Import duty & taxes when importing into Australia

Overview
Import duty and taxes are due when importing goods into Australia whether by a
private individual or a commercial entity. The valuation method is FOB (Free on
Board), which means that the import duty payable is calculated exclusively on the
value of the imported goods. In addition to duty, imports are subject to other taxes
and charges such as sales tax (GST) and Customs Service Fee.
Duty Rates
Duty rates in Australia vary from 0% to 10%, with an average duty rate of 4.6%.
Some goods are not subject to duty (e.g. laptops and other electronic products).
Sales Tax
GST applies to most imported goods, with a few exemptions. The main exemptions
are for certain foodstuffs, some medical aids and imports that qualify for certain
duty concessions. GST is applied at 10% of the Value of the Taxable Importation
(VoTI), which is the sum of the customs value (CV), any duty payable, the cost of
freight and insurance, and any Wine Equalisation Tax (if applicable).
Minimum thresholds
Imports with a FOB value, i.e. product value excluding shipping and insurance cost,
up to AU$ 1000 are exempt from duty, GST and Import Processing Charge.
Other taxes and customs fees

Import Processing Charge is applicable on all imports where the goods'

value is higher than AU$1,000. The amount depends on the mode of entry
and the type of import declaration. The charges are as follows:
For imports with a FOB value between A$1,000 and 10,000:
- By air, sea or post and an electronic import declaration - A$50.00
- By air, sea or post and a documentary import declaration - A$90.00
For imports with a FOB value greater than A$10,000:
- By air or post and an electronic/documentary import declaration - A$152.00
- By sea and an electronic/documentary import declaration - A$192.00

Wine Equalisation Tax (WET) is a 29% levy on wines and other alcoholic
beverages.

Luxury Car Tax (LCT) is a 33% levy on certain motor vehicles with a value
above a specified threshold.

Local Customs office and contacts

More information on import declaration procedures and import restrictions can be

found atAustralian Customs and Border Protection Service.
Australia
LABELING REQUIREMENTS
Food Standards Australia New Zealand (FSANZ) administers the Australia New
Zealand Food Standards Code (ANZFSC), which provides the labeling requirements
for foods and beverages. Standard 2.7.1 of the Standards Code provides labeling
requirements specifically in regards to alcoholic beverages and food containing
alcohol. Standards 2.7.2, 2.7.3, 2.7.4, and 2.7.5 provide specific compositional
requirements and related information for beer, fruit wine and vegetable wine, wine
and wine product, and spirits; respectively. You may access these and the complete
Food Standards Code at:http://www.foodstandards.gov.au/code/Pages/default.aspx.
According to the Food Standards Code, information contained on a label must be
written or set out legibly and prominently (i.e. in contrast to the background), and in
the English language. If a language other than English is used in addition to the
English language on a label, the information in that language must not "negate or
contradict the information on the label in the English language" (see Standard
1.2.9 for Legibility Requirements).
Below are general requirements for alcoholic beverage labels:

Name of beverage type (i.e. wine, beer)

Name of product (i.e. ABC Beer)

Name and business address of the importer and/or manufacturer

Ingredient listing (only for products not standardized in Standards 2.7.2 to

2.7.5 of the Food Standards Code)

Declaration of alcohol by volume (alcohol content)

Net content - must appear on the front label and be a min. of 3.3mm high

Standard drink labeling (the approximate number of standard drinks in a

package please see Standard 2.7.1 for more information)

Country of origin (a statement on the package that identifies where the

food was made or produced, i.e. Product of U.S.A.)

Lot identification

Use-by date (if applicable)

Australian food law does not permit the use of health or therapeutic
claims on food/beverage labels.
Please note that an alcoholic beverage which contains more than 1.15 % alcohol by
volume must not be represented as a low alcohol beverage. Also, the label on a

package of a beverage containing more than 0.5 % alcohol by volume must not
include the words non-intoxicating or similar terms.
Food containing alcohol must not be "represented in a form which expressly or by
implication suggests that the product is a non-alcoholic confection or non-alcoholic
beverage."
Allergen Labeling for Wine:
Where there are added sulfites in concentrations of 10mg/kg or more, allergens
labeling requirements are met by claiming contains sulphites [please note the
Australian-English spelling], without necessarily having to name the actual sulfites
used.
Also included should be any other prescribed allergenic substances contained in the
product (i.e. egg, milk, fish, nuts, etc.)
GM (Genetically Modified) Food Labeling:
According to Standard 1.5.2 of the Food Standards Code, genetically modified food
is defined as food that "is, or contains as an ingredient, including a processing aid, a
food produced using gene technology which
(a)
(b)

