Import from China to Australia: The Ultimate Guide

I know you want to import from China to Australia that’s why you’re here.

So, whether you want to know the mode of shipping, cost, best time, restricted goods or what to import from China to Australia – all the vital information you’re looking for is right here.

Keep reading to learn more.

Products to Import from China to Australia

Are you wondering what kind of products you can import from China to Australia, well there a range of products.

From shoes to electronics, cars jewelry construction material name them.

Generally speaking, Australia lags behind most Western countries when it comes to production.

Could be because manufacturing in Australia is expensive especially for a new business or a small scale business.

From designing, production, packaging, getting the best machines it’s just a hustle.

Hence they import from China to ease the process.

Importing products from China to Australia has by all means been a significant source of income to the country.

As an investor in the business, it is advisable to first import a small number of goods, test the waters and see how the business will fare before making a substantial commitment.

Importing Clothes from China to Australia

China is a large manufacturer of garments.

In fact, it’s one of the World’s best producers of clothing materials worldwide.

They produce quality clothes in bulk, at a low price, and export them.

Most clothes are brought to Australia by sea because they do not need special care.

However, some such as wedding gowns are shipped by air freight.

Very few restrictions are put in place for clothes getting into Australia.

Moreover, clothes containing formaldehyde and AZO dyes are banned from entering the country.

Importing Toys from China to Australia

The level of creativity in China is insane.

They have a wide range of gargets including infant toys, puzzles, toy guns, games, etc.

They are imported by sea freight.

Infants and kids are very delicate beings.

Hence Australia has put in place very strict rules and regulations to ensure their safety.

It worth noting that it’s challenging to get the certification of the toys you are intending to import.

Note the size and the weight of the toys will determine the size of the container to use in shipping. S

pecial toys can be transported by air.

In short, you can import virtually any item from China to Australia.

Restricted Imports from China to Australia

Different countries have different rules and regulations.

Australia is big on quality, hence it has regulations on products that might pose threat to its citizens.

Regulated products include;

• Alcohol
• Tea and coffee
• Tobacco and cigarette,
• Health and cosmetics
• Children toys
• Food, groceries, and beverages

Here is a full list of restricted imports to Australia.

Note in case you import goods that don’t meet the regulations set by the customs, you could face penalties.

In a worst-case scenario, your goods may be detained or destroyed.

Prohibited Imports from China to Australia

If you are a new importer, you need to familiarize yourself with goods that are not allowed in Australia.

The list of items prohibited in Australia is updated after a while.

It is therefore advisable to review the list often.

This may help you avoid paying hefty fines or goods being taken away.

Prohibited products in Australia include;

• Weapons
• Hazardous goods
• Drugs, medicine
• Biological agents
• Asbestos
• Goods bearing the word ANZAC

Here is a full list of all prohibited imports to Australia.

Now during the Covid-19 pandemic, they have new regulations prohibiting hand sanitisers, facemasks, gowns, goggles, alcohol wipes, etc.

Documents you need to Import from China for Australia

Before getting a golden opportunity to import products from China, some formalities are required.

Every importer must submit the following documents to the customs office before starting to trade.

It’s worth noting that you are required to provide them in time.

The import documents may vary from one importer to the other depending on the kind of products you are intending to import.

Documents required include:

i. Fumigation Certificate (SAD)

SAD was there long before COVID-19!

This document is issued by the country’s sanitary authorities or the customs authorities.

It verifies that exported goods say cereals and vegetables stuffing etc. have been fumigated.

Fumigation is necessary because it protects the local flora and ensures pets don’t move from country to country.

ii. The Import License

This document is issued by the officials in charge of to exact product you intent to import.

It shows the data of commercial and financial details of the goods you have imported the importer, the exporter, the native country, the manufacturer of the product, and the cost of payment method.

iii. The Bill of Landing (BIL, BOL)

It’s a document that contains the shipment of a commodity issued by the shipping company.

It helps you to identify your product and the information about your goods by issuing them with titles.

It contains information showing the shipper, consignee, place of delivery container (s) number and also gives a clear description of goods.

