So when do I need a customs broker?
In order to legally import/clear these goods, Australian customs requires an Import Declaration to be completed either by yourself, or a licensed customs broker acting on your behalf.
“Generally, all goods imported into Australia are liable for duties and taxes unless an exemption or concession applies. There are exclusions and restrictions to the use of the concessions. More information can be found in Schedule 4 of the Customs Tariff Act 1995.
For goods with a value equal to or less than AUD1000 there are generally no duties, taxes or charges to pay. You will need to pay duties and taxes on some goods (like tobacco, tobacco products or alcoholic beverages) regardless of their value.
We strongly encourage first-time or infrequent importers to use the services of a licensed customs broker to clear their goods.
There are three declaration types for imported goods. Which one you will need to use will depend on the value of your goods and whether or not you intend to warehouse the goods before clearing them form customs control.”
Please visit the following link for more information on Customs Declarations.
So what does the broker need to organise your customs clearance?
- bill of lading/air waybill
- commercial documents (invoices)
- permits or approvals for the goods and any other relevant documents.
- packing declaration – if sent via sea
- Certificate of Origin – If cargo was imported from a country with a Free Trade Agreement in place with Australia.
So what exactly do I need to pay?
- GST (Goods and Services Tax) on the CIF value of the shipment. This is the Cost Price of the goods, Insurance, and International Freight. GST is also applicable on the total Duty Payable.
- Duty is calculated as a percentage of the price you paid for the goods, (or the Customs Value – CV) This is also known as the FOB amount and consists of following: Cost of Goods, and any inland freight and origin charges to get the cargo to port of departure. Depending on the product, the applicable duty rate can be anywhere from 0% to 10%, however the majority of goods attract a 5% duty Rate. All goods imported into Australia are classified under the Customs Tariff, and may be subject to customs duty. It’s best to contact your customs broker with all relevant information relating to the product to obtain a classification under the customs tariff.
To speak with a customs broker, please contact MPW and we will put you in touch!