A complete guide to import duty in Australia. Covers how customs duty is calculated, common product duty rates, GST on imports, exemptions, and how to use the Australian tariff finder to check your specific product.
Import duty (also called customs duty) is a tax levied by the Australian government on goods brought into the country from overseas. It's calculated as a percentage of the customs value of the goods and is one of the key costs every importer needs to factor into their landed cost calculations. Understanding how import duty works — and how to minimise it legally — can make a significant difference to your margins.
Australian import duty is calculated on the customs value of the goods, which is generally the transaction value (what you paid for the goods) converted to Australian dollars. The duty rate is applied as a percentage: Customs Duty = Customs Value x Duty Rate. For example, if you import A$10,000 worth of clothing and the duty rate is 10%, you pay A$1,000 in customs duty.
In addition to customs duty, most imported goods attract 10% GST. GST is calculated on the customs value plus duty plus freight and insurance costs. If you're GST-registered in Australia, you can claim this GST back as an input tax credit on your Business Activity Statement (BAS). For businesses not registered for GST (revenue under A$75,000), the GST is an additional cost you cannot reclaim.
Duty rates vary significantly by product category. Clothing and textiles generally attract 10%. Footwear is typically 10%. Furniture ranges from 0–5%. Electronics and electrical goods are often 0%. Toys and games are generally 0%. Plastic products range from 0–5%. Steel and aluminium products vary by type. These are general guides — the exact rate for your product is determined by its tariff classification (HS code).
The Harmonised System (HS) code is a standardised international classification system for products. Every product has a unique HS code that determines its duty rate. In Australia, the full classification is an 8-digit tariff code. You can look up the correct code and applicable duty rate using the Australian Border Force (ABF) Tariff Finder tool at abf.gov.au. Getting the HS code right is critical — misclassification can result in penalties.
Australia has free trade agreements (FTAs) with China (ChAFTA), ASEAN including Vietnam (AANZFTA), and many other countries. Under ChAFTA, the vast majority of goods imported from China now attract 0% duty, provided you have a valid Certificate of Origin (Form F or electronic equivalent) from your Chinese supplier. This is one of the most significant cost advantages for Australian businesses importing from China — make sure you're claiming it.
To claim the ChAFTA preferential rate, your Chinese supplier must provide a Certificate of Origin issued by an authorised Chinese body (typically CCPIT or the local Customs authority). You present this certificate to Australian Customs at the time of importation. Without the certificate, your goods will be assessed at the general duty rate. Epic Sourcing assists clients in obtaining correct documentation from Chinese suppliers to ensure they benefit from FTA preferences.
Some product categories from China attract anti-dumping or countervailing duties in addition to standard customs duty. These include certain steel products, aluminium products, and some chemical products. Anti-dumping duties are product and supplier-specific — check the Anti-Dumping Commission (antidum pingcommission.gov.au) before importing products in these categories.
Certain goods may be imported duty-free or at reduced rates under specific conditions. Goods valued under A$1,000 (the Low Value Threshold) are generally GST-free but this threshold was removed for online purchases from overseas retailers. Commercial samples of negligible value can sometimes be imported duty-free. Temporary imports (goods returning to Australia after repair overseas) may qualify for a duty concession.
A complete landed cost calculation for goods imported from China to Australia includes the ex-factory product cost, international freight (sea or air), marine insurance (typically 0.5–1% of cargo value), port charges and destination handling, customs duty (if applicable), GST (claimable if GST-registered), customs broker fees (typically A$200–$600 per shipment), and delivery from port to your warehouse. Building a proper landed cost model before you commit to sourcing decisions is essential for protecting your margins.
Epic Sourcing helps Australian businesses navigate the complexities of importing from China and Vietnam — including documentation, customs compliance, and FTA certification. Talk to our team about making your next import shipment as cost-effective as possible.
