Understanding Customs and International Shipping from Australia

Imports and Exports can be tricky. The laws for customs clearance in Australia and the applicable charges can differ depending on the goods, country of origin, and value. It is a complex web to navigate, especially when dealing with different types of goods. Understanding the Australian customs clearance process is even more critical to facilitating Delivered Duty Paid (DDP) shipping for your customers. 

This article sheds light on the Australian laws, procedures, and charges concerning the import and export of goods. The information shared in the report is sourced from the Australian Border Force, the authority for the customs clearance process in Australia.

Import Customs Clearance Australia

Organisations and individuals can import goods into Australia without an import licence. But, any item brought into the country must undergo customs clearance in Australia. It would be best if you also had special permits from customs control to import certain types of goods.

To understand the courier industry, read our Courier Services: A Complete Guide for 2023 blog post.

Let’s look at the process and requirements for Australian customs clearance and customs duties process.

Custom clearance in Australia

1. Import Customs Clearance Process

All imported goods have to follow the below procedure for customs clearance in Australia:

• The customs clearance process begins when goods enter an Australian seaport or airport.
• The Australian Border Force (ABF) conducts the Australian customs clearance process.
• All the goods are checked based on the labels, cargo report, and associated import declaration.
• All goods also need to clear biosecurity checks and quarantine measures as necessary.
• After the customs clearance, ABF hands the goods to Australia Post.
• The ABF seizes items that do not fulfil customs requirements, and necessary actions are taken against the importer.

Let’s understand the requirements, procedures, and documents to complete customs clearance in Australia.

2. Labelling Requirements

Labelling specific international parcels for customs clearance in Australia would be best. However, not all goods need labelling. Referring to the Commerce (Trade Descriptions) Regulations 2016, it would be best to see which goods require marking for Australian customs clearance.

The regulation also states the kind of necessary labelling for different interests.

The goods that require labelling must also have a trade description to be allowed in Australia. This label is checked at customs clearance to understand the type of goods in a package. The Australian Border Force can seize the box if the label or trade description contains false or misleading information.

The trade description on the label should fulfil the following requirements:

• It should be in English and express the information in prominent and legible characters.
• It should include the name of the country of origin where the goods were produced.
• It should provide an accurate description of the goods.
• The trade description should be in the form of a principal label.
• It should be attached to the package in a prominent position and permanently affixed.
• If your goods are packed together, you must put the label in a prominent position on the pellet. In such cases, individual interests need not be labelled.

3. Required Documents

You must submit a few documents to the Australian Border Force to acquire a permit to import goods. Individuals and organisations can submit the documents. You will need the following documents to purchase an import customs clearance.

• Commercial Invoice
• Bill of Landing (for sea freight) / Air Way Bill (for airfreight)
• Other Documents (Depending on the type and value of Goods)
• Import Declaration

Australian customs clearance time can be significantly reduced if all your documents are in order. Let’s understand each of the papers in further detail.

Commercial Invoice (CI)

The commercial invoice should include the date of issue, invoice number, tariff classification code, the value of goods, weight, product name, quantity, means of transport, country of origin, etc. The exporter issues this document and serves as proof of purchase at customs clearance.

Bill of Landing / Air Way Bill

You need a Bill of Landing for sea cargo customs clearance and an Air Way Bill for air freight customs clearance. This document must include information about the transport vessel, Schedule, consignment, etc. 

Other Documents

Depending on the type of imported goods, you may need additional documents such as a certificate of origin and import permit. Such documents are required if you are awaiting customs clearance for restricted goods, food items, prohibited items, dangerous materials, etc. It would be best to acquire a permit from the Australian government authority.

Import Declaration

An import declaration tells the ABF about the type of goods you are importing and what you plan to do with those goods after completing the customs clearance process in Australia. We will discuss different types of import declarations below to understand how you can use them.

Import Declaration – An In-depth Look

An import declaration is necessary for customs clearance in Australia for certain goods. This declaration helps the Australian Border Force assess whether the goods are permissible in the country. Import declaration also clarifies the purpose of the imported items.

Based on the purpose of imported goods, you must understand the following types of Import Declarations.

