Like many other countries, Australia’s economy is still bouncing back, having experienced COVID-19 for the past two years. Yet, the recovery period offers promising opportunities, especially in the imports sector for Australian businesses.
Capitalising on the momentum of recovery, businesses are looking to resume the importing of goods into Australia. If you are considering adding imported products to your business, it is required of you to adhere to specific rules and regulations. The following steps will help you understand how you can import products into Australia, what is required, and what are the costs involved.
What are the requirements to import goods into Australia?
The Australian Border Force (ABF) is responsible for the customs clearance of imported goods when they first arrive in Australia and importers must declare all goods. In general, all imported products must have proper labelling with accurate explanations. In addition, they must include the country of origin or production in English. Keep in mind that a lack of labelling may result in confiscation of goods. Apart from labelling rules, companies and individuals do not need to have an import licence for importing.
1. Registration
It is important to note that some goods require registration before importing into Australia. Some of these products include industrial, agricultural, and veterinary chemicals. The regulation aims to ensure that the products are harmless when exposed to people and non-target species, either directly or through residues in treated foods. Essentially, it must be safe for the environment, effective against target species, and properly labelled and packaged before it can be brought into the country.
2. Valuation
All imports must accurately go through proper valuation to estimate the tariffs, duties, charges, and taxes. The most common method of valuing goods for customs purposes is by transaction value. Typically, it represents the actual paid (or payable) price for the imported goods. According to the Australian Border Force, it is important to note that customs in Australia use the exchange rate on the day of exporting the products in the valuation.
3. Taxes, duties, and charges
Before you start importing to Australia, there are charges, taxes, and duties that may apply. The following costs depend on the value and classification of the products. Usually, customs clearance follows upon payment of the relevant tariffs.
There are no duties applicable for goods valued under AU$1,000. However, importers will need an Import Declaration for goods valued over AU$1,000. This rule does not apply to goods such as tobacco or alcohol, where duties and taxes are due regardless of their value.
4. ABN and GST
As mentioned above, all Australian imports must go through customs clearance by the ABF. In this regard, importers must provide an Australian Business Number (ABN). Additionally, they must have a registration for GST to claim input tax credits.
There are many GST-free products such as basic food items and some medicines. You may apply for a GST credit if you plan on making Australia importation your primary business activity. Additionally, if you wish to defer payment of GST, you may participate in the Deferred GST Scheme, shared by the Australian Taxation Office.