Frequently Asked Questions
You need to check the relevant legislation in your State and Territory, as the rules are different in each jurisdiction.
-
What is a licenced broker?
- Under the Customs Act an owner of goods can authorise an agent to act on their behalf for the purposes of importing and exporting goods.
- Customs brokers are required to be licenced under the Customs Act. A list of licensed custom brokers can be found here: http://www.customs.gov.au/webdata/resources/files/LicensedCustomsBrokeragesbyStateDec13.pdf.
- Customs brokers can assist with large or small shipments. Some may specialise in certain types of merchandise or certain forms of transport.
- Customs brokers are professionals who spend most of their time preparing documents to comply with the stringent requirements of Customs. They are required to know the applicable regulations and guidelines and to keep informed of changes. The matters they can advise and assist you with include:
- duties and taxes;
- quarantine requirements;
- classification and valuation issues; and
- all your import and export needs.
- Using a customs broker can eliminate expensive shipping delays and the confiscation of goods by Customs.
>> Read more & related FAQ's
-
What should I do if I want to get a refund of customs duty?
- You may wish to engage a licenced broker, consultant or lawyer to review your imports and see if there are any opportunities for refunds. You can use our Fixed Fee Quote service to call for tenders from experienced lawyers who may be able to assist you with this.
- Refunds may be available for a range of reasons specified in the Customs Regulations 1926 (Cth) including:
- damage, deterioration, loss or destruction of the goods at various stages;
- duty being paid under a mistake as to the facts or the law;
- the Administrative Appeals Tribunal (AAT) finds that too much duty was paid;
- a reduction of the applicable duty occurs after duty has been paid;
- a re-valuation occurs (under specified circumstances only);
- the goods were subject to a tariff concession order;
- dumping duty was paid on goods that were subsequently imported; or
- duty was paid on goods that were subject to a specified free-trade agreement.
>> Read more & related FAQ's
-
I am not sure if I have classified the goods correctly. What can I do?
- You can submit a tariff advice application to Customs.
- Customs will provide an advance ruling on the classification of specific goods before importation. The advice is provided free of charge. However you may choose to pay a broker or lawyer to assist you in preparing your application.
- The advice only applies to the specific goods and specific manufacturer named in the application. You will need to provide sufficient information to enable a decision to be made.
- This service is designed to be used by businesses to help them make decisions about intended imports. It usually takes about 30 days and can take longer if Customs are busy.
- If you need urgent advice about goods that are awaiting clearance you should consult a licenced broker or experienced customs lawyer. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
I am not sure if a tariff concession order applies. What can I do?
- You can submit a tariff advice application to Customs.
- Customs will provide an advance ruling on the classification of specific goods before importation. The advice is provided free of charge. However you may choose to pay a broker or lawyer to assist you in preparing your application.
- The advice only applies to the specific goods and specific manufacturer named in the application. You will need to provide sufficient information to enable a decision to be made.
- This service is designed to be used by businesses to help them make decisions about intended imports. It usually takes about 30 days and can take longer if Customs are busy.
- If you need urgent advice about goods that are awaiting clearance you should consult a licenced broker or experienced customs lawyer. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
I am not sure if I have valued the goods correctly. What can I do?
- There is a complex procedure for valuing goods set out in the Customs Act which requires steps to be followed in strict order. You must attempt to follow the procedure in the Customs Act before requesting a valuation advice.
- If you are unable to determine the correct value for your goods or are unsure whether you have reached a correct valuation you can submit a valuation advice application to Customs.
- A formal valuation advice can only be given where:
- evidence is provided of a firm intention to import;
- the application provides sufficient information; and
- the application contains an explanation, with reference to the Customs Act, of the valuation issues involved and the reasons for the applicant’s proposed valuation method.
- The application must include:
- a description of the goods and identification of the parties to the importation or transaction (explaining their roles where relevant);
- identification of all relevant contracts, agreements or arrangements and which portion of them is relevant to the transaction;
- explain the financing and payment arrangements (if relevant); and
- set out the relevant provisions of the Customs Act that the applicant has considered along with detailed reasoning about the claimed issue.
- Each application must be for a single valuation issue.
- The applicant is indemnified from penalties for underpaid duty from the time when the application is submitted to the time when Customs makes its decision. This can take 30 days but may be extended where Customs requires the applicant to provide further information.
- Customs will provide its opinion as to the correct valuation of the goods. Once made, the valuation advice becomes binding and payments must be made in accordance with it.
- Given the complexity of valuation issues and the application process you may wish to engage a licenced broker or experienced customs lawyer to assist you. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
How do I know if I can use a free trade agreement?
- Simply importing goods from a free trading partner country does not mean your import will qualify for preferential treatment under a free trade agreement.
- The goods must comply with the rules of origin as specified in the text of the relevant free trade agreement.
