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Planning to import products from China to Australia? In this guide, we cover the basics that all Australian importers must know about product safety standards, labeling requirements, shipping options, and, the China–Australia Free Trade Agreement (ChAFTA).
In addition, you’ll also learn how to calculate import duties, import processing charges, and Goods and Services Tax (GST) when importing from China.
Overview
- Product Regulations & Safety Standards
- Shipping from China to Australia
- Goods and services tax (GST)
- Import Duties
- China–Australia Free Trade Agreement (ChAFTA)
- Import Processing Charge
- Customs Value (CVAL)
- Import Licenses and Permits
- Total Import Tax Cost Calculation
Product Regulations & Safety Standards
Australia regulates products in many industries, including children’s products, electronics, 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, labeling, lab testing, and certification requirements.
Many factories lack experience with Australian (AS/NZS) product standards
For many products, you can easily assess the mandatory regulations on Government websites as the system is relatively easy to understand.
However, what is far more complex is the assessment of a Chinese manufacturer’s ability to ensure compliance with Australian product standards.
Normally, a supplier compliance assessment is based on checking existing compliance documents (i.e., test reports and product documents). However, this strategy is very hard to replicate, for importers in Australia – simply because so few suppliers can provide documents proving compliance with Australian standards and regulations.
Corresponding EU and US standards
In many industries, it can be a challenge to find suppliers with corresponding EU and US compliance documents. Yet, It’s far more likely that a Chinese supplier can provide compliance documents valid in the EU or US.
Hence, Australian importers must research which EU or US standards correspond to their own, and then ask for these documents instead. If you are in the Apparel industry and want to assess a supplier’s capability to provide AZO-free fabrics, you can just ask for an EU REACH SVHC test report.
If you’re importing bicycle helmets, in which case you must ensure compliance with AS/NZS 2063:2008 – Bicycle helmets, you should look up the corresponding EN, ISO, or ASTM standard. In fact, Australian product standards are in many cases entirely based on standards developed in the European Union and the United States.
Note: A list of product safety requirements is available on Productsafety.gov.au. However, this site does not include electronic product standards and regulations.
Product Labeling Requirements
Australian importers must also ensure that the product and packaging are correctly labeled. There are various labeling requirements for Australian importers to keep track of:
a. AS/NSZ Labelling Requirements (as part of specific product standards)
b. Ingredients Labelling (mandatory for cosmetics and certain other products)
c. Country of Origin (Required for food products and imported goods that require a ‘trade description’)
d. Care Labelling (for apparel and other textiles)
e. RCM Mark (Replacing the A-Tick and C-Tick mark on electronic products)
Note that there is no uniform set of labeling requirements, applicable to all products. As such, you must confirm the labeling requirements that apply to your product.
Don’t assume that your supplier is even aware of the applicable labeling requirements. As such, you must provide them with ‘ready-made’ artwork and labeling files.
Product compliance when selling on Amazon.com.au
Amazon requires that all products imported to Australia and sold on its platform are compliant with mandatory safety standards and labeling requirements. Amazon often contacts sellers to verify compliance documents, such as lab test reports.
It’s therefore important to ensure that your product is fully compliant, correctly labeled, and lab tested before you start selling on Amazon.com.au.
Recommended Articles
Here are some related articles about product compliance requirements for Australian importers:
- Product Regulations Websites in Australia
- List of Product Lab Testing Companies in Australia
- Product Labeling Requirements in Australia
- Toy & Children’s Product Standards in Australia & New Zealand
- Clothing and Textiles Regulations in Australia and New Zealand
- Furniture Regulations in Australia
- Food Contact Material Regulations in Australia
- Electronic Product Regulations in Australia
Shipping from China to Australia
Australian importers can choose between sea or air freight when buying products from Chinese suppliers. Another option that we see more Australian e-commerce companies use is overseas fulfillment centers.
