Here's the info I used.
Written by a LICENCED CUSTOMS BROKER this guide explains (in simple terms) all the Customs & Quarantine requirements for importing into Australia. As most eBay Sellers ship their goods via EMS / Parcel Post, this guide is focused accordingly.
Please Note: eBay guides does not allow external hyperlinks however as they are essential refernces for this guide, we have included them but without the "www" prefix.
GUIDE CONTENTS
Section I - Will my goods get stopped by Customs? What do I do?
Section II - Import Duty / Import GST / Import Tax and Customs Charges
Section III - Do I need a Customs Broker? What do they cost?
Section IV - How do I clear the goods through Customs myself?
Section V - Frequently Asked Customs / Importing Questions.
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Section I - Will my goods get Stopped by Customs? What do I do?
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Customs will stop your goods if they meet ANY of the below criteria.
Have a value over AUD $1,000.
Contain Alcohol or Tobacco of ANY quantity or value.
Contain goods of “Customs Interest” being ANY goods listed on - customs.gov.au/webdata/resources/files/SACThesaurus_050725.pdf
Contain Prohibited Imports listed on - customs.gov.au/site/page4369.asp
If your goods do not meet any of the above criteria then they are not of Customs or Quarantine interest and will be released upon arrival and subsequently delivered to your door without cost.
What to do if your goods are stopped by Customs
In most cases goods purchased on eBay are shipped via EMS (Express Mail Service). Once your goods arrive in Australia you will receive in the mail an “Australia Post Arrival Notice”.
Once you receive this notice you have two options, you can have a Customs Broker clear the goods for you (See Section III) or you can clear the goods yourself (see Section IV).
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Section II - Import Duty / Import GST / Import Tax and Customs Charges
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1) Which goods are subject to Customs Import Duty/GST?
You will be charged Import Duty/GST if your goods meet EITHER of the following:
a) Have a value over AUD $1,000; OR
b) Contain Alcohol or Tobacco of any quantity or value.
If your goods are valued UNDER AUD$1,000 and DO NOT contain Alcohol or Tobacco then you will not be required to pay any Customs Import Duty/GST or associated Customs charges.
2) How is Customs Import Duty / Import GST calculated?
Duty is calculated as a percentage of the price you paid for goods (aka the Customs Value - CV). Depending on the product, the applicable duty rate can be anywhere from 0% to 10%, however the majority of goods attract a 5% duty rate.
GST is calculated at 10% of the Value of the Taxable Import (VoTI). The VoTI is calculated by the addition of the Customs Value (CV) PLUS the Duty PLUS the value of the International Transport and Insurance (T&I).
An example of how the duty and GST is calculated on goods valued at AUD$1,500 which attract a 5% duty rate would be:
If the Customs value (CV) of imported Goods = $1,500.00
Then the Customs Duty @ 5% of the $1,500 (CV) = $75.00 (Payable)
Assuming the international transport and insurance (T&I) = $125.00
Then the VoTI = (CV) + Duty + (T&I) = $1,700.00
GST = 10% of the VoTI = 10% x $1,700 = $170.00 (Payable)
Therefore the Total Duty plus GST payable = $245.00
Please Note: Customs utilises different calculation methods for Alcohol and Tobacco imports. See - auspostcustoms.com.au/faqs.html?more=21#faq109 for full details.
3) How is a Duty Rate Percentage assigned to my goods?
All imported goods are assigned a tariff classification obtained from the Australian Customs Tariff (customs.gov.au/site/page5663.asp) which determines the rate of duty you will pay for that product.
4) Are there any other Customs Charges?
Yes. You will also be charged a Customs Entry Fee of $48.50 if you choose to manually clear the goods yourself, OR $40.20 if you choose to have a Customs Broker electronically clear them for you.
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Section III - Do I need a Customs Broker? What do they cost?
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You are legally permitted to manually clear the goods yourself (see Section IV below) however there are a few points you should be aware of before choosing to do so.