An import declaration is necessary for customs clearance in Australia for certain goods. This declaration helps the Australian Border Force assess whether the goods are permissible in the country. Import declaration also clarifies the purpose of the imported items.

Based on the purpose of imported goods, you must understand the following types of Import Declarations.

Types of Import Declaration

There are three types of import declarations that you need to consider for the customs clearance process in Australia. These types are based on how the imported goods will be used after entering the country.

1. Import Declaration (N10)
2. Self-Assessed Clearance (SAC) Declaration
3. Warehouse Declaration (N20)

Let us understand each of these import declarations in detail. We will also see the requirements for each type of declaration.

Import Declaration (N10)

This import declaration applies to goods intended to be sold in Australia or used for home consumption. You need this type of import declaration if the total value of imported goods exceeds AUD 1,000. However, if you are awaiting customs clearance for restricted goods like tobacco or alcohol products, you need an import declaration regardless of the value.

You need to include the following details in your import declaration statement:

• Information about the imported goods
• Information about the importer (individual or organisation)
• Information about the mode of transport for importing.
• Tariff classification and value of the goods.

Based on the means of transport, you must fill out the following import declaration forms for Australian customs clearance.

• If the goods arrive in Australia through ocean freight, you must submit a B650 form.
• If the goods are entering Australia by air freight, you must submit a B374 form.
• The importer or their customs clearance company must present an import declaration at an ABF counter. The order must be complete, signed, and stamped as necessary. 

The importer can also submit the declaration for import customs clearance through the Integrated Cargo System (ICS).

Self-Assessed Clearance (SAC) Declaration

You need a SAC declaration if the value of imported goods is less than or equal to AUD 1,000 or the customs duties. This declaration is valid if your goods arrive by air or ocean freight. It is invalid if the imported goods enter Australia through airmail, as personal effects (unaccompanied) or under a carnet.

If the goods need a permit for the Australian customs clearance process, you must use the import declaration (N10) regardless of value. 

You can only submit SAC declarations through Integrated Cargo Systems (ICS). This declaration can be submitted by a cargo reporter, a licensed customs broker, or customs clearance companies with access to ICS. You cannot offer a SAC declaration at an ABF counter.

There are three types of SAC declarations you need to consider:

1. Cargo Report SAC Declaration

• Must be submitted by Cargo Reporters to the ABF.
• It is valid for goods not mentioned in the SAC Thesaurus.
• It is not valid for prohibited and restricted goods.
• It is not valid for goods that are referred to the Department of Agriculture, Water and the Environment (DAWE).

2. Short Format SAC Declaration

• Must be submitted by the importer or customs clearance companies that represent them.
• It is valid for all goods not mentioned in the SAC Thesaurus but not prohibited.
• It is valid for tobacco products, tobacco, and alcoholic beverages valued under AUD 1,000.
• It is valid for import of prohibited and restricted goods subject to inspection by ABF or DAWE.
• It is valid for goods that require biosecurity inspection and quarantine measures.

3. Long Format SAC Declaration

• It is valid for goods exempt from import processing charges and customs duties.
• It is valid for goods with applicable concessions.
• It is valid for goods that require a permit or approval.
• It is valid for importing goods that are part of a larger consignment.

Contact a licenced customs broker or check ABF’s guidelines for SAC Import Declarations to find additional information such as required documents, permits, goods and services tax, and customs clearance fees for different types of goods. Check the policies to ensure you report the appropriate SAC declaration for Australian customs clearance.

You must use the correct type of declaration to fulfil the requirements for the customs clearance process in Australia. These include paying applicable customs clearance fees, goods and services tax, restricted goods permits, and biosecurity checks. Consequently, you may face penalties or legal actions from the Government.

Warehouse Declaration (N20)

You can use this type of import declaration if you intend to store the imported goods in a warehouse before customs clearance. This type of declaration is only valid for goods valued above AUD 1,000.

You can submit the Warehouse Declaration (N20) form and necessary documents to an ABF office in person. You can also submit it through the Integrated Cargo System (ICS). You only need to pay duties or taxes once the goods undergo customs clearance. They can be stored indefinitely in a customs-licensed warehouse.

