Once a Customs Broker has correctly classified your goods, the applicable tariff determines the amount of duty payable. Most goods imported into Australia attract a 5% duty rate, which is calculated on the Customs Value of the goods. Understanding Duty Calculation is essential for ensuring compliance with import regulations.
The Customs Value is typically determined using the FOB (Free on Board) value of the goods (see the Incoterms® explanation above). Duty rates vary according to the applicable tariff classification. While some goods are duty-free, others attract higher rates — such as 10% for items like clothing — and certain products are subject to specific duties, which are calculated as a fixed amount per unit or quantity rather than a percentage of value. Understanding Duty Calculation helps in forecasting potential costs.
In addition to standard import duty, other charges may apply, including wood levy on timber products and anti-dumping duties where relevant. GST is calculated as 10% of = CIF price + Duty + Dumping Duty + Wood Levy + WET + LCT. Familiarity with Understanding Duty Calculation is beneficial for effective financial planning.
