Customs Guide to Importing and Exporting - Arts Queensland

CUSTOMS-IN-CONFIDENCE 

Australian Customs Service 

Customs Guide to Importing 

and Exporting

Introduction................................................................................................3 

Importing goods .........................................................................................7 

Assistance for Private Importers ..................................................................................7 

Import documentation .................................................................................................7 

Clearance of commercial consignments.......................................................................8 

Transhipments.............................................................................................................8 

Licensed warehousing (underbond) system..................................................................9 

Entering your goods ....................................................................................................9 

Customs Tariff Classification System .....................................................10 

Customs valuation system .........................................................................................10 

Indirect taxes – GST, WET, LCT ...........................................................12 

Goods and Services Tax (GST) .................................................................................12 

Wine Equalisation Tax (WET) ..................................................................................12 

Luxury Car Tax (LCT) ..............................................................................................13 

The Australian Business Number...............................................................................14 

Import Prohibitions and Restrictions..........................................................................14 

Commerce trade descriptions.....................................................................................15 

Temporary import/export of commercial goods .........................................................16 

Temporary importation under coverage of a carnet ................................................16 

ATA carnets..........................................................................................................16 

CPD carnets - FIA/AIT carnets..............................................................................17 

Section 162A.........................................................................................................17 

Rules of origin...........................................................................................................18 

Exemption from export entry.....................................................................................19 

Goods subject to export controls................................................................................20 

Customs AHECC Classification System .................................................21 

Export statistics.........................................................................................................21 

Examination of export cargo and documents .........................................22 

GST and exported goods..........................................................................22 

Industry schemes......................................................................................23 

Customs warehouses - deferment of duty...............................................................23 

Duty drawback scheme..........................................................................................23 

Manufacturing in Bond (MiB)...............................................................................23 

Tariff concession system .......................................................................................23 

Dumping and subsidies..............................................................................................23 

Frontline ...................................................................................................................24 

Accredited Client Program ........................................................................................24 

Industry referrals .......................................................................................................25 

Complying with Customs.........................................................................25 

Clients’ responsibilities .........................................................................................26 

Monitoring Powers....................................................................................................26 

Sanctions...................................................................................................................27 

Penalties and Infringements ....................................................................28 

How to comply..........................................................................................29 

Importers...................................................................................................................29 

Common reasons for reduced compliance..............................................................29 

This information is intended as a guide. If you need more information or you are not 

sure of the requirements that apply to you, email information@customs.gov.au. You 

can also contact a Customs Information Centre on 1300 363 263 from anywhere in 

Australia or +61 2 6275 6666 from outside Australia 

March 2002

Exporters...................................................................................................................31 

Common aspects which result in reduced compliance............................................31 

Movement of goods subject to Customs control.........................................................32 

Addresses and contact numbers..............................................................33 

Customs Head Office ................................................................................................33 

Customs Overseas Offices.........................................................................................33 

Brussels.................................................................................................................33 

Tokyo....................................................................................................................33 

Washington...........................................................................................................33 

Bangkok................................................................................................................33 

Other Customs contacts.............................................................................................34 

Dumping ...............................................................................................................34 

Frontline ...............................................................................................................34 

Other relevant agencies and bodies............................................................................34 

Australian Taxation Office ....................................................................................34 

Department of Industry, Tourism and Resources ...................................................34 

The Business Entry Point ......................................................................................35 

Australian Quarantine and Inspection Service (AQIS) ...........................................35 

Department of Communications Information Technology and the Arts, Cultural 

Property and Institutions Section ...........................................................................35 

Department of Defence, Strategic Trade Policy and Operations .............................35 

Commonwealth of Australia GazetteAusinfo.........................................................35 

Customs Brokers and Forwarders’ Council of Australia Inc...................................35 

Australian Federation Of International Forwarders ................................................36 

The Australian Automobile Association (AAA).....................................................36 

The Victorian Employers’ Chamber of Commerce and Industry (VECCI) .............36 

Glossaries..................................................................................................37 

Acronyms..................................................................................................................37 





March 2002

Introduction 

A Customs Guide to Importing and Exporting is aimed to assist everyone who interacts 

with the Australian Customs Service. This encompasses Importers, Exporters, 

Import/Export agents, local manufacturers and producers, as well as individual members 

of the general public. 

While providing a useful source of information for all Customs clients, this Guide is 

particularly aimed at assisting small business, especially those that have not previously 

been involved in international trade. Recognising the importance of small business to the 

economic future of Australia, Customs aims to provide information that will assist small 

business in dealing with Customs procedures. 

This Guide gives an overview of the Customs rules, regulations and processes. It explains 

some of the Customs issues when importing, exporting, and in regards to manufacturing 

goods locally. For more detailed information, contact the Customs Information Centre on 

1300 363 263, or by email at information@customs.gov.au 

This Guide also draws attention to other legislative requirements that must be complied 

with in order to successfully complete importing/exporting/manufacturing obligations. 

In addition, this Guide highlights a number of programs in which industry and Customs 

mutually benefit by working together to facilitate the movement of goods and protect the 

community. 

This Guide includes some information on the Goods and Services Tax (GST), further 

information can be obtained by contacting the Australian Taxation Office (ATO) or the 

Customs Information Centre (CIC) at information@customs.gov.au 

Information is also included relating to Luxury Car Tax (LCT) and the Wine Equalisation 

Tax (WET), which might apply to the importation of motor vehicles and wine. 

A Glossary of Terms has been included to assist readers. 





March 2002

Note: 

Trade Modernisation legislation passed both houses of Parliament in June 2001. This 

entails a series of significant changes to the passage of cargo both into and out of 

Australia. It involves: 

• A new open gateway communication system known as Customs Connect Facility 

(CCF) 

• The merger of several computer systems into an Integrated Cargo System (ICS) 

• Tailored arrangements for low-risk importers and exporters under an accredited 

client program 

• Industry self-assessment of low-revenue, low-risk cargo; and 

• Streamlined reporting mechanisms that combine cargo reports and declaration 

information. 

These changes will impact on some of the information contained in this guide throughout 

the next 18 months. 

Some of the elements of the International Trade Modernisation (ITM) legislation [the 

Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 

2001] commenced on 1 July 2002. 

These elements include some strict liability offences (for example, for false or 

misleading statements) and the new infringement notice scheme to the extent it applies to 

those offences, monitoring powers, document/record retention , export examination 

powers, reporting and control amendments and depot licensing. 

Further information will be available from the CMR web page (under Trade Legislation) 

of the Customs Website. 





March 2002

Customs Information Centre 

The Customs Information Centre (CIC) was established to assist the Australian 

community and industry, as well as overseas visitors, to better understand and use the 

services and programs administered by Customs. 

CIC officers are able to provide advice and information relating to: 

• import/export requirements and restrictions. 

• rates of customs duty. 

• Goods and Services Tax (GST), Wine Equalisation Tax (WET) and Luxury Car 

Tax (LCT) issues, as they relate to imports and exports. 

• duty and tax-free concessions for travellers. 

• Tourist Refund Scheme (TRS) and other tourist-shopping options. 

• Private importation of vehicles and yachts. 

• Goods subject to quarantine. 

To facilitate access to Customs programs, information is available on a range of schemes 

including: 

• The Drawback Scheme, which benefits industries that import goods for 

processing/use in manufacture for eventual exporting. 

• The Tariff Concession System, which allows concessional entry of imported 

goods where no substitutable goods are produced in Australia. 

• Customs Licensed Warehouses, which enable goods to be held while deferring the 

payment of applicable customs duty until the stored goods are sold for use within 

Australia. 

How can you obtain this information? 

Information relating to these and other schemes and programs can be obtained through 

Fact Sheets that are available from the CIC, or as electronic Fact sheets. 

Inquiries to Customs Information Centres can be made by telephone, fax, letter, e-mail, or 

by calling in personally at any CIC shopfront (locations listed below). 

Customs Information Centres aim to provide the following standards of service: 

• When calling 1300 363 263, from anywhere within Australia, you will be 

connected to the CIC for the cost of a local call (excluding mobile telephones). 

