Understanding import duties, port charges, VAT and other taxes is crucial when importing products from China, especially in a time when trade tensions are at an all-time high. However, each country or market have its own import duty rates and customs value calculation methods.
In this article, we explain what every Importer must know about import duties, customs valuation methods, and other taxes when importing products to the following countries and regions.
About to import products from China to Australia? This guide is a comprehensive introduction to everything that Australian importers must know, before getting started.
Keep reading, and learn more about Australian product safety standards, mandatory labeling requirements, GST, customs duties, and other import taxes.
As a bonus, this guide also includes an exclusive Import Cost Calculation Case Study, providing you with a tool for calculating all relevant taxes and fees in Australia.
Australian Product Safety Standards
Australia regulates products in many industries, including Children’s products, furniture, vehicles and chemicals in consumer products.
When importing from China to Australia, the buyer is responsible for ensuring compliance with all mandatory product safety standards, and compliance procedures.
About to import products from China to Australia or New Zealand? Ensuring compliance with mandatory safety standards should not come as an afterthought, but be the core focus when importing any consumer product to Australia.
Importing non-compliant products to Australia is an offense, which may not only result in a forced recall, but fines counted in the hundreds of thousands of dollars.
In other words, you only got one chance to get it right. Keep reading, to learn what every Australian importer must know about product safety:
Which products are regulated in Australia?
What is an AS/NZS standard?
How do I know which AS/NZS safety standards apply to my product?
How do I verify that a product conforms to a certain AS/NZS standard?
Do I need to get my products lab tested?
Who is responsible for ensuring compliance?
Non-compliances fines and penalties
Which products are regulated in Australia?
Several product categories, ranging from bicycle helmets and sunglasses to children’s toys, are regulated by a set of mandatory product safety standards. While there are also voluntary standards, we focus on the mandatory standards in this article. The following product categories are regulated, by at least one safety standard, in Australia and New Zealand:
Understanding the Australian import duty and tariff system, with many its exemptions and country of origin classes, can be rather complicated. In this article, we explain what Australian importers must know about import duty rates, HS codes, and tariffs:
Country of origin classifications
How to confirm the applicable HS code and duty rate for your product
Chapters and sections
How to (legally) reduce the import duty rate
When to pay import duties
How to calculate the customs value and import duty
Sometimes it actually makes sense start looking for a sourcing agency closer to home, rather than trying to find the right partner in China, Vietnam or India. In this article, we list some of Australia’s leading sourcing companies.
You will also learn how you can benefit from working with a local sourcing company, rather than one that’s based overseas.
What are the benefits of working with an Australian sourcing company?
Most Importers may assume that a company that’s located in the manufacturing country is always superior to one that’s headquartered at home. That said, the opposite is more often the case.
While a sourcing company based in China or Vietnam can disappear with your product designs and supplier network by tomorrow, an Australian agency is far easier to hold accountable when something goes wrong.
Further, sourcing companies based in Australia, or those based in Asia but with Australian ownership, tend to have a better understanding of the following:
About to import products from China, Vietnam or elsewhere, to Australia? If the total importation value is above AU$1,000, you’ll need to submit an import declaration and pay an import processing charge of at least 50 Australian Dollars.
In this guide, we explain what Australian importers must know about the Import Processing Charge:
Import Processing Charge Overview
Reduced rates for warehoused goods
When and how to pay the Import Processing Charge
Exemptions, small volumes, and sample orders
Import Processing Charge for online purchases and private importers
What is the Import Processing Charge when importing from China, Vietnam or India?
The importing processing charge depends on the customs value (CVAL) and whether you submit the import declaration manually or online. However, unlike import duties which may differ depending on the country of origin, the import processing charge is always the same.
Importing from China, Vietnam or India to Australia? Most likely, you’ll need to pay a Goods and Services Tax (GST) of 10% on top of the taxable importation value.
In this article, I explain what every Australian importer must know about GST, including:
GST rates on imported goods
GST calculation examples
How to (legally) reduce the payable GST
How to correctly declare GST
GST credits when importing goods
GST exemptions and thresholds on imported goods
GST for private importers
GST registration for overseas companies
What is the GST rate when importing from China, Vietnam or other countries in Asia?
The GST rate for imported goods in Australia is 10%. Unlike for import duties (which may differ depending on the manufacturing country), the GST rate is the same regardless of the country of origin.
About to import products from China or elsewhere in Asia? Then you need to ensure that the products are properly labeled.
In this article, we explain what every importer must know about labeling requirements in the EU, US and Australia.
We also explain why you cannot rely on your manufacturer to ensure compliance on your behalf. In fact, most of them don’t even know how products must be labeled in your market.
Keep reading, to ensure that your products are not seized by the customs authorities!
What is ‘Product Labeling Requirements’?
Most countries have legal requirements for how a product shall be labeled. A label can, for example, inform the customer about the following:
The manufacturing country
If the product meets certain legal safety requirements (i.e., compliance marks)
Size, material and other general product information
Warning labels and user instructions
Some labeling requirements apply to all, or a wide range of, product categories.
For example, all products in the US must be labelled with the country of origin (i.e., Made in China). In the European Union, many products must be CE marked.
Other labeling requirements apply to specific products. Examples include toys, electronics and textiles – each with their own set of unique labeling requirements.
Notice that labeling requirements are usually just one of many requirements that importers must fulfil to ensure compliance with certain regulations.
In addition, you may need to keep track of the following:
Technical Compliance: This means that the product is manufactured according to certain technical standards, or substance restrictions. The product is therefore able to pass the necessary tests.
Documents Requirements: The Importer is required to create and store a set of documents. Such documents may include circuit diagrams, component lists, design drawings and risk assessments.
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