Assessing The Value of Your Imported Goods

Assessing The Value of Your Imported Goods

The value of goods that customs brokers need to assess, and finding their “reasonable value” is a very important consideration to make, and will be discussed further in this article. Under the FTA’s there are many different rules that may apply to the imported goods, for example fabrics, chemicals and food items under the AUSFTA all have different rules for consideration. Another area of interest of goods imported from China to Australia is the “value” of goods. A number of years ago it might have been easier for a customs broker to identify an “average value” of certain types of goods. For example if a customs broker had a client who imported TV’s or computers very frequently the broker was able to determine a “reasonable value” of most TV’s or computers of similar style. Now with many more imports from China and at prices a lot lower than 7 – 10 years ago, it can be a real challenge for a customs broker to determine a “reasonable value” for specific goods. I have also been alerted to the practice of China suppliers invoices being produced at a “lower value” than the “money price paid” by the importer. This practice may also be happening with supplier’s goods from other countries of origin; I am not suggesting only China suppliers partake in this practice but I have seen what might be evidence of reduced invoice value from China suppliers, but not from other countries. If your supplier asks you if you would like a lower value invoice for customs purposes please SAY NO! Most importers and suppliers are aware if imported...   Read More..
CHINA / AUSTRALIA FREE TRADE AGREEMENT – CHAFTA

CHINA / AUSTRALIA FREE TRADE AGREEMENT – CHAFTA

The documents have been signed and both countries are now involved in their own process of considering the agreement through the process of the Joint Standing Committee on Treaties (JSCOT) and relevant domestic treaty making processes in China.After the reports are presented and any amendments considered both countries will then exchange diplomatic notes and confirm they are ready to put the FTA – Free Trade Agreement into force. The FTA will be in force 30 days after this or on another date agreed upon. Once ChAFTA is in force and with relevant supporting documentation, most goods imported from China to Australia will be import duty free. Since the import GST is calculated on the VOTI – value of taxable importation and includes the duty amount, the import GST liability will be reduced. This will provide a great advantage for cash flow for those importers who are not import GST deferred. The ChAFTA is not only beneficial for importers but also for exporters, as Australian products imported to China will also enjoy the zero or reduced rates of import duty. While the FTA agreement is Bilateral, the duty rates will not be same for each country. For example China will adopt more phasing rates of duty than Australia will under the agreement. What this means is that duty rates will reduce over a period of time eventually to zero but not immediately zero ( when the agreement is in force ) on certain goods. Currently the duty rates are 5% or 0% on goods from China, when the agreement comes into force it will effectively lower the cost of imported...   Read More..

The Process and Landing Costs for Importing Goods into Australia

Importing goods into a country is often thought to be easier than exporting. However, there are numerous hurdles that can be challenging to an inexperienced individual. You do not need to be an expert to place order on an overseas supplier. You can get professional advice from forwarding agents, customs brokers or the Australian Chamber of Commerce and Industry. You can also gain insight into the importing processes by attending the periodic International Trade Course which is offered by the College of International Business. Whatever reason you have for importing, you should do some research to determine the landing costs of goods in Australia accurately. A product may seem cheap but with on-costs such as insurance, freight, import duty, bank charges and interests, it may not be as competitive on the Australian market. Basic Steps for Importing in Australia Obtain a catalogue or sample with prices from your supplier. You may need the help of a bank or other commercial references to ascertain the integrity of the supplier. Having obtained a satisfactory source of supply, get a firm quotation. Remember to ask about quantity discounts. Some suppliers can even assist you with the initial marketing especially when they are trying to penetrate a new market. The price should be based on Incoterms, which will reduce chances of misunderstandings between you and your supplier. Understanding the Incoterms technicalities will help you to know the responsibility of the seller. It will also help you to determine the payable import duties as well as the GST tax. Request both the FOB and CIF prices so you can compare the rates. Customs Brokers...   Read More..

Chris Mckirdy – licensed customs broker

Chris Mckirdy explains the highly specialised work of a Licensed Customs Broker and how the services of this professional can assist when creating your Formal Import Declaration. When creating an export declaration for goods exiting Australia you currently do not need to be a licensed or authorised individual or entity to communicate the details to border control agencies. When creating a Formal import declaration (FID) relating to goods imported to Australia you are required to engage the services of a licensed and authorised individual or entity to communicate the details to the various border control agencies. These individuals are Licensed Customs Brokers or an entity who holds a Corporate Customs Broker’s License. A couple of reasons why you need to engage a Licensed Customs Broker is because they are qualified and trained in this highly specialised field of work and it is a legislated requirement for FID entries. While it may not be a legislated requirement for a licensed and authorised individual to communicate an export declaration, some goods may require an export permit or may even be prohibited to certain countries or certain goods may be restricted or prohibited for export. “Dual use goods”, as listed in the Defence and Strategic Goods List (DSGL) and the international movement of such goods is legislated in many countries. The importation or exportation of restricted or prohibited dual use goods without permits can attract severe penalties for all parties involved in the transaction. The DSGL is in two parts: Part 1 lists military goods and Part 2 lists the dual use goods. In addition to possible prohibitions or permit requirements, other...   Read More..
Importing to Australia Using a Self Accessed Clearance

Importing to Australia Using a Self Accessed Clearance

Do you know that you can import goods, without paying duty or goods and services tax (GST), when you enter them in a Self Assessed Clearance entry? Currently, the only exceptions are alcohol or tobacco products. Here is a brief explanation of SAC and how you can use it to enjoy lower service fees when importing to Australia. What is Self Assessed Clearance Declaration (SAC)? This is a declaration required by Australian Customs to clear goods imported into the country, below or at $1000 AUD, either by sea or air. The AUD$1000 threshold value does not include the cost of transport and insurance. It is the value stated on the invoice or receipt of purchase. It is, however, important to note that SAC declarations cannot be used for goods which arrive through post, for unaccompanied personal effects, or for carnets (i.e. temporary imports). Understanding how SAC works is vital if you will be importing to Australia regularly. If you don’t make a valid SAC declaration before you clear your items, you won’t be allowed to collect them. You should also note that multiple consignments that come from the same supplier to the same importer and arrive at the same time will be treated as the same consignment. In this the value of the goods will be combined and the A$1000 threshold may not be applicable.   How to Use SAC When Importing to Australia SAC declarations can only be done electronically via the ICS – Integrated Cargo System. No printed document is used for this process. A SAC declaration must be done by a duly registered SAC communicator. SAC...   Read More..

How I Used a Customs Clearance Broker for Moving My Belongings to Australia

People who are interested in and needing to move their belongings to Australia can take the short story I am about to tell as an example of what it is truly like. There are no legal requirements for you to clear your goods when you are moving them to Australia. However, this procedure is recommended if you want everything to go smooth with the shipment and all the involved operations. For moving my belongings to Australia, I have used the help of a customs clearance broker. I did it because of the benefits which were less hassle, less time and therefore less cost to me. It was a winner all round from where I was sitting. From my experience, I have learned that the goods can be imported into Australia free of Goods Service Tax and Customs Duty. But, it is possible only with these two conditions: the owner is able to legally move (permanently or temporary) to Australia and the goods must have been be owned and used for at least one year before the departure. I used a customs clearance broker because I knew I would be able to save money and time. Such a broker in Australia is licensed by the Australian Customs and Border Protection Service, which gave me peace of mind. The broker helped me to identify if any duties and taxes were payable for my goods and helped me with the right process and procedure. Once all of these were finished, a complete dispatch was made for my goods. See here’s the real thing…big importers themselves rely on the work of customs clearance...   Read More..