• If you write/fax or e-mail a CIC, you will receive a response within 15 working 

days of the receipt of your correspondence. If your query cannot be fully 

answered in that time, you will receive an interim response. 

• If you telephone during normal business hours the CIC will not transfer your call 

more than once without your agreement, or arrangements will be made for the 

appropriate person to return your call. 

E-mail inquiries to the CIC can be made to information@customs.gov.au. Customs 

information is also available on the Customs Website at www.customs.gov.au 





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Contact details for CIC’s are listed below. If you have any comments regarding your 

experience with the CIC, please contact your nearest CIC Manager: 

New South Wales Australian Capital Territory 

3 rd Floor Tower Customs House 

Sydney Central Building 5 Constitution Avenue 

477 Pitt Street Canberra ACT 2601 

Postal: PO Box 8 Phone: (02) 6275 6407 

Sydney NSW 2000 Fax: (02) 6275 6005 

Fax: (02) 9213 4043 

Victoria Northern Territory 

Ground Floor Customs House 

Customs House 21 Lindsay Street 

414 La Trobe Street Darwin NT 0800 

Postal: PO Box 2809AA Fax: (08) 8946 9953 

Melbourne VIC 3001 Postal : PO Box 210 

Fax: (03) 9244 8200 Darwin NT 0801 

Queensland Tasmania 

Level 2, Terrica Place 1 st Floor, MBF Building 

140 Creek Street 25 Argyle Street 

Postal: PO Box 1464 Postal: PO Box 148B 

Brisbane QLD 4001 Hobart TAS 7001 

Fax: (07) 3835 3493 Fax: (03) 6230 1261 

South Australia Western Australia 

Customs House Customs House 

220 Commercial Road 2 Henry Street 

Postal: PO Box 50 Fremantle WA 6160 

Fax: (08) 8447 9208 Fax: (08) 9430 1751 

Port Adelaide SA 5015 Postal: PO Box 396 

Fremantle WA 6959 





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Importing goods 

All goods imported into Australia must be cleared by Customs. Importers are responsible 

for obtaining a formal Customs clearance for goods above set value limits (currently $250 

for goods imported by sea and air cargo and $1000 for goods imported through the postal 

system). 

Consignments valued at or below these amounts may be cleared through use of an 

approved Informal Clearance Document (ICD), available at Customs offices. 

Customs applies cost-recovery charges for the processing of entries by Customs. These 

costs depend on whether the entry is submitted as an electronic entry or as a documentary 

(manual) entry. 

Goods entering Australia can attract Customs duty and/or GST and other taxes and 

charges. Customs duty rates vary and depend on a number of factors, such as type of 

goods and country of origin. For advice on charges, duty rates, as well as any other 

Customs matters, contact the Customs Information Centre on 1300 363 263. 

Assistance for Private Importers 

If you are a private importer and want to clear your own goods, you should contact the 

Customs Information Centre on 1300 363 263 for advice on the requirements and 

operating hours. 

You should also contact your shipping company, airline, or freight forwarder to obtain 

advice on their requirements, including the company’s operating hours and the location of 

the goods. 

Import documentation 

Customs does not require companies or individuals to hold import licences. But, 

depending on the nature of the commodity, and regardless of value, owners may need to 

obtain permits to clear the goods. Further information on permits is contained in the 

Import prohibitions and restrictions chapter. 

The minimum amount of documentation required for Customs clearance comprises a 

completed Customs Entry or Informal Clearance Document (ICD), an air waybill (AWB) 

or bill of lading (BLAD) as well as invoices and other documents relating to the 

importation. 

Customs does not require the completion of a special form of invoice. Normal 

commercial invoices, bills of lading and receipts are acceptable. These documents should 

contain the following information: 

• Invoice terms (eg, FOB, CIF) 

• Monetary unit referred to on invoice (e.g. AUD$, US$) 

• Name and address of the seller of the goods ( Consignor) 





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• Name and address of the buyer of the goods (Consignee) 

• Complete description of the goods 

• Name of the ship (or aircraft) on which the goods are to arrive in Australia 

• Country of origin of the goods, including a declaration from the manufacturer 

where preferential rates of duty are being claimed. Further information on 

preference is contained in the chapter Rules of Origin. 

• Numbers of packages containing the goods and the marks and numbers on each 

package 

• Quantity of the goods 

• Selling price of the goods to the buyer of the goods 

• Labour costs incurred in packing the goods into outside packages 

• Value of outside packages 

• Amount of royalties (if any) payable in respect of the goods 

• Particulars of freight and insurance costs associated with the transport of the 

goods to Australia and 

• Particulars of all arrangements or undertakings that have, or might have, the effect 

of varying the selling price of the goods whether by way of discount, rebate, 

compensation or any other means. 

Importers are legally required to retain commercial documents relating to a transaction for 

five years from the date of entry. These documents might be required for Customs audit 

purposes. Failure to meet this requirement may incur a financial penalty. 

Clearance of commercial consignments 

Charges apply to cargo reporting and the processing of import entries for goods arriving 

by sea, air or post. Commercial Customs clearances can be arranged by the owner or a 

customs broker, who will usually charge a fee for the service. 

Brokers specialise in clearing imported goods and are licensed by Customs. They can be 

contacted by referring to the Yellow Pages local telephone directories under ‘Customs 

Brokers’ or by contacting the local branch of the Customs Brokers’ and Forwarders 

Council of Australia Inc. 

Transhipments 

Transhipment is the transfer of goods from a ship or aircraft arriving in Australia from 

overseas to another ship or aircraft travelling abroad. Transhipment cargo is not intended 

for Australia and has an ultimate destination overseas. 

Written Customs permission is required to access transhipment cargo, with the exception 

of shipping or airline companies and freight forwarders who are permitted limited access. 

These companies can access cargo within Customs licensed premises, only to unpack 

containers and repack into other containers, or to move cargo to another place in 

accordance with a written Customs permission. 

Transhipment cargo can be subject to normal permit requirements. 





March 2002

Licensed warehousing (underbond) system 

An integral part of the Australian importation scene is the licensed warehouse 

(underbond) system. The licensed warehouse system provides business with a dutydeferral 

facility. It allows importers or owners of goods on which duty has not been paid 

to store them ‘under bond’ in Customs licensed premises until they are ready to pay the 

duty on the goods to allow them to be used within Australia. 

Owners have the discretion to determine the quantity of goods to be duty paid and cleared 

from bond and may also, with approval from Customs, move goods between bonded 

premises. 

Licensed warehouses are essentially for storing underbond goods. Some limited activity is 

permitted to be carried out on the goods while they are under bond. Further details on the 

licensed warehouse system can be obtained from the Customs Information Centre on 

1300 363 263. 

Entering your goods 

Customs uses computer technology to carry out its import and export processing. 

Throughout Australia, customs brokers and some major importers are linked by terminals 

in their offices to the commercial computer systems at Customs headquarters in Canberra. 

By using a system called COMPILE (Customs On-Line Method of Preparing from 

Invoices Lodgeable Entries), brokers and importers create Customs entries in their offices 

direct from commercial invoices. 

As brokers and importers enter their import data, the COMPILE system: 

• Edits and validates the data, reporting any errors for immediate online correction 

• Handles currency and quantity conversion 

• Determines the customs value of the goods and calculates the customs duty and 

GST and, where applicable, wine equalisation tax payable 

• Adjusts any remaining quota/import credit balances where applicable and 

• Processes the data through the community protection profile system. 

When the entry has been created, COMPILE prints out the import entry and an entry 

message advice listing relevant Customs concerns as well as community protection 

particulars. The licensed broker or importer lodges the entry electronically, answering 

questions relating to any concerns raised on community protection issues, such as 

quarantine and health, by submitting particulars of permits etc. 

The computer indicates whether an entry is Red Line (requiring thorough checking) or 

Green Line. Low-risk Green Line entries are cleared within minutes of being lodged in 

conjunction with the COMPILE electronic funds transfer (EFT) payment system. 

Many importers and customs brokers receive standardised electronic information directly 

from their overseas trading partners or have the information keyed into their systems. The 

EDIFICE (Electronic Data Interchange For Input of Customs Entries) system allows data 





March 2002

already held on these computers to be formatted and electronically transferred to 

Customs. 

