What should I consider before importing something?

There are several pieces of legislation that control what can and what cannot be imported into Australia. This is administered and controlled by several different Government departments and agencies.

While certain goods may require a permit to import them there are very few items that are prohibited absolutely. Absolutely prohibited imports are items that nobody can import into Australia under any circumstances. Most items however can be brought into Australia without the need for a permit.

It is also advisable to contact the Department of Agriculture to ask about their controls and permit requirements.

Importing goods with a value at or below $1,000?

Goods, other than alcohol and tobacco products, valued at or below $1,000 may be imported free of customs duty and taxes. If your goods (not including tobacco and alcohol products) are brought into Australia through the postal system (that is, Australia Post delivers the goods in Australia) no paperwork for Customs and Border Protection will be required, except for the parcel declaration or if a permit is required, and Australia Post will send the goods straight to you. If the goods are being delivered via air freight or sea freight, there will be no payment of customs duty or tax for goods valued at or below $1,000 (not including alcohol or tobacco products). Goods (excluding tobacco and alcohol products) below the entry threshold ($1,000) that you import do not require an import declaration but must be reported to Customs and Border Protection as a Self-Assessed Clearance (SAC) declaration. SAC declarations are usually made on your behalf by the freight forwarder handling your consignment but sometimes you may be required to make a SAC declaration for yourself.

SAC declarations can only be made electronically to Customs and Border Protection by way of the Integrated Cargo System (ICS). If you own or obtain a digital certificate you can communicate directly with the ICS and make your own SAC declarations at no cost. You may also use the services of a licensed customs broker to make SAC declarations on your behalf or have a SAC service provider make SAC declarations for you. While there are no Customs fees or charges for making a SAC declaration service providers and brokers do charge for the service.

Digital certificates (required for secure and verified computer communications) can be purchased through companies like Verisign for a fee and once you have one you will need to register in the ICS as a user. Please see www.cargosupport.gov.au/site/page5951.asp for further information.

Importing goods with a value of more than AUD$1,000?

Your imported goods will be assessed for Customs duty and Goods and Services Tax (GST) of 10%. The rate of duty depends on the nature of the goods. Your items may also be subject to Wine Equalisation Tax (WET) or Luxury Car Tax (LCT) and other taxes or levies as determined by law.

The duty and GST that may be applied to your goods is assessed as follows: Duty is determined by the Tariff classification of the goods (Customs Tariff Act 1995). The duty, if any, is calculated on the customs value of the goods. Customs and Border Protection can require you to produce receipts or invoices etc. to substantiate the customs value you have claimed applies, so keep all your documents for a minimum of 5 years as required by the Customs Act 1901.

GST (at a rate of 10%) is calculated on the Value of the Taxable Importation known as the VoTI. The VoTi is the sum of:

• The customs value of the goods;
• The duty; and
• The cost of freight and insurance to bring the goods to Australia

To obtain a Tariff Classification and an exact duty rate, refer to the http://customs.gov.au/tariff/default.asp. Once you have reached this page, you can scroll through the chapters to find the classification for your goods.

Alternatively, you can apply for a tariff advice by completing form B102 http://customs.gov.au/webdata/resources/files/b102.pdf, for each "invoice" item. Information on how to complete a B102 is on the back of the form, so it is important to print and view both sides.

Other costs to consider before importing something?

Other costs to consider before importing something into Australia are the costs of manufacturing the item/s, agent fees, overseas transportation, transporting the item to Australia, wharf or handling fees in Australia, costs for reporting the shipment to Customs and Border Protection, Customs Broker fees, the department of Agriculture examination and treatment fees, and Australian transportation costs etc. This is not a complete list of all the fees and charges that you may be liable for, but it gives you an indication of what you need to research before importing. You may find that you do not have to pay all of these fees depending on your circumstances. The Australian Customs and Border Protection Service does not charge these fees, nor do we determine what fees will be charged.

What are customs requirements for imports?

All goods imported into Australia must be cleared by Customs. When importing goods, Customs can provide you information on duties and import regulations, such as import clearance requirements, prohibited goods and import permits.

Depending on the type and value of the goods or products you import, there may be costs involved. These can include clearance fees, customs duty, Goods and Services Tax (GST) and other taxes.

Some goods may carry special restrictions or may even be prohibited from being imported. If your goods contain industrial chemicals like cosmetics, solvents, adhesives, plastics, inks, printing and photocopying chemicals, paints, household cleaning products and toiletries, they will require additional registration.

If your goods also fall under quarantine regulations, the Australian Quarantine and Inspection Service (AQIS) will need to inspect and possibly treat them.

What goods are prohibited and restricted for import?

The Australian Government controls the import of certain goods into Australia. The controls include:

• An absolute prohibition, where you are not allowed to import the goods in any circumstances; or
• A restriction, where you need to have written permission in order to import the goods.

The information about prohibited and restricted goods provided on this website is a guide only. Please exercise care with its use. Please seek more information to ensure that you will comply with legislative requirements before attempting to import restricted goods.

Do I need a license to import something?

There is no requirement for companies or individuals to hold an import license. However, depending on the nature of the commodity, regardless of value, owners may need to obtain a permit to facilitate the clearance of the goods. Some goods are not allowed to be imported under any circumstances, and others may only be imported with written permission in the form of a permit. Permits must be obtained from the relevant Australian government department prior to the goods being imported into Australia.

If you are importing goods such as food items, plant, wood, animals or animal products please contact the Department of Agriculture http://www.agriculture.gov.au/

Contacts:

What is an Import Declaration?

Imported goods with a value above $1000 require an Import Declaration to be lodged with Customs and Border Protection. Once this declaration has been lodged and accepted by Customs and Border Protection and all duties and taxes paid goods are released into “home consumption”.

Import Declarations are required by law to be entered in the Integrated Cargo System (ICS). There are three options for importers to do this:

• Complete Import Declaration (Form B650) or Import Declaration - Post (Form B374) and present to a Customs and Border Protection counter. Note: The Import Declaration - Post (Form B374) can be emailed to Customs and Border Protection;
• Purchase a digital certificate which allows you to communicate with Customs and Border Protection electronically using the Customs Interactive website;
• Use the services of a licensed Customs broker who will complete the Customs and Border Protection requirements for you based on the information you provide.

Forms B650 and B374 are available from Customs and Border Protection counters or can be downloaded from the website customs.gov.au/site/page4288.asp.

How do I file an Import Declaration (Nature 10 entry) for goods valued at above $1000?

Irrespective of how your imported goods arrive in Australia, you will be required to lodge an Import Declaration if the Customs Value is above $1000. An Import Declaration may be lodged in the following three ways:

• Electronic lodgment: obtain a digital certificate in order to communicate with Customs and Border Protection electronic systems to complete an Import Declaration; or
• Engage the services of a licensed customs broker; or
• Prepare a documentary lodgment by attending the nearest Customs and Border Protection counter and present the necessary documentation which include a 100 points evidence of identity.

What documents do I require to clear goods imported to Australia?

If you wish to clear the goods yourself, the Australian Customs and Border Protection Service will provide assistance to first time importers in the clearance of their goods. The minimum documentation required is an invoice, bill of lading/airway bill and any other papers such as packing list, insurance documents, etc. relating to the shipment.

Imported goods entering Australia may need to meet a number of requirements for clearance prior to release.

The Documentary Import Declaration Comprehensive Guide customs.gov.au/webdata/resources/files/DocImpDecGuide.pdf provides detailed information, advice and examples on how to complete an Import Declaration.

Persons lodging documentation at a Customs office will be required to provide 100 points Evidence of Identity. Details on Evidence of Identity are provided below.

What is an Evidence of identity?

EOI occurs in relation to the person lodging the declaration, which may be the importer or importer agent.

The types of document that may be accepted as evidence of identity, and their point values, are:

How do I clear goods on a carnet?

