Australia — Import Procedures & Duties

Australia's customs regime is governed by the Customs Act 1901 (the Act), which establishes the legal framework for the importation of goods, the liability for customs duty, and the procedures for clearance into the Australian customs territory. The Act applies to all goods imported into Australia, except where specific exemptions are provided.

The Australian Border Force (ABF), established under the Australian Border Force Act 2015, administers the Customs Act. Within the ABF, the Comptroller-General of Customs is the statutory official responsible for customs administration. Under section 4 of the Customs Act, the Comptroller-General is defined as "the person who is the Comptroller-General of Customs in accordance with subsection 11(3) or 14(2) of the Australian Border Force Act 2015." Officers of Customs, authorized under the Act, exercise powers and perform functions delegated by the Comptroller-General, including the examination of goods, the assessment of duty liability, and the release of goods from customs control.

Import declaration requirement

Section 71A of the Customs Act establishes the requirement for an import declaration to be communicated to the Department (now administered by the ABF) for goods imported into Australia. An import declaration may be communicated by document or electronically. The Act defines an "import declaration" as "an import declaration communicated to the Department by document or electronically as mentioned in section 71A."

Entry for home consumption or warehousing

Under section 68 of the Act, imported goods must be entered either:

• For home consumption (subsection 68(3A)) — goods are cleared for domestic use upon entry and payment of applicable duties and charges; or
• For warehousing (subsection 68(3B)) — goods are placed in a licensed customs warehouse under customs control, with duty payment deferred until the goods are subsequently entered for home consumption or exported.

Certain classes of goods listed in paragraphs 68(1)(d)–(i) are exempt from formal entry requirements, including accompanied personal or household effects of passengers. However, the owner of such goods must still provide information to Customs in circumstances specified in the regulations.

Duty liability and payment timing

Section 132 of the Act sets the rate of import duty applicable to imported goods. Section 132AA prescribes when import duty must be paid. The specific payment timing depends on the type of entry and whether the importer has an approved payment arrangement under the Act and the Customs Regulations. Import duty is defined in section 4 as "duty imposed on goods imported into Australia."

Authority to deal with goods

Once an import declaration is accepted and duty (or payment arrangements) is in place, the Collector (a Customs officer with delegated authority) issues an authority to deal with the goods. Section 71C governs the issuance of an import declaration advice, which constitutes the authority to deal with goods entered for home consumption. For goods entered for warehousing, section 71DJ(4) governs the authority to deal. Until an authority to deal is issued, goods remain under customs control and may not be removed from the place of importation or a licensed depot.

Self-assessed clearance declarations

For certain low-value goods and eligible consignments, section 71AAAF permits a self-assessed clearance declaration to be communicated to the Department. These declarations streamline clearance for consignments that meet specified criteria, reducing the need for detailed manual processing. Sections 71AAAG–71AAAT govern the Collector's response, the authority to deal with goods covered by a self-assessed clearance declaration, suspension and cancellation procedures, and the withdrawal of such declarations.

Source: Customs Act 1901, as compiled 5 March 2025

Source: Australian Border Force Act 2015

Importers may defer immediate payment of customs duty, GST, and luxury car tax by providing security or an undertaking to the Australian Border Force under section 162A of the Customs Act 1901. This facility enables goods to be delivered from customs control before duty is paid, improving cash flow for businesses engaged in regular importation.

General security under section 162A

Section 162A permits delivery of goods upon the giving of a general security or undertaking for payment of duty, GST, and luxury car tax. Unlike the transaction-specific security contemplated by section 162 (which requires security for each individual consignment), section 162A allows an importer to lodge a single security that covers multiple future import entries. This general security remains in force for a continuous period, covering all goods imported by the secured party during that period.

A general security may be given in the form of:

• A cash deposit held by the Comptroller-General of Customs;
• A bank guarantee or other financial instrument transferable by delivery; or
• An undertaking in the approved form.

The Comptroller-General of Customs has discretion to accept or refuse a general security or undertaking, and may impose conditions on its use. The Act does not specify the quantum of security required; the amount and terms are determined by the ABF on a case-by-case basis.

