Importing goods into Australia takes eight steps, from checking the rules to delivery at your door. In between, you agree terms with your supplier, book freight, clear customs, pay any duty and GST, and pass biosecurity. The Australian Border Force (ABF) encourages first-time importers to use a licensed customs broker for the clearance.
Importing goods into Australia in eight steps
Use this checklist for your first shipment.
| Step | What happens | Who usually helps |
|---|---|---|
| 1. Check the rules | Confirm the goods are allowed and whether permits apply | ABF and BICON |
| 2. Agree Incoterms | Decide who pays freight, insurance and duty | You and your supplier |
| 3. Book freight | Air, or sea in a full or shared container | Freight forwarder |
| 4. Gather documents | Invoice, packing list, transport document, permits | Supplier and forwarder |
| 5. Clear customs | Lodge the right declaration for the value | Licensed customs broker |
| 6. Pay duty and GST | Pay before the goods are released | You, through your broker |
| 7. Biosecurity | Documents assessed, possible inspection | DAFF |
| 8. Delivery | Port or airport to your premises | Local freight carrier |
Step 1: Check whether your goods are allowed in
Do this before you pay a deposit. The ABF says most prohibited goods can be imported with written permission if you meet set conditions. Others are banned outright. If prohibited goods arrive without permission, the ABF may seize them and penalties can apply.
Biosecurity is a separate check. The Department of Agriculture, Fisheries and Forestry (DAFF) runs the Biosecurity Import Conditions system (BICON). Search it for your product to see whether it:
- is permitted at all
- has import conditions or needs treatment
- needs supporting documents or a biosecurity import permit
Apply for permits early. DAFF says most are issued within 20 business days for standard applications. Non-standard ones can take 40 business days.
Steps 2 and 3: Agree Incoterms and choose your freight
Incoterms are trade terms published by the International Chamber of Commerce (ICC). The current edition, Incoterms 2020, has 11 rules. Each sets out who pays for each stage of the trip and when risk passes to the buyer. Four common ones:
- EXW (Ex Works): the supplier makes the goods available at its premises. You handle everything after that, including export clearance.
- FOB (Free On Board): the supplier clears export and loads the goods on the ship. Risk passes to you once they are on board.
- CIF (Cost, Insurance and Freight): the supplier also pays sea freight and insurance to Australia. Risk still passes to you once the goods are on board.
- DDP (Delivered Duty Paid): the supplier delivers to the agreed place and handles import clearance. It is the only rule where the seller pays import duties and taxes.
FOB and CIF are for sea and inland waterway transport only. For containerised goods, the ICC suggests FCA (Free Carrier) is usually a better fit. Write the rule, the named place and “Incoterms 2020” on your purchase order.
Air or sea freight?
Air freight is generally faster and suits small, urgent or high-value orders. Sea freight usually costs less for heavy or bulky goods. By sea you can book:
- FCL (full container load): a container used only for your goods.
- LCL (less than container load): your pallets share a container with other shippers’ cargo.
For FCL and LCL cargo, the container packer must complete a packing declaration for DAFF. Air freight does not need one.
Steps 4 and 5: Documents and customs clearance
Your broker will ask for these documents:
- Commercial invoice: buyer, seller, goods description, quantity, price and Incoterm.
- Packing list: what is in each carton or pallet, with weights and dimensions.
- Bill of lading or air waybill: the carrier’s transport document for sea or air.
- Permits and certificates: anything BICON or another agency requires.
Once an import declaration is made, the ABF requires you to keep all relevant documents for five years.
The consignment’s value decides which declaration you need, as set out by the Australian Border Force (ABF):
- Over AUD 1,000: a full Import Declaration (N10). All duties, taxes and charges, including an import processing charge, must be paid before release.
- AUD 1,000 or less by air or sea cargo: a Self-Assessed Clearance (SAC) declaration. The cargo reporter lodges most of these, but check with your carrier.
Goods that need a permit must go on an N10 or a long format SAC. The ABF cannot complete the declaration for you, so a broker is worth using for a first import.
Step 6: Customs duty, GST and low-value goods
Customs duty depends on the tariff classification of your goods. Goods that meet the rules of origin under a trade agreement may get a lower preferential rate. Your broker classifies the goods and works out what is owed.
GST on imports is 10% of the value of the taxable importation. That value is the customs value plus duty, international transport and insurance, and any wine tax. The Australian Taxation Office (ATO) publishes detailed guidance on GST and imported goods.
Worked example: your goods have a customs value of AUD 8,000. Freight and insurance to Australia cost AUD 1,200. If the duty rate were 5%, duty would be AUD 400. GST would be 10% of AUD 9,600, which is AUD 960. The duty rate is assumed.
GST-registered businesses can usually claim a GST credit for GST paid on imports. Eligible importers can also apply to defer GST to their next activity statement.
Goods worth AUD 1,000 or less
Low-value consignments have no duty or GST to pay at the border, except alcohol and tobacco. Overseas suppliers may charge GST at the point of sale instead. If you are GST-registered, give the supplier your ABN and confirm your registration, and you should not be charged.
Steps 7 and 8: Biosecurity checks and delivery
DAFF assesses your documents for biosecurity risk and can direct goods for inspection or treatment. It also runs random surveillance on all cargo types. Timber packaging that fails is sent for treatment, export or destruction at the importer’s expense.
ISPM 15 for pallets and crates
Solid timber pallets, crates and dunnage must meet ISPM 15, the international standard for wood packaging. An alternative treatment listed in BICON is also accepted. ISPM 15 timber is treated by a certified provider and stamped with a mark showing:
- the IPPC symbol
- a two-letter code for the country of treatment
- a unique certification number
- a treatment code, such as HT (heat treatment) or MB (methyl bromide)
Packaging made wholly of processed wood, such as plywood, is exempt from ISPM 15. It must still be free of bark and soil. Ask your supplier to confirm the packaging before they pack.
From the port or airport to your door
Once released, sea freight is collected from the container terminal and air freight from the airport cargo terminal. LCL goods are usually unpacked at a depot, then delivered as cartons or pallets. Terminals and depots may charge storage if goods sit too long, so book delivery early.
Check your site first. Can a truck get in, and do you have a forklift or loading dock? If you will send pallets on to customers, read how to prepare pallets for freight.
How PBR Express Logistics can help
Our International Freight service arranges air and sea freight with carrier partners. A licensed customs broker lodges the Australian customs clearance, and we deliver within Australia by road freight. Our Warehousing & Fulfilment service can store your pallets and cartons, then pick, pack and dispatch orders. Every job is quoted first, so request a freight quote with your shipment details and route.
FAQs
Do I need a customs broker to import goods into Australia?
It is not compulsory, but the ABF encourages first-time and infrequent importers to use a licensed customs broker. The ABF cannot complete a declaration for you, and underpaying duty or tax can lead to penalties.
Do I pay GST on imports worth AUD 1,000 or less?
Not at the border, apart from alcohol and tobacco. A GST-registered business that gives the supplier its ABN and confirms its registration should not be charged GST. If your business is not registered for GST, expect GST on the purchase itself.
Can my supplier use wooden pallets?
Yes, if solid timber pallets meet ISPM 15 or an alternative treatment listed in BICON. Look for the ISPM 15 mark. Pallets made wholly of processed wood, such as plywood, are exempt.