A carnet is an international document issued by Chambers of Commerce 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 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 and Border Protection.

When the goods arrive in Australia, the carnet holder will need to present the carnet to Customs and Border Protection for processing.

The carnet must also be produced to Customs and Border Protection on export for processing. The goods will need to be identified. The carnet itself will be the proof of export.

Australia accepts two types of carnets, ATA Carnets and CPD carnets (more commonly known as FIA/AIT carnets).

To obtain a carnet to bring goods into Australia, contact your local Chamber of Commerce or National Motoring Association (for touring vehicles).

If your Carnet expires and you extend it with the issuing authority you must immediately notify Customs and Border Protection.

What happens when goods are seized by the Australian Customs and Border Protection Service (ACBPS)?

ACBPS will seize importations that infringe copyright or a registered trade mark where a Notice of Objection has been lodged with ACBPS by the right owner (objector). When goods are seized the importer and objector will be notified in writing. The importer must make a claim for release of seized goods within ten working days of notification. This is called the Claim Period. If a claim for release is made by the importer, the objector will be notified and will have ten working days to commence legal action. This is called the Action Period. At any point, prior to the commencement of legal action, the importer may voluntarily forfeit the goods. Before the end of the Action Period:

• The objector has the option to commence legal action; or
• The objector can consent to the release of the goods to the importer.

If the objector does not commence legal action within the Action Period, ACBPS must release the goods unless they have been voluntarily forfeited by the importer. This is subject to all other legislative requirements being met.

At the conclusion of any legal action, the court will make an order about the goods – either order the goods be released to the importer or that they be forfeited to the Commonwealth. ACBPS will dispose of the forfeited goods as directed by the Customs CEO, usually by destruction or donation to a charity, as appropriate.

How are goods valued?

The most common method for valuing any import is to use the ‘transaction value’, which is the price the importer actually paid (or is going to pay) for the goods. A number of conditions must be met to use the transaction valuation method. For example, the buyer and seller are not related, where the buyer and seller are related, their relationship has not affected the price of the imported goods. The transaction value can involve deductions or additions such as commissions or royalties. When the transaction value cannot be used, one of these alternative methods will be used to determine the Customs value:

• Identical goods value – the price of identical goods sold for export to Australia;
• Similar goods value – the price of similar goods sold for export to Australia;
• Deductive value – 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” and the sale in Australia;
• Computed value – this is based on the price of producing the goods, general expenses, other costs and profits relating to the imported goods;
• Fall-back value – where no other methods are suitable, Customs and Border Protection will determine the value by taking into account the above valuation methods and any other relevant information.

Are packing costs included in the Customs value of the goods?

The cost of packing overseas, such as labour and packages, is included in the Customs value of the goods. The cost of containers (as defined in the Customs Convention on Containers) and pallets imported temporarily are not included in the Customs value.

Are freight and insurance costs included in the Customs value of the goods?

The Customs value does not include freight and insurance costs in transporting the goods from the ‘place of export’ to Australia. However, any inland freight and inland insurance costs incurred by the purchaser before the goods leave the ‘place of export’ are included in the Customs value.

What is the rate of exchange to calculate the Customs value of the goods?

The Customs value must be in Australian currency. If the invoice is not in Australian dollars then use the rate on the day the goods were exported, as published in the Commonwealth of Australia Gazette. The rates of exchange are also available from www.customs.gov.au.

If there is no rate available through these channels, the conversion rate will be the ruling rate determined by Customs and Border Protection.

What is the Tariff System in Australia?

The Customs Tariff Act 1995 (the Act) imposes customs duty on goods imported into Australia. It also deals with the key concepts for understanding the organisation and operation of the Customs Tariff. The Act includes eight (8) Schedules, namely:

1. Schedule 1: Classes of Countries and Places to which Special Rates Apply
2. Schedule 2: General Rules for the Interpretation of Schedule 3
3. Schedule 3: Classification of Goods and General and Special Rates of Duty
4. Schedule 4: Concessional Rates of Duty
5. Schedule 5: US Originating Goods
6. Schedule 6: Thai Originating Goods
7. Schedule 7: Chilean Originating Goods
8. Schedule 8: Association of Southeast Asian Nations (ASEAN)-Australia-New Zealand Originating Goods

In practice, Customs and Border Protection and importers use and refer to Schedule 3 as the ‘Working Tariff’. This enables imported goods to be classified according to a unique 8 digit numerical classification (using the General Rules for Interpretation in Schedule 2). Against each classification is a specific rate of Customs duty.

Concessional rates of duty apply to a wide range of goods under Schedule 4. Goods originating in US, Thailand, Chile, Singapore, Myanmar (Burma), Brunei Darussalam, Vietnam, Malaysia, Philippines, Laos, Cambodia are duty free, unless the goods are of a classification listed in Schedule 5 (US), Schedule 6 (Thailand), Schedule 7 (Chile) or Schedule 8 (ASEAN).

What is the difference between duty and GST on goods for Australia?

Duty is a tariff imposed by Australian Customs and Border Protection on goods imported to Australia. Duty is calculated on the Customs Value of the goods. The rate of duty to be imposed is based on the classification of the item in the Customs Tariff.

GST is a tax levied by the Australian Taxation Office (ATO). The ATO states that the “goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.”

GST, currently 10%, is calculated on the Customs Value of the goods, plus duty, plus transport and insurance combined. Wine Equalisation Tax (WET) may also be applicable if the imported goods are wine.

How do you calculate duty and GST?

Duty Payable

Duty rates payable are determined by the tariff classification for your goods. The Customs Tariff Act 1995 (known as The Tariff) provides the tariff classifications, duty rates, interpretive rules and information on preference schemes, other concessions and exemptions that may apply to your goods. The Tariff is available at Customs and Border Protection counters or on the Customs and Border Protection website. Duty is payable on the Customs value of the goods.

GST Payable

GST applies to most imported goods, with a few exemptions. The main exemptions are for certain foodstuffs, some medical aids and imports that qualify for certain duty concessions. GST is applied at 10% of the value of the taxable importation (VoTI).

Note: For imported goods the value of the taxable importation (VoTI) is the sum of:

• The customs value (CV);
• Any duty payable;
• The amount paid or payable to transport the goods to Australia and to insure the goods for that transport (T&I); and
• Any Wine Equalisation Tax (WET) payable.

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;
• Cider (from apples) and perry (from pears); and
• Mead and sake, including fortified mead.

WET for imported wine is calculated as:

• 29% of the purchase price at inwards duty free;

Or for other importations:

• 29% of Customs value + Duty + International Transport and Insurance.

Luxury car tax (LCT)

LCT applies to motor vehicles (except motor cycles or similar road vehicles) with a Luxury Car value that exceeds the LCT threshold of A$60,316 (for 2013/14) that:

• Are designed to carry a load of less than two tonnes and fewer than nine passengers; and
• Have a Luxury Car value above the threshold.

The LCT rate is 33%, which commenced 1 July 2008, prior to that the rate was 25%.

Do duty rates vary according to the State within Australia where the goods arrive and how are they determined?

No, the same Customs duty rates apply nationally no matter where in Australia the goods arrive.

How do I classify goods to the Tariff?

(i) Identify the Goods

The first step in classifying goods is to identify the goods in their imported condition. Identification is not concerned with the description of goods on commercial documents, but rather is an objective and informed appraisal of what are the distinguishing characteristics of the goods.