Sea Freight
Shipping by sea is still the most economical way to transport products from China to Australia. The transit time from Shanghai or Shenzhen to Sydney is normally around 12 days. That said, it can take an additional week (sometimes longer) when factoring in the lead times in both the port of destination and port of loading.
The cargo can be forwarded by truck or rail from the port to the final destination in Australia.
Air Freight
Airfreight can be a cost-effective option for cargo weighing less than 100 kgs, and with a volume that does not exceed 1.5 to 2 cubic meters – or, when you simply need the products to be delivered fast. The main benefit of air freight is exactly that. The typical lead time for air freight between China and Australia is normally around 5 to 7 days.
Fulfillment centers
Many of the Australian e-commerce companies we have worked with in recent years tend to be outward-looking. Many of our Australian customers selling on Amazon, or other market platforms, in the United States and Europe utilize fulfillment centers in Hong Kong.
As such, they can deliver products directly from China, to consumers in Europe, the United States, and elsewhere – without the need to first import the products to Australia and pay GST and import duties.
However, I don’t recommend a cross-border fulfillment model for Australian companies selling into Australia, as the duty threshold has been abolished. Further, even foreign sellers are required to get GST registered, if they reach a yearly threshold. You’re better off importing the goods into Australia, assuming that is your main market.
Or, keep some stock in Hong Kong for your international customers, while you import the rest into Australia for domestic sales.
Goods and services tax (GST)
Goods and services tax (GST) is payable when importing most products to Australia. This applies regardless of whether your company is GST registered.
In fact, even individuals importing from China (and elsewhere) are required to pay GST.
At the time of writing, the GST is set at 10%.
GST Import Cost Calculation
GST (10%) is calculated on top of the sum of the following:
Customs value (FOB Price) + Customs Duty + Shipping to Australia + Shipping Insurance
Here’s an example:
- Customs value (FOB Price) = AU$10,000
- Customs Duty = 5% x AU$10,000 = $500
- Shipping = $1,000
- Insurance: $20
GST = 10% x ($10,000 + $500 + $1,000 + $20) = AU$1152
Import Duties
Import duty rates vary between 0% to 10%. Follow this link for a full list of Australian duty rates, listed by HS Code.
Customs Duty = X.X% x Customs Value
Assuming a rate of 5%, and a Customs value of $10,000, you’ll pay AU$500. You may submit a customs declaration directly to the authorities (electronic or paper filing), or get help to do this from your freight forwarder.
China–Australia Free Trade Agreement (ChAFTA)
The China–Australia Free Trade Agreement (ChAFTA) came into force in 2015. The agreement has since eliminated tariffs on most products imported from China – meaning that no import duty applies to most products imported from China to Australia.
By contrast, a 5% import duty rate applied to most China-made products imported to Australia in the past.
That said, notice that the China–Australia Free Trade Agreement (ChAFTA) does not eliminate the import processing charge or GST on imports from China.
Import Processing Charge
The Import Processing Charge is based on the customs value. However, unlike the Customs duty rate, the Import Processing Charge is not calculated as a percentage on the Customs value – but instead a fixed cost.
FOB Value: AU$1,000 to AU$10,000
- Manual Declaration: AU$90
- Electronic Declaration: AU$50
FOB Value: Above AU$10,000
- Manual Declaration: AU$192
- Electronic Declaration: AU$152
Previously, the Import Processing Charge also depended on the mode of transportation (i.e., whether the shipment is delivered by Air or Sea). However, that is no longer the case.
Customs Value (CVAL)
Normally, the Customs value (CVAL) is based on the FOB (Free on Board) price. This includes the following:
- Unit price
- Transportation to the Port of Loading (i.e., Shenzhen or Hong Kong)
- Export Clearance Cost
As such, the following items are not included in the CVAL:
- Shipping to Australia
- Shipping Insurance
Click here to learn more about calculating the Customs Value (CVAL) when importing to Australia.
Import Licenses and Permits
Import licenses or special permits are generally not required for most consumer products. However, there are strict requirements in place for importing animals, plants, controlled substances, and certain equipment.
