Tilde Publishing and DistributionISBN: 978-0-7346-0817-8

Import/ExportMapping International Trade for

Australian Business

Customs

Customs

• One of the major roles of the Australian Customs and Border Protection Service is to monitor and control the legitimate movement of goods across Australia’s borders.

• A customs broker is an individual or organisation that is licensed by the government who acts as an agent for an importer or exporter performing many of the functions required for compliance with customs regulations and procedures.

Customs

• In Australia you do not need to hold an import licence in order to import goods of a general nature.

• Prohibited goods cannot be imported under any circumstances.

• For restricted goods, importers will need to secure permission from the relevant department or agency (permit issuing agency – PIA) before proceeding with the import.

Customs

• All imports exceeding the value of A$1,000 per consignment must be formally notified to Customs via the lodgement of a customs import entry.

• Apart from a few exceptions, e.g. alcohol and tobacco products, generally import duty and GST is not payable on imported goods valued at A$1,000 or less.

Customs

• Information supplied to Customs for the release of imported goods and the determination of import duty, GST and other taxes payable falls into three broad categories: – the nature of the goods, – the value of the goods, – the origin of the goods.

Customs

• Under Tariff Concession System (TCS) an importer may be granted a Tariff Concession Order (TCO) for a specific item if it can be demonstrated that no ‘substitutable goods’ are manufactured in Australia in the ordinary course of business

• The Australian Customs and Border Protection Service also operates a system that allows importers duty free entry of genuine handmade goods into Australia.

Customs

• Dumping is the term used to describe the practice of selling goods in an export market at a price lower than the price of the same goods in the domestic market. Remedial action may be taken by imposing a dumping duty.

• A subsidy is any form of direct or indirect financial assistance provided by a government that benefits an exporter. remedial action may be taken by imposing a countervailing duty.

Customs

• Licensed customs brokers are linked directly to Customs via the Customs electronic data interchange system known as the Integrated Cargo System (ICS) and lodge import entries electronically.

• The electronic lodgement system in conjunction with the self-assessment procedure ensures virtually instantaneous customs release of imported goods in most cases.

• In some cases customs may decide to examine cargo

Customs

• There is usually no requirement for import documents to be submitted to customs. However, you must retain documents for a minimum period of five years from the date of the customs entry.

Customs

• The majority of goods imported into Australia either attract a duty rate of zero or five percent.

• Exceptions apply mainly to passenger motor vehicles and related items, textile clothing and footwear and related items and excisable goods such as alcohol and tobacco.

CustomsCalculating import duty

Customs

• The indirect tax that applies the most to importers is the Goods and Services Tax (GST)

• The other two taxes that may apply are the Wine Equalisation Tax (WET) and the Luxury Car Tax (LCT).

Customs

Calculating GST

Customs

• An ATA carnet provides a simplified process for the temporary admission of a wide variety of goods and is the document most widely used by business for this purpose.

• Applications for ATA carnets are made via a local chamber of commerce.

Customs

• Importers must ensure that where required, goods imported for commercial purposes are adequately and accurately labelled, and include the name of the country where the goods were made and a true description of those goods.

• If detected at the time of importation, Customs can seize imported goods that infringe trademarks, copyrights or Olympic insignia, but only if the owner or authorised licensee lodges a formal objection.

Customs

• Exporters must lodge an export declaration to Customs in the following circumstances:– where the value of the export consignment is

greater than A$2,000 except for exempt goods;– where there is a requirement for a permit to be

issued by a Permit Issuing Agency;– where the exported goods will be the subject of a

duty drawback claim; and– where duty and excise has not yet been paid on

goods where duty and excise is payable.

Customs

• The Australian Customs and Border Protection Service operates a scheme known as the Duty Drawback Scheme that enables exporters to obtain a refund of customs duty paid on imported goods when these goods are subsequently exported.

• A certificate of origin (C/O) is a document issued by a government authority or another authorised body certifying that the goods identified conform to the rules of origin for a particular country.