Each of the above options has
its own 'pros and cons'. Here are some of them:
Buying from a local
reseller:
This
is the easiest way, but also the most expensive option - read on and
you will see why. You choose your bike, pay the money, wait the 10 to
16
weeks and take delivery - no hassles. Be sure you have read and
understood my article on How to Choose a Handcyce before you start the
buying process.
Contact
me if you want assistance.
Buying from an overseas
wholesaler:
You
do the research, decide on a wholesaler, configure the bike, pay the
deposit and then the final installment. The bike will generally be
shipped to the aircraft carrier's (freight forwarder) bond warehouse.
They do not inform you of its arrival, so if you are not on the ball
you could end up paying days or weeks of wharfage as it sits there
occupying their valuable warehouse space.
Once you know it has
arrived, you need to go to the freight forwarder, pay some money to get
the forms to take to customs. Hopefully you have already contacted SARS
to obtain the importer code. This code is required to be allowed to
import - you can do this once a year as a private individual, or you
need to register with SARS as an importer. Be warned.
So,
armed
with your private individual importer code and the forms from the
freight forwarder, you need to go to customs and engage the services of
a clearing agent who will clear the shipment through customs for you
(for a fee), usually around R1,500.00. You need to pay VAT of 14% on
whatever the wholesaler has put on the invoice. Be careful that they
dont include the full retial price and a discounted price (the price
you paid) as some unscrupulous clearing agents will make you pay VAT on
the full retail amount. So, in essence, make sure the invoice is clean
and shows ONLY the amount you actually paid, or you may be nicely
ripped off.
So, say you have a quote from an
overseas wholesaler for a handcycle priced at $3,295.00,
what is it
really going to cost you?
Add
$600 for overseas airfreight, now the price has gone up to $3,895.00
Now you need to pay 50% deposit with your order - porbably by your
credit card, so if the exchange rate for the day is quoted at R8.00,
the best you will get is around R8.30. Pay the money, wait a few weeks,
pay the balance and they ship the bike to you.
Now
the real
fun starts. If they are a nice wholesaler, they will email you to let
you have the MAWB# and flight details. Now you need to do the customs
thing. The clearing agent wil charge you around R1,800.00 to clear the
freight. Add the VAT - yes you have to pay VAT on the total on the
invoice, including VAT on the freight cost - using the example above
you will pay out R4,777.99 in VAT and fees.
Total cost of the bike is
now:
R38,906.49 and
you thought it was going to be R26,360.00 ($3,295.00 * R8.00). That is
R12,546.49 more than you anticipated, but a lot less than the local
agent's R48,000 quote! Please feel free to
contact me if
you need any further clarification on this procedure and the costs
involved. This above example is a real live example and included 3
weeks of waiting for the 'clearing agent' to release the
shipment...very annoying to say the least.