Using a Customs Broker – Pros
Simplicity. They do everything for you, right up until the goods are delivered to your door. All you need to do is provide them with two documents:
A copy of the eBay email you received upon purchase; and
The “Australia Post Arrival Notice” you will receive in the mail when your goods arrive in Australia.
Speed. They can electronically clear your goods immediately instead of waiting the usual 7-10 business days for Customs to process your manually lodged documents.
Savings. They will evaluate your imported goods in accordance with the Customs Tariff (comprising over 13,000 Tariff Classifications and 4,000 Concessions, By-laws, Precedents) to ascertain the lowest possible legal Duty and GST rates applicable to your goods.
Online Lodgement. Some Customs Brokers (like us) even allow you to attach the above mentioned two documents online so you don’t even have to make a phone call. It doesn’t get any easier than that!
Using a Customs Broker – Cons
It will cost you $55 (that’s all we charge at auspostcustoms.com.au). Alternatively you can also look in the yellow pages under Customs Brokers – but be prepared, some brokers will try to charge you up to $225 for the same service.
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Section IV – How do I clear the goods through Customs myself?
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It’s a bit of a long process but if you follow these instructions you can do it yourself and save the $55 Customs Broker charge.
Step 1 – Print and Read the Customs Import Declaration Guide (54 Pages) from customs.gov.au/webdata/resources/files/DocImpDecGuide.pdf
Step 2 – Complete a Client Registration Form B323 from - customs.gov.au/site/page4288.asp and supply a 100 point Evidence of Identity check.
Step 3 – Determine the Customs Tariff Classification for your goods, see - customs.gov.au/site/page5663.asp
Note: If you are unable to ascertain the correct Tariff Classification for your goods you can ask Customs to classify the goods for you (usually within 7-10 days) by completing a Tariff Advice, see - customs.gov.au/webdata/resources/files/ta-guideline.pdf
Step 4 – Complete the 3 Forms at the back of the Customs Import Declaration Guide entitled “Import Declaration (N10)”, “Import Declaration (N10) – Transport Details” and “Import Declaration (N10) – Tariff Details”.
When completing these forms you may also be required to reference the following legislation:
a) Customs Valuation Manual. See - customs.gov.au/webdata/resources/files/Volume_8a___Valuation1.pdf
b) Customs Origin Manual. See - customs.gov.au/webdata/resources/files/manualVol8C_050407.pdf
c) The Customs Act. See - customs.gov.au/webdata/resources/files/CustomsAct1901.pdf
d) Customs Exchange Rates. See - customs.gov.au/site/page4277.asp
e) Other Customs Declaration Manuals. See - customs.gov.au/site/page4289.asp
Step 5 – Fax all complete forms including certified copies of EOI to the relevant fax number listed in the Import Declaration Guide for your state. Wait 5 - 8 business days for customs to process your documents and advise you (usually by mail) if your documentation has been completed correctly (if not you need to amend it and re-submit).
Step 6 – If you completed everything correctly the first time, then Customs will generate an entry for you, calculate the Duty/GST and Customs Charges payable and submit your credit card details to their accounts department for billing. It usually takes a further 2-3 days for the accounts department to process your credit card and release your goods for delivery by Australia Post.
Total Manual Entry Processing Time: Approx 7-10 Business Days.
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Section V – Frequently Asked Customs / Importing Questions
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Why do I need to pay GST?
Is Duty and GST payable on used goods?
My goods were a gift, why should I pay anything?
My goods are only for private use. Do I still need to pay Duty/GST?
How is the Customs Value (CV) calculated?
Who can I call to discuss the calculation of Duty/GST?
The answers to all of the above questions (and more) can be found at auspostcustoms.com.au/faqs.html - If we were to list them all here, this guide would be 10 pages long.
Posted: Tue Sep 06, 2011 2:49 pm
