UNDERSTANDING CUSTOMS BROKER CLEARANCE CHARGES AND AUSTRALIAN CUSTOMS CHARGES.
Because this can all get a little confusing, let’s first of all try and understand how import charges are structured.
Customs Charges (including import GST) are levied by Australia Customs (Dept of Immigration and Border Protection). A Customs Broker Clearance Charge of $75.00 + GST is e-Customs’ only fee for lodging your clearance application with Australian Customs. Customs charges are required to be paid before Australian Customs will release your items for delivery.
In summary you will be charged import GST and/or customs duty if your goods are either valued at over AUD $1,000 or contain alcohol or tobacco in any quantity or value.
In order for you to calculate your customs duty exposure, you will need to multiple the duty rate (i.e. 5%) by the Customs Value (CVAL) of the goods. The CVAL is generally the Free on Board (FOB) value in its Australian dollar equivalent. For example:
FOB CVAL = A$1,000
Duty rate = 5%
Customs Duty = A$50
GST is calculated at 10% of the Value of the Taxable Importation (VOTI) which includes the addition of customs duty, international freight and insurance (T&I) and the Customs Value (CVAL) of the goods in its Australian dollar equivalent. For example:
FOB CVAL= A$1,000
T&I = A$25
Duty = A$50
VOTI = A$1,075
GST = $107.50
As a result, using the above example the combined customs duty and import GST exposure would thus amount to A$157.50. Consequently, the complete amount payable is calculated as follows;
Customs Duty + GST = $157.50
Customs Entry Fee = $50
e-Customs Clearance Fee = $75
Total cost = $282.50
It’s especially relevant to be aware that the Australian Government has just recently advised that from July 2018, GST will probably apply to all ‘low value’ imports entering Australia, that is, goods valued at less than AUD$1000.00. It’s most noteworthy however that this date may again be delayed.
Are you ready to start? Please complete our Clearance Form and we’ll get moving on getting your goods to you.
*Any calculations made are estimates only, the duty and GST amounts will be provided by e-Customs as customs broker once all documentation and associated information has been provided to enable calculation.