How to Clear Customs for Imports in Australia

Going through customs imports and getting goods through customs clearance is a critical part of international trade for Australian businesses. In 2023, the Australian Bureau of Statistics reported that the country’s total imports rose by 2.6 per cent, reaching a value of $526.77 billion. 

To prevent possible traps like delays, fines, and unanticipated expenses, it is essential to understand the customs importation process. Mistakes can interrupt supply chains and negatively affect business operations.

This article provides a useful guide for Australian small-to-medium importers and e-commerce businesses unfamiliar with customs regulations.

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Common Issues with Customs

Mistakes in customs imports can cause delays, extra costs, or penalties. Here are the common issues a business can encounter when dealing with customs: 

• Inaccurate or insufficient documents – Missing invoices or undervalued declarations can slow down customs clearance.
• Biosecurity regulations – Some goods require special permits or inspections. Non-compliance may lead to delays, destruction of goods, or return shipments at the importer’s expense.
• Unexpected duty and tax liabilities – Overlooking Free Trade Agreements or tariff concessions can result in unexpected costs.
• Delayed payments for high-value or frequent shipments – Clearance bottlenecks can occur if duties and taxes aren’t paid on time. A customs bond can help by guaranteeing payments for faster release.
• Unverified suppliers or freight forwarders – Working with unreliable partners can cause compliance issues. Sourcing from reputable suppliers helps prevent costly disruptions.

A Guide to Clearing Customs Imports in Australia

Importing goods into Australia involves several key steps, from checking restrictions to paying duties and obtaining customs clearance. 

This guide breaks down the essential steps to help businesses navigate the customs import process smoothly, ensuring compliance with Australian regulations.

Step 1: Check Import Restrictions

Before importing goods, ensure they comply with Australian regulations. Some items, such as lithium batteries, are considered “dangerous goods” and are prohibited or restricted. As a result, they may require permits.

Before planning your imports, check the Australian Border Force (ABF) for their list of restricted goods and the Department of Agriculture, Fisheries and Forestry’s website for biosecurity requirements.

Step 2: Get an ABN & Register for GST

You need an Australian Business Number (ABN) if you're importing goods for business purposes. An ABN is an 11-digit identifier required for local businesses to interact with government agencies, including for customs imports. It is essential for importing goods, registering for GST, claiming tax credits, and complying with customs regulations.

You will also need to register for a Goods and Services Tax (GST). A GST  is a 10% tax applied to most goods and services sold or consumed in Australia, including imports. When importing goods, GST is calculated on the customs value, which includes the cost of the goods, shipping, and insurance. Businesses registered for GST can typically claim it back as a credit when lodging their Business Activity Statement (BAS). 

Step 3: Classify Your Goods & Calculate Costs

Every imported product must be classified with the correct tariff code, which determines the applicable customs duties and taxes. Incorrect classification can result in overpaying duties or facing penalties. The ABF provides a Tariff Advice System where importers can request an early decision on future imports of specific goods.

Import costs typically include:

• Customs duties – Varies based on the product and country of origin
• GST (10%) – Applied to the customs value (cost of goods + shipping + insurance)
• Import Processing Charges (IPC) – A fee for processing the import declaration

Businesses can reduce or eliminate customs duties by taking advantage of Free Trade Agreements (FTAs). Check if your goods qualify under an FTA to minimise import costs.

Step 4: Lodge an Import Declaration

Importers must lodge an Import Declaration through the government’s Integrated Cargo System (ICS) for goods over 1,000 AUD. Smaller shipments, which are those under 1,000 AUD, may need a Self-Assessed Clearance (SAC). Required documents usually include:

• Invoice and packing list
• Bill of lading or air waybill
• Permits (if applicable)

Step 5: Pay Duties & Taxes

Before your goods are released, you must pay customs duties, GST, and any other applicable charges. Payments can be made through the ICS portal or via your customs broker.

Step 6: Work with a Customs Broker

Navigating customs regulations can be complex, especially for new importers. A licensed customs broker can simplify the process by ensuring your goods are correctly classified, handling paperwork, and avoiding costly errors or delays. Brokers also help with tariff concessions, duty refunds, and navigating Free Trade Agreements (FTAs). 

While not mandatory, using a broker like Courier & Freight’s Customs Clearance Services can save time and reduce compliance risks. 

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Step 7: Receive Your Goods

Your goods can be delivered as soon as duties, taxes, and customs clearance are finalised. If your shipment is flagged for inspection, customs may request additional documents or conduct physical checks.

Tips for Smooth Customs Imports

Successfully managing customs imports in Australia goes beyond just following the basic steps. A proactive approach can save businesses time, money, and unnecessary complications. 

One of the most effective ways to ensure a smooth process is by staying updated on import regulations, as requirements can change depending on government policies and trade agreements. 

For those new to the imports-exports business, working with an experienced customs broker can significantly reduce the risk of errors. While hiring a broker comes at a cost, the savings in time and potential penalties often outweigh the expense.

Understanding the role of a customs bond is also beneficial for businesses importing goods regularly. A customs bond acts as a financial guarantee that import duties and taxes will be paid, helping to expedite the customs clearance process. 

Another key aspect of seamless importing is making sure all paperwork is accurate and complete before shipments arrive. Keeping detailed records of previous imports can also help businesses anticipate potential issues and refine their processes for future shipments.

Companies should strategically manage their supply chain by utilising freight management software, planning for delays, and understanding the requirements for warehousing. A carefully thought-out strategy guarantees seamless, reasonably priced importation with few interruptions.

Provide Your Company with Easy Customs Imports

Successfully managing customs imports in Australia requires careful planning, accurate documentation, and compliance with regulations. A proactive approach not only reduces risks but also keeps the supply chain efficient, allowing importers to focus on growing their operations. Visit our Customs Clearance Services page to get started.

Streamline Your Australian Imports

Avoid costly delays and minimise compliance risks. Let Couriers & Freight help you clear customs with ease.

Get a Quote Now