RCEP Market

Determining tariffs, duties and fees of imported goods into Australia

Import tariffs

After determining the HS code of the goods according to the Australian HS System, the importer can determine the import tariff rates applicable to those goods. The tariff rate is usually calculated as a percentage of the customs value of the goods.

For Vietnamese goods imported into Australia, businesses currently have 05 tariff options, each option corresponding to a certain tariff rate and conditions for enjoying the tariff rate. Specifically:

  • MFN tariff: This is the tariff rate Australia applies to goods from WTO member countries. This tariff rate is decided by Australia but must ensure compliance with the commitment level in the WTO, applied to goods from WTO countries without any conditions on origin. Vietnam is a WTO member, so Vietnamese goods are naturally entitled to this tariff rate without having to meet any conditions.
  • ASTP tariff: This is the preferential tariff rate that Australia unilaterally grants to a number of developing/underdeveloped countries (including Vietnam) (ASTP is a specific name in Australia, but this type of tariff incentive is usually called GSP - Generalized System of Preferences). The preferential tariff rate and conditions for enjoying ASTP incentives are decided by Australia.
  • AANZFTA tariff: This is the preferential tariff rate Australia grants to goods from members of the ASEAN - Australia/New Zealand Free Trade Agreement (AANZFTA), namely ASEAN countries (including Vietnam) and New Zealand. Preferential tariff rates are determined by Australia but cannot be higher than those committed in AANZFTA. The condition for enjoying AANZFTA tariff is that the goods must meet the AANZFTA Rules of Origin and have an AANZFTA Certificate of Origin.
  • CPTPP tariff: This is the preferential tariff rate Australia offers to goods from members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The preferential tariff rate is determined by Australia but cannot be higher than those committed in CPTPP. To enjoy preferential tariff rates under the CPTPP, goods must ensure that they meet the rules of origin and have a CPTPP Certificate of Origin.
  • RCEP tariff: In RCEP, Australia has only 01 single tariff commitment schedule for goods from all RCEP member countries. The actual RCEP preferential tariff rate will be determined by Australia but cannot be higher than those committed in RCEP. To enjoy preferences under the RCEP Agreement, goods must ensure that they meet the rules of origin and have an RCEP certificate of origin.

In principle, Australian importers are the entities that must pay import duties. However, due to the various import duty options for goods from Vietnam, depending on the specific situation of the goods, Vietnamese enterprises can also use these options to negotiate orders and selling prices with Australian importers.

Businesses can look up import tariff rates into Australia for specific products at the following link: https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff

Other taxes and duties

In addition to import tariffs, goods imported into Australia are also subject to other taxes, such as:

  • Goods and services tax - GST: Most goods imported into Australia are subject to a 10% GST (equivalent to VAT in Vietnam). The GST taxable value is the sum of (i) the customs value of the goods, (ii) import duty and all other taxes payable (if any) (e.g. excise duty, wine duty, luxury car duty, etc.), (iii) insurance and freight charges for the goods to Australia.

Businesses can find out more about Australia's GST at the link below: https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/International-transactions/GST-and-imported-goods/

  • Excise duty: Certain goods imported into Australia are subject to excise duty, including tobacco, alcoholic beverages, and petroleum products. 

Businesses can find out more about Australian excise duties at the link below: https://www.ato.gov.au/Business/Excise-equivalent-goods-(imports)/

Businesses can learn more about WET and how to calculate WET at the link: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/wine-equalisation-tax/products-wet-applies-to 

Businesses can learn more about LCT and how to calculate LCT at the link: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/luxury-car-tax/how-lct-works

  • Anti-dumping, anti-subsidy, and safeguard duties: Certain goods imported into Australia may be subject to anti-dumping, anti-subsidy or safeguard duties under specific trade defence cases in Australia.

Import fees

  • Import Processing Charge​s – IPC: are fees collected when businesses declare imported goods.
  • Biosecurity cost recovery charges: are fees collected to implement measures to manage and minimize the risk of pests, diseases, etc. entering Australia.

Businesses can find out details about the fees applicable to these imported goods at the link: https://www.abf.gov.au/importing-exporting-and-manufacturing/importing/cost-of-importing-goods/charges/import-processing-charge

Note for businesses

Most goods imported into Australia with a value of AUD 1,000 or less will not be subject to any import duties and other related taxes and fees. However, some special goods (such as tobacco, alcoholic beverages, etc.) will be subject to all related taxes and fees regardless of the import value.

Source: Center for WTO and International Trade

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