CD Player that's cheaper than in Scotland or the whole EU. Shipping from the UK is super high in particular.

2) Make sure that the seller adds all the necessary documentation, invoice (especially the declared value) clearly on the outside of the box. Any parcel which isn't perfectly in order is chucked aside by customs and dealt with last. I once had a package shipped to in SA in in only two days with a courier, only to have it stuck in customs for 6 weeks due to improper documents from the seller.

3) Surface mail isn't necessarily mailed by boat. It often is just low-priority airmail. The disadvantage of surface mail therefore is just the longer waiting period, and the risk of damage or theft isn't any higher since the actual handling is the same. The total time for surface mail is typically two months, and 3-4 weeks for airmail - the official time is 6 weeks and 7 days respectively, but that is just for reaching the country. Surface mail is roughly 50% the cost of airmail.

4) Specialized couriers such as UPS, DHL and FedEx should only be used in special circumstances. They have two big disadvantages: a) They are much more expensive than government shipping methods and b) the cost is determined by both the weight AND size of the package. They are indeed faster, but customs usually swamps this by the long waiting period for them to release it.

5) One of the mentioned special cases for couriers is for companies with accounts with them. Madisound is one of them with a FedEx account. In that case, the courier cost is approx. only 15% higher than standard USPS airmail instead of the normal percantage that's easily as much as 300%.

6) The documentation issue is even more important when using a courier. If something is amiss with USPS, you work with the Post Office/customs yourself. With a courier, they are the middleman that complicates everything since you deal with them and they deal with customs. This is fine for general admin but if something's wrong with the documents it becomes hell - you fax the documents, they give it to customs, customs complain, courier phones you back etc.

7) If using USPS, size doesn't account towards the fee. However, there are maximum values for the respective dimensions. Since they are very large, it usually isn't a problem, BUT the combined length and girth of the package is less than these two added together. In other words, the package may not have the maximum lengths of all its dimensions.

8) If everything is OK with a USPS import, you'll get a standard Post Office slip for collection, along with the amount due. For total declared value of less than $20, it is free of any charge. I do that with small stuff such as resistors and capacitors, and have it declared at $15 or so, even if it's closer to $200. That way it bypasses all the customs issues and arrives mcuh quicker and free as well. For most packages it's usually in the region of R30 or so. For a higher value, the amount comprises VAT and a few other fees. With a courier there are lots of diverse expenses besides the shipping costs such as "paper", "telecommunication" etc. that can push up the amount.

8) Concerning insurance, it's basically a gamble. Insurance itself is negligibly cheap, but the insured value is also the value on which the duty charges are calculated. Most vendors offer to reduce the value and some even do it by default, but the disadvantage is obviously that you are also only eligible for the reduced amount in case of damage or theft. So, determine a ratio of what you consider you'd be willing to lose - I usually work on 70% of the actual value but it depends on the value and shipping method. If you use a courier, you can drop the insurance value quite low since you're basically guaranteed to receive the package, and in good condition. So, for a small and lightweight yet expensive package, a courier with reduced insurance is a good option. Madisound with its special courier fees is therefore a very good choice to import from, since you don't pay much more shipping than for USPS, and you can reduce the declared value to any realistic amount.. I once got away with 10%. Don't go too way-out, especially for goods of known value, or people may start asking questions. Exotic speakers or capacitors etc. are fine though since there are no way for most people to tell the difference.

9) If the package is too large for USPS, either have something done to make it smaller or cancel it. The alternatives are a special courier crate that can cost easily thousands of dollars, or a freight company. I was forced to use the latter for my most recent purchase, and it came by Lufthansa Cargo. The amount was very high, still less than a courier but much more than with USPS airmail of the same weight. When it lands in SA, you have to contact the import agency. You then have to go to them at the airport and do a lot of paperwork, and pay them a nominal fee. You then have to take the documentation to the customs office next door and do more paperwork there. If the package is worth more than R500 (which is very likely if you use this means of freight), you may not clear it yourself, and have to hire a clearance agent. They charge typically between R600-R800. They will then take everything over, and you only have to pay them the other amounts due before you can collect the package. These amounts are 14% VAT and a "luxury" tax of 7% for audio equipment and related electronic goods. They are calculated a bit more complex though. Tho calculate the luxury tax, you have to raise the value of the item by 15%, and take 7% of that. For the VAT, you have to take the base value, add 10%, add the final luxury tax and take 14% of that total amount. As an example, if the item is worth R1000, the luxury tax will be R1000 x 1.15 x 0.07 = R80.5. The VAT will be (R1000 x 1.1 + R80.5) x 0.14 = R165.27. The total amount due on R1000 is therefore R245.77. Of course if the clearing agent is added this will be almost R1000 itself. With USPS you're also likely to pay the same fees, but you don't have to go to the airport, hire the agent or do all the paperwork.

10) Wherever possible, when buying used goods such as on eBay, try not to make it look used. With normal mail it shouldn't be a problem, but especially if importing it as cargo it needs special paperwork and is subject to other fines. Either classify it as new or as "general electronics" or whatever you can get by according to the nature of the item. Gift classification also works well.