Total Import Tax Cost Calculation
| Cost / Tax | Calculation | Sum (AU$) |
|---|---|---|
| Customs Value (FOB) | 1 x 10,000 | 10,000 |
| Import Duty (5%) | 5% x 10,000 | 500 |
| Shipping Cost | 1 x 1,000 | 1,000 |
| Insurance Cost | 1 x 20 | 20 |
| GST (10%) | 10% x (10,000 + 500 + 1,000 + 20) | 1,152 |
| Import Processing Fee (Electronic) | 1 x 152 | 152 |
| Total | 10,000 + 500 + 1,000 + 20 + 1,152 + 152 | 12824 |
Do electrical goods need RCM label on the package from China to clear customs?
I wish I had of doing you earlier.
I’ve imported from China with goods about $2,500 and it’s been a good experience.
I bought a router table for personal use. It arrived in Port and I knew I would pay duty.
However, I just got hit with a bill for $4,684.97 from the shipping company for Delivery order fee, Destination port charges, CAF and EFF. I already paid the shipping fee to the selling company.
I cannot understand the bill. It seems wrong. I could have bought locally for about the total same price.
Hi Steve,
Sounds like they quoted based on CIF terms and then billed you the port charges upon arrival.
Hi Fredrik. I’m thinking of buying and importing a backhoe loader from China to Australia. The appear much cheaper than anything local. Any idea what I should be considering when seeking information from the supplier. Thanks in advance.
Hi Steve,
There’s more to think about than I could possibly summarize in a comment
I suggest you attend our free webinar as it explains how the importing process works: http://www.chinaimportal.com/webinar-a
Hi Fredrick
Im looking at importing a caravan from China I have never done anything this big before could you give me some pointers to make sure its not held up in customs Im in the process of talking to the caravan builder and I dont want to miss out on any questions I should ask him.
Thanks Declan.
Hi Declan,
I don’t think a few pointers would suffice in this case. One starting point would be to attend our free webinar: http://www.chinaimportal.com/webinar-a
Hi Fredrick
I wanted to import rugby jerseys from China, via Alibaba platform. Do you think I will face issues with regards to jerseys by customs. They are replica rugby jerseys.
Hi Adi,
Yes, if they are branded with registered trademarks
If I am importing Rear View Mirror LCD Monitor to Australia and camera for cars, do I require CE and ROHS certificates from the manufacturer?
CE marking is required in the EU, not Australia as far as I know.
Hi Fredrik, has it any chance to open a dropship business from CHina to Australia? I live in Australia right now, want to open a business,
Hi Ivan,
We cannot help with dropshipping
Hi Fredrick,
Are there any measures in place after the coronavirus surrounding quarantine etc?
Cheers
Hi Adam,
Yes, there are. Most factories are opening this coming week though, but it will take some time before they are back at full capacity.
Hello Fred,
What are the steps to start a clothing business in Australia? I’m non citizen as I’m on a visa in australia but my partner is and he can submit any paperwork needed. Do you have any PDF with guidelines to follow prior buying from China? I just want to be sure we will not have any troubles once we purchase our goods and we start out business here.
Thank you very much
I look forward to your response
Estefanie
Hi Estefanie,
I suggest you sign up for our free webinar explaining how the process works: http://www.chinaimportal.com/webinar-a
Hey do you guys have any knowledge of gas appliances, do they have to be approved or just the standard.
Thanks
Hi,
I plan to get some nylon/polyester bed sheet from China. Manufacture has quoted me door to door delivery charges. In this case to whom and when I have to pay gst and customs charges ? Delivery time is 15-19 days so do I need a clearing agent or no need ?
Thanks
Hi Aamir,
Is door to door shipping quoted as DDP or DDU? Either way, I think GST is paid upon arrival.
Hi Fredrik.
