How To Import Products Into Australia

You've sorted the factory. The samples are approved. The production order is placed. And then someone asks: "So, how are you getting the goods into Australia?"

Importing is the step that trips up more first-time founders than almost any other. Not because it's impossibly complex, but because most people don't know what they don't know. And when surprises hit at the port, they tend to be expensive.

Here is what you need to understand before your goods leave the factory.

How Import Duties Work

Australia applies customs duty to most imported goods. The rate depends on the product type and where it was manufactured. Many products from countries with free trade agreements - including China, India, Thailand and Vietnam - attract reduced or zero duty rates, but only if you have the correct documentation to prove origin.

Duty is calculated as a percentage of the customs value, which is typically the price you paid for the goods, not including freight. A $10,000 order with a 5% duty rate means $500 in duty - before freight, insurance or GST. Always check the applicable duty rate for your product category before you finalise your costings.

GST On Imported Goods

Since 2018, GST applies to almost all imported goods regardless of value. It is calculated at 10% on the customs value plus duty plus freight and insurance. This catches many founders off guard, especially those who assumed low-value shipments were exempt.

If your business is registered for GST, you can claim it back as an input tax credit. The timing matters though - you pay it upfront when goods clear customs, and recover it when you lodge your BAS. It is a cash flow item that needs to be planned for.

Sea Freight vs Air Freight

Sea freight is almost always the right choice for production orders. For a full container, sea freight from China to Australia typically runs $1,500 to $4,000. For smaller quantities, you share a container (LCL - less than container load), which costs more per cubic metre but far less than air.

Air freight is faster - typically five to ten days compared to twenty to thirty-five days by sea - but can cost ten times as much. Use air for samples, urgent reorders or high-value products where speed genuinely justifies the cost. For most production runs, sea freight is the answer.

Work With A Licensed Customs Broker

A customs broker handles the paperwork that gets your goods through Australian Border Force. They classify your goods, calculate applicable duties, lodge the import declaration and manage any compliance requirements.

For your first import, a broker is not optional - it is essential. One misclassification can trigger a penalty or delay that costs far more than the broker fee. Freight forwarders often offer customs broking in-house. When comparing quotes, check whether they include customs entry, port charges, cartage and delivery.

Key Documents You Will Need

• Commercial invoice - the value, quantity and description of goods
• Packing list - exactly what is in each carton and its weight
• Bill of lading or airway bill - proof of shipment from your freight forwarder
• Certificate of origin - required for duty concessions under free trade agreements
• Any compliance documentation for regulated product categories

Calculate Your Landed Cost Before You Order

Landed cost is everything it takes to get the goods into your Australian warehouse: factory price, freight, insurance, duties, GST, customs brokerage, port charges and delivery.

Most founders calculate manufacturing cost. Fewer calculate landed cost. The difference between the two is often 30 to 50 percent of the factory price - sometimes more for heavy or bulky products. If you haven't built landed cost into your pricing, your margins are not what you think they are. This is one of the most common mistakes first-time founders make when costing a product.

Common Import Mistakes To Avoid

• Not getting a freight quote before placing the production order - freight cost depends on cubic size and weight, which affects your minimum order quantity decisions
• Assuming a free trade agreement applies without verifying the rules of origin with your broker
• Treating GST as a non-event - you pay it upfront at customs and recover it later, so it needs to be in your cash flow plan
• Choosing a freight forwarder on price alone - reliability and communication matter more on your first import
• Not checking whether your product category requires compliance testing or specific labelling before it can be sold in Australia

Final Thoughts

Importing doesn't need to be overwhelming. It needs to be planned. Know your landed cost before you place an order. Work with a licensed broker. Get your documentation right. The founders who avoid expensive surprises at the port are not the ones who know more - they are the ones who ask better questions earlier.

If you are still working out how to find the right factory before you get to the import stage, Source Haus has a practical guide covering what to look for, how to vet suppliers, and how to avoid the most common sourcing mistakes.