Cigar Blogs
** Updated on 5 May, 2023.
On average, expect to pay between $12 and $24 per cigar imported into Australia. Here's a more detailed calculation based on our dealings with Australian Border Force.
Introduction
Cigar lovers in Australia share the same dilemma, should I buy cigars in Australia (I personally highly recommend Ubercigar Delivery for obvious reasons - read disclaimer below) or should I buy my cigars from an international websites where prices are a lot cheaper? To put this into perspective, let's compare the total cost of importing a box of Montecristo No.4 versus the cost of purchasing it from a retailer in Australia.
What is customs duty?
Customs duty is a charge set by Australian Border Force on tobacco products. Customs is an Australian government agency controlling all imports into Australia. This charge may vary between products such as Alcohol, Tobacco and personal gifts.
How is it calculated?
According to the ATO (https://www.ato.gov.au/Business/Tobacco-and-excise/Excise-duty-rates-for-tobacco/), as of 1 March 2023, charges for each 1 kilo of tobacco (cigars in this case) is $1,663.36 ex. GST. As an example, each Montecristo No.4 cigar weighs 8.46g, a box of 25 is equivalent to 212g or 0.212Kg.
Customs duty on 0.212Kg is $352 ex. GST or $387 including GST.
Calculation is easy, 1000 grams is charged $1,663.36, and 212 grams is $352 then add 10% on top.
Therefore, in this instance, prepare to pay approximately $15 customs duty per cigar.
Buy local or import
One of the popular international websites supplying cigars globally is iHavana (link: ihavanas.com), a box (25 cigars) of Montecristo No.4 is $375 USD (as of 5 May 2023) which is equivalent to $554 AUD. Let's add the charge of $387 on top and the entire box would have cost us $941 AUD. Note: iHavana does not charge for delivery.
The same box purchased locally from Ubercigar delivery (link: https://ubercigar.com.au/cigars/montecristo/no-4-box-25/) costs $950.
However, other local cigar suppliers may charge up to $1,550 for the box (link: https://www.cigars.com.au/product/cigars/montecristo-no-4-single)
Summary
Expect to pay on average $18 per cigar and wait 2-3 weeks for customs to clear your cigar box before shipping it to your house. It may work out as the cheaper alternative if you can afford the wait. Otherwise, if you prefer not to wait, search Google for your cigar, purchase it from a genuine local supplier and have it delivered the next day.
Disclaimer: this blog is written by Alain Sassine, an employee of Übercigar Delivery and can be contacted on 0433 771 832 or via email: a.sassine@ubercigar.com.au
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