5 Key Customs Documents for Importers
For new importers, the customs process can be a daunting one and it’s not uncommon to feel overwhelmed by the complexity of the process. This is especially the case if you’re importing a variety of goods from different countries with different customs clearance requirements.
Engaging a licensed and experienced Customs Broker to help is the best way to safely navigate the import process. However, it’s also a good idea to break down the process for yourself to get a clearer idea of what’s required each time you import goods into Australia.
While the goods you import and their associated costs may vary each time, the core documentation you need to provide for customs clearance generally stays the same. To help you get up to speed with the import process, here are 5 key custom documents for importers.
Import Declaration
Every time you import goods into Australia you’ll need to complete and sign an import declaration. The declaration will look different depending on the value of your goods and whether they’ll be warehoused before delivery, but the principle remains the same. The main import declaration documents include:
● Import Declaration (N10) - for goods valued at more than AUD $1,000
● Self Assessed Clearance Declaration (SAC) - for goods valued at less than AUD $1,000
● Warehouse Declaration (N20) - for goods valued at more than AUD $1,000 intended to be warehoused before being cleared from customs control.
Import declarations are usually submitted electronically using the Integrated Cargo System (ICS), although they can also be submitted to the Australian Border Force (ABF) in person. Whichever way you submit the declaration, it’s vital that it’s completed fully and accurately.
Import Permit
You should always check if an import permit is required for your goods, even if you haven’t had to apply for one in the past. Certain goods will need a permit to enter Australia and without the required permit, your goods may be seized or destroyed. To reduce your risk, check if you need to apply to one of the following agencies for permission to import your goods:
● BICON - Biosecurity Import Conditions, for animals, plants and organic materials
● CITES - Convention on International Trade in Endangered Species of Wild Fauna and Flora, for specific species of plant and wildlife
● ODC - Office of Drug Control, for controlled substances
● TGA - Therapeutic Goods Administration, for medicines and medical devices
If you require a permit or specific permission to import your goods this needs to be organised BEFORE your goods arrive in Australia. Otherwise, you run the risk of having your goods seized and potentially destroyed.
Bill of Lading
A Bill of Lading (BOL) is a legally binding document setting out the arrangements for the transport of goods between exporter (consignor) and importer (consignee). A mandatory document to facilitate customs clearance, a BOL also serves a number of important purposes for importers.
First, it's a receipt that goods have been handed over and loaded and proves whether goods were received in sound condition. Second, it outlines the terms of the contract of carriage between consignor and consignee. Third, it’s a document of title, allowing you to collect the goods once they are safely delivered. The BOL includes the following information:
● Terms of contract of carriage
● Date and receipt that goods were loaded
● Loading and destination ports
● Details of goods
● Consignee name and contact information
● Any special shipping instructions
A Bill of Lading is a key document that needs to be accurately updated to ensure quick customs clearance and a smooth transportation process for your imported goods.
Commercial Invoice
An accurate commercial invoice is vital when importing goods into Australia as it confirms important details such as the transaction value of your goods and their country of origin. Used to calculate applicable taxes and duties, the invoice should include the following information:
● details of the consignor, shipper and consignee (including company names and ABNs)
● details of the products being transported (including quantity and descriptions)
● commercial value of the goods (to calculate duties, taxes and GST payable)
● buying terms also known as INCOterms (to identify liability for shipping costs)
● country of origin (for calculation of relevant FTA tariff reductions)
While most of this information is also included in the Bill of Lading, the commercial invoice is the document used by customs officers to determine the value of the imported goods for the assessment of duties and taxes.
Certificate of Origin
A certificate of origin (CO) is a declaration of the country of origin for imported goods, usually designated as the country of manufacture. The certificate of origin is completed by the exporter to confirm that the goods in question qualify as originating goods from that country. The CO contains information regarding the product, its destination and the country of export.
Vital to access concessions under free trade agreements, the CO helps determine whether certain goods are eligible for import and if any reduction in tariffs apply. All claims by an importer that goods originate in a specific country must be supported by a valid CO. Consult the Origin Advice Guide for more information on the rules of origin for importers.
If you’re an importer and confused about the customs clearance process, it’s time to talk to an expert. Experienced customs brokers, PJ's Customs is here to guide importers through the customs and import process. To find out how we can help, drop into our Darwin office, email us logistics@pjscustoms.com.au or give us a call on 1300 395 760 for more information.