Import Declaration Australia

Import Declaration Australia – Australian Customs Import Declarations Explained

An import declaration in Australia is a legal document that must be lodged with the Australian Border Force (ABF) when goods are imported into the country.

Goods valued at AUD 1000.00 or less are usually exempt from import taxes. However, duties and taxes will still apply to certain goods (tobacco, tobacco products, alcoholic beverages, etc.) regardless of their value.

We recommend that first-time or infrequent importers use the services of a licensed customs broker to clear their goods.

The import declaration assesses the duty, taxes, and other charges that may be payable on the goods being imported. It helps ensure that the imported goods comply with Australian laws, including quarantine, health, and safety regulations.

Do You Need to Lodge An Import Declaration In Australia?

Importers or their agents (such as customs brokers) are responsible for lodging an import declaration. It is required when goods are valued above the import threshold (currently AUD 1,000 for most goods) or are classified as being eligible for duties taxes.

What Information Is Required On A Declaration?

When making a formal import declaration, you must provide the following information accurately.

• The tariff classification of the goods.
• The value of the goods.
• The origin of the goods.
• The quantity and nature of the goods.
• Any applicable permits or licenses.

Types of Import Declarations

Full Import Declaration (FID): Required for commercial goods and shipments above the threshold. You’ll need to provide the tariff classification, value, quantity, origin of the goods, and any applicable permits or licenses.

Self-Assessed Clearance (SAC) Declaration: Generally used for personal items and for low-value goods under AUD 1,000, though not always necessary.

Warehouse Declaration: For goods imported and stored in a customs-licensed warehouse before being released for home consumption (use within Australia) or re-exported.

Transhipment Declaration: This type of declaration is only used for imports coming into Australia temporarily for transhipment to another destination if goods are being moved to another country without entering the Australian market.

How Do You Lodge A Declaration For Imported Goods?

Import declarations can be lodged electronically through the Integrated Cargo System (ICS) or via a customs broker. The declaration must accompany payment of any applicable duties, GST (Goods and Services Tax), and other charges.

Processing and Clearance

Once lodged, the ABF assesses the declaration to ensure compliance. Goods cannot be released from customs control until the import declaration is lodged and assessed and any duties or taxes are paid.

Penalties for Non-Compliance

Failure to lodge an accurate import declaration or pay the required duties can result in penalties, fines, or even seizure of the goods. The import declaration is crucial in importing goods into Australia, ensuring compliance with all relevant laws and regulations while determining the correct duties and taxes payable.

Is Your Customs Duty Based On Your Import Declaration?

Yes, it is. Customs duty is a tax imposed on goods imported into Australia. The amount of duty is calculated based on the information provided in the import declaration.

It is calculated based on several factors, including the type of goods, their classification under the Harmonized System (HS), their value, and their country of origin. After lodging an import declaration, the ABF will calculate the customs duty payable. The importer must pay this duty before the goods can be cleared and released into Australia.

The import declaration is the basis for determining the customs duty. Without an adequately lodged import declaration, customs cannot accurately assess the duty owed. Goods cannot be released from customs control until the import declaration is lodged, assessed, and any applicable customs duty and taxes are paid.

Tip: Use our Instant Import Duty Import Tax Calculator

How Can A Licensed Customs Broker Help With Declarations For Imported Goods?

A customs broker can be invaluable in assisting with import declarations, ensuring compliance with Australian regulations, and facilitating the smooth importation of goods. Here’s how a customs broker can help:

Expertise in Tariff Classification: Customs brokers have in-depth knowledge of the Harmonized System (HS) used to classify goods. They ensure that your products are accurately classified, which is crucial for determining the correct customs duty and taxes.

Avoiding Penalties: Incorrect classification can lead to underpayment or overpayment of duties and, in some cases, penalties. A customs broker helps prevent these issues.

Accurate Documentation: Customs brokers prepare and lodge the import declaration on your behalf, ensuring that all required information is accurately completed and submitted to the Australian Border Force (ABF). They provide the statement is lodged on time, preventing delays in customs clearance and release of your goods.

Precise Calculations: Customs brokers calculate the customs duty, GST, and other taxes that may apply to your goods, based on the information in the import declaration.

Duty Minimisation: They may also advise on legally minimising duties, such as using free trade agreements or applying for duty concessions.

Compliance with Laws: Australian import regulations can be complex, especially with varying requirements for different types of goods. A customs broker ensures compliance with all relevant laws, including quarantine, health, and safety regulations.

Permits and Licences: If your goods require special permits or licences, a customs broker can assist in obtaining these, ensuring that your import meets all regulatory requirements.

Smooth Clearance Process: Customs brokers liaise with the ABF and other government agencies on your behalf to facilitate the clearance of your goods. They handle any issues or queries that may arise during the clearance process.

Problem Resolution: If your import declaration contains discrepancies or problems, a customs broker can resolve them quickly, reducing the risk of delays or penalties.

Personalised Advice: Customs brokers offer tailored advice based on your specific import needs, helping you navigate the complexities of international trade.

Cost Savings: Customs brokers can help save money and avoid costly mistakes by ensuring that all procedures are followed correctly and that the correct duties and taxes are paid.

Contact our team if you need advice or assistance clearing imported goods or lodging documents. We are always happy to help.

Frequently Asked Questions

How is import duty calculated?

Most goods are valued by Customs & Border Protection at the transaction value in Australian Dollars. Customs use the rate of exchange prevailing on the day the goods are exported (not on the day the goods arrive in Australia) as the exchange rate.

1. Convert your purchase into Australian dollars

2. The import duty is based on 5% of the value of your goods converted to Australian dollars.

3. To calculate the GST on imported goods, add the value of the goods in Australian dollars, plus freight, insurance and the import duty. The 10% GST is calculated on this total.

Tip: Use our Instant Import Duty Import Tax Calculator

Import Declaration (N10) explained

If you plan to clear your goods yourself and they have a value of more than AUD 1000.00, you will need to make an Import Declaration (N10 Form) and pay the applicable duties, taxes, and charges.

An Import Declaration is a statement made by the importer (owner of the goods) or their agent (licensed customs broker) to Australian Customs that provides information about the goods being imported. The Declaration collects details on the importer, how the goods are being transported, the tariff classification, and the customs value.

How will you know how much duty needs to be paid?

The duty amount payable is determined by the classification of the goods and other factors, including exemptions, concessions & the existence of preference schemes & Free Trade Agreements with Australia. On most products imported into Australia, customs duty is 5% of the value of the goods converted to Australian dollars, but this depends on the type of goods. When importing goods, submitting the import declaration to the ICS will automatically calculate any required duty, GST, Wine Equalisation Tax or Luxury Car tax payments.

Is GST payable on imported goods?

Most Imported goods will be subject to GST; however, there are some exemptions for basic foodstuffs, medical aids, and other appliances. GST is applied at 10% of the Australian dollar value of the goods when imported. The value of the imported goods is equal to the goods’ value plus the duty payable and any transport and insurance fees for the imported cargo.

Are you able to defer GST on imports?

GST is payable by all businesses, organisations and private individuals. whether they are registered for GST or not. A business or organisation registered for GST, importing goods as part of its activities, may be able to claim a GST credit for any GST paid on those goods. If you are an importer and registered for GST, you may be able to defer the payment by participating in the Deferred GST Scheme.

This scheme allows GST on taxable importations to be deferred until the first business activity statement lodged after the goods are imported. Participation in the scheme requires certain eligibility criteria: • have an ABN • must be registered for GST • lodge activity statements online, monthly. • pay activity statement payments electronically.