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Taxes and duties

All imported goods come under the control of Customs when they arrive in Australia.

Provided the value is below $1,000 - and there are no tobacco or alcohol products - goods can be imported duty and tax free. This includes multiple low-value items if the total value is no more than $1,000.

Goods worth more than $1,000 require a customs import declaration. In this case the importer has to pay:
  • duty at a rate that depends on the type of product
  • tax - usually at 10%
  • a customs import processing fee (PDF 41KB).

Valuation

Customs uses several methods of valuing imported goods. The most common is transaction value, which is based on the price paid.

Valuation can be complex so importers are urged to seek advice from a customs broker or contact Customs direct.

Tariff concession system

Relief from customs duty is sometimes possible. Under the tariff concession system (PDF 38KB) some goods that are not produced in Australia can be imported duty free.

Duty drawback

Any duty paid on imported goods that are sold back overseas or used in products destined for export can be claimed back from Customs. The duty drawback refund must be claimed within four years of the goods being exported.

Tradex

Tradex is an alternative to duty drawback. It exempts companies from paying customs duty or GST on imported goods if the intention is to export them later. The goods may be exported:
  • in the same condition as they were when imported
  • after they have been processed or treated in some way
  • after being incorporated into other goods, which are then exported.

Generally, the goods must be exported within 12 months of being imported.


More information

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