Deemed entry for home consumption

Goods delivered under section 162A are deemed to be entered for home consumption on delivery, as provided in subsection 162A(3). This means that the goods enter into free circulation in Australia immediately upon release from customs control, even though duty payment is deferred. The importer's liability for duty, GST, and luxury car tax crystallizes at the time of entry, but payment is deferred to a later settlement date determined by the ABF.

Payment timing and periodic settlements

Where a general security is in place, duty is not paid on an entry-by-entry basis. Instead, secured importers settle duty liabilities on a periodic basis. The Customs Act does not prescribe the settlement frequency or payment due dates; these are set by the ABF under the conditions attached to each general security or undertaking. The importer must pay the outstanding amount by the due date specified by the ABF.

Security retention and release

Where security is given by way of a payment of money or a deposit of an instrument transferable by delivery, subsection 162A(7) provides that the money shall not be repaid, or the instrument returned, until:

• No duty is, or may become, payable on goods to which the security relates that have been imported;
• No GST is, or may become, payable on the taxable importation associated with the import of the goods; and
• No luxury car tax is, or may become, payable on the taxable importation of a luxury car associated with the import of the goods.

This retention rule ensures that the security remains available to cover all outstanding and contingent duty liabilities before it is released back to the importer.

Australian Trusted Trader program enhancements

The Customs Amendment (Duty Deferral for Australian Trusted Traders) Regulations 2018 amended the regulatory framework to expand duty deferral eligibility for participants in the Australian Trusted Trader (ATT) program. ATT members—importers who meet heightened security, compliance, and record-keeping standards—may be eligible for more favorable terms under section 162A. The 2018 Regulations confer power on the Minister to prescribe specific conditions and arrangements for ATT participants, but the Regulations do not themselves fix the deferral periods or security levels; those remain within the ABF's administrative discretion.

Application for temporary importation without duty

Section 162AA governs applications to deal with goods imported temporarily without duty. This provision applies when goods are brought into Australia on a temporary basis under section 162A and the importer seeks permission to either consume the goods domestically (converting temporary admission into home consumption) or export the goods. Subsection 162A(2A) provides that goods may be consumed or used in Australia only if the person importing the goods applies to the Collector for permission in accordance with section 162AA. Similarly, subsection 162A(6A) requires an application under section 162AA for permission to export goods that were delivered under a temporary importation arrangement.

The temporary importation framework, governed by regulations made under section 162A(1), allows goods to enter Australia without payment of duty for specified purposes (such as exhibition, testing, or repair) and for a limited time, provided the goods are re-exported or duty is paid if the goods are retained.

Eligibility and compliance conditions

Importers seeking to use the general security facility under section 162A must apply to the ABF. The Act grants the Comptroller-General discretion to impose conditions on the use of general securities and undertakings. While the statute does not enumerate specific eligibility criteria, the ABF assesses:

• The applicant's compliance history with customs laws and regulations;
• Financial capacity to meet duty liabilities;
• Adequacy of systems for recording and reporting import transactions; and
• Overall suitability for deferred payment based on risk assessment.

Failure to pay periodic settlements on time, or breach of conditions attached to the security, may result in suspension or cancellation of the facility and immediate demand for payment of all outstanding duty.

Source: Customs Act 1901, sections 162, 162A, 162AA

Source: Customs Amendment (Duty Deferral for Australian Trusted Traders) Regulations 2018

Goods imported into Australia with a customs value below AUD $1,000.01 are eligible for duty-free treatment under item 26 of Schedule 4 to the Customs Tariff Act 1995, subject to specific exclusions. This concession—commonly known as the low-value goods concession—exempts qualifying goods from customs duty but does not extend to goods and services tax (GST), which has been levied on most low-value imports since 1 July 2018.

Threshold and scope

The Customs Amendment (Goods of Low Value) By-Law 2023 prescribes that goods with a customs value of less than AUD $1,000.01 fall within the scope of item 26 of Schedule 4 to the Customs Tariff Act 1995. The customs value is determined in accordance with Division 2 of Part VIII of the Customs Act 1901, which implements the WTO Valuation Agreement transaction-value methodology—typically the price actually paid or payable for the goods when sold for export to Australia, adjusted for freight, insurance, and other statutory additions where applicable.

