Your Guide to Importing Goods into Australia
Whether you’re looking to import a one-off item or you’re considering adding imported products to your business, every importer should understand the rules and regulations controlling the import of goods into Australia.
For those new to importing, the process can seem daunting. While it is a complex process, we’ve put together a basic guide to help you better understand how to import goods into Australia, your obligations and what it may cost.
Licences & Permits
You may be surprised to learn that you don’t need a licence to import goods into Australia. While a licence is not required, you may need to obtain a permit to import certain items, particularly those subject to biosecurity import conditions.
Plant, mineral or human products may need to be quarantined, inspected and treated for pests and diseases before entry and may need an import permit to clear customs. It’s important to know what permits relate to your product before bringing them to Australia.
Registration
As an importer, you’re obliged to comply with registration requirements, particularly if you’re importing chemicals used in the industrial, agricultural or veterinary sectors. It’s vital all chemicals brought into Australia are safe, labelled correctly and not a risk to the environment.
Goods that contain industrial chemicals, such as cosmetics, solvents, adhesives, household cleaning products and toiletries, require registration before being imported into Australia. Therapeutic goods (including medicine and medical devices) must also be registered.
Valuation
All imports coming into Australia need to be accurately valued to calculate relevant tariffs, duties, charges and taxes. While there are several methods of valuing goods for customs purposes, the method most commonly used is transaction value.
Transaction value is based on the price actually paid (or payable) for the imported goods subject to certain adjustments. Customs use the rate of exchange on the day of export of the goods (not on the day the goods arrive in Australia) when calculating transaction value.
Taxes, Duties & Charges
Imports may be subject to taxes, duties or charges, depending on the value of the goods imported, their classification and how they came to Australia. Customs clearance will only be provided following payment of any relevant tariffs.
If your goods are valued under $1000 AUD you may not have to pay anything, while for goods worth more than $1,000 AUD, an Import Declaration is required to calculate applicable duties. For goods like tobacco or alcohol, duties and taxes are payable regardless of their value.
ABN & GST
Before importing any goods, you’ll need to supply an Australian Business Number (ABN) to the Australian Border Force and be registered for GST purposes to claim input tax credits.
Most goods will be subject to GST when imported, aside from a few exemptions. If importing will be one of your key business activities, you may be able to claim a GST credit and defer the payment of GST by participating in the Deferred GST Scheme.
Laws & Regulations
There are important laws and regulations that you must comply with when importing goods into Australia. Breaches of these laws and regulations could result in your goods being seized and heavy fines being applied.
These regulations exist to protect domestic industries, consumers, and the environment from harmful and dangerous goods imported from overseas. Laws and regulations cover biosecurity, trade management, prohibited goods, and trade descriptions.
Labels & Descriptions
Trade descriptions are required for certain goods imported into Australia. This is a label that provides an accurate explanation of the goods and their country of origin (where they were made or produced). It needs to be easily read and in English.
The label must be attached in a prominent position throughout the customs clearance process. It’s important to note that if your imported goods do not meet the labelling requirements, they may be seized.
Import Declaration
An import declaration provides information about imported goods and is used to clear goods from customs control. The Import Declaration collects details on the importer, how the goods are being transported, the tariff classification and customs value.
There are currently three types of import declaration:
● An Import Declaration (N10 Form) for items with a value greater than $1000 AUD.
● A Self-Assessed Clearance (SAC) declaration for items that arrive by air or sea cargo valued at less than $1000 AUD.
● A Warehouse Declaration (N20) for items to be warehoused before clearing customs, valued at more than $1000 AUD.
The import declaration is normally submitted electronically via the Integrated Cargo System (ICS) although, in some cases, paper lodgement can also be accepted. Note, all relevant documentation must be held for at least 5 years following an import declaration.
Importing Goods Into Australia Using a Customs Broker
As you can see, importing goods into Australia is not an easy process for new or inexperienced importers. That’s why the Australian Border Force (ABF) recommends importers use customs brokers to complete the customs clearance process.
Customs brokers specialise in the clearance of imported goods and have the knowledge and experience to safely guide you through the import process. Licensed by the ABF, you can trust a customs broker to help you meet all your obligations when importing goods into Australia.
A licensed customs broker, PJ’s Customs is here to expertly manage your customs clearance requirements at the port of Darwin. If you’re an importer in need of customs advice, drop into our Darwin office, email us logistics@pjscustoms.com.au or give us a call on 1300 395 760.