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How is Import Duty and GST Calculated?

Our objective is to legally minimise import duty and GST on your imported goods.

Import Duty is determined by the classification of goods in the Customs Tariff and the applicability of concessions. The duty rate can range from FREE to 10%, however the standard rate for most goods is 5%.

We proactively classify your goods in the Customs Tariff and search for concessions, by-laws and Free Trade Agreement exemptions that may make the goods duty free. Our Tariff Consultants can also make application to Customs for Tariff Concessions on your goods. See our Tariff Consultancy Services.

Australia has numerous Free Trade Agreements with many of its major trading partners and is currently entering into more. With the right declarations and/or Certificates of Origin it means we can legally claim exemption from import duty on your goods.

Import Duty is calculated as a percentage of the goods value or Customs Value (CV) of your consignment.

GST is calculated at 10% of the Value of the Taxable Import (VoTI). The VoTI is calculated by the addition of the Customs Value (CV) plus the Duty plus the value of the International Transport and Insurance (T&I).

Here is an example of how the import duty and GST is calculated on goods valued at AUD$1000 which attract a 5% duty rate:

Duty @ 5% of the AUD$1,000 (CV) = $ 50.00
International transport and insurance (T&I) = $ 150.00
Then the VoTI = (CV) + Duty + (T&I) = $1200.00
GST is 10% of the VoTI = 10% x $1200 = $120.00
Total Duty and GST Payable $170.00

Depth Logistics arranges customs clearance of cargo with independent licenced Customs Brokers who are online to the Customs Cargo System so this means lower Customs declaration processing fees for you compared to lodging import declarations manually yourself. The charges Customs levy for this are called Electronic Entry Charges(EEC). These charges range from $50.00 to about $210.00 depending on the value of the goods and mode of transport.

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