The AUD $1,000.01 threshold applies to the aggregate customs value of all goods in a single consignment or import entry, not to each individual item within a shipment. If the combined value of goods in one consignment equals or exceeds AUD $1,000.01, the entire consignment is subject to the applicable customs duty rate under Schedule 3 (the general tariff) or the relevant preferential schedule (Schedules 4A–15) if the goods are originating goods under a free trade agreement.

Categorical exclusions

The low-value goods concession does not apply to the following categories, even if their value is below AUD $1,000.01:

• Tobacco and tobacco products — cigarettes, cigars, tobacco for smoking or chewing, and other goods classified to headings 2402 or 2403 or subheading 2404.11.00 of Schedule 3 to the Customs Tariff Act 1995 remain subject to customs duty (and excise-equivalent duty under the Excise Tariff Act 1921) regardless of value.
• Alcoholic beverages — beer, wine, spirits, and other beverages classified to Chapter 22 of Schedule 3.
• Goods imported by passengers or crew — goods forming part of the accompanied or unaccompanied baggage of a passenger or crew member arriving in Australia from a place outside Australia are excluded from the low-value concession and are instead governed by the passenger concession framework under regulation 27 of the Customs Regulation 2015 (which provides separate duty-free allowances for tobacco, alcohol, and general goods).
• Goods forming part of a bulk order — goods that form part of a bulk order, as defined in the Customs Amendment (Goods of Low Value) By-Law 2023, are excluded. A bulk order typically means multiple consignments ordered by the same importer that are split to remain under the threshold for the purpose of avoiding duty—a practice known as "under-invoicing" or "split shipments." The Australian Border Force may treat such consignments as a single import entry and assess duty on the aggregate value.

GST treatment of low-value imports

Although customs duty is remitted on low-value goods, GST at 10% is imposed on most imported goods valued at AUD $1,000 or less pursuant to the Treasury Laws Amendment (GST Low Value Goods) Act 2017, which took effect on 1 July 2018. Prior to that date, low-value goods were exempt from both customs duty and GST.

The GST on low-value goods is collected under Division 84 of the A New Tax System (Goods and Services Tax) Act 1999, which requires offshore suppliers, electronic distribution platforms, or redeliverers to register for GST and remit the tax at the point of sale or on importation. The ABF does not collect GST on low-value goods at the border; instead, it is embedded in the transaction price paid by the Australian consumer to the foreign supplier or platform.

Application procedure and documentation

The low-value goods concession is applied automatically by the Australian Border Force during the processing of the import declaration or self-assessed clearance declaration under section 71A or 71AAAF of the Customs Act 1901. The importer or customs broker must:

• Declare the customs value of the goods accurately in the import entry (Full Import Declaration or self-assessed clearance declaration, depending on the consignment type and eligibility).
• Classify the goods to the correct tariff heading in Schedule 3 to the Customs Tariff Act 1995.
• Confirm that the goods do not fall within any of the excluded categories (tobacco, alcohol, passenger goods, bulk orders).

If the declared value is below AUD $1,000.01 and the goods are not excluded, the Collector (the Customs officer processing the entry) will assess the duty liability as nil under item 26 of Schedule 4. The importer is still required to pay any applicable GST (if not already remitted by the offshore supplier under the low-value goods GST regime) and any charges imposed under other legislation (such as biosecurity import levies or documentary fees).

Undervaluation and post-clearance adjustment

If the Australian Border Force determines on examination or post-clearance audit that the declared customs value was understated and the true value equals or exceeds AUD $1,000.01, the ABF may:

• Issue a demand for duty under section 167 of the Customs Act 1901, requiring payment of the duty that would have been payable had the goods been correctly valued, plus interest under section 170A.
• Impose a penalty for false or misleading statements under section 243T of the Customs Act 1901 if the undervaluation was deliberate or reckless. Civil penalties range up to the greater of 1,000 penalty units or five times the duty avoided; criminal penalties may apply in cases of fraud.

The ABF's post-clearance compliance powers extend for four years from the date of importation under section 165 of the Customs Act 1901, during which time the importer must retain all import documentation, commercial invoices, and valuation records.