contains novel DNA and/or novel protein; or

has altered characteristics;

but does not include

(c) highly refined food, other than that with altered characteristics, where the
effect of the refining process is to remove novel DNA and/or novel protein;
(d) a processing aid or food additive, except where novel DNA and/or novel protein
from the processing aid or food additive remains present in the food to which it has
been added;
(e) flavours present in the food in a concentration no more than 1g/kg; or
(f)
a food, ingredient, or processing aid in which genetically modified food is
unintentionally present in a quantity of no more than 10g/kg per ingredient."
The label on a package of genetically modified food must include the statement
genetically modified in conjunction with the name of that food or ingredient or
processing aid.
Please refer to Standard 1.5.2 of the Code for more information on labeling
requirements for food produced using gene technology.

OENOLOGICAL PRACTICES (WINEMAKING STANDARDS)

Generally, imported wine only has to meet manufacturing standards under Standard
2.7.4 of the Food Standards Code, but not 4.5.1 (which specifies wine production
standards for Australian producers). Standard 2.7.4 sets general definitions for wine

and wine product and provides permissions for the addition of certain foods during
the production of wine.
The U.S. and Australia are signatories to the Mutual Acceptance Agreement on
Oenological Practices, which recognizes differences in countries winemaking
practices. Through this Agreement, signatory countries (U.S., Argentina, Australia,
Canada, Chile, and New Zealand) accept that wine made in another signatory
country should be allowed to be sold in its market, despite the differences in
oenological practices. The Agreement, however, doesnot apply to variances in
labeling regulations; therefore, U.S. exporters are still required to verify their labels
are in accordance with the Australian Food Standards Code and other regulations
(refer to the Labeling Requirements section for more information).

REQUIRED DOCUMENTS
The following is a list of the documents that may requested by Customs in order for
the imported product to be released. Please contact a Customs broker or the
Australian Customs Service (refer to the Contacts section for specific contact
information) for further details on these and other documents that may be required
upon importation into Australia.

Airway bill (AWB) or bill of lading

Invoice

Packing list

Insurance documents

Any other documents that are related to the shipment

LICENSING
The Australian Customs Service does not require importers to hold any import
licenses. However, licenses are required for those planning to retail or wholesale
wine. Contact the Liquor Licensing Department in the Australian state/territory in
which you plan to conduct business in for more information. Also, visit the
Australian "Business Licence Information" website at http://www.bli.net.au/.

IMPORT PROCEDURES

Imported food must comply with all aspects of the Australia New Zealand Food
Standards Code (ANZFSC) at the point of entry into Australia. The Australian
Quarantine and Inspection Service performs random inspections on imported foods.
All goods imported into Australia must be cleared by Customs and importers are
responsible for obtaining a formal Customs clearance for consignments of goods.
All consignments that are over $1,000 in value must be entered via an
"Import Declaration", which can be transmitted to Customs electronically, through
the Intergrated Cargo System (ICS), or by a physical document Customs form
B650 - Import Declaration (N10). Import declarations are subject to entry processing
fees; the cost will depend on whether the declaration is electronic or through the
physical document.
It is suggested that first time or infrequent importers obtain the services of a
customs broker who, in addition to completing the Import Declaration, can
undertake a number of tasks associated with the import process on the importer's
behalf. As a result of their online connection to Customs computer systems, brokers
have access to lower processing fees, although they will charge for the services that
they provide.
If you wish to clear the goods yourself, Customs will provide assistance to first time
importers in the clearance of their goods. The minimum documentation required is
an invoice, bill of lading/airway bill and any other papers such as packing list,
insurance documents, etc. relating to the shipment. The Documentary Import
Declaration Comprehensive Guide provides detailed information, advice and
examples on how to complete an "Import Declaration" (Customs Form B650).
Where goods are being imported by air or sea and the total value of the
consignment is $1,000 or less the goods must be cleared via a Self Assessed
Clearance (SAC) declaration. A SAC declaration is not required for goods imported
by mail/postal service.
Duties and GST are also applicable to SAC declarations, which must be reported
electronically. A guide to SAC declarations may be found
here:http://www.customs.gov.au/webdata/resources/files/self_assessed_clearance_d
eclarations.pdf.
Imported Food Inspection Scheme:
Import clearance of foods is the responsibility of Australian Quarantine and
Inspection Service (AQIS) and is coordinated under the Imported Food Inspection
Scheme (IFIS).
A basic description of the steps required for clearance through the Imported Food
Inspection Scheme is below.