11) Also with any goods, used or not, double-boxing is a good idea. For general components it isn't necessary, but a specially boxed item has the name and description of the contents printed very clearly. This can be a problem since it can easily be damaged in transit, and theft is a much larger possibility because the content is displayed much more prominently. I once lost a pair of expensive Boston car audio speakers I bought that way, and it according to the paperwork it got lost somewhere between the airport and post office. Double-boxing not only adds extra protection, it also hides the content from any people not looking specifically at the documentation.

skinnyfat

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Re: Importing
« Reply #1 on: December 08, 2007, 08:01:58 am »
Pierre hasn't been active on this forum since October 11, 2006.

Anyone know where he went LOL ???

Vaughan

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Re: Importing
« Reply #2 on: October 19, 2008, 07:59:44 pm »
I think this is one of the slowest moving forums on the planet.  ;)

Regards,

Ampdog

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Re: Importing
« Reply #3 on: October 25, 2008, 01:55:13 pm »
Ah, but this forum is not supposed to be moving, it is there to help us moving our stuff. (See the number of times it has been read.)  8)
Judging a person does not define who he is; it only defines who you are. (Anon)

mafioso

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Re: Importing
« Reply #4 on: October 26, 2008, 11:25:56 am »
Hi

Importing can be a real rat's nest. I'm a relatively old hand, having been a watch importer since the mid seventies. I am also aware of the importance of correct documents and I have a government issued Import/Export permit.

Two recent issues for me caused trouble in Paradise. Some months ago, Cape Mail Customs (the SA Post Office Ltd) informed me that I will no longer be able to clear my own items. They presented me with some hole in the wall's business card and suggested I use them. A fellow audio enthusiast received the same card from Cape Mail. When he checked the particulars on the card, he found they were not even registered as a business.

The second issue concerns my local Post Office, here in Kenilworth. On 3 consecutive occasions in recent weeks, there was no slip in my box to advise me of arrived parcels.

After weeks of lost time, the counter staff handed me the parcels. All three items were either wood samples from which I had to make things or repair the item.

I have complained to a manager at Cape Mail about this situation but it doesn't look as if they're concerned about the problem.

mafioso
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AudioEngineer

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Re: Importing
« Reply #5 on: November 10, 2008, 11:12:52 pm »
Pierre,

Thank you for a very informative posting. Having done a large amount of importing over the past 5 years your advice is spot on. If anybody out there is considering going this route the advice is worth gold. One point I'd like to add, if you are considering importing fairly large and expensive items I can highly recommend BAX Global. Their rates are at least half those of Fedex, UPS, etc., and their service is also much better.

Regarding that Cape Mail Customs' attempt to make you use some "hole in the wall" business for clearing items sounds like some corrupt practice rearing it's ugly head - I'd report it to the right authorities if I were you. Who knows, maybe some employees at Cape Mail are receiving some kickbacks from this individual?

Regards
Jaco
Reality is merely an illusion, albeit a very persistent one. (Albert Einstein)

Crankshaft

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PartStore Alert!
« Reply #6 on: November 13, 2010, 10:36:36 am »
Hi

I placed an order (through a friend in the US) for two woofers for my Yamaha speakers.  After checking the status - I was surprised to see that the order had been marked as cancelled. 

Then I saw the following:  http://en.wikipedia.org/wiki/PartStore.com

I'm just hoping my friend is refunded.

The website appears to be back online. But, please be careful!

Crank

Byrd

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Re: Importing
« Reply #7 on: November 13, 2010, 11:59:25 am »
If he placed the order with a credit card hopefully it will not be too difficult to get the transaction reversed.

http://en.wikipedia.org/wiki/Chargeback

Thanks for the warning. BTW What is wrong with your old woofers?
Dead men tell no tales, and dead horses tell no lies.

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Re: Importing
« Reply #8 on: January 11, 2011, 12:08:48 pm »
Extremely useful information - thanks guys.

On a related subject, a friend of mine recently put me onto cduniverse.com in the USA. They have an incredible selection of music (much wider than Kalahari.net) and I paid only R80 per CD (including all fees). The more CDs you order, the lower the unit price. Makes one wonder why new CDs cost so much in S.A.

whb

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Re: Importing
« Reply #9 on: January 23, 2012, 02:38:58 pm »
Just a quick point about Kalahari.com.

Ordered a CD from them on 22 Dec 2011 for my Mom's birthday on 25 Dec. The site had a big splash about 24hr delivery for the Christmas period in the main centres and up to 48 km around. I duly paid R169.95 including delivery at R35.

After twice trying to find out what's happening when the delivery did not arrive by 9 January, I received an email from them on 11 January to tell me that they have a problem and the order will take another 5 days!

Today is 23 January, 31 days since I ordered and guess what? The Cd has still not been delivered and my complaints and subsequent cancellation not been responded to either.

The CD in question is a South African product, Trio by Charl du Plessis and this company cannot get this order fulfilled?

Kalahari sucks! Do not order from them!


tangmonster

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Re: Importing
« Reply #10 on: January 23, 2012, 02:48:30 pm »
HAHA

what does this have to do with importing! :P



mahleu

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Re: Importing
« Reply #11 on: January 23, 2012, 02:57:50 pm »
Where was this thread even found?

Thread Necromancy.
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Shonver

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Re: Importing
« Reply #12 on: January 23, 2012, 09:24:09 pm »
Mods, please clean this up.
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