Laws about customs and international trade affect people and businesses that import or export goods. Politics heavily influence the regulation of customs and international trade resulting in regulations such as those aimed at protecting Australian industry from foreign competition. As globalisation (the move towards a world market) increases, regulations must change to keep up with current issues and practices. Globalisation has led to the liberalisation (relaxation) of international trade rules in some areas. Free trade agreements for example have led to a reduction in tariffs and other barriers to trade. At the same time globalisation has also led to an increased focus on compliance in relation to international trade. The government has imposed stricter regulations on traders to tackle border-related crimes and prevent an avoidance of customs duties being hidden behind complex supply chains.

 Our customs system is based on the principle of ‘self-assessment’. This means importers and exporters are required to provide accurate information to the Australian Customs and Border Protection Service (Customs) regarding their imports and exports. Many importers and exporters use external licenced customs brokers to complete the relevant import documentation with Customs. However liability for non-compliance still falls on the importer or exporter. 

Customs is the main government body that makes decisions about compliance. This means that it determines when the movement of people or goods across our borders is illegal and collects customs duties and other import or export charges. The Customs Tariff Act 1995 (Cth) (the Customs Act) determines the application of customs duties to any particular imported goods.

There are several options available for reducing or eliminating customs duty. Those options include

• free trade agreements;
• tariff concession orders (which allow certain goods to be imported duty-free); and
• governmental concession schemes.

Other areas of customs and international trade law include regulations to prevent dumping and countervailing disputes. ‘Dumping’ occurs when an international trader attempts to sell products in Australia at a lower than normal price. Customs may impose additional duties on dumped goods that compete unfairly with Australian manufacturers. Countervailing is another method with a similar purpose that results in additional duties being charged where the manufacture or production of goods has been subsidised (supported by government payments) in the country where the goods came from. The government believes it is important to protect Australian industry from unfair competition by ensuring imports are reasonably priced in comparison with goods produced in Australia. Disputes about such matters often involve both customs law and administrative law (the area of law that deals with appealing governmental decisions). Contracts law may also be needed as imports and exports usually involve a contract for the sale of goods.

This Legal Guide on Customs and International Trade gives importers and exporters information about the laws and practices that regulate their activities. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.