(ii) Identify Relevant Chapter Heading in Tariff

Once the goods have been identified, the process of tariff classification involves looking at the various chapter headings under the Customs Tariff Act 1995. The Working Tariff is available on the website http://customs.gov.au/tariff/default.asp. These range from:

• Animals and animal products (Chapters 1-5);
• Vegetable products (Chapters 6-14);
• Animal or vegetable fats and oils (Chapter 15);
• Prepared foodstuffs; beverages, spirits & vinegar; tobacco & manufactured substitutes (Chapters 16-24);
• Mineral products (Chapters 25-27);
• Products of chemical and allied industries (Chapters 28-38);
• Plastics and rubber articles (Chapters 39-40);
• Hides; skins; saddlery; travel goods, handbags (Chapters 41-43);
• Wood, charcoal, cork, manufactured straw (Chapters 44-46);
• Wood pulp or fibrous material; paper/paperboard (Chapters 47-49);
• Textiles and textile articles (Chapters 50-63);
• Footwear; headgear; umbrellas; feathers/down; artificial flowers, wigs (Chapters 64-67);
• Stone, plaster, cement, asbestos, mica, ceramics, glass and glassware (Chapters 68-70);
• Semi-precious/precious stones; pearls; imitation jewelry; coins (Chapter 71);
• Base metals and base metal articles (Chapters 72-83);
• Machinery & mechanical appliances; electrical equipment; sound recorders/reproducers; televisions (Chapters 84-85);
• Vehicles; aircraft; vessels; associated equipment (Chapters 86-89);
• Optical, photographic, cinematographic equipment; medical/surgical instruments or apparatus; clocks/watches; musical instruments (Chapters 90-92);
• Arms and ammunition (Chapter 93);
• Miscellaneous manufactured articles (Chapters 94-96);
• Works of art; collectors’ pieces and antiques (Chapter 97).

(iii) Use General Rules of Interpretation

After checking the likely chapter heading, importers need to apply the General Rules for Interpretation, as set out in Schedule 2 of the Customs Tariff Act 1995 – and any relative Section or Chapter notes.

When applying the Rules, if importers need more clarification on how to classify goods, it is permissible to refer to extrinsic material such as the Harmonized System Explanatory Notes and Administrative Appeals Tribunal cases.

(iv) Determine Tariff Classification Code

Determine the appropriate eight digit tariff classification code (and associated duty liability) in Schedule 3 of the Customs Tariff Act 1995 based on the identity of the goods and the relevant Interpretative Rules.

What is the tariff concession system (TCS)?

The TCS is designed to help industry become more internationally competitive. The system reduces costs to the general community by allowing duty-free entry for certain goods where there is no local industry that produces those goods. Certain classes of goods including foodstuffs, clothing and passenger motor vehicles are ineligible (‘excluded goods’).

How the tariff concession system works?

A Tariff Concession Order (TCO) will be granted on imported goods if substitutable goods are not produced in Australia. Substitutable goods are Australian-made goods which have a use corresponding to a use of the imported goods. It is important to note that, in determining whether substitutable goods are available, the assessment does not consider whether the Australian goods compete with the imported goods in any market.

A local manufacturer may object to the making of a TCO and can request an existing TCO be revoked.

How to apply for a TCO?

To apply for a TCO for imported goods, you need to complete the approved form (form B443). It is important to provide all information and relevant attachments required on the form. If you fail to meet all the requirements outlined in the form your application may be delayed or rejected. The form, ‘Application for a TCO’, is available from the Customs and Border Protection website www.customs.gov.au under media, publications and forms.

What is the definition of ‘Substitutable Goods’, ‘Ordinary Course of Business’, ‘Made to Order Capital Equipment’ ‘Produced in Australia’, and ‘Core Criteria’?

‘Substitutable goods’ means goods produced in Australia that are put, or are capable of being put to a use that corresponds with a use (including a design use) to which the goods the subject of the application of the TCO can be put. It is irrelevant whether or not the substitutable goods compete with the applicant’s goods in any market.

Goods are taken to be produced in the ‘Ordinary Course of Business’ if

• They have been produced in Australia in the 2 years before the application was lodged; or they have been produced, and are held in stock in Australia; or
• They are produced in Australia on an intermittent basis and have been so produced in the 5 years before the application was lodged.

‘Made to Order Capital Equipment’ means a particular type of capital equipment:

• That is made in Australia on a one-off basis to meet a specific order rather than being the subject of regular or intermittent production; and
• That is not produced in quantities indicative of a production run.

The above mentioned goods are taken to be ‘Produced in Australia’ in the ordinary course of business if a producer in Australia

• Has made goods requiring the same labour skills, technology and design expertise as the substitutable goods in the 2 years before the application was lodged; and
• Could produce the substitutable goods with existing facilities, and
• Is prepared to accept an order to supply the substitutable goods.

An application will be deemed to have met the ‘Core Criteria’, if on the day of the lodgment of the application, no substitutable goods were produced or capable of being produced in Australia in the ordinary course of business.

The TCO application (B443 form) requires ‘searches’ to be conducted from 3 different databases for potential local manufacturers. What are acceptable databases?

Customs and Border Protection do not endorse or require any particular database (search engine, trade directory, industry association) to be used, the essential factor is whether the database produces a credible response.

Commonly used databases include:

• Google
• Industry.com.au
• Kompass
• Yahoo
• Australianmade
• Hotfrog
• Industry association – relevant

NOTE: must be Australian websites.

What are acceptable search terms for the above databases?

Search terms/parameters for a database search should not be so narrow, as to preclude a result. The aim of the search is to identify manufacturers of substitutable goods with a corresponding use, not necessarily an identical use. Searches are to be comprehensive and multiple searches using different keywords would be expected as outlined below:

Using a search engine

Using a trade directory

Searching for ‘taps’, minimum two searches required to complete obligations of comprehensive and multiple searches;

• Search 1 - ‘taps’
• Search 2 - ‘taps Australian manufacturers’

The TCO application (B443 form) requires Illustrative Descriptive Material (IDM) to be provided with submission. What is sufficient and acceptable IDM?

• Brochures;
• Technical drawings;
• Photographs;
• Orders;
• Specification sheets;
• Samples;
• Industry standards (to accompany above, standards alone are not considered complete IDM);
• IDM must be clear, legible and relevant to goods applying for.

If Customs and Border Protection do not receive clear, legible and complete IDM, applications will not be processed.

What is the Tradex Scheme?

The Tradex Scheme allows an importer to gain an up-front exemption from Customs duty and Goods and Services Tax (GST) on eligible imported goods that are intended for re-export or to be used as inputs to export.

The goods may be exported in the same condition as imported, subjected to a process or treatment after importation, then exported or incorporated in other goods which are exported.

Tradex provides an alternative to the Customs Drawback Scheme which requires an up-front payment of Customs duty and GST and then the subsequent recovery of these taxes when the goods have been exported.

What is the Enhanced Project By-Law Scheme?

The Enhanced Project By-Law Scheme provides a duty concession for imported goods for major investment projects in the mining, resource processing, food processing, food packaging, manufacturing, agriculture, gas supply, power supply and water supply industries.

What are general standards for all imported packaged products

Packing and labelling regulations are imposed on all packed products, both locally made and those imported into Australia for retail market. A summary of these regulations is as follows;

• All labels must:
• Be written in English;
• Have wording that is clear, easily read and permanent;
• Be easily seen by a person reading the label;
• Have type face in standard type size of minimum 1,5mm;
• Be of the colour that provides a distinct constrast to the background.
• The label must also display:
• Contry of origin;
• A true and factual description of the goods;
• A quantity statement – mass, volume, length, area or count of the product. The package must not contain less than the quantity stated on the label anh units of measurement must be metric;
• Packer identification – the label must state the name and address of the packer and/or importer.

Note: It is an offence to knowingly apply or carry false trade descriptions on goods. A description that is likely to mislead on matters such as weight, origin, manufacturer, preparation, contents, copyright, etc., is considered a false trade description and is liable to prosecution.

What is a trade description?

A trade description means any description, statement, indication or suggestion as to the how or by whom the goods were made, produced, selected, packed or otherwise prepared. A trade description may include a direct or indirect reference to any of these things.

