Transportation and Customs Clearance of Australia’s Imports from China Guide

Australia imports a wide range of products from China, including electromechanical goods, textiles, furniture, toys, and various miscellaneous items.

In 2018, these imports amounted to USD 34.17 billion, accounting for 61.5% of Australia’s total imports from China. Other significant import categories include base metals, plastics and rubber, and chemical products. This highlights Australia’s role as a key export destination for Chinese goods.

If you are an Australian importer sourcing products from China, this guide will provide essential insights into the shipping process, required documentation, import duties, and customs clearance procedures.

What are the shipping options for products from China to Australia?

As we all know, from a geographic perspective, Australia is the only country in the world that covers a whole continent, surrounded by the sea.

Australia has a superior geographic location, being not only a supply station for fresh water, fuel and food for ships and aircrafts moving between Asia and South America, Africa and North and South America, but also an interchange of submarine cables in the world.

Therefore, Australia’s port industry is very developed and there are many international airports.

Option 1: Sea Freight (FCL and LCL Shipping)

Sea freight is the most common mode of transport for importing goods from China to Australia, particularly for bulk shipments. Australia’s major ports include:

• Sydney
• Melbourne
• Brisbane
• Perth
• Adelaide
• Fremantle

The Chinese industrial authority categorizes container shipping into 12 product types, including transportation electronics, small machinery, glass and ceramics, handicrafts, printing and paper, medicines, tobacco, alcohol, food, daily necessities, chemicals, textiles, and hardware.

Transit times vary depending on the route, but estimated durations are available in the shipping schedules roughly shown in the table below:

Option 2: Air Freight

Air transport is the preferred choice for time-sensitive or perishable goods such as fresh fruits and vegetables. Australia has ten major international airports, including Sydney, Melbourne, Brisbane, Perth, Adelaide, and Darwin. The key airports for cargo shipments are:

• Sydney Airport: The largest in Australia, with direct connections to many Chinese cities.
• Melbourne Airport: A growing hub due to increasing Chinese immigration and trade demand.
• Hobart Airport: A smaller airport, often requiring transfers through Sydney.
• Gold Coast Airport: Primarily for passenger traffic, with limited cargo operations.

Air cargo can reach Sydney or Melbourne within a day, while shipments to other destinations typically arrive within 3-5 days.

Required Documents for Customs Clearance in Australia

To facilitate smooth customs clearance, importers must provide the following key documents:

1. Certificate of Origin (China-Australia Free Trade Agreement)

Under the China-Australia Free Trade Agreement (ChAFTA), most Chinese products are eligible for zero tariffs. To benefit from this, importers must obtain a Certificate of Origin from the exporter.

If this document is not provided, the shipment will be processed under the most-favored-nation treatment, potentially resulting in tariffs.

Key Considerations for the Certificate of Origin:

1. Shipping Date – This must match the ON BOARD date stated on the Bill of Lading.
2. Vessel Name and Voyage Number – These details must be consistent with the Bill of Lading.
3. Invoice Number and Date – The invoice number must match that on the Certificate of Origin. The invoice date must be earlier than the ship’s departure date (ON BOARD date), as per standard international trade practices.
4. Product Name – The product name on the Certificate of Origin must align with the details in the Bill of Lading and invoice.
5. Quantity and Gross Weight – These must match across the Certificate of Origin, Bill of Lading, and Packing List to avoid discrepancies.
6. HS Code Consistency – The first six digits of the Harmonized System (HS) Code on the Certificate of Origin must correspond with the actual product classification.

Following these guidelines ensures that the Certificate of Origin is valid and compliant. Additionally, a scanned copy is sufficient for customs clearance instead of the original document.

2. Bill of Lading

The Bill of Lading (B/L) is a crucial document in sea freight, serving as both a contract of carriage and a title of ownership. Importers must obtain either the original B/L or a surrendered B/L to complete customs clearance. Without this document, cargo ownership cannot be verified, and the shipment will not be released.

Key Details to Verify in the Bill of Lading:

1. Consignee Information – Must match the details on the invoice and Certificate of Origin precisely.
2. Data Consistency – All shipment details, including weight, quantity, and description, must align with the Certificate of Origin, Invoice, and Packing List to prevent clearance delays.

For air freight, an Air Waybill (AWB) is used instead of a Bill of Lading. Unlike the B/L, the AWB does not confer ownership rights, but the same accuracy in consignee details and shipment data is required for smooth customs processing.

3. Invoice and Packing List

Invoices and packing lists are essential documents for customs clearance and must be provided to the importer. In Australia, these documents can be submitted as a stamped or printed copy of a scanned version.

The information on the invoice and packing list must match the details on the bill of lading and the certificate of origin. For example, the total gross weight recorded on the invoice and packing list should be identical to that on the bill of lading. Any discrepancies could lead to complications during the clearance process.

4. Packing Declaration

This document certifies that no prohibited raw materials (e.g., straw, peat, or used fruit packaging) are included in the shipment. The declaration must include:

• Company details
• Shipping details (vessel name, voyage number, Bill of Lading number)
• Packaging material declaration
• Exporter’s stamp and signature

This document primarily addresses three key questions:

1. Are prohibited raw materials (such as straw, peat, grass, bran, or used fruits and vegetables) used in the product packaging? If not, select NO.
2. Does the packaging contain raw materials like bamboo or wood?
   • There are three options: wood, bamboo, or neither.
   • If neither is used, select NO and proceed.
   • If wood or bamboo is used, move to the third step.
3. Has the wood or bamboo been treated? If applicable, specify the treatment details.

For cartons, simply checking NO for the first two questions is sufficient.

Once completed, stamp and sign in the bottom left corner. The exporter should then scan and send the document.

Australian Import Duty and GST for Cargo from China

Since China and Australia have a free trade agreement, most products exported from China to Australia are exempt from import duties, meaning they receive zero tariff treatment.

However, this does not mean there are no additional taxes — Goods and Services Tax (GST) applies to all imported products in Australia.

How is GST Calculated?

GST is determined using the following formula:

GST = (CIF Value + Import Duty) × 10%

Additionally, Australian customs charge a processing fee based on the shipment’s value:

• $96 if the FOB value is less than $10,000
• $194 if the FOB value is $10,000 or more

These GST charges will be detailed in the customs charge form, which is typically forwarded by the customs clearance agent.

Important Considerations for INCOTERMS

The INCOTERMS used in the transaction impact who is listed as the GST payer on the invoice:

• DDP (Delivered Duty Paid): The Chinese exporter is responsible for GST.
• FOB (Free on Board): The Australian importer is responsible for GST.

It is generally recommended to declare under FOB terms, as this allows the importer to use the GST invoice for cost deduction. Before proceeding with customs clearance, it’s advisable to confirm this with the customs agent.

Conclusion

This guide provides a detailed overview of transportation options, shipping times, required documents, customs duties, and other taxes for importing goods from China to Australia.

If you encounter any challenges during the process, feel free to reach out. As a professional international freight forwarding company, we have a strong network of agents in Australia who can assist with import customs clearance, transportation, and other logistics services at the destination port. We’re here to ensure a smooth and efficient shipping experience for you.