Customs Tariff Classification System 

Rates of duty payable by an importer are determined by the classification of goods within 

the Customs Tariff Act 1995 (the Tariff). As the Tariff contains more than five thousand 

headings and sub-headings it is impossible to list specific rates here. 

In some circumstances, anti-dumping or countervailing measures, which result in the 

imposition of additional rates of duty, may also apply. 

The Tariff is based on an international document called the Harmonized Commodity 

Description and Coding System, commonly referred to as the Harmonized System (HS). 

The HS is used by all of Australia's major trading partners. 

For general information on Tariff matters, enquiries can be made through Customs 

Information Centres. However, it should be noted that general advice will be limited 

primarily to an indication of the applicable duty rate which, though based on the best 

information available, is not binding. 

Where importers are seriously considering the importation of specific goods, they should 

obtain a Tariff Advice (TA). The decision on a TA is binding on Customs and therefore 

represents the safest approach for an importer. Customs decision is valid in all Australian 

ports for five years from the date of advice. 

Customs may revoke or amend a TA within five years, where particular circumstances 

warrant. Such circumstances include: 

� Where an amendment is made to the legislation that has relevance to the advice. 

� Where incorrect information was provided to Customs or relevant information 

was withheld from Customs. 

� Where Customs changes its views (this may occur as a result of legal precedent). 

Applications for a TA are best lodged in the state or territory through which the goods 

will be imported. They should be made on forms available from Customs Information 

Centres. 

Customs valuation system 

Customs determines the value of goods imported into Australia based on the World Trade 

Organization (WTO) Valuation Agreement. This valuation system is used by most trading 

nations. 

The most common method used to determine the customs value is the transaction value 

method, which is based on the price actually paid (or payable) for the imported goods. 

However, in applying the transaction value method, there must not be any corporate or 

personal relationship between the buyer and seller that has had an effect on the price. 





March 2002

The price paid might be subject to adjustment. In some cases this could involve additions 

for commissions or royalties not included in the original price. If the price paid (or 

payable) cannot be accepted as the basis for determining the customs value, then Customs 

would consider alternative valuation methods. 

These are: 

• The identical-goods value method (ie, the transaction value of identical goods 

sold for export to Australia) 

• The similar-goods value method (ie, the transaction value of similar goods sold 

for export to Australia) 

• One of the three deductive-value methods (ie, the price in a sale in Australia of 

the imported goods, identical goods or similar goods. This price must be adjusted 

for costs etc incurred between ‘the place of export’ (see below) and the sale in 

Australia) 

• The computed-value method (ie, a value based on production, general expenses, 

other costs and profit relating to the imported goods) and 

• The fallback-value method (ie, a value determined by Customs having regard to 

all the above methods and other matters that Customs considers relevant). 

Overseas freight and insurance costs are excluded from the customs value of imported 

goods. These are any amounts paid by a trader to a person for transporting goods from the 

place of export to Australia. 

The place of export means : 

• the place where goods were posted 

• the place where the goods were packed in a ‘container’ (as defined in the Customs 

Convention on Containers) 

• in the case of self-transported goods, the place, or last place, where the goods 

departed for Australia 

• the place, or first place, where the goods were placed on board a ship or aircraft 

• the place where the goods crossed the border of the country of export 

• the place determined by a Collector of Customs. 

All costs for foreign inland freight and foreign inland insurance incurred by the purchaser 

are included in the customs value. The particular circumstances of each import sales 

transaction will determine the ‘place of export’. For example, where a container is packed 

at a factory as a ‘full container load’, the place of export is the factory. 

The cost of outside packages and labour in packing are included in the customs value. 

‘Containers’, as defined in the Customs Convention on Containers, are not treated as 

outside packages. 

Where a ‘price’ will form the basis of a customs value and that price is not in Australian 

dollars, it will be converted to Australian dollars at the ruling rate of exchange on the day 

the goods were exported. The ruling rate of exchange to be used in all cases where 

currency conversion is necessary will be published in the Commonwealth of Australia 

Gazette, General Notices, available from the Commonwealth Government Info shops, the 

Australian Financial Review and the Lloyd’s List Daily Commercial News. 





March 2002

Indirect taxes – GST, WET, LCT 

Imported goods might be subject to one or more indirect taxes. These indirect taxes 

comprise the Goods and Service Tax (GST), the Wine Equalisation Tax (WET) and the 

Luxury Car Tax (LCT). 

Goods and Services Tax (GST) 

GST applies to most imported goods. There are few exemptions from the GST, the main 

ones being certain foodstuffs, some medical aids and appliances and imports that qualify 

for certain customs duty concessions. 

Subject to eligibility criteria, importers who are registered for GST might be able to defer 

the payment on imported goods by participating in the Deferred GST Scheme. 

Participants in the scheme can account for importations in their first Business Activity 

Statement (BAS) after they make an importation. Importers can apply to defer GST 

through the Australian Taxation Office (ATO) on 1300 130 915. Further information on 

deferral can be obtained by emailing information@customs.gov.au 

GST is applied at 10 per cent of the value of the taxable importation (VoTI). The value of 

the taxable importation is the sum of: 

• the customs value of the imported goods, and 

• any customs duty payable, and 

• the amount paid or payable to transport the goods to Australia and to insure the 

goods for that transport, and 

• any wine tax payable (see following section). 

The following example shows how GST liability is calculated: 

AU$ 

Customs value 1,000.00 

Customs duty @ 5 per cent x $1,000 50.00 (Payable) 

International transport and insurance 150.00 

Wine tax (if applicable - see following section) 0.00 

VoTI 1,200.00 

GST @ 10 per cent x $1,200 120.00 (Payable) 

Total payable (customs duty + GST) 170.00 

Wine Equalisation Tax (WET) 

WET applies to the following alcoholic beverages: 

• Grape wine, including sparkling wine and fortified wine 

• Grape wine products such as marsala, vermouth, wine cocktails and creams 

• Other fruit wines and vegetable wines, including fortified fruit wines and 

vegetable wines 





March 2002

• Cider and sherry and 

• Mead and sake, including fortified mead. 

Wine tax for imported wine is generally calculated as: 

• 29 per cent of the purchase price at inwards duty free. 

The following example shows how WET liability is calculated: 

Customs value 

AU$ 

1,000.00 

Customs duty @ 5 per cent x $1,000 50.00 (Payable) 

International transport and insurance 

WET @ 29 per cent x (customs value + customs 

150.00 

duty + International transport and insurance) 

348.00 

(Payable) 

VoTI 1,548.00 

GST @ 10 per cent x $1,548 154.80 (Payable) 

Total payable (customs duty + WET + GST) 552.80 

Luxury Car Tax (LCT) 

LCT applies to motor vehicles (except motor cycles or similar vehicles) that are: 

• Designed to carry a load of less than two tonnes and fewer than nine passengers; 

and 

• Above a certain value. 

LCT applies to cars (including limousines) whose LCT value exceeds the threshold. 

The definition of a luxury car excludes certain vehicles, including prescribed emergency 

vehicles, motor home and campervans, commercial vehicles and, provided they are not 

GST-free, vehicles that are specifically fitted out for disabled people seated in 

wheelchairs. 

The value above which the LCT becomes payable is the LCT threshold. The LCT 

threshold is a GST-inclusive value. For the 2002/2003 financial years the LCT threshold 

is set at $ 57,009. 

The amount of LCT is 25 per cent x 10/11 x [LCT value – LCT threshold] 

The following example shows how LCT liability is calculated: 

AU$ 

Customs value 45,000.00 

Customs duty @ 15 per cent x $45,000 6,750.00 (Payable) 

International transport and insurance 1,500.00 

VoTI 53,250.00 

GST @ 10 per cent x $53, 250 5,325.00 (Payable) 

Luxury Car Tax value 58,575.00 

LCT value –LCT threshold (58,575 – 57009) 1566.00 

LCT = 25 per cent x (10/11 x $3,441) 355.90 (Payable) 





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Total Payable (customs duty + GST + LCT) $ 12430.90 

Contact the Customs Information Centre or your local Australian Taxation Office for 

more information. 

