GST and duty on a China import, worked through one example order

This guide follows one shipment of BBQ gear from a factory in China to a warehouse in Australia and adds up every tax and fee on the way, line by line, with the official source for each rule.

Important: this is an illustrative example, not a real invoice, quote or freight rate. Every price, exchange rate, freight cost, duty rate and commercial fee below is made up to show the method. The only real figures are the government rules and charges, each cited. Run your own numbers in the landed cost calculator, and confirm the duty rate and final figures with a licensed customs broker.

The example order

• Example goods: 1,000 grill baskets.
• Example price: US$4.00 each, FOB (loaded on board the ship at the port in China), so US$4,000 in total.
• Example exchange rate: A$1.50 to US$1.
• Example sea freight to the Australian port: A$900. Example cargo insurance: A$30.
• Example duty rate: 5%. This is an example rate only. The real rate depends on the tariff classification of your goods.
• Example broker fee A$250, port and terminal charges A$400, delivery to the warehouse A$300.

Line 1: customs value

The customs value is the starting point for duty. It is usually the transaction value, the price you pay for the goods, and the ABF fact sheet says it does not include the international freight and insurance. Australia values imports on this basis, essentially the FOB price.

• It must be in Australian dollars. The ABF converts foreign currency at the exchange rate that applies on the day of export, not the day you pay.
• Example: US$4,000 x 1.50 = A$6,000.

If your supplier quotes EXW (ex works, at the factory gate), the costs of getting the goods on board at the port in China usually need to be added before you have an FOB figure.

Line 2: customs duty

Duty is the customs value times the duty rate for the goods' tariff classification.

• Example: A$6,000 x 5% = A$300.
• Find the real rate by classifying the goods (your broker does this) and looking up the classification in the DFAT FTA Portal.
• China and Australia have a free trade agreement (ChAFTA). If your goods qualify as Chinese origin under its rules and you hold valid origin evidence, a Certificate of Origin or, with an advance ruling, a Declaration of Origin, you can claim the ChAFTA rate instead. Where that rate is free, duty is nil. The scenario at the end shows what that does to this order.

Line 3: the value of the taxable importation (VoTI)

GST on imports is not charged on the goods price alone. The ABF and ATO define the value of the taxable importation as the sum of the customs value, the duty, and the cost to transport the goods to Australia and insure them for that transport.

• Example: A$6,000 + A$300 duty + A$900 freight + A$30 insurance = A$7,230.
• The ATO describes the transport leg as transport to the place of consignment in Australia. That is usually the port, but goods consigned door to door to an inland address can count that leg too. Ask your broker which applies.

Line 4: GST

GST on imported goods is 10% of the VoTI.

• Example: A$7,230 x 10% = A$723.
• It is generally paid before the goods are released, unless you are approved for the ATO's deferred GST scheme, which moves it to your next business activity statement (BAS).
• A GST-registered business can usually claim it back as a GST credit, so for them it is a cash flow cost rather than a final cost.
• Your Australian broker, port and delivery invoices are local services, so they usually carry their own GST on top, claimed the same way. This example shows those fees before GST.

Line 5: import processing charge

The ABF charges an import processing charge on each full import declaration, set by the consignment value, not by the number of units. From the ABF table (page updated 20 October 2026), for an electronic declaration by sea, air or post:

• A$1,000 or less: nil.
• Over A$1,000 and under A$10,000: A$50.
• A$10,000 or more: A$152.
• Example: the customs value is A$6,000, so the charge is A$50.

Line 6: biosecurity charge

The ABF collects a biosecurity cost recovery charge on each full import declaration on behalf of the Department of Agriculture, Fisheries and Forestry (DAFF). Under Australian Customs Notice 2026/23, from 1 July 2026 it is A$71 for goods arriving by sea and A$48 by air, for consignments over A$1,000.

• Example: by sea, A$71.
• This is the declaration charge only. If your goods or packaging need a biosecurity inspection or treatment, for example untreated timber, that is charged separately.

Line 7: broker, port and delivery fees

These are commercial fees, set by the businesses you use, not by government.

• Example: A$250 broker fee + A$400 port and terminal charges + A$300 delivery = A$950.
• Ask for these in writing before the goods ship. On a small order they can be a big share of the total.

Adding it up

• Customs value: A$6,000.
• Freight and insurance: A$930.
• Duty: A$300.
• GST: A$723.
• Government charges: A$50 + A$71 = A$121.
• Broker, port and delivery: A$950.
• Landed cost, including import GST and excluding GST on local fees: A$9,024, or about A$9.02 a unit.
• If you claim the import GST back: A$8,301, or about A$8.30 a unit.

So in this example, US$4.00 at the factory (A$6.00) becomes about A$8.30 a unit before GST. Of that A$2.30 gap, duty is only 30 cents. The rest is freight, insurance, fees and government charges, and the fees and charges are mostly per shipment, not per unit, so they weigh hardest on small orders.

The same order with a ChAFTA claim

Same example, but the goods qualify for ChAFTA, the preferential rate for the tariff line is free, and you hold valid origin evidence.

• Duty: nil, saving A$300.
• VoTI: A$6,000 + A$930 = A$6,930, so GST is A$693.
• Landed cost, including import GST and excluding GST on local fees: A$8,694. Before GST: A$8,001, or about A$8.00 a unit.

The saving is the duty, plus the GST on that duty. Ask the factory early whether it can supply ChAFTA origin evidence, because a missing certificate cannot always be fixed after the goods arrive.

Under A$1,000

For most goods with a customs value of A$1,000 or less, there is no duty, GST or import processing charge at the border; the ABF lists exceptions such as tobacco and alcohol. Australian businesses buying low value goods from overseas sellers should give the seller their ABN and GST registration, as the ATO explains. Samples often fall into this range.

Decision rules

• If two suppliers quote different terms, convert both to the same basis (FOB or delivered) before comparing.
• If the order is near A$10,000 in customs value, the import processing charge steps from A$50 to A$152. It rarely matters on its own, but know where you sit.
• If you are not GST registered, GST is a real cost, so include it in your margin.
• If your goods could qualify for ChAFTA, ask for the origin evidence when you order, not when the ship is at sea.

Common mistakes

• Working GST out on the goods price alone and forgetting duty, freight and insurance.
• Using the exchange rate on the day you paid instead of the rate on the day of export.
• Forgetting the per-shipment charges, which hit a small order hard.
• Assuming the ChAFTA rate applies without the paperwork to claim it.
• Leaving local fees out because they are not on the factory's quote.
• Treating an example rate, including the 5% used here, as your real duty rate.

Next step

Put your own quote into the landed cost calculator, which uses the same method and the same published charges, with every formula shown. To see where these costs sit in the bigger picture, read the landed cost guide. For the freight side, size your shipment in the CBM calculator.

Common questions