What is a false trade description?

A false trade description can be any description of goods that is incorrect or misleading. This may include direct or indirect details of size, weight, quality, quantity, origin, manufacturer, ingredients or the application of a trade mark, patent or copyright, and includes all possible alterations of a trade description, whether by way of addition, effacement, or otherwise. A trade description may also be false if information is omitted from the description and this misleads the consumer as to the true description of the goods.

How does it affect to an importer or exporter?

As an importer or exporter you need to be aware of the labeling applied to the goods you are intending to import or export. Care will need to be taken to ensure that anything contained in or omitted from the label will not mislead the consumer in a material respect. You should also be aware that:

• The Act prohibits the importation or exportation of any goods to which a false trade description has been applied. There is no exception. The Act does not differentiate between goods imported or exported for wholesale or retail sale;
• The labeling requirements apply to all commercial shipments, regardless of the quantity;
• Goods imported or exported for personal use are not subject to these labeling requirements.

What if my goods have a false trade description?

The Act provides that imported goods or goods for export to which a false trade description has been applied may be seized by ACBPS. While ACBPS may require the re-labeling of contravening goods where it is considered that the contravention was either intentional or reckless, we recommend that you ensure your goods comply with the legislation prior to their importation or exportation. Your goods can only be released once the trade description is no longer false and all other ACBPS formalities have been completed. In all cases you will be asked to provide evidence that you have instructed your suppliers to correctly label goods in future.

What are quarantine regulations applying to imported goods?

As an island country with an important agricultural base, Australian quarantine regulations are very strict.

All imported plants, whether living or dead, or parts of plants such as fruits, seeds, cuttings, bulbs etc., as well as timber and all articles made of wood, bamboo etc., are subject to quanrantine and must be submitted to a plant quanrantine officer. Imported products that are found to be infected must be treated, destroyed or reshipped at the owner’s expense. Nursery stock, some seeds and fresh fruits and vegetables are subject to regulations that require prior permission to import.

Soil is a prohibited import and any goods found contaminated with soil are subject to quarantine and are not released until quarantine officers are sastisfied that the risk is removed.

The up-to-date regulations are notified by the Department of Agriculture, Fisheries and Forestry (DAFF) Biosecurity at the Import Conditions (ICON) Alerts webpage:

http://apps.daff.gov.au/icon32/asp/ex_alertscontent.asp

The ICON Alerts page advises current issues and major changes to import regulations. ICON is DAFF Biosecurity’s import conditions database. It contains the Australian import conditions for more than 20,000 plant, animal, microbial, mineral and human products. The information is frequently updated.

What are quarantine regulations applying to timber and logs?

Some of the more damaging pets that threaten Australia’s biosecurity include Asian Longhorn Beetle, Burnt Pine Longicorn Beetle, Japanese Pine Sawyer Beetle, Asian Gypsy Moth, Termites, Auger Beetle, Powder Post Beetle, and Wood Wasps.

Many of these exotic pets arrive in timber and wooden related products in the egg or larvae stage and their presence may not be obvious. Pets sometimes go unnoticed for many years, until frass (sawdust-like substance) and holes appear.

All importers need to be aware and comply with DAFF Biosecurity import conditions. Import conditions are determined by scientific evidence, rigorous analysis and intelligence and are vital to keeping unwanted pests and diseases out of Australia.

There are two steps to the biosecurity process for importing timber and timber related products.

• Check the list of timber and wooden related products to identify what category your product sits under;
• Check the Import Condition Database (ICON) based on the category you identified in step 1.

Biosecurity risk can be addressed pre-boder and at the border through the use of approved treatments (depending on the import requirements). These treatments can include fumigation, gamma irradiation, heat, boiling and permanent preservative. In some cases biosecurity risk can also be addressed through a thorough inspection by a DAFF Biosecurity Officer at the border.

What are quarantine regulations applying to packing materials?

When bags are used for the shipment of plants products they should be new, clean and durable to ensure that spillage of the contents does not occur. Second-hand bags used to transport goods are subject to quarantine control and must be destroyed by incineration or re-exported. All wood including crates, dunnage, skids and pallets is subject to inspection unless certified as treated against insect infestation by a method approved by DAFF Biosecurity.

Packing material of plant origin is prohibited except for the following: wood-wool, sawdust, shredded papers, strawboard, granulated cork, peat. Other acceptable packing materials include perlite, vermiculite and synthetic materials. All cereal straw is a prohibited import and should not be used as a packing material.

Goods in FCL door-to-door containers are not subject to quarantine inspection if the timber components, such as the floor and linings, have been treated by an acceptable method. As far as is practical timber packing should be avoided and alternatiove materials such as cardboard, new jute or metals used. When crates, cases or pallets are used the timber should have been treated by a method approved by DAFF Biosecurity.

It is essential that the container is clean and free of soil or plant and animal contaminants such as grains, flours, meat, bones, hides and skin. Straw packing, rice hulls and similar plant material are prohibited imports and should not be used as packing.

DAFF Biosecurity has expanded the implementation of the International Standard for Phytosanitary Measures (ISPM 15) covering ALL wood packing and dunnage used to support, protect or carry air freight cargo imported into Australia.

Compliance is mandatory either by ISPM 15 compliant packing or evidence of offshore treatment (packing declaration/treatment certificate).

Documentation to be supplied by the foreign supplier includes Airfreight ISPM 15 Packing Declaration.

This document is to be completed for all airfreight consignments. It will be used to state whether wood packing has or has not been used and if wood packing has been used, whether it is ISPM 15 compliant or not. It must be printed on the shipper/supplier letterhead, include the Air Waybill and Commercial Invoice numbers and be dated, signed and stamped.

If the wood packing is marked/stamped with the compliant ISPM 15 stamp and the Airfreight ISPM 15 packing declaration is supplied, no additional documentation is required.

Note: for consignments that contain wood packing and the wood is not ISPM 15 compliant, a valid fumigation certificate must accompany the airfreight packing declaration, otherwise the consignment will be directed to DAFF Biosecurity for inspection, treatment, destruction or re-exportation at the importers expense.

What are quarantine regulations applying to cut flowers?

Fresh cut flowers can be imported into Australia provided they do not belong to genera which are prohibited by quarantine legislation, come from regions where serious diseases occur, or are species which can be readily propagated from any part of the flower stem.

All cut flowers are subject to inspection on arrival for insect pests, snails and disease. If disease is found on the flowers they must be treated, re-exported or destroyed.

What are quarantine regulations applying to animal products?

There are also strict regulations on animal products. These may only be imported under certain conditions and must be accompanied by appropriate documents. Below are examples of the regulations applying to certain products:

• Animal Fodder (plant origin): Animal fodder of plants origin may be imported when the fodder has been derived from stems or leaves of plants from New Zealand, or fodder comprising cereal grains or bran or pollard, derived from cereal grains from New Zealand, Canada or the USA. Other animal fodders of plant origin require prior permission to import;
• Fish Products (including caviar, roe and other marine life): fish products, with the exception of salmonoids, may be imported with prior permission under specific quarantine conditions;
• Prawns (frozen): prawns may be imported under specific quarantine conditions. Prior permission to import is required from the Health Department in each State;
• Leather: full manufactured leather may be imported from any country;
• Trophies, Curios, Tribal Regalia etc: importation of trophies, currios, tribal regalia, artefacts, ornaments and drums is permitted subject to specific quarantine conditions. Intending importers should check with quarantine authorities prior to importation. Depending on the nature of the articles, they may be subject to treatment on arrival.

What are quarantine regulations applying to food?

DAFF Biosecurity is responsible for administering two sets of requirements with which imported food must comply. The first set of requirements address quarantine concerns. The second set of requirements address food safety and are those set out in the Imported Food Control Act 1992.

All imported food must meet biosecurity requirements to be allowed into the country. Once imported food has met these requirements foods are monitored for compliance to the Australia New Zealand Food Standards Code.