Source: Customs Amendment (Goods of Low Value) By-Law 2023

Source: Customs Tariff Act 1995, Schedule 4

Source: Treasury Laws Amendment (GST Low Value Goods) Act 2017

Source: Customs Act 1901, sections 71A, 165, 167, 243T

Australia's duty drawback scheme allows exporters to claim a refund of customs duty paid on imported goods that are subsequently exported from Australia, provided the goods meet strict eligibility conditions. The scheme is governed by section 168 of the Customs Act 1901 (the Act) and detailed procedural and substantive requirements are prescribed in Part 7 of the Customs (International Obligations) Regulation 2015 (the Regulation). The Australian Border Force (ABF) administers the scheme and assesses drawback claims.

Eligible goods

Drawback may be claimed on imported goods that fall into one of three categories:

• Unused goods exported in the same condition — imported goods exported from Australia without having been used in Australia since importation (other than minimal use necessary for examination, testing, or re-packing).
• Processed or treated goods — imported goods that have been processed or treated in Australia (for example, goods repaired, refurbished, or subjected to quality control procedures) and subsequently exported.
• Manufactured goods — imported goods used as inputs or materials in the manufacture of other goods in Australia, where those manufactured goods are subsequently exported.

The Regulation defines "used" narrowly: goods remain eligible if they were examined, tested, or re-packed for export purposes, or if they were displayed for sale but not sold or consumed in Australia.

Eligibility of the claimant

The ABF guidance states that a drawback claim may be lodged by the legal owner of the goods at the time they were exported from Australia. Ownership at the time of importation is not required. Where ownership has changed hands between importation and exportation, the exporter (not the original importer) is the eligible claimant.

The claimant must ensure that the amount claimed does not exceed the import duty actually paid on the relevant goods. The ABF will not approve drawback claims where the claimant has insufficient evidence to substantiate that the goods were imported, that import duty was paid, and that the imported goods were exported.

Minimum claim amount and time limits

The minimum drawback claim is AUD 100. Multiple claims of less than AUD 100 may be combined into a single claim of at least AUD 100.

The time limit for lodging a drawback claim is four years from the date of exportation, except for tobacco and tobacco products, for which the time limit is 12 months from the date of exportation. A claim lodged outside the applicable time limit will be rejected.

Tobacco-specific conditions

Part 7 of the Regulation imposes additional conditions on drawback claims for tobacco and tobacco products (goods classified to headings 2402 or 2403 or subheading 2404.11.00 of Schedule 3 to the Customs Tariff Act 1995). The claimant must:

• Notify the ABF in advance of the intention to claim drawback on tobacco products, before export. The ABF guidance specifies that notice should be sent by email to TobaccoDrawbacks@customs.gov.au and should include the proposed export date, place of export, depot location, and international carrier details.
• Make the goods available for examination by a Customs officer before export. The ABF may physically inspect the goods to verify that the goods claimed for drawback match the goods originally imported and that duty was paid.
• Obtain an export declaration number (EDN) for the exported tobacco products.

Failure to comply with any of these conditions will result in the ABF refusing the drawback claim for tobacco products. The reduced 12-month time limit for tobacco drawback claims was introduced in November 2012 to strengthen border controls on high-duty goods.

Goods and circumstances excluded from drawback

Drawback is not payable in the following circumstances:

• Goods used in Australia — if the imported goods have been used in Australia (other than minimal examination, testing, display, or re-packing), drawback is not available. This exclusion applies even if the goods are later exported. For example, imported machinery operated in an Australian factory for several months and then re-exported is ineligible for drawback.
• Goods used in manufacturing for export — imported goods used as manufacturing aids, such as machinery, filtration materials, or factory equipment, are not eligible for drawback even if the final manufactured goods are exported. The ABF guidance states that only goods that are incorporated into, or form part of, the exported manufactured goods may be claimed.
• Insufficient records — Part 7 of the Regulation provides that drawback is not payable if records are not available for examination by an officer showing that import duty was paid on the goods and details of the receipt and disposal of the goods. The claimant must retain all documentation for a minimum of five years from the date of exportation and must produce those records to the ABF on request.
• GST is not refundable under the drawback scheme — the duty drawback scheme applies only to customs duty. The ABF guidance confirms that Goods and Services Tax (GST) paid on importation cannot be claimed as part of a drawback application. Importers registered for GST may instead claim an input tax credit on creditable importations through the Business Activity Statement (BAS) lodged with the Australian Taxation Office (ATO).

