When buying over the internet

• Your imported goods may arrive in Australia by either airfreight, express couriers, and sea cargo or via the post office. The method of delivery will determine the Customs clearance formalities and charges.

• If you arrange for goods to be brought into Australia, you are regarded by Customs as the Importer of those goods. This includes purchases made over the Internet, regardless of whether or not you intend to sell or distribute those goods, own a business and if the goods are for your personal use or a gift for someone else.

• Customs advises people purchasing goods over the Internet to be aware that, when those goods arrive in Australia, they will be subject to Customs controls.

• Certain goods brought into Australia require an import permit. Customs might seize or detain such goods pending presentation of the permit.

Buying over the Internet

You will have to pay customs duty and Goods and Services Tax (GST) on your goods if, either:

• the total duty and GST combined is more than $50 Australian, calculated as follows:
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  • Calculations are based on the purchase price of the goods converted to Australian dollars (known as the customs value);
  • plus the applicable duty rate as determined by the Tariff classification
  • plus postage or transport fees
  • plus any paid insurance costs
  • The total of these amounts is known as the Value of the Taxable Importation (VoTI) (example).

(You might need to provide receipts or proof of purchase, where possible, to enable Customs to determine the value for your goods)

OR

• a formal Customs Import Entry is required (see below).

A formal Customs Import Entry is required if the goods are valued above $1000 per consignment.

IMPORTANT INFORMATION

New procedures for lodging import declarations for goods arriving after 2am on Wednesday 12 October 2005 are now in place. To access this information please click here.

References to COMPILE are references to the legacy system which will no longer be relevant after 21 November 2005 .

Most imported goods valued at or less than the above amounts can be cleared on a Self Assessed Clearance Declaration which must be communicated electronically to Customs, although a formal Customs import entry may also be used. If a formal entry is used, a Customs processing charge will apply.

If you decide to use courier services or customs brokers, they will charge for their services. Customs recommends that you consult with a courier or customs broker before importing goods to find out their costs and charges.

Duty/GST concession

As described above, Customs does not collect duty and/or GST where the combined duty/GST liability does not exceed $50 (example).

This concession does not apply where a formal Customs Import Entry is required by Customs law (example).

The $50 concessional treatment also does not apply to the following purchases over the Internet:

• alcohol or tobacco products
• goods forming part of a bulk order

Some goods commonly purchased over the Internet that are, or contain, restricted items may be detained or seized by Customs. These include:

• performance-enhancing medicines, including steroids and health supplements containing restricted substances;
• medications, both traditional and alternative such as herbal preparations;
• videos, DVDs, CDs and books/publications with objectionable or offensive content;
• wildlife souvenirs and products;
• plant seeds;
• electronic dog collars;
• electronic hand-held insect zappers

This is a not a complete list of restricted or prohibited imports. To obtain further details on goods subject to import restrictions including details of permit requirements, click on link to Prohibited Imports.

You also need to be aware when purchasing over the Internet that:

• your purchase might be a prohibited import that requires a permit before it can be released by Customs; or
• it might be a prohibited import and not allowed into the country under any circumstances;
• certain items (textiles, clothing and footwear) attract a high rate of Customs duty. Click on link to general import information or contact Customs directly.

Customs Information and Support Centre (CI&SC) can answer queries about goods purchased over the Internet or any other Customs matters.

For further information, email [email protected]

You can also contact the (CI&SC) on
1300 363 263 from anywhere in Australia or
+61 2 6275 6666 from outside Australia.


Examples of calculation of duty and GST payable for goods imported via post office

Example 1 (postal importation) - no formal Customs entry is required

AUD$ Customs value (CVAL) 800.00 Customs duty @ 5 per cent x CVAL 40.00 (Payable) Postage 50.00 Value of Taxable Importation (VoTI) 890.00 GST @ 10 per cent x $890.00 89.00 (Payable) Total payable (customs duty + GST) 129.00 In example 1, the value of the postal goods does not exceed $1000 Australian, but the duty/GST payable ($129) does exceed the $50 concession. Therefore, the amount of $129 is payable to Customs. No formal Customs entry is required for this importation, as the value of the goods does not exceed $1000.


Example 2 (postal importation) - no formal Customs entry is required

AUD$ Customs value (CVAL) 200.00 Customs duty @ 5 per cent x CVAL 10.00 Postage 50.00 Value of Taxable Importation (VoTI) 260.00 GST @ 10 per cent x $260.00 26.00 Total payable (customs duty + GST) 36.00 In example 2, the value of the postal goods does not exceed $1000 Australian and the duty/GST collectable ($36) does not exceed the $50 concession. Therefore Customs would not collect the $36. No formal Customs entry is required for this type of importation because the value of the goods does not exceed $1000.


Examples of calculation of duty and GST payable for goods imported via air courier or sea cargo.

Example 3 (air/sea cargo) - formal Customs entry required

AUD$ Customs value (CVAL) 254.00 Customs duty @ 5 per cent x CVAL 12.70 (Payable) Transport and Insurance 68.00 Value of Taxable Importation (VoTI) 334.70 GST @ 10 per cent x $334.70 33.47 (Payable) Total payable (customs duty + GST) 46.17 Note: The total amount payable will vary depending on the service provider fees (if applicable) and Customs cost recovery charge. (Varies) In example 3, the value of the goods imported by air/sea cargo exceeds $250 Australian and the duty/GST does not exceed $50 but is still payable (the $50 concessional treatment does not apply). The goods are required to be cleared through Customs on a formal Customs entry and the duty/GST is payable. The service provider lodging the Customs entry will also charge for services and pass on cost-recovery charges.


Example 4 (air/sea cargo) - formal Customs entry required

AUD$ Customs value (CVAL) 800.00 Customs duty @ 5 per cent x CVAL 40.00 (Payable) Transport and Insurance 50.00 Value of Taxable Importation (VoTI) 890.00 GST @ 10 per cent x $890.00 89.00 (Payable) Total payable (customs duty + GST) 129.00 In example 4, the value of the goods imported by air/sea cargo exceeds $250 Australian and the duty/GST exceeds $50. The goods are required to be cleared through Customs on a formal Customs entry and the duty/GST is payable. The service provider lodging the Customs entry will also charge for services and pass on cost-recovery charges.


Example 5 (air/sea cargo) - no formal Customs entry required

AUD$ Customs value (CVAL) 200.00 Customs duty @ 5 per cent x CVAL 10.00 Transport and Insurance 50.00 Value of Taxable Importation (VoTI) 260.00 GST @ 10 per cent x $260.00 26.00 Total payable (customs duty + GST) 36.00 In example 5, the value of the goods imported by air/sea cargo does not exceed $250 Australian and the duty/GST collectable ($36) does not exceed $50. Therefore Customs would not collect the duty/GST of $36. No formal Customs entry is required.

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above taken from customs website... http://www.customs.gov.au/site/page.cfm?u=4376#e988