The Quarantine Act 1908 requires that all imports of food comply with the quarantine conditions for their import. Quarantine restrictions apply to many raw foods and certain processed foods brought through the airport or mailed to Australia for private use. The following items are restricted:

• Eggs and egg products;
• Dairy products;
• Uncanned meat;
• Seeds and nuts;
• Fresh fruit and vegetables.

Commercial importers of food such as fresh fruit and vegetables or food containing milk, egg, meat or other animal products will need to obtain an import permit prior to importing the food. You can do initial checks for quarantine requirements by searching the Import Conditions Database (ICON).

Like food that is produced domestically, food that is imported into Australia must meet Australian food standards. The monitoring of imported food is a responsibility shared across many government agencies, including those at local, state, territory and federal levels.

Food Standards Australia New Zealand (FSANZ) is the government body responsible for developing and maintaining the Australia New Zealand Food Standards Code. Australian law requires all food to meet the food safety standards set out in the Food Standards Code. The Food Standard Code applies to all food offered for sale in Australia, whether produced domestically or imported.

FSANZ monitors food safety incidents worldwide and provides advice to the DAFF on monitoring and testing imported food. FSANZ advises DAFF when food poses a medium-high risk to human health and on appropriate testing. It also provides risk assessment advice to state and territory regulations, who are responsible for monitoring all food at point of sale, including imported food.

Food entering Australia is subject to the Imported Food Control Act 1992, which provides for the inspection and control of imported food using a risk-based border inspection program, the DAFF Imported Food Inspection Scheme (IFIS). FSANZ advises DAFF on the risk categorization of foods for inspection under the IFIS.

In addition to the inspection activity undertaken by DAFF at the border, state and territory authorities have responsibility for monitoring all food, including imported food, that is available for sale. Each state and territory authority has its own food legislation, which is based on the national Model Food Act developed by FSANZ and endored by the ANZFRMC. State and territory action on food is different from, but complementary to, that which occurs under the IFIS. On matters involving imported foods that DAFF has not inspected or that have been found later not to be compliant, FSANZ, DAFF and the state and territory authorities work closely to address them.

What are quarantine regulations applying to endangered species?

The Australian Customs (Endangered Species) Regulations are strictly enforced and overseas suppliers of animals, animal products or plants covered by the Convention on International Trade in Endagered Species (CITES) should be careful about attempting to export to Australia.

Overseas suppliers of artefacts and other items incorporating animal skins, bones etc., should check whether they would be permitted entry into Australia. Most crocodile skins are, for example, subject to the Australian Regulations while any products incorporating any part of an elephant are prohibited imports.

Does Australia apply quotas on textiles, clothing and footwear?

Import quotas on certain textiles, clothing and footwear (TCF) were abolished in 1993. The only import controls on these items since then have been import duties and the Government has been phasing TCF tariffs down over the past 20 years. Futher reductions applied from 1 January 2005. The Government is committed to maintaining all TCF tariffs at the 2010 levels until 2015, and then reducing most TCF tariffs to 5 per cent. Specifically, tariffs on apparel and certain finished textiles, which are higher than those on other TCF products, will not be reduced to 5 per cent until 2015.

There are special concessions for handicraft clothing and handmade footwear that allow for the duty free importation of these products. The criteria for these concessions are very strict and require that the goods be made by non-mechanical, non-powered tools held in the hand and, in the case of garments, they must be of at least 90 per cent natural fibre.

Under the Overseas Assembly Provisions scheme (OAP) Australian clothing companies that send pieces of Australian-made and cut fabrics to overseas countries for assembly will pay the import duty on only the overseas sew and trim costs.

What are the requirements for importing clothing or textile items?

If you would like to import clothing or textile items into Australia there are a number of requirements you need to be aware of.

• All clothing and textile items are assessed for payment of duty and taxes. The description of the clothing (eg. ladies suit) and what it is made from (eg. wool), will determine the duty payable. At the moment, most duty rates for clothing and textile items are up to 17.5%. A rate reduction for clothing, textiles and footwear will commence on 1 January 2010. ACN 2009/49 summarises the changes For more information on duty rates, please consult the Customs Tariff customs.gov.au/tariff/default.asp the Australian Customs and Border Protection Service website or consult your Customs Broker;
• Clothing and textile items must be labeled with a trade description showing the composition of the goods and the country where the goods were made. The description must be accurate eg 50%cotton/50% polyester made in China. A trade description is a true or factual description of the item. It must not be false or misleading. For example if a shirt contains 100% cotton, the description must say 100% cotton, not 50% cotton and 50% polyester.

The trade description must be:

• In the English language;
• In prominent and legible characters; and
• On a principal label or brand affixed in a prominent position and in as permanent a manner as practicable to the goods, or if marking of the goods themselves is impracticable, to the coverings containing the goods.

Garments must be permanently labelled with care instructions appropriate to the article. These must be in English and the exclusive use of symbols is not permitted. In most cases care instructions from each of the five care categories are required:

• Prohibited treatments;
• Drying instructions;
• Dry cleaning instructions;
• Washing instructions;
• Ironing instructions.

Children’s night garments are required to carry warning labels concerning their flammability rating. There are three categories of labeling depending upon the degree of fire protection the garment provides.

For further information on the Australian Customs and Border Protection Service requirements for trade descriptions and labeling, please see Australian Customs Notice No. 2006/39.

Other legislation you need to be aware of.

The Australian Competition and Consumer Commission regulates and enforces the Trade Practices Act 1974. This act sets out mandatory standards that apply to clothing and textile items. The main additional requirement to those labeling requirements listed above is that the textile item must have labeling specifying care instructions.

Each state and territory may have it’s own restrictions or product standards that must also be adhered to.

What are the labeling requirements for clothes?

The Commerce (Trade Descriptions) Act 1905 and Commerce (Imports) Regulations 1940 set out the labeling requirements for goods imported into Australia.

Clothing requires a trade description with the name of the country in which the goods were made or produced, and a true description of the goods.

What constitutes a true description will vary according to the goods. A general guide is to provide a factual description that will help inform the consumer about the nature of the goods, for example, a description such as ‘100% cotton’ on a shirt, would be acceptable, provided that description is correct.

The trade description must be in the English language, in prominent and legible characters, and on a principal label or brand affixed in a prominent position and in as permanent a manner as practicable to the goods, or if affixture to the goods is impracticable, to the coverings containing the goods.

Any other information included on the label brand or packaging must not contradict or obscure the required trade description. This includes illustrations, wording or size of lettering.

Garments must be permanently labelled with care instructions appropriate to the article. These must be in English and the exclusive use of symbols is not permitted. In most cases care instructions from each of the five care categories are required:

• Prohibited treatments;
• Drying instructions;
• Dry cleaning instructions;
• Washing instructions;
• Ironing instructions.

Children’s night garments are required to carry warning labels concerning their flammability rating. There are three categories of labeling depending upon the degree of fire protection the garment provides.

In addition, the Commerce (Trade Descriptions) Act prohibits the importation of goods that bear a false trade description. A false trade description can be any description of goods that is false or misleading.

A trade description may also be false if information is omitted from the description and this misleads the consumer as to the true description of the goods.

Prominent Positioning of Labels

As mentioned above, trade descriptions on clothes must be on a principal label or brand affixed in a prominent position and in as permanent a manner as practicable to the goods, or if affixture to the goods is impracticable, to the coverings containing the goods. As such, for the majority of garments labels should be affixed in the centre back of the item and not obscured by any other label.

Please note that labeling for fiber composition may be applied in a position in line with the Australian Standard for Textiles – Labeling of clothing, household textiles and furnishings.

