RCEP Market

Overview of Procedures for importing goods into Australia

General processes and procedures for importing into Australia are detailed on the Australian Border Force website at the following link: https://www.abf.gov.au/importing-exporting-and-manufacturing/importing/how-to-import/requirements

According to Australian regulations, the import of foreign goods into the Australian market is carried out according to the following basic steps:

Step 1: Determining the import category/import conditions of goods

Not all goods are allowed to be imported into Australia and not all imported goods are subject to the same import regime. Similar to Vietnam and other countries in the world, Australia also sets out regulations on import prohibitions/import restrictions or specific controls for certain goods. Therefore, before importing goods into the Australian market, importers need to carefully consider whether the goods are allowed to be imported into Australia or not and, if so, what are the import conditions/requirements for those imported goods.

Detail of Step 1 at: https://wtocenter.vn/rcep-market/26591-determining-the-import-categoryimport-conditions-of-goods-into-australia

Step 2: Determining the classification of goods

Determining the classification (HS) for goods is a very important step in determining the applicable tariffs on those goods. According to the World Customs Organization (WCO), member countries will use a unified HS code up to the first 6 digits, while the subsequent digits in the HS code are under the sole discretion of each country, so these numbers may differ between countries.

For imports, Australia currently applies a detailed 10-digit HS system under the Combined Australia Customs Tariff Nomenclature and Statistical Classification (Working Tariff). Of which, the first 8 digits of the HS code are used for import duty purposes, while the 9th and 10th digits are used for trade statistics purposes. Vietnam is currently applying the 8-digit HS system according to the ASEAN Harmonized Tariff Nomenclature, which is different from the HS code used by Australia. Therefore, to import goods into Australia, businesses need to pay attention to determining the HS code according to the Australian HS system (not according to the Vietnamese HS system).

Detail of Step 2 at: https://wtocenter.vn/rcep-market/26590-determining-the-classification-of-goods-imported-into-australia

Step 3: Determining tariffs, duties and fees

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
  • ASTP tariff
  • AANZFTA tariff
  • CPTPP tariff
  • RCEP 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
  • Excise duty
  • Wine Equalisation Tax - WET
  • Luxury Car Tax – LCT
  • Anti-dumping, anti-subsidy, and safeguard duties

Import fees

  • Import Processing Charge​s – IPC
  • Biosecurity cost recovery charges

Detail of Step 3 at: https://wtocenter.vn/rcep-market/26589-determining-tariffs-duties-and-fees-of-imported-goods-into-australia

Step 4: Import declaration, payment of tariffs, taxes and customs clearance

All goods imported into Australia must be declared to the Australian Border Force (ABF).  

Import declarations can be made in one of three ways depending on the value of the consignment and the importer's purpose:

  • Import Declarations - N10;
  • Self-Assessed Clearance (SAC) Declaration); or
  • Warehouse Declarations - N20

Regarding customs clearance, after the importer has submitted all documents/completed customs procedures and fulfilled all tax and fee obligations, the Australian Border Force (ABF) will review the shipment for customs clearance and release the goods.

Detail of Step 4 at: https://wtocenter.vn/rcep-market/26588-import-declaration-payment-of-tariffs-taxes-and-customs-clearance

Source: Center for WTO and International Trade

More stories