Lodging a drawback claim

Drawback claims are lodged electronically through the Integrated Cargo System (ICS) using Customs Interactive (CI), or by submitting a paper Claim for Drawback form (B807) to the ABF. The claimant must provide:

• The import declaration number and date of importation.
• Evidence that customs duty was paid on the goods (typically a copy of the import declaration showing duty assessed and paid, or a receipt from the ABF).
• The export declaration number (EDN) or other evidence of exportation (for example, a bill of lading, air waybill, or shipping documents showing the goods departed Australia).
• A description of the goods sufficient to match the imported goods to the exported goods (or to the manufactured goods incorporating the imported inputs).
• The amount of duty claimed, which must not exceed the duty actually paid on the imported goods.

The ABF guidance states that the claimant is not required to submit supporting documents with the claim unless requested, but must retain all evidentiary material and provide it on demand. The ABF's evidentiary requirements are detailed in Australian Customs Notice 2023/45, which sets out the documentation the ABF may request during assessment.

Assessment and payment

The ABF assesses each drawback claim to verify that the goods were imported, that duty was paid, that the goods (or manufactured goods incorporating them) were exported, and that all conditions in the Regulation are satisfied. The ABF may request additional documentation or conduct an examination of records at the claimant's premises.

If the claim is approved, the ABF refunds the duty to the claimant's nominated bank account. If the ABF determines that the claimant has insufficient evidence, or that any condition in Part 7 of the Regulation is not met, the drawback claim will be refused.

Set-off against unpaid duty

Under section 165A of the Customs Act 1901, if the claimant (or a related entity) owes unpaid customs duty to the Commonwealth, the ABF may apply the drawback refund against the unpaid duty rather than paying it to the claimant. Section 165A requires the ABF to provide written notice to the person who would have been entitled to receive the drawback, specifying the amount applied and the outstanding duty liability against which it was applied.

Source: Customs Act 1901, sections 168, 165A

Source: Customs (International Obligations) Regulation 2015, Part 7

Source: Australian Border Force — Duty Drawbacks

Tariff Concession Orders (TCOs) allow duty-free importation of goods where there are no known Australian manufacturers of substitutable goods. The scheme is governed by Part XVA of the Customs Act 1901 and item 50 of Schedule 4 to the Customs Tariff Act 1995. TCOs provide a concessional duty rate of "Free" for goods described in the order, supporting Australian manufacturers who require imported inputs and capital equipment unavailable domestically.

## Eligibility — no substitutable Australian production

A TCO may be made only where there are no known Australian manufacturers producing goods that are substitutable for the imported goods. The Australian Border Force states that "Tariff Concession Orders (TCOs) are an Australian Government revenue concession that exists where there are no known Australian manufacturers of goods that are substitutable for imported goods." Under section 269F of the Customs Act 1901, any person may apply to the Comptroller-General of Customs (now administered by the Australian Border Force) for a TCO by submitting an application describing the goods and confirming that no substitutable goods are commercially produced in Australia.

Once an application is lodged, the Australian Border Force publishes a notice in the Tariff Concession Gazette, inviting Australian manufacturers to object within 50 days if they produce, or are prepared to produce, substitutable goods. If no manufacturer comes forward within the notice period, the TCO is granted. If a manufacturer lodges a valid objection, the ABF assesses whether the manufacturer produces or is capable of producing goods that are substitutable. Substitutability is tested on the basis of whether the Australian-made goods and the imported goods can be put to corresponding uses in the ordinary course of business, not whether they are identical in every respect.

## Coverage of existing TCOs

The Australian Border Force maintains a searchable database of current TCOs, organized by HS chapter and published in the Schedule of Concessional Instruments. An importer may use an existing TCO without applying for a new order, provided the imported goods precisely match the description in the TCO and are classified to the same tariff subheading to which the TCO is keyed.

The ABF guidance on the interpretation of TCO descriptions emphasizes that the goods must precisely fit the description set out in the TCO. The ABF cites the Federal Court and Administrative Appeals Tribunal decisions in Toro and Brand Developers for the principle that goods must match the TCO description exactly: "A key conclusion in the Toro decision was that …'the goods must precisely fit the description set out in the TCO.'"