Other Requirements

Please note that although the Commerce (Trade Descriptions) Act and Commerce (Imports) Regulations specify certain requirements for labeling imported clothing, clothing may require specific labeling not covered by this legislation and administered by agencies other than Customs. For example (as mentioned above) the Australian Standard (AS/NZS 2392:1999 Textiles – Labeling of clothing, household textiles and furnishings) also sets out labeling requirements. Information regarding Australian Standards may be found by clicking on the Standards Australia website www.standards.org.au/Pages/default.aspx.

Country of Origin Labeling

For further information on country of origin labeling laws click on the business.gov.au website for further information.

While Customs and Border Protection may permit the re-labeling of contravening goods where it is considered that the contravention was neither intentional nor reckless, we recommend that you ensure your goods comply with the legislation prior to their importation. Where re-labeling is permitted, goods can only be released once the trade description is correct and all Customs and Border Protection formalities have been completed. You may also be asked to provide evidence that you have instructed your suppliers to correctly label goods in future.

What are the trade description requirements for shoes?

The Commerce (Imports) Regulations 1940 - Reg 15b gives the following information regarding Shoes:

1. Subject to this regulation the trade description applied to shoes shall include:
   1. In the case of shoes:
      • The soles of which consist entirely of leather— the words "all leather sole";
      • The uppers of which consist entirely of leather— the words "all leather upper";
      • The quarter linings of which consist entirely of leather— the words "all leather quarter lining";
   2. In the case of shoes the soles of which consist partly of leather— a true statement of the materials composing the sole;
   3. In the case of shoes the soles of which do not consist entirely or partly of leather— the words "synthetic sole", or "non-leather sole";
   4. In the case of shoes the uppers of which consist partly of leather— a true statement of the material composing the upper;
   5. In the case of shoes the uppers of which do not consist entirely or partly of leather— the words "synthetic upper", or "non-leather upper";
   6. In the case of shoes the quarter linings of which consist partly of leather— a true statement of the materials composing the quarter lining; and
   7. In the case of shoes the quarter linings of which do not consist entirely or partly of leather— the words "synthetic quarter lining" or "non-leather quarter lining".
2. For the purposes of this regulation, a sole shall be deemed to consist entirely of leather if the only material in the sole, other than leather, consists of one or more of the following:
   1. Ordinary fillers of cork or waterproof felt;
   2. Canvas used to reinforce the inner sole of the shoe;
   3. Shanks made entirely of leather-board, fibreboard, wood, metal or plastic, or a combination of any such materials, and used only for strengthening the sole of the shoe at the waist;
   4. Wood, plastic or metal used in the heel of the shoe; and
   5. Stiffening made entirely of leather-board, fibreboard, metal, plastic, canvas or other similar substance, glue or other similar substance, or any combination of such materials, where the stiffening is used only for the purpose of supporting the upper of the shoe at the heel or toe.
3. The trade description must be impressed or embossed on the shoe in clearly legible letters not less than 2.5 mm in height in one of the following positions:
   • On the waist of the outer sole of the shoe;
   • On the inside of the upper above the waist of the shoe;
   • On the heel seat or waist area of the sock lining or, if there is no sock lining, on the heel seat or waist area of the inner sole;
   • On the tongue of the shoe.
4. However, if the material of the shoe does not reasonably allow the trade description to be impressed or embossed on it, the trade description must be:
   1. Impressed or embossed on a label of rubber, plastic, durable cloth or any other durable material; and
   2. Attached to the shoe by vulcanisation, adhesion or any other secure means.
5. This regulation does not apply in relation to ski boots designed to fit ski bindings, being ski boots having moulded plastic uppers and rigid soles that do not have a replaceable sole section.

What are the trade description requirements for goods made from leather, vulcanite and plastic or their imitations?

The Commerce (Trade Descriptions) Act 1905 and the Commerce (Imports) Regulations 1940 sets out the labeling requirements for certain goods imported into Australia. Customs and Border Protection (ACBPS) administer this legislation. Goods made from leather, vulcanite and plastic and their imitations, and which are specified in the Fourth Schedule of the Commerce (Imports) Regulations, with a total outside area of which is not less than one hundred and fifty-five square centimetres, require a trade description with the name of the country in which the goods were made or produced, and a true description of the goods. What constitutes a true description will vary according to the goods. A general guide is to provide a factual description that will help inform the consumer about the nature of the goods. For example, in the case of a leather wallet, a description of the composition of the wallet being ‘Genuine Cowhide’, would meet the requirements of a true description. The Fourth Schedule specifies the following goods:

• Attaché cases, bicycle saddles;
• Boxing gloves, bridles;
• Brief cases;
• Cases for gramophones, musical instruments, television sets or wireless sets;
• Document cases, folio cases;
• Footballs gloves;
• Golf bags harness;
• Hat boxes, hat cases;
• Horse collars kit bags;
• Ladies’ handbags, leggings;
• Machine belting, men’s belts;
• Pouches, punching bags;
• Punching balls Purses;
• Razor strops Saddles;
• Schoolbags School cases;
• Shopping bags Sporting goods;
• Suit cases Trunks;
• Wallets.

The above goods are deemed to be made of leather, vulcanite and plastic and their imitations, if more than one-half of the outside area of the goods consists of these materials. The trade description must be in the English language, in prominent and legible characters, and on a principal label or brand affixed in a prominent position and in as permanent a manner as practicable to the goods, or if affixture to the goods is impracticable, to the coverings containing the goods. Any other information included on the label, brand or packaging must not contradict or obscure the required trade description. This includes illustrations, wording or size of lettering. In addition, the Commerce (Trade Descriptions) Act prohibits the importation of goods that bear a false trade description. A false trade description can be any description of goods that is false or misleading. A trade description may also be false if information is omitted from the description and this misleads the consumer as to the nature of the goods.

What are the labelling requirements for cosmetics, toiletries and soaps?

Imported cosmetics, toiletries and soaps must comply with the Trade Practices (Consumer Product Information Standards, “Cosmetics”) Regulations that require compulsory labeling of ingredients. This is administered by the Australian Competition & Consumer Commission (www.accc.gov.au) and does not cover toiletries that are classified as therapeutic goods or sunscreen products.

Alternatively, the ingredients may be listed in the following order:

• Ingredients (except colour additives) in concentrations of 1% or more in descending order by volume or mass; and
• Ingredients (except colour additives in concentrations of less than 1% in any order; and
• Colour additives; in any order.

If the supplier cannot comply with the above, the product’s ingredients must be shown in another way that ensures that a consumer is informed about the ingredients in the product eg., a swing tag. The list of ingredients in a cosmetic product may include a reference to a colour additive that it is not in the cosmetic product if it is added to some batches of the product for the purposes of colour matching or used in one or more of a rang of cosmetic products.

Flavours and fragrances in a cosmetic product must also be shown in the list of the product’s ingredients.

What are the labelling and packing requirements for household cleaning products?

Packaged household cleaning products are subjects to additional labeling and packaging requirements under the standards for Uniform Scheduling of Drugs and Poisons. These requirements are constantly under review and are administered by the State and Territory Health Authorities. The requirements vary depending on the individual ingredient composition and quantity of each product. Some requirements may stipulate the use of childproof closures, ribbed containers and closures that can be closed securely.

Listed below is a general sample layout for labels displaying the order of statements, as well as general guidelines that must be followed for all packaged household-cleaning products.

• 1.5mm minimum height of letters with all warning statements in bold “sans serif” capital letter in a uniform thickness. (Example: KEEP OUT OF REACH OF CHILDREN);
• The name and strength, or proportion of all poisons in the product must be in Australian approved names;
• The name and address of the manufacturer or distributor must be an Australian street address not a post office box;
• Directions for use must be clear and sufficient for the product to be used correctly.

What are the labelling requirements for food products?

The following are general labeling requirements for all imported packaged food products, as specified in the Food Standards Code administered by Food Standards Australia New Zealand (www.foodstandards.gov.au).