The Australian Business Number 

If importers have an Australian Business Number (ABN) they need to supply it to 

Customs when formally entering goods. Importers need to be registered for GST purposes 

and have an ABN in order to claim input tax credits or access the GST-deferral scheme. 

For advice on any GST matters, including registration, deferral and claiming of input tax 

credits, contact your local Australian Taxation Office. 

Import Prohibitions and Restrictions 

A range of legislation provides for the importation of certain goods into Australia to be 

prohibited absolutely or conditionally. The seizure of prohibited or restricted goods on 

entry into Australia is often carried out by Customs on behalf of other government 

agencies. Intending importers are advised to check what goods are covered by specific 

restrictions, as these are liable to change. 

Goods that might be subject to import prohibitions and restrictions include: 

• certain animal, marine and plant life and their products 

• goods bearing certain official emblems and designs 

• goods that might be hazardous to health (including chemicals, radioactive 

material and therapeutic substances) 

• goods bearing incorrect or misleading labelling or markings 

• goods that infringe trade marks, copyright or Olympic insignia 

• gertain goods relating to cultural heritage 

• goods subject to quarantine controls 

• ozone-depleting substances 

• weapons 

• narcotic and psychotropic substances 

• goods subject to censorship controls 

• certain goods imported from certain countries that are subject to UN trade 

restrictions 

• consumer safety controls on a range of commodities on behalf of the Consumer 

Affairs Division of the Department of the Treasury 

Please note : This is not a complete list of goods subject to import prohibitions and 

restrictions. For a more comprehensive list please refer to the Customs (Prohibitions and 

Restrictions) Regulations 1956. The regulations can be found in SCALEPlus on the 

Internet (scaleplus.law.gov.au - select “browse”, then “Commonwealth 

Regulations”, then “Cu” – scroll down to the Customs (Prohibited Import) Regulations 

1956). 





March 2002

In cases relating to the infringement of intellectual property rights, civil action might be 

taken against the importer by the owner or licensed user of a trademark or copyright 

material. 

Import restrictions might be in place to support local industry and to implement 

international agreements. 

Importers who fail to comply with the legislative provisions relating to import 

prohibitions and restrictions might incur severe penalties. 

Intellectual Property 

Trade Mark and Copyright owners, the Australian Olympic Committee or their authorised 

users may lodge with Customs a Notice of Objection to protect their intellectual property 

from the importation of infringing goods. Customs seizes suspected infringing 

importations where a Notice of Objection is in place. Customs holds the goods for a 

specified period pending the commencement of legal action by the Objector. If legal 

action is not commenced within the notified period the goods will be returned to the 

importer unless Customs is required to keep control of the goods under other legislation. 

At any time before legal action is commenced, the importer may voluntarily forfeit the 

goods to the Commonwealth. 

Further information on the Notice of Objection regime can be obtained by telephoning 

(02) 6275 6577 or email at iprights@customs.gov.au. 

Commerce trade descriptions 

Goods imported into Australia must comply with the labelling requirements set down in 

the Commerce (Trade Descriptions) Act 1905 and the Commerce (Imports) Regulations 

1940. 

Goods are in contravention of the Act if they are imported bearing a false trade 

description or not bearing a prescribed trade description. 

A trade description is any description, statement, indication or suggestion, direct or 

indirect about a range of matters pertaining to the goods, including the nature, number, 

quantity, quality, purity, class, size, and weight, or the country in which the goods were 

made or produced. A false trade description is any description which by addition, 

deletion, effacement or otherwise is false or is likely to mislead in a material respect. 

The Commerce (Imports) Regulations prescribes the classes of goods that require a trade 

description. These include but are not limited to food, medicines, clothing, footwear, toys 

and jewellery. 

Trade descriptions markings must : 

• be in English 

• be in prominent and legible characters 

• be on a principal label or brand attached to the goods in a prominent position in a 

manner as permanent as is practicable and 





March 2002

• in certain circumstances, include the country of origin in which the goods were 

made or produced. 

If you are uncertain about any aspect of labelling requirements, you can seek clarification 

from the Customs Information Centre on 1300 363 263. 

Temporary import/export of commercial goods 

Goods may be brought into Australia temporarily without the payment of customs duty or 

taxes for a period of up to 12 months. These goods are referred to as Temporary Imports. 

The legislative provisions for Temporary Imports are contained in sections 162 and 162A 

of the Customs Act 1901 and Regulations 124, 124A 125, 125A and 125B of the Customs 

Regulations 1926. (see explanations below). Goods can also be brought into Australia 

temporarily under the cover of a ‘carnet’ which is an international ‘passport’ for goods. 

All temporary imports must be re-exported within the approved period. 

The nature of the goods, what they will be used for while in Australia and who is 

importing them determine which provisions the goods might be eligible for. 

Temporary importation under coverage of a carnet 

A carnet is an international customs document that allows goods to be brought into 

Australia without the payment of customs duty and taxes and without the need for a 

formal customs entry. The issuing association takes a security when the carnet is issued. 

To obtain a carnet, contact your local Chamber of Commerce or the Victorian Employer’s 

Chamber of Commerce and Industry (VECCI), browse their website at www.vecci.org.au 

or the Australian Automobile Association at www.aaa.asn.au 

The use of a carnet to cover the temporary admission of goods considerably simplifies 

and expedites the formalities for temporary importation for both the importer and 

Customs. In simple terms the carnet is a passport for goods. 

When carnet goods arrive in Australia, the carnet holder needs to present the carnet and 

goods to Customs for processing. They must also be produced to Customs on export for 

processing. The goods will need to be identified. The carnet itself will be the proof of 

export. If you do not produce the carnet and goods on export, a claim for the duty and 

taxes will be issued. 

Australia accepts two types of carnets: ATA carnets and CPD carnets (also known as 

FIA/AIT carnets). 

ATA carnets 

ATA carnets are used for a wide variety of goods coming into Australia temporarily. 

ATA carnets will only be accepted for goods being temporarily imported under those 

conventions, which have been acceded to by Australia. These conventions are listed under 

Section 162A. 





March 2002

The Victorian Employers’ Chamber of Commerce and Industry (VECCI) is the 

guaranteeing association in Australia for ATA carnets. VECCI undertakes to pay an 

amount equal to the duty and taxes owing if the goods are not exported, or otherwise not 

dealt with as authorised. 

CPD carnets - FIA/AIT carnets 

The other type of carnet is known as an FIA/AIT or CPD carnet. FIA/AIT carnets are 

documents for the temporary admission of private motor vehicles and accessories issued 

under the ‘Customs Convention on the Temporary Importation of Private Road Vehicles’. 

The Australian Automobile Association (AAA) is the guaranteeing association in 

Australia for FIA/AIT carnets. The AAA undertakes to pay an amount equal to the duty 

and taxes if the goods are not exported or otherwise dealt with as authorised. 

For further information on obtaining a carnet, or details of which countries provide or 

accept them, contact VECCI for goods such as samples or professional equipment and the 

AAA for motor vehicles. 

Section 162A 

Section 162A allows goods to be temporarily imported into Australia without payment of 

duty or taxes if the goods are eligible for admission under the provisions of certain 

international agreements that Australia has acceded to. The duty and taxes are payable if 

the goods are not exported within the approved period. 

Australia has acceded to the following international agreements on temporary 

importation: 

• Customs Convention on the ATA Carnet as agreed in the Istanbul Convention on 

temporary admission 

• Convention concerning welfare material for seafarers 

• Convention concerning customs facilities for touring 

• Customs convention on the temporary importation of private road vehicles 

• International convention to facilitate the importation of commercial samples and 

advertising materials 

• Customs convention on the temporary importation of professional equipment 

• Customs convention on the temporary importation of scientific equipment 

• Customs convention on the temporary importation of pedagogic material 

• Customs convention on containers 

• The European convention on customs treatment of pallets used in international 

transport 

• Customs convention concerning facilities for the importation of goods for display 

or use at exhibitions, fairs, meetings or similar events. 

