Overview

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 that the Australian Customs and Border Protection Service (Customs) relies on importers and exporters to provide accurate information 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 for the duty-free importation of certain goods) 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 where they cause or threaten to cause injury to Australian manufacturers. Countervailing similarly involves 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.

Our 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 who specialises in customs and international trade law.

Please select below from our Articles, FAQ and Questions & Answers sections all written by experienced lawyers. Our Glossary helps explain the meaning of any words you are unsure about. You can also Ask a Lawyer a question yourself. It is free and anonymous.

How a lawyer can help?

Customs and international trade law is a highly complex area. An experienced lawyer can assist you with:

• Classification issues including:
  • assistance in identifying the correct classification of goods;
  • requesting a review of classification of goods;
  • disputes with Customs in relation to the classification of goods;
  • drafting a tariff advice application which seeks Customs’ view as to the correct classification of goods; and
  • drafting a voluntary disclosure of error to acknowledge a classification error to Customs.

• Valuation issues including:
  • assistance in identifying the correct valuation of goods;
  • requesting a review of valuation of goods;
  • disputes with Customs in relation to the valuation of goods;
  • drafting a valuation advice application ; and
  • drafting a voluntary disclosure of error to acknowledge a valuation error to Customs.

• Dumping and Countervailing investigations including:
  • legal representation for importers, exporters and Australian industry in dumping or countervailing investigations;
  • assistance in calculating dumping or countervailing duties; and
  • representation in anti-circumvention matters.

• Free trade agreements including
  • advice about the affect of free trade agreements on businesses;
  • compliance issues including the application of rules of origin; and
  • preparation of submissions to the Department of Foreign Affairs and Trade in regards to free trade agreement negotiations.

• International transactions including advice regarding:
  • the international sale of goods;
  • joint ventures;
  • foreign investment rules;
  • distribution agreements; and
  • technology transfer licences.

• Assistance and representation in freight and transportation disputes including:
  • air waybills (the receipt issued by an international airline for goods which is evidence of the contract of carriage) and
  • bills of lading (a similar receipt issued for freight shipments).

• Preparation and representation in litigation including contractual issues and requests for judicial review of Customs’ decisions.

• Advice relating to compliance with quarantine laws.

• Issues with tariff concession orders including:
  • drafting tariff concession order applications;
  • seeking a tariff advice in regards to the applicability of a tariff concession order; and
  • assisting Australian manufacturers to apply for revocations of existing tariff concession orders.

• Legal advice in regards to transfer pricing issues and taxation.

• Preparing applications for projects under the Enhanced Project By-Law Scheme. (This scheme provides for tariff concessions on the importation of goods used in large-scale manufacturing if it supports Australian industry.)

• Commerce trade description issues including:
  • advice regarding the labelling requirements on imported goods; and
  • dealing with breaches of the labelling requirements.