Once the goods are moved to the warehouse, you must use the Import Declaration out of the Warehouse (N30) form to use the goods for home consumption. But, you must pay customs clearance fees, duties, and taxes before acquiring the warehoused goods. You must also pay these charges if you want to export the goods to another country after clearing customs in Australia.

4. Valuation of Imported Goods

You must declare the value of imported goods for AUS customs clearance. The declared value has a direct impact on several aspects of the customs clearance process in Australia. This includes the type of import declaration, customs clearance fee, applicable taxes, and so on.

You can evaluate the goods in several different ways depending on the type of goods. However, the most common method is to assess the goods based on the price paid for acquiring the goods, also known as transactional value. You can review the valuation guidelines by the Australian Customs and Border 

Protection Service to learn more about setting the value for import declaration.

If you import finished goods in Australia, you must declare the total value of Production Assist Costs. This applies to all finished goods that are made outside the country. Check the Production Assists Costs guidelines to understand how to evaluate such products.

You have to declare a value for AU customs clearance, even if the goods have no transactional value for you or are acquired free of charge (e.g. gifts). Here are the guidelines to evaluate free-of-charge goods for Australian customs clearance.

The customs value must be assigned to the goods in Australian dollars (AUD). For Australian import customs, the valuation must be done as per the exchange rate on the date of export. You can refer to the Practice Statement on Valuation and Practice Statement on Transfer Pricing to understand how to evaluate your imported goods for Aussie customs.

Based on the value of the goods, you will need to file an import declaration and pay the necessary customs clearance fees.

5. Custom Clearance Fees & Taxes

The Australian customs clearance fees and applicable taxes depend on several factors. These include the types of goods, the value of goods, the country of origin, and applicable concessions. 

Custom Clearance Fee

You do not need to pay customs fees in Australia for imported goods valued under AUD 1,000. But, this norm does not apply to loose leaf tobacco, chewing tobacco, other tobacco products, and alcohol. You need to pay customs entry fees in Australia and other applicable duties charges for goods valued above AUD 1,000.

The customs fee for Australia depends on the type of goods and the country of origin. The customs clearance fee for most goods is 5% of their value. You must check the current tariff classifications to determine how your imported goods are measured for different criteria.

On this page, you must first check the Schedule, which pertains to the country of origin. This would tell you the applicable rates of customs duties for the goods.

You can use Schedule 1 to check if the country of origin can receive preferential rates. Check the applicable customs entry fee for Australian imports per Schedule 3 if necessary.

6. Import Processing Charges (IPC)

You will have to pay import processing charges alongside import declarations. The costs depend on the value, type of goods, and type of import declaration. Please refer to the tables below for the applicable IPC for your imports.

Aside from these, you also need to pay applicable biosecurity charges as per the lists below:

Goods and Service Tax (GST)

A GST of 10% applies to all imported items unless they are exempted from GST based on legislation. 

Here is a list of goods that are exempt from GST. For goods that are liable for GST, you need to calculate the tax based on the sum of the following values:

• Customs Value of the Imported Goods
• Payable Duties or Customs Fees in Australia
• Cost of Transportation and Insurance
• Any applicable Wine Equalisation Tax (WET)

You only need to pay GST for the Warehouse Declaration once the goods have completed the customs clearance process in Australia. For additional information on applicable GST and exemptions, you can review these GST guidelines by Australian Border Force.

Aside from these charges, you may be liable to pay Dumping and Countervailing Duties for certain goods. These charges are levied by AUS customs, where Australian manufacturers are materially harmed owing to dumped or subsidised imported goods.

Export-Requirements

You must be mindful of the following requirements before exporting goods from Australia. Some of these are necessary to complete the customs clearance process in Australia, while others will help the importer comply with customs requirements in their country.

1. Labelling

There are no particular labelling requirements for exporting goods from Australia. However, you must ensure that the trade descriptions on international customs clearance parcels are accurate. You also need to adhere to the labelling standards of the importing country. 