• Name of the food: all packaged food must have a name or an appropriate description which clearly indicates the nature of food. The minimum print height of the food name is 3mm;
• Lot identification: packaged food must show “lot” identification, which is a quantity of food prepared under the same general conditions. “Use by” or packing dates may satisfy this requirement. The lot identification may be either marks or codes devised by the manufacturer. There are no set requirements for type size or colour contrast;
• Date marking: all packaged foods imported into Australia that have a durable life of less than two years must be marked with a date indicating the minimum durable life of the product. This is the period during which it can be reasonably expected that the food, when appropriately stored, will retain its nature and quality. Date marking should be in capital letters and figures of not less than 3mm high and displayed in clear and prominent manner.

Where special storage conditions are required to ensure that the minimum durable life or use by date of the food is accurately stated, those conditions of storage must be stated on the label.

Exemptions

Some foods are exempt from ingredient labeling. These include foods where the name of the food identifies all of the ingredients and single item foods such as frozen fish fillets, desiccated coconut etc. Alcoholic beverages, flavourings and soft drinks in bottles with crown seals are also exempt from ingredients labeling.

In addition, there are certain claims that cannot be made on food labels. These include:

• Any statement that a food is a slimming food;
• The word “health” in conjunction with the name of the food;
• The words “vitamin enriched” or similar claims;
• Therapeutic claims.

Certain other claims are strictly regulated and may only be used in specific circumstances. These include:

• Use of a trade name;
• Statements relating to nutritional properties eg., lowfat, high fibre, cholesterol free or similar terms must be supported and justified;
• The terms “low alcohol” or similar words require the accompany statement “CONTAINS NOT MORE THAN X% ALCOHOL”;
• The word “pure” is restricted to single ingredient foods which contain no additives.

There are also additional provisions for individual products that should be considered when developing labels. Examples include:

• The label of the packing on alcoholic beverages must contain a declaration of the ethanol content at 20 degrees and a statement as to the number of standard drinks contained in package;
• The label of canned fish products must have a statement setting our the description of the fish contents on the package in ther form – “BARRACOUTA” or “TUNA” or where there is more than one kind of fish, a statement as to the proportion of each kind of fish present with the fish first mentioned being the one of greater proportion. This must be in standard type of 3 mm.

What are the general requirements on product standards?

Product standards are also an important factor in the Australian market.

Standards Australia (www.standards.org.au) and the various State Governments have developed a range of compulsory and suggestd standards for a wide range of products. Where compulsory standards apply a product cannot be sold without the approval of the relevant authority; where suggested Standards have been established, it is usually advisable to meet these requirements before attempting to market the product.

The importance of standards to overseas suppliers varies from sector to sector. In areas such as construction materials, fire extinguishers, toys, bicycles, crash helmets, electrical products etc., the standards are often compulsory and the relevant authorities must approve new products before they can be sold. The general rule is that when a faulty products can cause injury or death to a person the standard will be compulsory.

Over the last 30 years there has been an increasing range of consumer protection legislation by both the Federal and State Governments. Most importers will be aware of the standards that apply to the products they handle but overseas suppliers should be aware that these regulations do exist and the Australian government authorities recall a number of “unsafe” products each year.

In the food area there are also strict health requirements in addition to quarantine.

Each State in Australia has its own legislation on the purity of food sold to the consumer, who covers ingredients and the type of packaging used for certain food lines. There is increasingly uniformity between the States but overseas suppliers may find that they have to receive approval from different State Government authorities before their food products can be sold.

Copies of Australian Standards are available through ASI Global at:

http://www.saiglobal.com/shop/Script/search.asp

How to import handicrafts into Australia?

• Fabric made by one or more of the following processes, and by no other process:
  • By hand;
  • By non-mechanical, non-powered tools held in the hand; or
  • Produced on hand or foot powered looms.
• Goods made by one or more of the following processes, and by no other process:
  • By hand;
  • By non-powered tools held in the hand; or
  • Where the concession specifically allows, by machines powered by foot or hand.
• Are wholly, or in chief part by weight, of materials traditionally used in the production of handicrafts; and
• Have attained, by reason of being “handmade”, an artistic or decorative character generally comparable with traditional “handmade” products of the Country of origin.

Acceptable evidence of this should be in the form of:

• A video or a series of photographs of the manufacturer’s factory showing all processes of manufacture; and
• A written description of the manufacturing process. NOTE: The photographs must be signed and dated on the back by a senior officer of the manufacturing company. The description must be written in English on the manufacturing company's letterhead;
• Any video or photographs should show views of the crafts people in action during all stages of manufacture, with location names if possible.

This information should be sent to the Regional Director of Customs and Border Protection in the Australian State through which the goods will be imported, prior to the arrival of commercial consignments of the goods into Australia. Once a decision has been made that the specific goods from a particular supplier are eligible for the concession, they will be registered as such on an Australia-wide basis. Unless the manufacturing process is altered, future shipments will not require evidence of manufacture to be provided with each importation. The registration of such "handmade" evidence will be valid for five years. After this time new evidence will be required for the eligibility process to be repeated. It should be noted that this registration process is only an aid to the clearance of the goods and that all normal Customs and Border Protection entry procedures will still apply, including import processing charges and the application of Goods and Services Tax.

Goods not complying with handicraft requirements will be subject to normal rates of import duty. While goods may be, prima facie, eligible for concessional entry, registration alone does not automatically grant them concessional admission. Importers must ensure that their freight forwarder, courier company, shipper and/or Customs broker has all relevant documents required to facilitate entry and possible examination of the goods.

It should also be noted that, as most handicrafts are made from natural plant or animal products, such as wood, leather, feathers, leaves, etc. Australia's strict quarantine requirements would be applied. Items may be examined by an Agriculture Officer and treatment required before entry processing can be completed.

Some products are also restricted or prohibited due to international agreements protecting endangered or threatened species of wildlife.

What duties and taxes will be applied to the goods I have purchased from the internet when they arrive?

Low value consignments up to AU$1,000 are imported free of Customs duty and taxes. Consignments of alcohol and tobacco products are excluded from this and will be charged Customs duty and taxes.

Consignments valued over AUD 1000 will be assessed for Customs duty and taxes. Duty rates vary from 0% to 10%, however most goods attract a 5% rate of import duty and 10% Goods and Services Tax (GST).

To determine the exact duty rate for your goods you can either peruse the Customs Tariff yourself at www.customs.gov.au/tariff/default.asp or apply for a tariff advice by completing a B102 (Application for Tariff Advice), for each "invoice" item. You should submit illustrative descriptive material (IDM) with your Tariff Advice Application. IDM may include, but is not limited to, photographs, website addresses, a sample of your product, product specifications, etc. This IDM will assist Customs in classifying your goods.

How do I bring samples into Australia?

Commercial goods and samples

Business travellers carrying commercial goods or samples may need to obtain permits for their goods depending on the goods, regardless of value. Quarantine and wildlife regulations and other restrictions may also apply to certain goods.

Laptop computers and other similar electronic equipment for personal use may be brought in duty free provided Customs and Border Protection is satisfied you are taking these goods with you on departure.

Samples are usually required to be indelibly marked as samples or defaced in such a way as to render them as worthless other than as samples.

There are strict limits on the volume and types of alcohol that may be imported as samples. No tobacco products may be imported as samples.

There are 3 methods that may be used to import commercial goods and samples temporarily.

• The use of a carnet. Carnets may be obtained for temporary duty free entry of goods, which are subject to international agreements such as commercial samples, goods for international exhibitions, equipment for major sporting events, professional television and film equipment etc;
• Under Section 162 and 162A of the Customs Act 1901 which would require lodgment of specified cash or securities;
• Or under Schedule 4, Section II, Item 33B which allows for the temporary importation of goods where the duty payable would be insubstantial.

