Understand Australian import duty, GST, and customs charges before your first shipment. Includes worked examples, FTA savings, and common mistakes.
Import duty is one of the most misunderstood costs in the importing process. This guide explains exactly how Australian import duty works, how to calculate what you'll pay, and how to legally reduce your duty costs through Australia's free trade agreements.
Import duty (also called customs duty) is a tax levied by the Australian government on goods imported from overseas. It is calculated as a percentage of the customs value of the goods — typically the CIF value (cost of goods + insurance + freight to the Australian port). Import duty is collected by the Australian Border Force before goods are released from customs.
Under ChAFTA (the China-Australia Free Trade Agreement), most manufactured goods from China now enter Australia at 0% import duty. To claim this rate, you must provide a Certificate of Origin confirming the goods were manufactured in China. Without a valid Certificate of Origin, standard tariff rates apply — typically 0–5% depending on the product's tariff classification.
Under CPTPP and RCEP, most manufactured goods from Vietnam enter Australia at 0% import duty. Similar to ChAFTA, you must provide a Certificate of Origin to claim the preferential rate. Epic Sourcing coordinates Certificates of Origin for all client shipments from both China and Vietnam.
In addition to import duty, GST of 10% is payable on most imported goods. GST is calculated on the customs value plus any import duty payable. For goods valued under AUD $1,000, GST is typically collected by the overseas seller under the Low Value Imports framework. For goods over AUD $1,000, GST is collected at the border by the ABF.
Your landed cost formula: Customs value (FOB price + freight + insurance) + Import duty (customs value x duty rate) + GST (10% x (customs value + duty)) + Customs broker fee ($150–$500) + Port handling and cartage. Use this formula to build your true landed cost per unit before pricing your product.
The main legal strategies are: ensure your goods qualify for FTA preferential rates (0% under ChAFTA or CPTPP) by obtaining a Certificate of Origin, ensure your goods are correctly classified under the Australian Tariff Schedule, and work with a licensed customs broker to identify any duty concessions applicable to your product category.
Need help with import duty calculations and compliance? Our team at Epic Sourcing can connect you with licensed customs brokers. Learn more about our freight forwarding service or contact us.
