Sending CPAP machine as a gift

[sionghua]

Hi all,

I am in Australia. I had purchased CPAP machine from cpap.com and got them to ship it to my friend in the States so that he can send it to me via USPS. But because the value of the whole thing is about Australian dollar $1,050 so I will probably be charged taxes by the Australian custom since it is over A$1,000. But I heard from my friend that if anything is declared as a gift then no tax will be imposed, which is the case for anything sent to the States. He asked me to confirm this with anyone who has done this in Australia. Anyone has done this and would like to share his/her experience? Thanks.

[Julie]

You need to get in touch with Australian customs and find out what their laws are. The U.S. ones have no bearing on what comes in or how much you'll have to pay.

[dsm]

I never had to pay any taxes on any of the CPAPS I brought in. Medical equip (CPAPs included) are both duty and tax free.

Also if you declare it as a gift you may have to prove it and that could prove embarrassing.

Look into the tax bit agian - I fear someone has misinformed you.

Good luck

DSM

[SOC]

what are you going to do if it stops working. Aussie dealers will not touch the machine since it was bought in the US.

[dsm]

what are you going to do if it stops working. Aussie dealers will not touch the machine since it was bought in the US.

That is a legitimate risk we have to live with when buying from the US.

The cost differential can be so great as to justify the risk. But if the shipping costs get too high, that can then be a disincentive.

I work on 50% of the local being the risk break point (that includes shipping costs).

Thus far it has been worth it.

DSM

[sionghua]

DSM: have you brought in any machine with the value more than A$1000 before?

SOC: The price different is more than A$1000 or 100% (machine in Australia double the price), so what do you think?

[Elle]

Guess we have to remember that this forum is world wide not just for Americans.

[dsm]

DSM: have you brought in any machine with the value more than A$1000 before?

SOC: The price different is more than A$1000 or 100% (machine in Australia double the price), so what do you think?

I did have one that was over $US 1000 but that got hand carried. My 1st machine was also over $1000 - that attracted no duty/tax.

The price really doesn't matter. Who here in Australia told you you had to pay anything on the cpap if over $1,000 ?

Because there is no duty *or* tax on medical equipment, I don't believe they can charge you anything. If you have spoken to the wrong person they may not know that cpaps are tax & duty free.

The only way I can understand what you are being charged is for you to say who told you and what type of charge is it ? - gst ? - duty ? - I am happy to phone them myself to seek an explanation.

But until I know who has given you this advice & what this tax is supposed to be I can only repeat that I believe you have been misinformed.

[Wulfman...]

what are you going to do if it stops working. Aussie dealers will not touch the machine since it was bought in the US.

WHAT??????
You mean people aren't supposed to leave the country where they purchased things or order things outside of the country where they reside?
I thought the FRIENDLY brick & mortar DMEs were ready, willing and able to work on this stuff, regardless of where it was purchased.

I recall someone using automobile dealerships in comparing it to DMEs (middleman sales). If you're traveling out of state or country, at least the auto dealers WILL work on your vehicles if you have problems.....or you may find service at a smaller mechanic shop.

I'm SHOCKED......just SHOCKED!

Somebody PLEASE tell me why the HELL I would want to buy this stuff from a friggin' brick and mortar DME!!!

Den

[sionghua]

DSM - I was told so by the Australian custom, I called them yesterday at 1300 363 263 and the guy told me that I have to pay 5% duties and 10% GST and $49 processing fee.

[GreenIce]

DSM: have you brought in any machine with the value more than A$1000 before?

SOC: The price different is more than A$1000 or 100% (machine in Australia double the price), so what do you think?

That's unfortunate case for us staying outside the USA (I am from Malaysia). Take for example, the price for xPAP is twice or more in Malaysia. Imagine this, a fresh graduate from College/University earns starting pay of RM2000.00 (todays exchange rate about USD 575, USD1 = RM3.482). An average meal cost about RM4 (USD 1.15).

Can you imagine when I was quoted RM8000 (USD2,297.53) for 1 APAP + 1 mask ?

Insurance here only covers medical bills and surgery, not for medical equipment or masks. Meaning I am paying equipment+masks on my own. That is why I buy from cpap.com. Just paid part of my credit card bill, phew !

With budget of USD2,297.53, I can buy 2 to 4 or even more xPAP from cpap.com depending on models. In case my APAP breakdown, I can send it back for repairs and at the same time buy another unit for use, still have budget for another unit, if I have USD2,297.53 to spend. Or better still, do not repair, just save for the next unit.

I check with the local supplier, they provide support, in case of breakdown, they will provide a loaner unit and warranty. Yes, they will not repair unit bought overseas. The local supplier said this amount to cover their profit and also wages. I can understand their problem but I have my problems too, can I afford to pay that amount ?

For some OSA sufferers no matter where they are live (US, Australia or elsewhere), affordability is an issue.

sionghua, I do not know anything about Australia customs, just try declare it as medical device or equipment and hope for the best. Good Luck !!!

[dsm]

DSM - I was told so by the Australian custom, I called them yesterday at 1300 363 263 and the guy told me that I have to pay 5% duties and 10% GST and $49 processing fee.

AFAIK There is no GST on medical equip - I'll call the number myself & see what they tell me.

Will post the outcome.

DSM

#2 I got thru and as I have been telling you, Medical equip (CPAP MAchine) does not attract GST or Tax. I asked the officer hhat ref he could give so I could pass it on to you. He said it is dealt with under sects 38-45 Col 2

As I suspected you were misinformed - you really need to press them on the fact it was a cpap machine - at 1st he told me the same as he told you until I insisted he qualify in regard to medical equipt. He then agreed once he got to understand what a cpap was & how prescibed.

[sionghua]

Thanks a lot, this is a good news indeed, looks like these people just blaughing all the time without taking seriously what they say. Your help is greatly appreciated. I will proceed and get my friend to post it. By the way which document is that sects 38-45 Col 2? I really want to thank you a lot, you saved my day

[dsm]

[quote="sionghua"]Thanks a lot, this is a good news indeed, looks like these people just blaughing all the time without taking seriously what they say. Your help is greatly appreciated. I will proceed and get my friend to post it. By the way which document is that sects 38-45 Col 2? I really want to thank you a lot, you saved my day

[billbolton]

[covered in sections 38-45 (they should know what that means)

I'd previously been told by Customs that GST and duty was payable, but using this information I've found these exemptions....

"What health goods are exempt from GST on importation?
In general, health goods imported by a business entity are taxable importations (although certain specified medical aids and appliances are always exempt). Certain drugs and medicinal preparations imported by the person who will consume those goods may be, however, exempt in certain specified circumstances."
- Australian Customs Service

Sections 38-45 refers to Schedule 3 to the Australian Government GST Act. GST Exemption (GTSE) code B124 in that Schedule applies to "Continuous positive airway pressure (CPAP) appliances"

This may also be useful....

http://www.customs.gov.au/webdata/resou ... cGuide.pdf

Cheers,

Bill