What do I have to do when importing chemicals?

If you import or manufacture industrial chemicals for commercial purposes, you must register with the National Industrial Chemical Notification and Assessment Scheme (NICNAS). Registration involves an annual registration fee.

For restrictions and prohibitions on importing chemicals and chemical products, take a look at the Chemicals Business Checklist on the Department of Industry website:

http://www.industry.gov.au/industry/industrysectors/chemicalsandplastics/RelatedLinks/ChemicalsBusinessChecklist/Pages/default.aspx.

How do I import a yacht?

Yachts are subject to a general rate of duty of 5% based on the customs value (basically the price paid) and 10% GST calculated on the customs value plus international transport and insurance plus the duty.

Privately imported yachts are generally valued using the transaction method of valuation when purchased overseas new or second-hand for export to Australia. Circumstances where Customs and Border Protection may use an alternative method of valuation include such situations as where:

• The yacht was constructed by owner/labour;
• The yacht has been extensively modified since purchase;
• The purchaser and vendor are related parties and that relationship has influenced the purchase price; or
• The original purchase price is too far removed in time.

In these instances the yacht will have to be valued by a marine surveyor in Australia. This valuation will be based on the market value and as such will include elements such as customs duty and GST. Customs and Border Protection will have to deduct these elements plus overseas transport from the local valuation.

Where the yacht is sailed to Australia, overseas freight will be determined having regard to essential sailing costs incurred under the most commercially viable conditions. Such costs would include sailing expenditure necessarily incurred while the vessel is actually sailing (and entering and leaving) those ports of call on the most commercially viable route. It would not include any in port expenditure related to the vessel's period of stopover.

Where supported by sufficient/reliable information, essential sailing costs would also include:

• Cost of maps, charts pilot books, light/radio lists, etc;
• Crew's hire/wages or forage allowance in lieu;
• Victualing or food costs (does not include tobacco and alcoholic beverages);
• Bunkering or oil/fuel costs.

Can I bring construction equipment into Australia as a temporary import?

Australia is a signatory to the Customs Convention on the Temporary Importation of Professional Equipment. The convention allows the temporary importation of a range of goods provided certain conditions are met.

Construction equipment used for commercial purposes would be considered ineligible under the provision.

Can I bring ‘Dore’ gold into Australia?

All goods imported into Australia are liable for Customs duty and Goods and Services Tax (GST) at rates set down in legislation. The Australian Customs and Border Protection Service (Customs and Border Protection) must apply these rates unless there exists a specific authority for the goods to receive concessional treatment. The requirements under the legislation apply regardless of whether an importation is undertaken for commercial purposes or personal use.

There is no permits required to import "Dore" gold and it is recommended to check with the Australian Taxation Office (ATO) with the limitations on quantity.

You should refer to Schedule 3 of the Customs Tariff Act 1995 (the tariff) to see if any rates of duty are applicable to unrefined and other forms of gold. GST may be applicable.

Precious metals are GST free if it is the first sale (or import) of the refined metal.

A precious metal is:

• Gold of at least 99.5% fineness;
• Silver of at least 99.9% fineness; or
• Platinum of at least 99% fineness.

Is duty payable on imports of Antiques?

Antiques are free of Customs duty under tariff item 9706.00.00, but subject to Goods and Services Tax (GST).

However, when requested by Customs and Border Protection, importers are expected to provide evidence that the goods are over one hundred years old to qualify for duty free ‘antique’ status. Such evidence should be in the form of verification from a recognised antique expert or by a recognised national body in each country.

In respect of goods imported from the United Kingdom, each importation should have certificate of antiquity issued by either:

• the British Antique Dealers Association;
• the London and Provincial Antique Dealers’ Association (also know as LAPADA); or
• other reputable associations recognised by the Australian Antique Dealers’ Association.

For antique goods imported from other countries, each importation should have a certificate of antiquity issued by a responsible executive officer of a national association recognised by the Australian Antique Dealers’ Association.

Where an importer is unable to produce an acceptable certificate of antiquity at the time of arrival of the goods, it will be necessary for the importer (or broker) to arrange for the goods to be examined by an approved local antique expert at their own expense before clearance.

In the absence of a certificate of antiquity or local validation of antiquity, the goods should not be classified to tariff item 9706.

What payment methods are accepted for invoices issued by Customs and Border Protection (cash, cheque or credit card)?

Customs and Border Protection invoices can be paid in several different ways:

Online Payments

Payments can be made online. To access this service or to view more information on making payments online, please go to http://customs.gov.au/site/page6063.asp.

BPAY

Contact your participating Financial Institution, either by internet or telephone, to make this payment directly from your cheque, savings or credit card account. When prompted simply enter the Biller code and your customer reference number as shown on your invoice.

Payment over the Phone

You can pay your Customs and Border Protection invoices over the phone by credit card. Simply call 1800 008 174 anytime, 24 hours per day. Quote your Customer Reference Number (CRN), which is printed in the lower section of the invoice.

Visa, MasterCard and American Express can be used to pay Customs and Border Protection invoices.

All credit card payments are subject to a surcharge. See below for more details.

Pay in person at any capital city Customs and Border Protection Office and many regional offices.

You can pay your Customs and Border Protection invoices at many Customs Houses and offices. All the Customs Houses in major cities can accept payments. Not all Customs Houses in regional areas have the facilities to accept payments. Call your local Customs House to check if they can accept your payment.

Customs House cashiers accept cash, money orders, cheques and major credit cards (Visa, MasterCard and American Express) except for Diners Card for payments.

All credit card payments are subject to a surcharge. See below for more details. Make cheques and money orders out to the “Australian Customs and Border Protection Service”.

You will be issued with a receipt at the time of payment.

Pay by cheque or credit card through the mail

You can still post your cheque, money order or credit card details to Customs and Border Protection. Fill out the remittance advice at the bottom of your invoice. Fill in your credit card details in the space provided or enclose your cheque and mail to:

Customs and Border Protection accepts Visa, MasterCard and American Express. Diners Club cards are not accepted. All credit card payments are subject to a surcharge. See below for more details. You will receive a receipt by return mail.

Credit card surcharges

As of 15 April 2009, the following credit card surcharges will be charged for credit card payments:

• Visa 0.94%;
• MasterCard 0.94%;
• American Express 1.54%.

I ordered goods from overseas and the seller said they are being held up by the Australian Customs and Border Protection Service at the Border. Why does Customs and Border Protection hold goods?

Customs and Border Protection does not physically hold goods unless there is some breach of Customs law. While imported goods are in a Customs licensed premises (a depot or a warehouse) they are under Customs control. Customs control is maintained until the goods clear Customs and Border Protection formalities and are released into “home consumption”.

Goods are held under Customs control while the goods are assessed, examined if necessary and the liability for duty, taxes and other charges are met by the importer. Delays in the presentation of permits or other information to Customs and Border Protection can delay release from Customs control and inspections by DAFF Biosecurity can also create delays. However Customs and Border protection always endeavours to ensure that its actions do not unduly delay the release of goods or cargo.

Where the carrier of your goods has sufficient information available to be satisfied that no duty or taxes apply and that no import permit is required, may they lodge the SAC declaration on your behalf?

If the carrier cannot, or will not, lodge a SAC declaration on your behalf, you may either obtain a digital certificate in order to communicate with Customs and Border Protection electronic systems to enable you to lodge a SAC declaration or engage the services of a customs broker or bureau to lodge a SAC declaration on your behalf.

What are abandoned goods?

• Goods found at a Customs place where no owner is established;
• Goods held by Customs and Border Protection (pending finalisation of formalities) that have subsequently been abandoned; and
• Goods found in a Customs place where the goods are not able to be entered for home consumption and have been abandoned by the owner.

Goods are considered as being “abandoned” after the prescribed period of 90 days has passed since the goods were found (Customs Regulation 176A).