I am looking to buy some structural pu foam for marine building use. The supplier l got the quote from originally quote cif but l herd a few horror stories of customs costing upto $2000 ontop of gst and import cost just to get it of the port of brisbane. So l asked the supplier to provide door to door price. But they are still saying something about l might have problems because l don’t have import export or exemptions rights. Do l need these and can l use my private name on the import or do l have to usevmy company name?. Ps. This is through a Alibaba supplier that l don’t think normally do it the way l want.
Thank you
Carl
Hi Carl,
That’s why you must avoid CIF prices and only request a DDU or DAP quote.
Further, book shipping via an Australian forwarder, not the supplier.
Hi Fredrik,
I’m looking to import some glass jars with bamboo (approx 500pcs) from China off a supplier through Alibaba. Previously I’ve only imported 20 night lights from another supplier and they were delivered door to door, no extra charges. I don’t know where to begin with importing greater quantities and if I should be looking at other shipping alternatives. What should be the first thing I do? Will my accountant know the processes?
Thanks,
Emma
Hi Emma,
I don’t think you’ll get much help from your accountant.
You can book a free consultation call with us here if you want to learn more about how we can help you: http://www.chinaimportal.com/call
Hi, I have my fabric designs and I’d like to have them printed in china as is it the cheapest and most affordable choice for me. I’m a 23yr old involved in the SME sector and I have a bugjet of USD2500. Do u think that would be possible? I’m honestly lost but I think it’s Worth the try. I just watched your video and it pointed alot of things I’ve been wondering about. I’ve asked help from fabric importers in my country but can’t seem to get any help at all. I’ve just received a quotation for my order by a supplier, it’s about USD1500 excluding Shipping. I need to talk to someone with great experience in China imports. Please can you help me? Ur reply would be greatly appreciated, thank you.
Hello Valerie,
I suggest you watch our free webinar: http://www.chinaimportal.com/webinar-a
It explains how to find the right supplier, order samples and, well, the entire process actually.
Hi we are looking to purchase plants from Alibaba and import into Australia from China, do you have any recommendations on where to start, unsure if we air freight for time? Do you have any freight forwarder or customs brokers recommendations?
Hello I’ve just had a quote on alibaba for a landed cost of 650 crf, what does this mean.
I’m looking to buy acoustic panels what else should I ask
Lm
Hi Lm,
Probably a CFR quote. Ask for an FOB price and ask them to confirm the est. weight and volume of the cargo. Based on this you can then get an accurate DAP shipping quote from an Australian forwarder.
Hi,
I’m going to be receiving my first shipment into Australia from Alibaba shortly. I have heard stories of shipments being held up in Australian Customs due to incorrect documentation etc.
When questioning the supplier on Alibaba they said “They have shipped many times to Australia and haven’t provided documentation” but this doesn’t sound correct?
Is there an article on the documentation required to ship to Australia from China/alibaba?
TIA
Hi Luke,
What kind of products are you importing?
Hi, can i import leather goods from china?
Hello,
I am sure nobody will stop you if you try
Hi
Im looking at importing an outboard motor from china . I have been quoted $2580usd delivered to Melbourne. What questions should i ask the supplier? They want 70% wire transfer up front and 30% on delivery. I have done this before with T-shirts and all was good., but an outboard is a bit of a different story.
Hello Whitey,
First of all you need o find out which product regulations apply to outboard motors in Australia. Once you’ve got that cleared out, you must request a test report from the supplier. However, the chance that they have an AS/NZS test report is next to zero.
Hi whitey,
I’m looking at purchasing rugs from China,
Do I need to have a import license.
Hi am looking to be buying from china name brand sporting apparel and equipment, is this ok
Hello,
We are in the process of trying get a shipment to Amazon FBA AU from our China warehouse.
Do you have any other customers that ship goods from China to Amazon AU? If so, do you have any couriers that you would recommend for us to use?
Also can you please advise if there any restrictions or important information that we need to know when sending goods into Amazon AU?
If you have a “how to guide”/check list of how to send goods to Amazon AU that would be amazing.
