For any small and medium-sized business or e-commerce entrepreneur in Australia looking to import products from China and other countries in Asia, understanding the customs clearance process is a critical step in ensuring a smooth and efficient supply chain.
Customs clearance is the process of obtaining permission from the Australian Border Force (ABF) to import goods into Australia. Every commercial shipment entering Australia must be declared, assessed for duty and tax, and cleared before it can be released to the importer. Understanding this process is essential for any Australian business importing from China, Vietnam, or elsewhere in Asia.
The Australian Border Force (ABF) administers customs and border protection in Australia. Most importers work with a licensed customs broker who lodges the import declaration on their behalf and manages the clearance process. Using a customs broker is not legally required but is strongly recommended — especially for first-time importers or businesses importing regulated goods.
Step 1 — Goods arrive at port: Your shipment arrives at an Australian port or airport and is held by the freight carrier pending clearance.
Step 2 — Import declaration lodged: Your customs broker lodges an Import Declaration (formerly known as a B650) with the ABF via the Integrated Cargo System (ICS). This declares the goods, their value, origin, and tariff classification.
Step 3 — Duty and GST assessed: The ABF calculates import duty (based on the tariff classification and country of origin) and GST (10% on the customs value + duty). For goods under AUD $1,000, GST is typically collected by the overseas seller at the time of sale under the Low Value Imports framework.
Step 4 — Payment made: Duty and GST must be paid (or deferred if you have a duty deferment account) before goods are released.
Step 5 — Biosecurity and permit checks: The Department of Agriculture conducts biosecurity assessments. Some goods require import permits (e.g., food products, timber, certain textiles, chemicals). Goods may be inspected or treated.
Step 6 — Goods released: Once cleared, goods are released to your freight forwarder or directly to your address.
The main costs involved in customs clearance are: import duty (typically 0–5% for most manufactured goods, 0% for ChAFTA-qualifying Chinese goods and CPTPP-qualifying Vietnamese goods), GST at 10%, a Customs Broker fee ($150–$500 per shipment), an Import Declaration fee (around $88 AUD for sea freight), and any port handling or storage charges from the freight terminal.
The standard documents required are: a commercial invoice (showing supplier details, product description, quantity, and value in AUD), a packing list, a bill of lading (sea freight) or airway bill (air freight), a Certificate of Origin (required to claim FTA preferential duty rates under ChAFTA or CPTPP), and any relevant import permits for regulated goods.
Australia has free trade agreements with China (ChAFTA) and Vietnam (CPTPP and RCEP) that reduce import duty to 0% on most manufactured goods. To claim these preferential rates, you must provide a valid Certificate of Origin with your shipment. Epic Sourcing coordinates Certificates of Origin for all client shipments from China and Vietnam as part of our standard service.
The most common and costly mistakes include: under-declaring the value of goods (a serious offence that can result in penalties and seizure), incorrect tariff classification (which can result in wrong duty calculations), missing or incomplete Certificates of Origin (losing FTA duty savings), importing goods that require permits without obtaining them, and not allowing enough time for clearance when planning stock arrivals.
For compliant shipments with correct documentation, customs clearance in Australia typically takes 1–3 business days. Shipments selected for physical inspection can take 3–7 days longer. Goods requiring biosecurity treatment (fumigation, heat treatment) can take 5–10 business days. Planning your import timeline should always include a buffer for potential customs delays.
Epic Sourcing's Australia-based team guides clients through the full import process, including documentation preparation, Certificate of Origin coordination, and freight forwarder selection. We work with trusted customs brokers and freight forwarders to ensure your shipments clear efficiently. Learn more about our freight forwarding service or contact our team to discuss your import requirements.