Components or features not expressly mentioned in the TCO are included only if they are normal parts or features of the described good. The ABF provides the example that a TCO for "TELEVISION, colour" covers a television imported with a remote control and detachable power cable (normal accessories that "need not be listed in the TCO description"), but does not cover a television with an inbuilt disc player unless the TCO expressly states "with a built-in disc player." The ABF also confirms that "packaging and instructional booklets were not part of the good for the purpose of determining whether a good was described by the TCO," per the Brand Developers decision.

## Claiming a TCO on importation

To claim duty-free entry under a TCO, the importer or licensed customs broker must:

• Classify the goods to the correct tariff subheading in Schedule 3 to the Customs Tariff Act 1995. The goods must be classified to the same subheading to which the TCO is keyed.
• Declare the TCO number on the import declaration (Full Import Declaration or self-assessed clearance declaration under section 71A or 71AAAF of the Customs Act 1901). The ABF's Schedule 4 guidance states that "the Import Declaration is to show the tariff concession order that applies to the complete good."
• Ensure the goods match the TCO description precisely. The ABF states that "the onus is on an importer/broker to correctly enter the goods, including declaring which particular TCO applies" and that "it is therefore incumbent on an importer/broker to be satisfied that the TCO description and tariff classification applies before claiming concessional entry."

Misuse of a TCO — claiming a concession for goods that do not match the description or the tariff classification — exposes the importer to penalties. The ABF warns that "penalties may apply if your goods do not precisely match the TCO description and/or its tariff classification." The ABF states that compliance treatments "can range from education and awareness for those genuinely trying to comply, demands for duty, the issue of infringement notices and prosecution for more serious and systemic breaches."

The ABF also cautions that "importers using an existing TCO are advised there is inherent risk in using a TCO that may have been applied for at a different time and by a different applicant." To obtain certainty, importers may apply for a Tariff Advice from the ABF, which the ABF describes as a mechanism to "confirm that their goods are eligible for a particular TCO" and "provide certainty of the classification of the goods, and their eligibility for any particular TCO."

## Revocation and termination of TCOs

TCOs remain in force indefinitely unless revoked. Under Part XVA of the Customs Act 1901, Australian manufacturers may request the ABF to revoke a TCO at any time if they commence production of substitutable goods. The ABF states that "local manufacturers of substitutable goods may request the revocation of TCOs at any time." The ABF publishes a notice of the proposed revocation in the Tariff Concession Gazette, giving importers an opportunity to object. If the ABF determines that an Australian manufacturer is producing or is prepared to produce substitutable goods, the TCO is revoked, and the goods become subject to the general duty rate under Schedule 3 to the Customs Tariff Act 1995 on a date specified in the revocation notice.

## Restrictions on TCO eligibility

Part XVA of the Customs Act 1901 and the ABF's Schedule 4 guidance state that there are restrictions on the types of goods that are eligible for a TCO. The specific excluded categories are prescribed in regulations and by-laws made under section 271 of the Customs Act 1901. The ABF's Guidelines to Schedule 4 of the Customs Tariff Act 1995 refer to goods "which render the machinery ineligible for a tariff concession order" under item 51 of Schedule 4, and note that certain goods may be subject to alternative concessional treatment under policy by-laws (such as item 2 for diagnostic or laboratory reagents, or other items in Schedule 4).

## GST treatment

Although TCOs provide duty-free entry, goods imported under a TCO are still subject to Goods and Services Tax (GST) at 10% on the taxable importation. The ABF's Guidelines to Schedule 4 state that "goods entered under item [50] are subject to the GST." GST is calculated on the customs value of the goods plus any freight, insurance, and other charges added under Division 2 of Part VIII of the Customs Act 1901. Importers registered for GST may claim an input tax credit on the GST paid on importation through their Business Activity Statement lodged with the Australian Taxation Office.

Source: Customs Act 1901, Part XVA

Source: Customs Tariff Act 1995, Schedule 4, item 50

Source: Australian Border Force — Tariff Concession Orders

Source: Australian Border Force — Current Tariff Concession Orders

Source: Australian Border Force — Interpretation of wording in Tariff Concession Orders

Source: Guidelines to Schedule 4 of the Customs Tariff Act 1995