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Old 25-11-2008, 10:27   #1
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Purchase in Australia

Case:
I am a US citizen, and I am in contact with another US citizen who just left his boat in Australia.
I can purchase his boat at a real good price, so I am tempted to do so.
He has not imported the boat (no GST / duty paid) and the boat is on a valid 6 month cruising permit.
I will not keep the boat in Australia, I plan on bringing it back to the US or cruising around
As I am from the US, and he is from the US, will the Australian government ask for duty / GST for this transaction?
What should we do to do the transaction correctly?
thank you Forum!
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Old 25-11-2008, 11:02   #2
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Only if advertised for sale in Oz would that issue be a problem.

Even then....I think if you make the deal, then take delivery in another country like NZ or New Caledonea you would be legally covered.

That is what i did
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Old 26-11-2008, 02:13   #3
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I don't know (but that doesn't matter - its the internet ).
I expect Customs would expect to see the same name on the paperwork when clearing out of Oz as when it entered OZ (at least as far as the registered owner goes) otherwise they will (rightly) assume the vessel has been sold while in OZ and would expect to see their GST paid and probably import duties and whatever else they could think of.

Once the vessel is sold, it's cruising import permit conditions have changed.
I would get serious legal advice rather than internet advice
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Old 26-11-2008, 03:53   #4
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You are right Wotname that it should be confirmed as things change... but I can only go by past experiences.

Good idea would be to ask an experienced broker in Australia.

However standard rules I am familiar with are:

If a foreign registered boat is advertised for sale in a country and it is sold there with transfer of ownership done in that country, then it is liable for sales tax.

To avoid that, same boat is instead cleared out of country by original owner. (Very important that the new Owner is not listed as the Captain when it departed Australia)

Same time, a foreign escrow account is set up to release funds upon safe arrival in a new country, then when it enters that country, a transfer of ownership is signed over and filed upon Customs Entry by both parties, so that a transfer of Captain is made to new Owner or his representative.

That way, transfer of ownership is deemed to have taken place in International waters.

Then it usually takes about 2 to 3 weeks for new foreign registration to be received and the new owner can make his first departure as the registered owner.

Would be curious if that could be confirmed as same for Australia as you guys do have some strange ways!
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Old 26-11-2008, 04:12   #5
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Quote:
Originally Posted by Pelagic View Post
......
Would be curious if that could be confirmed as same for Australia as you guys do have some strange ways!
If you want three opinions, ask to two lawyers
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Old 26-11-2008, 15:23   #6
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You will probably find that if boat was sold to be exported then GST will be refunded, Australia has GST refund scheme for bonafide travellers buying goods for export I would check with Australian Customs for complete answer though
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Old 26-11-2008, 21:56   #7
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That would apply to goods either made locally or imported into Oz. This situation is slightly different as the vessel has never been imported into OZ, it is here on a temporary cruising permit only.

If it was sold in the country, then the conditions that allowed the permit to be originally issued would have changed. The cruising permit probably stipulates the conditions and requirements while in Oz.

Pelagic advice seems to be an avenue to explore.
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Old 27-11-2008, 02:38   #8
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Quote:
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.
I would get serious legal advice rather than internet advice
I certainly agree with that, but I suspect you may be OK. GST is not charged on second hand goods only new. If the boat does not exceed its time in Australia and would not think customs would necessarily want GST paid on the sale of a second hand product.
Australian customs have some very different laws and ways of doing things than other parts of the world, but I think you would find them approcable. My only dealings with Austranian customs has been at airports coming back into the country and generally they are keen on helping people do the right thing and obey the laws. Having said that there have been a few instances that make me ashamed to be Australian such as the Canadians crusing couple that were taken to court after apparently following advice (that was wrong or out of date), on entry procedures, from an Austranian embassy.
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Old 27-11-2008, 03:34   #9
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Opps... forgot about the second hand goods and while it may not be the OP's problem I still think the seller should be aware that the six month cruising permit would "almost" certainly prohibit the sale of the vessel during that time. Please note I am not 100% sure but that is my (novice) understanding.

If the OP does get a clearer understanding from Customs (or whoever), I would love to know more.
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Old 27-11-2008, 04:55   #10
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Quote:
Originally Posted by pieter97 View Post
Case:
I am a US citizen, and I am in contact with another US citizen who just left his boat in Australia.
I can purchase his boat at a real good price, so I am tempted to do so.
He has not imported the boat (no GST / duty paid) and the boat is on a valid 6 month cruising permit.
I will not keep the boat in Australia, I plan on bringing it back to the US or cruising around
As I am from the US, and he is from the US, will the Australian government ask for duty / GST for this transaction?
What should we do to do the transaction correctly?
thank you Forum!
GST doesn't apply to second hand goods, although if you bought through a broker there would be 10% GST to pay on his fees, which the seller would have to pay.
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Old 27-11-2008, 05:13   #11
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Originally Posted by noelex 77 View Post
My only dealings with Austranian customs has been at airports coming back into the country and generally they are keen on helping people do the right thing and obey the laws....
Gone around the world a few times on boats and have found Australian Customs the most helpful, most pleasant and with that great Auzzie sense of humor ...have always made it a pleasure to visit your great country.

As long as you know the rules, present yourself professionally, they will welcome you as Mates! (and a couple have become just that)
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