Shipping from US, USPS or UPS

[Excalibur]

Hi

Recently I went to buy parts for my motorcycle from the US and was confronted with USPS or UPS as the shipping options.

USPS priority international $132 USD up to 14 days
UPS international $101 USD 3 - 5 days

I wondered why the faster one was cheaper so I enquired with the seller. They said there would be extra charges from UPS in NZ. Google searching showed there was common talk about UPS charges with goods imported into Canada with something called brokerage fees. UPS website wasn't much help so I chickened out and went with USPS.

I like to hear from anyone with stories of fees, brokerage, good/bad experiences, etc. According to forum posts here, USPS is preferred by many. Faster shipping for the cheaper price doesn't seem to add up!!

Before anyone suggests Youshop, NZ Post's freight consolidator based in Oregon, I can say that this item was above their maximum value for any one shipment. Yes Youshop reduced the max to $2000 NZD this month. BTW, I've used Youshop 4 or 5 times now with good experiences each time. They repacked my last auto parts shipment saving me extra money. Typically the shipping cost has been half or more of comparable rates offered by sellers.

Please comment, thanks.

[jawnbc]

When we were still in Canada there was a massive class action suit launched against UPS because of their "customs and brokerage" fees. We stopped buying anything cross border from businesses that insist on using UPS: time and time again we got gouged at the point of delivery, often doubling the price of goods. Still do, in fact.

USPS priority seems to work really well, though. If Youshop isn't cost-effective, USPS priority has been reliable for us.

Good luck!

[Excalibur]

Thanks for the thoughts!

One thing about Youshop is they know what NZ Customs require for paperwork, etc so shipments via them are more likely to be smooth. The speed at which Youshop deliver is impressive. Once parcels get marked as 'shipped' at Oregon, they are delivered to my Hamilton rural mailbox in four days.

I've been asking around. Most folk barely know there is a USPS or UPS, let alone what the difference is. Even my local Postmaster was struggling to define them.

[Super_BQ]

USPS should be the only way for direct shipping between countries. UPS has lost my support due to their surprise brokerage fee the person receiving has to pay.

It's also important to know that Fedex also imposes the same broker fee that UPS does.

[Excalibur]

Thanks for posting.

I suppose another question is at what point is a custom broker needed/necessary/essential? There appears to be several levels of import value threshold for example over $400 will attract GST plus import fee and biosecurity charges. Over $1000 imports sees the need for a "client code".

I have a parcel arriving which is over $2000. Will I need a customs broker? I read on NZPost website, they will do customs brokerage for $135. Any experience out there?
At what point does it become too difficult to do oneself?

Thanks.

[Super_BQ]

I have a parcel arriving which is over $2000. Will I need a customs broker?

Yes and I would choose the NZ Post way due to logistics. For commercial shipping goods have way bills and bill of laiding which brokers need. But if it's a 1 off item that is sent by a person overseas, the issue using full brokerage services is overkill and will cost you more.

At what point does it become too difficult to do oneself?

I'm assuming based on cost to custom clear goods vs. shipping multiple lots at lower values. Shipping costs are expensive and always net more than the brokerage fee. As far as GST collected, you really can't get around that. Note that it's not a requirement to have a client code as long as you use a broker.

[Excalibur]

Talking to a NZPost employee today who also owns a business that imports product. He said he uses a customs broker due to the commercial quantities involved. My case would not need a broker he thought though I would need a client code. He advised I immediately apply for the client code so it was ready even before the parcel lands.
He went on to say that a client code is also needed for exported goods over $1000, not just imports.

[Excalibur]

I found the pieces of the puzzle today at:
http://www.customs.govt.nz/news/reso...ersonaluse.pdf
Brief summary:
.. Importers can clear goods themselves with the help of a Customs officer.
..Importing goods with a Customs value of more than NZ$1,000 requires a standard import declaration to be entered electronically. A Customs officer or an agent can complete
an import declaration. To do this you will need a client code, which you can apply for by completing a current NZCS Form 224.
..You can apply for clearance before your goods arrive to avoid any delays, or you must apply within 20 days of the arrival of your goods.
..Where Customs requires that a person enter their goods on an electronic declaration an Import Entry Transaction Fee (IETF) may be charged. The IETF is $29.26 (GST inclusive). In addition a Biosecurity Systems Entry Levy of $19.98 (GST inclusive) is collected by Customs on behalf of the Ministry for Primary Industries (MPI).

Hope this is interesting and my study time helps others.

Now to work out if I can do this without actually going to a Customs office. My nearest is 100km. I've already submitted the NZCS 224 by email, the note says Customs aim to process within 24hrs. One suggestion was to wait till notification of goods requiring clearance arrives by mail ..

[Excalibur]

Just when I thought I had it figured, there was a new twist to the tale...

The Client Code (NZCS 2240 came through without fuss.
Then the parcel was marked "held for clearance" on NZPost tracking. So I phoned NZ Customs. Nope, I didn't need the Client Code! I was told to phone NZPost 0800 478-287 option 2...
There I was given the entry invoice number and advised to pay $357 online at Pay.Customs.govt.nz so off there to pay...
First I entered entry number and the exact amount advised was reassuringly displayed.
Following through with payment, I was advised an extra ($9) was added for bank fee.
So back to keeping an eye on tracking. As it turned out, the parcel was released shortly after though tracking delayed the status about 12 hours.

As a side note, written advice of the parcel held for clearance was subsequently received so I didn't have to do any phoning though the process was sped up 2- 3 days by doing so.

Hope this helps.