Duties Tariff and Taxes

Once a product meets Australian government regulations as an import and is shipped to Australia, various mandatory fees must be paid before it can be sold in Australia. The steps to determine these fees are as follows:

1. Determine the “ Customs Value ” of the product being shipped

“ Customs Value ” is an initial calculation carried out by the Australian government to determine the value of an imported product, obtained by calculating, among others: (i) the transaction amount paid by  the importer  in Australia, (ii) the price of identical export products to Australia, (iii) the price of similar export products to Australia, (iv)  deductive value , (v)  computed value , (vi)  fall-back value . After the calculation is complete,  the “Customs value ” obtained will be used to calculate tariffs, product and service taxes, and import duties according to the products shipped.

A brief guide on “ Customs Value”  can be found at  http://www.border.gov.au/Impor... .

For complete information, please visit  http://www.border.gov.au/Acces...

2. Currency exchange rate

The most important thing in calculating the value of an imported product (“ Customs

"Value")  is the exchange rate between the country of the seller and the Australian dollar. The Australian government requires that  Customs Value  be calculated in Australian dollars. The exchange rate used is the exchange rate in effect at the time the product departs from the exporting country, which is determined by the Australian government daily. Past exchange rates are archived weekly and can be viewed in  the Government Gazette  every Wednesday at  https://www.border.gov.au/Busi...

3. Tariff

Tariff is a tax imposed by the Australian government on

Imported products. For the import-export process between Australia and other countries, the latest tariffs based on product type are regulated in the  ASEAN Australia New Zealand Free Trade Agreement (AANZFTA)*  , which can be checked at  https://ftaportal.dfat.gov.au/... .

• ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Regional Comprehensive Economic Partnership (RCEP).

4. GST (Goods and Services Tax)

Australia's Goods and Services Tax (GST) applies to

Almost all imported products. The GST calculation is 10% of the value of taxable importation  of the imported product.

The taxable value is obtained by adding:

• “ Customs Value”  of the product
• Import duties related to products
• Product shipping prices to Australia
• Shipping insurance
• For wine products, there are additional costs.

GST payment is direct or concurrent with payment

import duty, unless the company is registered with the GST deferral system. It's also worth noting that products may be exempt from GST upon entry into Australia if they are under A$1,000 or are carried on an international flight.

More at  https://www.ato.gov.au/Busines...

For a list of products and situations that are not subject to GST, see here:  https://www.ato.gov.au/Busines...

5. Other import duties

According to  the 2017 Charging Guidelines  from  the Department of Agriculture and Water Resources,  one of two government agencies that regulate imported goods (the other being  the Department of Immigration and Border Protection) , importing goods into Australia requires several permits, which incur additional costs. Some examples of these additional costs are: Import Declaration Permit Fee,  Biosecurity  Inspection Fee , Cargo Receipt Fee, and so on.

For complete details, especially for food products that require quarantine scenarios and so on, please check  http://www.agriculture.gov.au/...