Goods admitted under S162A do not require a formal customs entry. A detailed list of the 

goods that are being temporarily imported must be provided to the Customs Securities 

section at the port of arrival. 





March 2002

For goods without a carnet, copies of normal commercial import documents such as 

invoices, packing lists, bills of lading or airway bills, quarantine certificates and other 

shipping papers plus an ‘application for permission to take delivery of goods upon giving 

a security or an undertaking for the payment of duty’ (Form 46AA) should be lodged with 

Customs. 

The security or undertaking must be sufficient to cover the customs duty and taxes if the 

goods are not re-exported within the approved period. 

At the time of export the goods must be produced to Customs for verification against the 

Form 46AA before the security can be released. 

Rules of origin 

Some goods imported from certain countries attract a lower (preferential) rate of duty. 

Rules of origin (ROO) are applied to determine, for international trade purposes, the 

country of origin. 

An importer claiming a preferential rate of duty must have a declaration from the 

manufacturer that states that the goods satisfy the requirements for preference. 

Customs might conduct an audit to ensure that correct ROO procedures have been 

followed. This activity might be carried out at the manufacturer’s premises if sufficient 

information is unavailable by other methods. 

The manufacturer’s declaration might provide exemption from infringement notices if the 

goods are found by Customs to be non-eligible for preference. 

There are several explanatory booklets on the rules and procedures that apply for 

preference. These are available from the Valuation and Origin Section of Customs, 

Canberra or from the Customs Website. These booklets relate to trade between Australia 

and New Zealand, Fiji and the Islands of the Pacific Forum. 

Further information on the Rules of Origin is available from the Customs Website. 

A compendium of preferential and non-preferential ROO of all APEC (Asia Pacific 

Economic Cooperation) members has been compiled and is available from the APEC 

Website at www.apecsec.org.sg 

Exporting goods 

Except for the exemptions listed below, all goods intended for export must be entered. 

Export entries may be lodged : 

• electronically, by a registered user of the Export Integration (EXIT) system, either 

as an owner or as an agent acting on behalf of an owner; or 

• manually, by completion of a documentary entry, which may be prepared by the 

owner or an agent appointed by the owner. This method of entry must be lodged 





March 2002

with Customs by mailing, faxing or giving it to an officer in the Export Section of a 

Customs office. 

The EXIT system operates 24 hours a day and electronic entries may be lodged at any 

time. Manual entries may be lodged in person during business hours, Monday to Friday. 

Otherwise, a manual entry may be faxed to a Customs office 24 hours a day. 

Entries lodged electronically will receive a higher priority than those lodged manually. 

Customs aims to transmit a clearance within 10 minutes of receipt of a complete and 

accurate electronic entry, provided there are no regulatory impediments. 

Subject to the processing of electronically lodged entries and provided a manual entry is 

complete and accurate and no regulatory impediments exist, Customs aims to provide an 

export clearance by close of business the next working day after receipt of the entry. 

Many customs brokers and organisations engaged in international freight forwarding have 

on-line access to the EXIT system. 

Exemption from export entry 

Items exempt from export entry requirements include: 

• Personal or household effects (including motor vehicles and pets) of a passenger 

or crew member of a ship or aircraft, other than goods which are regarded as 

commercial consignments or are of a commercial quantity. 

• A consignment by post, ship or aircraft from one person to another that has an 

FOB value not exceeding $2000, unless it includes: 

a. goods which require any permit or permission; 

b. dutiable (imported) goods on which duty is unpaid; 

c. excisable goods on which excise duty is unpaid; and/or 

d. goods on which a person intends to claim a drawback of customs duty or 

excise duty. 

• Containers, whether loaded or unloaded, belonging to a person carrying on 

business in Australia that are to be exported on a temporary basis prior to reimportation. 

• Ship or aircraft stores (except underbond stores). 

If the goods are exempt from export entry requirements then the exporter must supply to 

the cargo handler (shipping company, airline etc) the exporter name, goods description 

and destination country to assist them with their reporting requirements. 

Goods for which an export permit is required MUST be entered for export 

notwithstanding any other exemption that might apply. 





March 2002

Goods subject to export controls 

An exporter must apply to the appropriate government department or agency for a permit 

or licence to export where goods are subject to export controls under customs or any other 

Commonwealth legislation. 

Details of the permit or licence must be presented to Customs when the goods are entered 

for export. Failure to quote or provide a valid permit or licence might result in the goods 

not being approved for export. 

The following is a non-exhaustive list of categories of goods that are subject to export 

control and the permit issuing agencies for those goods: 

• Military goods, civilian arms and explosives. Goods containing dual-use 

(military/civilian) technology (Department of Defence) 

• Goods containing dual-use (military/civilian) technology and items including 

certain chemical precursors and biological agents (Department of Foreign Affairs 

and Trade) 

• Prescription medicines under the Pharmaceutical Benefits Scheme (PBS)* 

((Department of Health and Aged Care) – Health Insurance Commission) 

• Native animals, marine life and plants (including parts, products and derivatives), 

as well as endangered animals and plants ((Environment Australia) – Wildlife 

Permits and Enforcement) 

• Hazardous waste such as battery scrap and metal bearing sludges ((Environment 

Australia) – Hazardous Waste) 

• Ozone depleting substances such as chlorofluorocarbons, halons, carbon 

tetrachloride, methyl bromide ((Environment Australia) - Ozone Protection) 

• Certain animal and human products. Certain drugs and goods containing those 

drugs (Department of Health and Aged Care - Therapeutic Goods Administration) 

• Meat, dairy products, eggs, animals, fish, grains, vegetables and fruit (Australian 

Quarantine and Inspection Service) 

• Uranium and related nuclear goods (Department Industry, Tourism & Resources) 

• Moveable cultural heritage items like works of art, Aboriginal artefacts, precious 

stones and minerals, fossils and items of national significance (Department of 

Environment and Heritage – National Cultural Heritage Committee) (Department 

of Communications, Information Technology and the Arts) 

• Australian grape products, namely wine, brandy and grape spirit (Australian Wine 

and Brandy Corporation - WBC permit required if over 100 litres) 

* Please note PBS medicines do not require an export permit. However they are subject 

to certain restrictions, which are detailed on the HIC web site. 





March 2002

Also note that if a permit is required for export then an export entry MUST be lodged. 

Customs AHECC Classification System 

While duty is not generally payable on exports, goods must still be classified on an export 

entry using the Australian Harmonized Export Commodity Classification (AHECC). 

The AHECC is similar to the Tariff, however there are some significant differences that 

mean that an import classification for particular goods may not necessarily be the same as 

an export classification for the same goods. 

Where importers are seriously considering the exportation of specific goods, they can 

obtain an AHECC classification advice from Customs on forms available from the 

Customs Information Centre or the Customs internet site. 

Export statistics 

It is most important that accurate information be declared on both manifests and export 

entries. While all information supplied should be correct, Customs encourages industry to 

complete the following export entry fields with particular care: 

Owner’s ABN or name: 

ABN and CAC to be given if a company or business 

eg ABN=25489878979001 

Consignee name: 

Person/company taking final delivery of the goods 

Country of destination: 

FINAL destination country 

Total FOB value: 

All costs to the vessel/aircraft excluding international freight and insurance 

AHECC code: 

8-digit classification code, found within the AHECC, used to classify goods for 

export (Refer to the AHECC) 

Origin code: 

Australian State/Territory where goods are made or F (for foreign) (Refer to the 

AHECC) 

Net quantity: 

eg KG = kilograms; T = tonnes; NO = number etc (Refer to the AHECC) 

Permit number: 

Permit prefix and number where required 

Data relating to exports is passed to the Australian Bureau of Statistics (ABS) for use in 

the compilation of detailed export statistics. 

Export statistics provide government with essential information about Australia's 

international trading position. They provide a vital basis for international trade 

negotiations and the formulation and monitoring of Australian trade policy initiatives. 

For businesses engaged in exporting or importing, these statistics can provide valuable 

assistance in decision-making. 