- Many free trade agreements require a certificate of origin. In other cases an origin declaration will be required. You will need to refer to the specific free trade agreement to determine its requirements.
- Full text versions of the free trade agreements are available at www.dfat.gov.au/fta.
- Given the complexity of free trade agreements and rules of origin you may wish to engage a licenced broker or experienced customs lawyer to assist you. You can use our Phone a Lawyer service to get a preliminary consultation.
>> Read more & related FAQ's
-
How can I check what the origin of the goods is?
- If you are uncertain of how Customs will view the origin of your goods you can submit an origin advice application.
- There are specific forms for different free-trade agreements and specific guidelines and instructions for filling out those forms.
- If you have a simple enquiry you can try:
- If these methods do not answer your question you may wish to engage a licenced broker or experienced customs lawyer to assist you in making your application. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
Where can I apply for a certificate of origin before exporting goods from Australia?
- A certificate of origin is a document certifying the place where the goods were grown, produced or manufactured.
- Certificates can only be completed by certain authorised bodies. These include:
- Certificate of origin forms may be available for download from these websites or you may need to contact them for more information.
- A fee is generally charged for production of the certificate. Different authorised bodies may charge different amounts and you should conform their fees before proceeding.
- There are specific procedures to be followed in making an application for a certificate of origin. You must include:
- a Document Service Registration Form or an Exporters Information Form Update (providing information about you. If you represent a company you will need to provide a list of people who are authorised to sign on the company’s behalf);
- evidence of the origin of the goods (such as bill of lading, letter of credit or statutory declaration) and
- two copies of the export documents to be stamped and which have been signed by the exporter on the bottom left-hand side under the exporter’s declaration.
- A licenced customs broker or experienced customs lawyer can assist you in obtaining certificates of origin for your Australian made goods. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
What if I disagree with an advance ruling from Customs?
- If you have applied for an advance ruling on classification, valuation, tariff concession orders or rules of origin declaration and you disagree with the result you can:
- request an internal review. The request must be in writing and give reasons why you believe the decision was wrong;
- dispute the payment of duty in the Administrative Appeals Tribunal (AAT). The reasons for disputing the duty may include matters covered by an advance ruling (although you cannot directly appeal against the ruling). You can dispute the payment of duty on the grounds of incorrect classification, valuation or origin;
- from the AAT either Customs or the importer can appeal to the Federal Court but only if they can show the tribunal’s decision was incorrect on a point of law. They cannot appeal based on an error of fact.
- An experienced customs lawyer can assist you in appealing a decision. Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
>> Read more & related FAQ's
-
What consequences do I face for non-compliance with customs laws?
- Customs has various monitoring and examination powers that equip it to determine whether customs laws are being complied with. It can also demand production of commercial documents and records for transactions up to 5 years old.
- Unpaid duty is a debt due to the Commonwealth and payable by the owner of the goods. Customs may make a written demand for payment of that debt specifying the amount of duty being demanded and explaining how that duty was calculated.
- Responses to non-compliant activity are determined by the extent and nature of the non-compliance.
- For certain strict liability offences (where the person can be penalised without needing to prove they acted intentionally or recklessly) an infringement notice can be issued and a penalty (fine) imposed. These offences include:
- making false and misleading statements;
- failure to report or to report on time;
- failure to comply with certain directions; or
- moving, altering or interfering with goods without authority.
- Penalties are only to be applied by certain senior Customs officers on a case-by-case basis after careful consideration of all the relevant facts.
- Customs officers retain the discretion to prosecute you for the offence at all times up until a penalty is paid. Prosecution cases are handed over to the Commonwealth Director of Public Prosecutions (DPP).
- Payment of a penalty discharges liability for the offence so that you cannot be prosecuted for it and no conviction is recorded against you.
- Customs prosecutions are rare for strict liability offences such as failure to pay the correct duty. They are more often used for importing or exporting prohibited substances such as weapons or drugs.
- In some circumstances an infringement notice may be issued as a warning without a penalty being imposed or Customs may recommend an alternative compliance action such as education.
- If you receive an infringement notice you may ask for it to be withdrawn and a different decision-maker will decide whether your request has merit.
>> Read more & related FAQ's
-
I have made a false statement on a customs document but it did not result in a loss of duty. Could I get in trouble?
- Yes. Making a false or misleading statement is a strict liability offence even if it did not result in a loss of duty.
>> Read more & related FAQ's
-
What are Incoterms?
- Incoterms are standard International rules for interpreting trade terms in contracts.
- They were formulated by the International Chamber of Commerce.
- Use of the terms is optional but they can be very useful in establishing a common set of rules for parties in different countries.
- The terms establish the risks and responsibilities of each party to the contract.
- A quick reference guide of the Incoterms is available at: http://www.customs.gov.au/webdata/resources/files/Incoterms.pdf
>> Read more & related FAQ's
View more Information on Customs and International Trade