Broker Prepares Entry

Broker Submits Entry to COMPILE (Australian Customs Services system).

Entry processed and activated profiles identify lines and make them active for
either food or quarantine.

Broker alerted by COMPILE that lines in entry require imported food or

quarantine clearance. The entry must now be submitted to AQIS.

Broker submits entry to AQIS

Entry received by AQIS Import Management System (AIMS) and runs through
Food & Quarantine rulers. Food directions and tests are applied by AIMS to
lines activated by food profiles.

Entry manually processed by an AQIS officer (see additional information in full

document)

Broker/Freight forwarder or importer books an imported food inspection with

AQIS.

Inspection Outcomes food enters further processes for risk or surveillance

food as necessary (see additional information in full document).

8a. Post inspection (AQIS Office)

Imported food inspection takes place - Inspector assesses label, conducts

visual exam of product; draws samples if required; issues Imported Food
Inspection Report; enters details into AIMS, etc.

TAXES/TARIFFS
Customs duty rates vary depending on various factors. For specific information,
please contact the Australian Customs Service.
Other than direct taxes, imported goods might be subject to indirect taxes. These
taxes include the Goods and Service Tax (GST) and the Wine Equalization Tax (WET).
The GST applies to most goods. However, importers who are registered for GST
might be able to defer the payment on imported goods by participating in the
Deferred GST Scheme. Importers can apply to defer GST through the Australian
Taxation Office (ATO) at 1-300-130-915 or by emailing
at information@customs.gov.au.
The WET applies to grape wine which includes sparkling and fortified wines, grape
wine products (including marsala, vermouth, wine cocktails and creams), and other
fruit and vegetable wines.
For the most current tariffs and taxes applied to imported products for this country,
please visit the Online Tariff Database provided by Tariffic. Please ensure you
have a 10-digit HS classification code in order to obtain tariff information. Also see
the Census Bureaus Schedule B search function (http://www.census.gov/foreigntrade/schedules/b/index.html), which allows you to classify your product according
to United States export codes. Simply click "Search" and enter the keyword (i.e.
beer) that best describes your product.

MARKETING SAMPLES
The amount of food that may be imported as trade samples (i.e. scientific or
commercial evaluation) varies depending on the form of the food. Foods in liquid
form (i.e. beverages) have a limit of up to 20 liters.

ADVERTISING
The advertising of a product must align with labeling standards. Anything required
on a label must also appear on the advertisement; anything prohibited on a label is
also prohibited in an advertisement.
Words such as polyunsaturated, pure, natural, organic, low alcohol, non
alcoholic, health and vitamin enriched, etc are restricted and any picture of the
product should not provide a misleading impression of the product.
For further information, visit the FSANZ website at:
http://www.foodstandards.gov.au

CONTACTS
Imported Food Inspection Scheme
Australian Quarantine &
Inspection Service
GPO Box 858
CANBERRA ACT 2601
Australia
Tel: (61-2) 6272-5515
Fax: (61-2) 6272-5888
E-mail: foodimp@aqis.gov.au

Australian Taxation Office

GPO Box 9990
Canberra ACT 2601
Australia
Tel: (61-2) 6216-1111
Fax: (61-2) 6216-2830
Website: http://www.ato.gov.au

Office of Agricultural Affairs, U.S.

Embassy, Canberra
Mailing Address:
Agricultural Counselor
American Embassy Canberra
PSC 277
APO AP 96549
Tel: (011-61-2) 6214 5854
Fax: (011-61-2) 6273 1656

Customs Brokers and Forwarders

Council of Australia
P.O. Box 303
Hamilton QLD 4007
Australia
Tel: 07-3252-1348
Fax: 07-3252-1159
Email: info@cbfca.com.au

Email: agcanberra@usda.gov

Web: http://www.cbfca.com.au

Food Standards Australia New

Zealand
Boeing House
55 Blackall Street
BARTON ACT 2600
Australia
Tel: (61-2) 6271 2222
Fax: (61 2) 6271 2278
Email: advice@foodstandards.gov.au
Web: http://www.foodstandards.gov.au

Australian Customs Service

Customs Information Center (CIS)
5-11 Constitution Avenue
Canberra ACT 2601
Australia
Tel: +61 2 6275-6666
Fax: +61 2 6275-6999
Email: information@customs.gov.au
Web: http://www.customs.gov.au

Australian Embassy, Washington,

D.C.
1601 Mass. Ave, NW,
Washington D.C., 20036
Tel: (202) 797-3000
Fax: (202) 797-3168
Web: http://www.austemb.org/