March 2002

Examination of export cargo and documents 

Goods intended for export and related documents may be examined by authorised officers 

at premises other than a place of export, only with the consent of the occupier of the 

premises and prior to the goods coming under Customs’ control. 

Cargo received for export is subject to Customs control and may be examined for various 

reasons including: 

• verification of the goods against entry details 

• inspection of trade descriptions 

• detection of prohibited exports 

• prevention of diversion of goods resulting in revenue loss to government through 

nonpayment of duties or GST 

Customs may also undertake other compliance activities on behalf of other permit issuing 

agencies. Our compliance activity is based on our regulatory philosophy, which is in 

response to identified client or cargo risk. Our primary goal is to improve compliance 

levels through cooperative arrangements with industry. 

Retention and production of documents and records 

The owner of the goods, or those who hold themselves to be the owner of the goods, must 

keep all relevant commercial documents for a period of five years. 

If the owner of the goods lodges export entries or submanifests to Customs, then the 

owner must retain records verifying the contents of those communications for one year. 

Customs may require the owner to produce commercial documents or records for 

inspection. 

GST and exported goods 

The introduction of the GST and the Australian Business Number (ABN) in July 2000 has 

created a further need to verify export information. As the supply of goods for export is 

generally GST-free, the Australian Taxation Office (ATO) requires exporters to keep 

appropriate records to verify that goods have been exported. 

Such records include air waybills, bills of lading and export entries, on which ABNs must 

be included. The ATO will use this information when carrying out verification checks of 

GST-free amounts disclosed at label G2 on a Business Activity Statement. 

For further information regarding GST, please contact the ATO Business Tax Reform 

Info line on 13 24 78, or connect to www.taxreform.ato.gov.au. 





March 2002

Customs working with business 

Industry schemes 

Customs administers a number of schemes that can be of benefit to importers, exporters 

and local manufacturers. 

Customs warehouses - deferment of duty 

Enables goods to be held free of any customs duty. The payment of that duty might be 

deferred until the goods stored are sold for use within Australia. These goods may be 

moved to another licensed warehouse or exported without incurring duty. 

Duty drawback scheme 

Designed to assist exporters to obtain a refund on the costs of customs duty or excise duty 

on components incorporated in goods for export or on goods exported unused since 

importation. The refund can be claimed after goods are exported. It is not possible to 

obtain drawback of GST. However, the exporter might be able to claim an input tax credit 

on creditable importations. Information on refund of excise duty is available from the Tax 

Office. Importers who are registered for GST purposes might be entitled to an input tax 

credit on creditable importations. The input tax credit would be claimed via the Business 

Activity Statement. 

Details of the drawback scheme are available from the Customs Information Centre on 

1300 363 263. 

Manufacturing in Bond (MiB) 

A provision that allows the manufacturing of goods in a warehouse licensed by Customs, 

using imported components on which duty has not been paid. Applicants for MiB must 

first obtain approval from the Customs Policy Section of the Department of Industry, 

Science and Resources , by demonstrating a clear intention to generate exports. 

Applicants will then need to satisfy Customs requirements for a warehouse licence to 

manufacture in bond. 

Tariff concession system 

A mechanism for granting a Tariff Concession Order to allow concessional entry of 

imported goods. This applies where no substitutable goods are produced in Australia in 

the ordinary course of business. 

Dumping and subsidies 

Dumping occurs when an exporter sells goods to an Australian importer at a lower price 

than the goods are sold on the domestic market of the country of export. 





March 2002

Subsidisation occurs where government assistance, by way of subsidy or other forms of 

financial assistance, is given to produce or export goods. 

Remedial action can be taken against an overseas supplier if it is demonstrated that the 

dumping or subsidisation of goods has adversely affected an Australian industry 

producing similar goods. 

More information on dumping and subsidy matters is available from the Dumping Liaison 

Unit, Customs Canberra Phone: 02 6275 6066, Facsimile: 02 6275 6990 or by Email 

dumping@customs.gov.au. 

Information on Dumping Notices, Statements of Essential Facts and Reports can be 

accessed under Customs Notices at www.customs.gov.au. 

Frontline 

Frontline is aimed at encouraging industry to work with Customs to prevent illicit 

activities such as drug trafficking, wildlife and flora smuggling, money laundering and 

the illegal importation or exportation of prohibited items such as weapons and chemicals. 

The Frontline program formalises cooperation between Customs and participating 

businesses with a memorandum of understanding. 

Frontline members help to protect the community by: 

• using their own commercial expertise to help identify unusual or suspicious 

activities and 

• reviewing their security to minimise the likelihood of becoming an unwitting tool 

in the drug trade. 

Accredited Client Program 

The Accredited Client Program is a new program being developed by Customs for lowrisk 

importers and exporters to streamline their reporting requirements. The Accredited 

Client Program will operate through a mix of legislative and contractual arrangements 

and will be implemented in conjunction with the new Integrated Cargo System. 

Benefits of the Accredited Client Program include: 

• access to individual client managers; 

• periodic rather than individual declarations; 

• minimum information at the time of importing or exporting with other 

information provided periodically; 

• goods cleared with minimum intervention; and, (for importers) 

• alternative cost recovery model based on periodic rather than individual 

declarations. 





March 2002

For further information about the Accredited Client Program, including eligibility criteria 

and process for joining, contact Business Partnerships, Customs, Canberra, phone (02) 

6275 6603, facsimile (02) 6275 6422 or e-mail accreditedclientprogram@customs.gov.au. 

Industry referrals 

An industry referral occurs when Customs receives an allegation that any party for any 

reason has gained an unfair commercial advantage. 

For instance, you might be: 

• an Australian manufacturer who believes you are being disadvantaged by imports 

that do not comply with the requirements for imports to be correctly commerce 

marked 

• an importer who believes that other importers are not paying the correct amount 

of customs duty 

• an exporter who believes you are being disadvantaged by exports that do not 

comply with commerce markings and other export controls. 

The Research and Analysis (R&A) Section of Customs is interested in hearing about your 

concerns and any information provided will be treated confidentially. Research & 

Analysis can be contacted by 02 6275 6666, by facsimile on 02 6275 6227 or by emailing 

mailto:information@customs.gov.au , marking it to the attention of Research & Analysis. 

Complying with Customs 

Customs is a regulatory agency with a clear mandate to protect the Australian community 

from the illegal movement of goods and people across our border and to collect customs 

and other revenue. 

When international traders and travellers are compliant with the laws and regulations 

administered by Customs, our intervention activity is minimised. Customs, therefore has 

a direct interest in improving the compliance levels of our clients and we are committed 

to fostering an environment where we work cooperatively with them to achieve this. 

The nature of our operational work is governed by the behaviour of clients and the risks 

they or their cargo represent. Our risk identification and analysis is continuous – prearrival, 

at arrival and post-clearance with our response being appropriate to the level of 

risk. 

Customs has a compliance improvement strategy that has the objective of continual 

improvement in levels of voluntary conpliance thus providing an assurance that the 

correct amount of revenue is collected, that trade data is correct and that community 

protection issues are addressed. 

Compliance activities include : 

• field audits (comprehensive and focussed) 

• desk audits 





March 2002

• examination 

• leverage exercises 

• general education and training strategies 

Clients’ responsibilities 

As an importer or exporter, you are legally responsible for the accuracy of information 

supplied to Customs, even if you use a broker or forwarder to prepare your documents. 

For your own protection, ensure you examine and retain all documents supplied to 

Customs, check them for accuracy, and advise Customs, your broker or forwarder of any 

errors. 

Monitoring Powers 

From 1 July 2002 monitoring powers replace commercial audit powers and high volume 

low value (HVLV) monitoring powers and will apply to a much broader class of 

premises, not just those of importers or exporters. Monitoring Officers may, with written 

consent from the occupier, enter premises and exercise monitoring powers. If consent is 

not given then Customs may seek a monitoring warrant. Before entering premises and 

exercising monitoring powers, the monitoring officer will give the occupier of the 

premises written notice of their rights and obligations. 

The purpose of monitoring powers is to assess: 

• whether a person is complying with Customs-related law; or 

• whether a person’s record keeping, accounting or computing or operating systems 

accurately record and generate information to enable compliance with Customsrelated 

law; or 

• the correctness of information communicated to Customs. 

