What a customs broker does
Under the Customs Act 1901, only the owner of the goods or a licensed customs broker can lodge an import declaration to enter goods for home consumption. That is the formal step that clears goods into the Australian market.
The Department of Home Affairs says most importers hire a broker because the rules are complex and a wrong entry can be costly. A broker works out the tariff classification, the customs value and any duty. They also claim any exemption or concession that applies.
Brokers are also expected to check who their client is. The licence exists to protect government revenue and the public. So the broker has a legal duty, not just a service to sell.
How brokers are licensed
The Department licenses every customs broker under Division 3 of Part XI of the Customs Act. There are three kinds of licence.
- Corporate: a company or partnership that acts for owners of imported goods. It must employ nominee brokers to lodge the declarations.
- Sole trader: one person who runs the business in their own right, not through a company, partnership or trust.
- Nominee: a licensed person who works as an employee of a corporate or sole trader brokerage.
The practical point is simple. Ask who will actually lodge your declaration, and ask to see that person's licence status. A corporate firm should have a licensed nominee doing the work.
How GST and duty on imports work
Most goods that arrive in Australia carry duty and GST unless an exemption or concession applies. The Border Force calculates and collects GST on imports. This is a different job from the ATO, which handles GST on normal sales inside Australia.
The GST rate on a taxable import is 10% of its value. That value is not just the price of the goods. It is the sum of four things:
- the customs value of the goods
- any duty payable
- the cost to transport the goods to Australia and insure them for that trip
- any Wine Equalisation Tax, if it applies
So freight and insurance sit inside the GST base. Importers who only add 10% to the invoice price will under-budget.
The importer pays GST at the same time and in the same way as customs duty. Certain importers can defer GST to their next Business Activity Statement instead. Ask your broker whether you qualify.
The customs value must be stated in Australian dollars, so exchange rates matter too. The rate used is the one in force on the day the goods are exported, not the day they arrive. Your broker can confirm the rate for your entry.
What to ask for in a quote
A quote should show every charge. Brokers price their own work differently, so do not compare one headline number. Ask for these items in writing.
- The broker's own fee for each declaration, and whether it covers one line or many.
- Any third party charges passed on, such as port, terminal or cartage costs.
- What the quote assumes about duty and GST, and who pays them at clearance.
- Whether the broker can help you apply to defer GST.
- Who is the licensed person responsible for your entries.
Also ask what happens if the entry is wrong. A good broker explains how corrections work and who bears the cost of a mistake. Keep copies of every declaration. You are still responsible for the facts you give the broker.
When you may not need a broker
You can lodge your own import declaration as the owner of the goods. That can make sense for a regular, simple import where you know the tariff classification. It takes time to learn, and an error can mean extra duty or delays.
For a first shipment, mixed goods or anything that may need a permit, a broker is usually the safer path. The cost of the fee is often smaller than the cost of a wrong entry.
The limit of this guide: it covers the general rules only. Duty rates, permits and exemptions vary by product, so confirm the details for your goods with a licensed broker or the Border Force.