2. Certificate of Origin

You will need a Certificate of Origin if you are exporting to a country with a Free Trade Agreement with Australia or if the importer requires this document for customs clearance. You can use the DAFT Free 

Trade Agreement Portal to check the type of Certificate of Origin you will need for different countries and the process to acquire it.

3. Export Declaration & Permits

It would be best to have an export declaration and necessary permits for customs clearance. This declaration initiates the export process for customs clearance in Australia. We will discuss export declarations and permits in detail in the following section.

4. Payment of Applicable Tariffs, Duties, and Taxes

Before exporting goods from Australia, You must pay all applicable tariffs, duties, and taxes. These charges depend on the type of goods and the country of import. You can use the DAFT Free Trade Agreement Portal to find the HS Code for the goods and the applicable charges for exporting them.

5. Export Declaration

An individual, organisation, or customs clearance company can file an export declaration. It is a statement that provides information about the exported goods to the ABF. You must submit this declaration to the ABF before shipping the goods.

You can submit an export declaration through Integrated Cargo Systems (ICS) or at one of the ABF counters using export declaration forms (B957 and B957A). The export declaration can be submitted six months before the date of export. You can also submit an export declaration if you import goods from Australia.

6. Export Declaration Forms

You do not need export declaration forms if you file for customs clearance through ICS. These forms are only required if you file an export declaration through an ABF counter.

Export Declaration B957 Form

This form is mandatory for all export declarations. It requires you to provide details regarding the consignment, mode of transport, the exporter, the importer, transport schedule, and the goods. 

Export Declaration B957A Form

You only need to file this form if your goods require an export permit or if the goods are minerals that require an assay. In such cases, you must submit this form alongside the B957 form.

Submitting Export Declaration

You need to take a completed export declaration form to the ABF counter. But you should wait to sign the paper until the officer at that counter asks for it. You will also need to present Evidence of Identity (EOI) documents or a client registration form (if a customs clearance company is filing on your behalf). Here is a list of acceptable EOI documents.

You must attach any relevant permits and export declarations for the Australian customs clearance process if necessary. Check the list of prohibited items and their respective licenses.

Once your export declaration is processed, the ABF will provide export entry advice. This document will contain one of the following permissions:

• Permission to export the goods.
• Permission to export the goods, subject to specific approval being obtained.
• Permission to export the goods is subject to security being provided per Excise Act 1901, Section 16.
• Permission Denied (i.e. you cannot export the goods)

The ABF will contact you if the export declaration requires amendment. Alternatively, you can file for an amendment in the export declaration using form B957. 

On the other hand, if you want to withdraw an export declaration, you need to submit Export Declaration Withdrawal Notice Form B611 at an ABF counter. You can also apply for permission to move, alter or interfere with exported goods before they leave the country.

Conclusion

Failing customs clearance in Australia for either import or export can lead to penalties in the form of fines, legal action, and imprisonment. That is why it is necessary to understand the laws and processes concerning Australian customs clearance. 

We hope you will use insights from this article to ensure that your imported and exported goods are on the right side of the law.

FAQs

What does customs clearance mean?

Customs clearance means that the Government of a country checks the imported or exported goods to see if they comply with the laws and regulations of the country. The goods can enter or leave a nation only after customs clearance.

How much does customs clearance cost in Australia?

Customs clearance costs in Australia are generally 5% of the value of goods and an additional 10% GST. However, this cost can change depending on the type of goods and country of import or export, and can include goods and services tax. Check this article’s customs clearance fees section to determine the applicable costs. 

How long do parcels take to clear customs in Australia?

International parcels usually take 24 to 48 hours to clear customs in Australia if the goods comply with import laws and the importer has submitted the necessary documents, fees, and taxes. However, customs clearance can take longer for certain goods, requiring biosecurity checks or quarantine measures before entering the country.

Does customs check every package in Australia?

Yes, customs check every package in Australia that arrives through a seaport or an airport. Customs can seize any package that does not comply with Australian laws.

How do I know if customs has my package in Australia?

You can use the Australia Post tracking page to check the status of your package in Australia. The Australian Border Forces hand over parcels to Australian Post after completing the customs clearance process.