A monitoring officer is an officer who is authorised by the CEO of Customs to enter 

premises and exercise monitoring powers. Unless they have a warrant, before exercising 

monitoring powers, they must : 

• seek your written consent to entry; 

• tell you that you can refuse consent; and 

• show you an ID card. 

A monitoring officer must always give you written notice of your rights and obligations 

before exercising monitoring powers. 

Using monitoring powers an officer may : 

• search premises 

• take photographs (including a video recording), or make sketches of premises or 

anything at premises; 

• inspect, examine, count, measure weigh, gauge, test or analyse, and take samples 

of anything in or on the premises; 

• inspect any document or record in or on the premises; 





March 2002

• take extracts from, or make copies of, any document or record in or on the 

premises; 

• take onto the premises any equipment or material that is reasonably necessary to 

exercise the above powers; 

• test and operate record-keeping, accounting, computing or other operating 

systems that may be used to generate or record information or documents that 

may be communicated to Customs; 

• secure a thing that is found on the premises and provides evidence of the 

commission of an offence; 

• operate equipment to check information; 

• copy information found by operating equipment; 

• ask questions; 

• ask for assistance; and 

• use such force against things as is reasonable and necessary. 

You have the right to : 

• refuse consent for monitoring officers to enter and exercise monitoring powers in 

or on the premises; 

• withdraw consent after it has been given – your withdrawal must be in writing, 

but once you have withdrawn consent the monitoring officer must leave the 

premises; 

• limit consent to a particular period; 

• not answer questions or produce documents to a monitoring officer; 

• refuse to give assistance to a monitoring officer; 

• preservation of the privilege against self-incrimination; 

• seek reasonable compensation for damage to equipment or data caused in the 

exercise of monitoring powers 

However, if a monitoring officer has a monitoring warrant from the court ; 

• you cannot refuse consent to entry; and 

• you are required to provide assistance when requested and answer questions – 

failure to do so is an offence. However you retain the right to refuse to answer 

questions or to produce documents if to do so would tend to incriminate you. 

Sanctions 

In a self-assessment environment, sanctions are used in situations of identified noncompliance 

through careless or reckless disregard of responsibility. Customs will consider 

whether a sanction is the best means of achieving future compliance. 

The types of sanctions available to Customs are: 

• warning letters 

• removal from, or modification to, the self-assessment benefit by examining and 

verifying each transaction - which might result in delays in clearing goods 

• revocation of deferred-duty arrangements or imposition of additional conditions 





March 2002

• refusal of permission for underbond movements or imposition of conditions on 

the permission holder 

• cancellation, suspension or imposition of a conditional licence for warehouse 

licence holders 

• infringement notices for certain strict liability offences 

• prosecution action 

Penalties and Infringements 

A new penalty regime commenced on 1 July 2002 which includes a range of ‘strict 

liability’ offences for breaches of statutory obligations. An infringement notice scheme is 

also introduced to apply to some of the strict liability offences. 

Strict liability is where the fault element does not have to be proved, meaning regardless 

of whether the person making the error has acted intentionally, recklessly or otherwise, 

the fact the action occurred is sufficient to establish the offence. 

The new penalty scheme is organised on a three-level basis : 

Level 1 Court proceedings where fault must be proved 

Level 2 Court proceedings to prosecute a strict liability offence 

(where fault is not required to be proved) 

Level 3 An infringement notice instead of prosecution 

(this only applies to some strict liability offences) 

Each offence in the Customs Act has a maximum penalty attached which is expressed in 

terms of ‘penalty units’. A penalty unit represents a dollar amount, which is currently 

$110. The number of units for the particular offence is multiplied by that dollar amount. 

For example, 30 penalty units equates to $3300. 

An infringement notice is a notice that may be served instead of prosecuting an offence in 

court where there are reasonable grounds to believe that a person has committed an 

offence. 

Some of the offences to which these notices may apply include : 

• moving, altering or interfering with goods subject to Customs control without 

authority 

• making false or misleading statements resulting in loss of duty 

• failing to enter goods for export and loading/exporting without an 

authority to deal 

• making false or misleading statements not resulting in loss of duty 

Some other offences are Level 1 offences to which the infringement notice scheme does 

not apply are : 

• failure to keep documents/records as require 

• failure to answer questions 

• failure to produce documents 





March 2002

• failure to assist monitoring officer exercising a monitoring warrant when 

required. 

If a person served with an infringement notice pays the penalty stated in the notice, no 

conviction for the offence will be recorded and no prosecution can be launched. 

How to comply 

Importers 

Common reasons for reduced compliance 

Failure to retain adequate records. All relevant commercial documents must be 

retained for five years from the date of entry. 

Persons who report imported/exported goods on behalf of others to Customs are required 

to retain records that verify the content of the communication for one year. It is therefore 

important to provide your customs broker/freight forwarder with sufficient 

documentation/information for them to correctly report the goods on your behalf. 

The retention of such documentation and records will demonstrate compliance with 

Customs-related laws. 

Imports incorrectly entered 

All imported goods must be entered in accordance with the approved form or approved 

statement, classified correctly and any surplus goods reported. Items not ordered, samples 

and promotional merchandise must also be entered. 

If merchandise is received but not included in the customs entry, an amending entry 

should be made immediately. Voluntary payments of additional duty will not be 

penalised. In a self-assessment environment, importers could be subject to penalties for 

false or misleading statements if errors are detected during an audit. 

If merchandise has been duty paid but not received, you might be eligible to apply for a 

refund of duty. 

Customs provides a tariff-advice service for importers who are in doubt as to the correct 

classification or concession. Applications accompanied by supporting evidence should be 

lodged at Customs shop fronts or Regional Customs offices. You can apply for a tariff 

concession on imported goods that do not compete in the market place with goods of 

Australian manufacture. 

Customs value does not include all associated costs. All costs associated with the goods 

are legally required to be considered when determining the customs value. These include 

costs relating to advertising, ‘assists’, commissions, escalation charges, indirect 

payments, research and development or royalties. 

‘Assists’ are either materials or services that have been used to assist in the manufacture 

of the goods. These are usually supplied by the importer from Australia, sourced from 





March 2002

another overseas supplier by the importer or sometimes sourced from the manufacturer on 

behalf of the Australian importer. The invoice that comes with the goods does not 

generally include the cost of the ‘assists’, just the service provided by the manufacturer – 

sometimes just assembling costs. In these circumstances, the customs value of the goods, 

when imported, must include the full value of the materials and services used in the 

manufacture as well as the cost to make the article. Please note that the cost of 

transporting materials to the manufacturer’s premises is also to be included in the customs 

value. There will generally be a separate invoice for the ‘assists’. 

‘Assists’ are the most common in the textile, jewellery and electrical industries. They can 

include things such as: 

• fabric or leather 

• labels, buttons, trims, zips and swing tickets 

• dyes, chemicals or fuels which might be consumed during manufacture; 

• moulds, tooling or cutting knives for use in manufacture 

• artwork, blueprints, development and engineering work undertaken outside 

Australia 

• electrical cords 

• ingots 

• any other form of goods or service provided free of charge or at a reduced cost. 

Customs provides a valuation-advice service for importers. Applications accompanied by 

supporting evidence should be lodged with Customs electronically on the TAPIN system 

or by contacting your local Customs office. 

Origin incorrectly identified 

A declaration from the manufacturer is required to claim preferential rates of duty. 

Failure to disclose related transactions 

The value of goods can be influenced by related-party transactions. Where there is a 

relationship between the buyer and the seller and that relationship has affected the price 

of the goods, the customs value cannot be based on the transaction value method. For an 

explanation of this valuation method, go to the section on the Customs valuation system. 

Incomplete information passed to broker or consultant 

Errors can occur if all relevant information is not passed on to the person selected to assist 

in clearing your goods. 

Incorrect GST exemption 

Ensure that the GST exemptions claimed are valid or that the correct amount of GST has 

been paid. 