I noticed that we will have to pay quite a lot of tax (GST) in order to get the goods to the Amazon Australia site – below is the example given.
The actual purchase cost of the items we would be sending is about £2000 – in the below scenario would this be the FOB value or is this calculated different? If it is calculated differently could you let me know?
Also this tax amount (in your below example 12824 AUS Dollars), would we be able to claim this back at a later date (like you can do with VAT Duty etc) or is this a cost that is final and we have to incorporate into our margins when sending goods into Amazon AUS?
Would this Goods and services tax also apply if we sent goods from a UK warehouse to Amazon AUS or is it just for China imports?
Thanks
Hi Frederick
I want to buy for my craft some small aluminium bottles, they will be on a box 40cmx40cm x10cm, the total cost is $150 and the shipping is $80 you know how much will I expect to pay for customs declaration?
Thank you
Hello Marian, this will be a function of the duty rate for your specific product!
Hi,
Could anyone recommend a good shipping agent in Australia? I am intending to buy a full container of household good for my new home from China.
hi Fredrick I am looking some inforlations about exporting women colthes from France to Australia. Maybe do you know the ttotal taxes, it concerns cotton, silk and linen items. Thank you
Hello. I need to purchase leather gloves /all price is 1800$/ from China to Australia. Is any any significant cost around Duty? how much cost for customs and duty, I will pay after item arrived in Australia? thanks
Hello,
You need consider the GST of 10% and the import processing charge. We recently published an article about GST that you can find here: https://www.chinaimportal.com/blog/australia-gst-when-importing-from-asia/
Hi Guys,
I was looking at purchasing 10,000 stainless steel ball bearings (2mm each). small bag weighing roughly 500g. Total cost including shipping to Australia is $80. Will this purchase need a customs declaration completed?
Can you see what additional cost will be placed on this item when in Australia?
Also, do I have to arrange postage to my house when it is in Australia? how?
Any help appreciated
Todd
Hi Todd,
1. Total shipping cost to Australia cannot be $80. That’s impossibly low. You probably got quoted a CIF price, that is not showing the full cost.
2. What matters is the volume, not the weight
3. You must also consider the following costs:
– Import duty (Often around 5%)
– GST (10%)
– Import Processing Charge
Hi there
I purchased plantation shutters from China costing $2250 till it reached Sydney port. Item has arrived and my fees to take the item are further $1500 .
This doesn’t seem like a normal legitimate amount. Can you advise further please.
Hi Miaa,
Did you book shipping according to CIF terms? If so, this is to be expected as CIF doesn’t include local charges in the port of destination. We advice everyone to:
a. Not book shipping via the supplier (contact a forwarder directly)
b. Never book according to CIF terms. DAP or DDU only.
Hi Fredrik, Today I was trying to get an estimate for print books from China to Australia. I already have a quote for printing and shipping to Port of Brisbane. I tried Customs and got a long drawn out list of unrelated things. Then I called ATO and they were very busy. So frustrating as I am simply trying to compare apples with apples (printing books here in Australia -v- Hong Kong)
This is the first place I found with any information of value for a simple quote to make a decision.
The only other thing is the cost of transporting the books (goods) from Brisbane Port to my home address in Margate, 4019. That would apply to parcel post or courier services. It all adds up and makes or breaks a deal. You are my Number One Person today for information that is actually useful for someone. Maybe you could become the next Prime Minister? Thanks so much.
Hi Marie,
I doubt that you will save money by using a printing company in China.
Printing is automated. Hence, low cost labor (China’s main competitive advantage) is not enough to offset the extra shipping costs and taxes.
Look for a supplier in Australia instead.
Marie, how did you go on with importing your books? I am looking to do that in the next week – just trying to firm up some import cost figures. I live in Sandgate, so very similar situation.
What are you thoughts on anti-dumping duties being considered for Grinding Media from China by the Australian government?
Hi Calisto,
Wasn’t aware of that. Do you have a link to share on this subject?
See the notice here: