Import Calculator
When importing goods and products into Australia, you should be prepared to handle essentials like the payment of import duties and taxes. What exactly are they, how much will you have to pay and what are the additional considerations that contribute to the size of import duties? The following import calculator will help you find out the answers.
The Cost of Importing Goods Over $5,000
An import duty calculator is very important as it will give you an idea of the cost of importing goods. All goods imported in Australia are subject to costs, unless they fall under an exemption or a concession.
FOB Value
Imported Goods arriving via air or sea freight with a Free on Board (FOB) Value under AUD $1000.00 are cleared by submitting a SAC (Self-assessment clearance) declaration.
Imported Goods with a FOB Value over $1000.00 AUD must be customs cleared by submitting a manual or electronic customs import declaration and payment of any applicable Duty/Taxes paid.
You may engage a qualified customs broker to lodge a SAC clearance and formal Entry clearance on your behalf for which they will charge a nominal fee.
Once formally engaged by completing and providing a LOA (Letter of authority) the customs agent shall proceed to coordinate the clearance of your imported goods through customs and Quarantine.
It is recommended that you engage a licensed customs agent to lodge the customs Entry on your behalf, as they are well versed in the classification process and can provide advice on any possible available TCO’s (Tariff concessions) and available Free trade agreements that may be applicable to your goods.
How Do I Estimate Customs Duty on Goods over $5,000?
Duty rates are dependent on the commodity and country of origin and if the goods comply with any available free trade agreements or tariff concessions.
Not all goods may be Duty-free under free trade agreements or may only be subject to a reduced rate of Duty.
Specific documentation, such as certificates of origin must also be supplied in order to claim Duty preference under some agreements. A qualified customs agent can guide you on the correct required documentation for customs clearance.
The General Rate of Duty is estimated at 5% X FOB Value of goods (Value converted to AUD at the exchange rate determined by Australian customs).
Customs GST is estimated at 10% x Cost of goods, Insurance, freight + Any Duty Paid.
Some goods may be subject to a Dumping Duty or be subject to different calculation methods, such as alcohol and tobacco.
The Customs Process
Customs use the rate of exchange on a given day and the value of goods in Australian dollars to calculate duty amounts.
Customs import duty rates automatically include several kinds of charges like the duty itself, GST, Luxury Car tax, Wine Equalisation tax or other kinds of specialised taxes that apply to the particular product category. Upon the finalisation of the duty estimate, a payment advice will be issued to the owner of the shipment. After the settling of the amount, the goods can be released from customs.
How Does an Import Calculator Work in three easy steps?
To determine your customs import duty rates you will need to …
- Convert the value of your purchase from the respective currency to AUD
- Calculate five percent of that amount (for import duties) and
- Calculate 10 percent of that amount (to get your GST).
Use the Duty Calculator below to get an estimated total. Amounts are dependent on the size of the shipment and the value of the goods and currencies calculated at predetermined exchange rates.
Import Duty Calculator for Calculations over $5,000
Enter the value of your goods, freight and insurance costs to calculate your Customs Duty & Import Goods & Service Tax liability amounts.
* Keep in mind that such a tool will give you a general idea of what you’ll have to pay.
Once customs duty and the GST are finalised, payment advice will be issued to the owner of the shipment. After the settling of the amount, the goods can be released from customs.
The best way to make sure you have a completely accurate idea about customs duties and how much you’ll have to pay is to get in touch with one of our experienced customs brokers.
How Powerhouse International Can Help
Powerhouse International has decades of experience helping businesses expand their global operations in Australia. Our experienced team is ready to guide you through the process and offer additional guidance or assistance based on your needs.
Industries we’ve helped include:
- Marine
- Agricultural Equipment and Machinery
- Drilling and Mining
- Aerospace and Aircraft
- Building and Construction
- Industrial Equipment
- Manufactured Steel Products
- Apparel
Contact Powerhouse International to discuss your medium to large scale imports.