March 2002

Incorrectly quoting WET or LCT 

Importers may quote for WET and LCT if they have an ABN and they have valid quoting 

grounds. Further information on WET and LCT can be found in the section on Indirect 

taxes 

Misuse of or failure to quote an ABN 

If an importer has an ABN it should be linked to a current Customs owner code and used 

on all import entries for that entity. 

Trademark infringements 

Trademark laws provide for the registration of trademarks and the proprietors and users of 

those trademarks. 

Exporters 

Common aspects which result in reduced compliance 

Failure to retain adequate records 

All relevant commercial documents must be retained for five years from the date of 

export. 

Exports incorrectly entered 

Most goods intended for export must be notified on an export entry. The exceptions are 

listed earlier in this document in the ‘Exemptions from Export Entry” section. Goods 

must be correctly classified in accordance with the Australian Harmonised Export 

Commodity Classification (AHECC) and be accurately described. 

Inaccurate data declared 

It is important that all data contained in an export entry is correct, including the Free On 

Board (FOB) value, quantities exported, origin of the goods, and export destination. 

Permit number not quoted 

All permit requirements must be complied with and exporters must ensure that a valid 

permit number is provided if necessary. 

Claims for export concession not supported 

Sufficient information should be retained to substantiate claims for an export concession. 

Ensuring ongoing eligibility for concessions 

If new products are to be exported, you need to ensure that they are also eligible for the 

claimed concession. 





March 2002

ABN 

If an exporter has an ABN, it should be used on an export entry. This will assist in the 

verification process when determining the eligibility of the supply as being exempt from 

GST. 

Movement of goods subject to Customs control 

Customs can give permission for the movement of goods between approved premises. 

The permission holder is then responsible for the safe custody of the goods until they are 

received at the approved destination. An amount equal to the duty is payable by the 

permission holder if any of the goods are later missing. 

The receiving bond should verify that the goods received are those on the movement 

documentation. Customs must be notified within seven days if there are discrepancies 

between the goods received and the movement documentation. 

The receiving bond should ensure that they have received sufficient information from the 

sending bond, including such details as the import transaction value of the goods shown 

on a Nature 20 Customs Entry and the transport and insurance unit value, to allow entry 

of the goods ex-warehouse. 

Any unauthorised moving, altering or interfering with goods subject to the control of 

Customs is an offence and could be the subject of penalty action from 1 July 2002. 





March 2002

Addresses and contact numbers 

The Customs Information Centre can be contacted on 1300 363 263 from anywhere 

within Australia for the cost of a local call, apart from mobile telephones. 

The email address information@customs.gov.au. Customs Website is at 

www.customs.gov.au 

Customs Head Office 

Customs House 

5 Constitution Avenue, CANBERRA, ACT 2601 

Phone: 02 6275 6666, Facsimile: 02 6275 6005 

Customs Overseas Offices 

Brussels 

Australian Embassy and Mission to the European Communities 

Guimard Centre, Rue Guimard 6-8 1040 BRUSSELS, Belgium 

Phone: 2 286 0585 

Tokyo 

Australian Embassy 

2-1-14 Mita Minato-Ku, TOKYO 108-8361, Japan 

Phone: 813 5232 4078 

Washington 


1601 Massachusetts Ave. N.W. 

WASHINGTON DC 20036-2273, USA 

Phone: 202 797 3172 

Bangkok 

(AEST: - 3 hours; EST: - 4 hours) 


37 Sathorn Road 

Bangkok 10120 THAILAND 

Phone = 249 0442 

Facsimile = 0011 662 2 679-1014 





March 2002

Other Customs contacts 

For more specific information on: 

Dumping 

Director, Dumping Liaison Unit 

Trade Measures Branch, 


5 Constitution Avenue 

CANBERRA ACT 2601 

Phone : 02 6275 6066 Facsimile : 02 6275 6990 

E-mail: dumping@customs.gov.au 

Frontline 

Manager, Community Participation Programs 


Customs House 

5 Constitution Avenue 

CANBERRA, ACT 2601 


Other relevant agencies and bodies 

Australian Taxation Office 

General Public Tax Reform Info line : 13 61 40 

Business Tax Reform Info line : 13 24 78 

‘A Fax from Tax’ inquiry line : 13 28 60 

Excise Inquiry Number : 1300 657 162 

Website: www.ato.gov.au 

Postal Address : PO Box 9935 in your capital city 

Department of Industry, Tourism and Resources 

20 Allara Street 

CANBERRA, ACT 2601 

Phone : 02 62136000 

Auslndustry Hotline : 132 846 

Website: www.industry.gov.au 





March 2002

The Business Entry Point 

Internet links to a range of government agencies. 

Website: www.business.gov.au 

Australian Quarantine and Inspection Service (AQIS) 

GPO Box 858 

CANBERRA ACT 2601 


Website: www.aqis.gov.au 

Environment Australia 


Website: www.biodiversity.environment.gov.au/plants/wildlife/intro.htm 

Department of Communications Information Technology and the Arts, 

Cultural Property and Institutions Section 


Website:www.dcita.gov.au 

Email: moveable.heritage@dcita.gov.au 

Department of Defence, Strategic Trade Policy and Operations 


Website: http://www.defence.gov.au/ 

Therapeutic Goods Administration 

Narrabundah Lane 

Symonston ACT 2609 

Phone : 1800 020 653 02 6232 8644 

Fax : 02 6232 8241 

Email : tga-information-officer@health.gov.au 

Commonwealth of Australia GazetteAusinfo 

GPO Box 84 

Canberra ACT 2601 

Phone : 02 6215 2589 Fax : 02 6295 4888 

Or 

Commonwealth Government Info Shops 

Customs Brokers and Forwarders’ Council of Australia Inc 

PO Box 303 

HAMILTON QLD 4007 


Website: http://www.cbca.org.au/ 





March 2002

Australian Federation Of International Forwarders 

Westfield Office Tower 

Level 4, Suite 403 

152 Bunnerong Rd 

Pagewood NSW 

Secretariat Sydney 

Phone: 02 9314 3055 

The Australian Automobile Association (AAA) 

216 Northbourne Avenue 

Canberra ACT 2601 


Website: www.aaa.asn.au 

The Victorian Employers’ Chamber of Commerce and Industry (VECCI) 

196 Flinders Street 

Melbourne VIC 3000 


Website: www.vecci.org.au 





March 2002

Glossaries 

Acronyms 

AAA Australian Automobile Association 

ABN Australian Business Number 

ABS Australian Bureau of Statistics 

AEST Australian Eastern Standard Time 

AHECC Australian Harmonised Export Commodity Classification 

AIT Alliance Internationale de Tourisme 

APEC Asia Pacific Economic Cooperation 

AQIS Australian Quarantine Inspection Service 

ATA Admission Temporaire or Temporary Admission 

ATO Australian Taxation Office 

AUD Australian Dollars 

AWB Air Waybill 

BAS Business Activity Statement 

BLAD Bill of Lading 

CCF Customs Connect Facility 

CIC Customs Information Centre 

cif Cost Insurance Freight 

CMR Cargo Management Re-Engineering 

COMPILE Customs On-Line Method of Preparing from Invoices Lodgeable Entries 

CPD Carnet de Passages en Douane 

DISR Department of Industry Science and Resources 

EDIFICE Electronic Data Interchange For Input of Customs Entries 

EFT Electronic Funds Transfer 

EST Eastern Standard Time 

EXIT Export Integration System 

FIA Federation Internationale de l’Automobile 

FOB Free On Board 

GST Goods and Services Tax 

ICD Informal Clearance Document 

ICS Integrated Cargo System 

ITM International Trade Modernisation 

LCT Luxury Car Tax 

MiB Manufacturing in Bond 

MOU Memorandum of Understanding 

NBC National Business Centre 

ROO Rules of Origin 

TAPIN Tariff And Precedence Information Network 

TRS Tourist Refund Scheme 

USD United States Dollars 

VECCI Victorian Employers Chamber of Commerce and Industry 

VoTI Value of Taxable Importation 

WET Wine Equalisation Tax 

WTO World Trade Organization 





March 2002

Customs Guide to Importing and Exporting - Arts Queensland

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