BIL can be used as proof of shipment for customs and insurance companies.

It can also be issue to a bank as proof so that the seller can bring about a letter of credit.

The document can as well be sent to the buyer to seal the business by paying off the contract.

iv. Air Way Bill (AWB)

It’s a receipt issued by an airline to show goods have been transported.

It is prepared by the authorized agent or an airline, electronically.

They contain a serial number that can be used to check shipment status.

An international airway bill combined with cargo is referred to as master Air Way Bills (MAWB)

v. The Certificate of Origin

It’s a document issued by the exporter that shows specific details of goods.

Where they have been obtained, produced, manufactured, and processed.

Generally speaking, there are two types of Certificate of Origin.

Non-preferential

It gives specific details and places where goods we produced, even though the goods cannot be subjected to treatment.

Preferential

This document shows goods were produced in a country with a trade agreement with our very own country.

vi. Commercial Invoice

It is an official payment note prepared by the exporter used as a customs declaration.

It is meant to declare the imported products are in your proclamation.

It identifies the exporter, importer, the HS Code, invoice number, net weight, and gross quantity, and the total freight price.

Common mistakes made on an invoice such as undervalued, where the seller avoids some formalities, can easily be noticed.

Customs are very keen on the commercial invoice they may withhold your goods. Be careful.

vii. Proof of Import

This document is issued after going through customs.

It’s issued after all your documents have been confirmed.

Proof of import is basically the official document you receive in the final stage to prove the nationalization of your imported products.

Note some products have more restrictions to avoid biosecurity hazards

In case you are importing such products, the Australian customs and quarantine require some documents for such unique goods.

If you are importing medicine, you need a certified medical prescription.

Documents that encounter legal requirements for acceptance of our unique products.

MSDS document in case the commodity is unsafe.

viii. Packing List

It is also referred to as the Way Bill shipping list.

It a list containing packaging information of all shipped goods put together by the shipping company.

It describes the content of goods to all the parties involved.

You are required to show a packing list to the Australian government showing

Any applicable shipping marks used.

The number of packages including a list of how packaging was done.

Total net weight and gross weight of cargo and their measurements.

ix. Single Administrative Document (SAD)

SAD is prepared by the importer. It’s a documentary basis of customs declaration in the EU, Swaziland, Norway, and Iceland.

SAD is used for the trade of non-EU goods with the EU or if you are trading with third counters.

x. CITES Permit

This a document issued by the National CITES Management Authorities.

It issues means that the import of goods is complaisant with international wildlife protection regulation.

You should have this document if you are importing goods listed on the CITES list.

Failure to which you will face the consequences.

xi. Import/Export Declaration

This document is prepared by the importer/exporter.

It’s a list of imported/exported goods required by customs officials sometimes.

The form differs depending on the requirements of a particular custom office.

xii. CE Certificate

It’s a document that is concerned with health and safety.

It ensures products are complaisant with EU laws and directives.

It’s acquired by notified bodies. Only specific institutions are allowed to conduct CE assessment.

This document is not required in all cases.

However, the producer can self-verify their products in certain cases while in others an independent quality checking procedure is required.

xiii. Proforma Invoice

It’s a document put together by the exporter.

It serves to give detailed information concerning shipment in terms of the type of products shipped, their size, and other features.

Even though it’s not an invoice, it’s considered a legal binding agreement because it contains the final pricing.

This helps the importer to decide on their financial purchase easily.

Customs officers in some countries may accept proforma invoices and allow you to submit a commercial invoice later.

In the US for example the proforma invoice is used by the customs to access duty.

Financial institutions such as banks may accept proforma invoice to create a letter of credit on the importer

Understanding Taxes when Importing from China to Australia

Taxes are inevitable. Once you import goods from China to Australia, they will definitely attract taxes.

Before importing or exporting goods ensure you familiarize yourself with tariff costs.

If you are not sure, consult Customs Authorities for help.

Some taxes are paid by everyone while others you pay import duties based on particular types of goods you have imported.

Below are some of the taxes you may be required to pay;

i. Processing charge- This is paid for every shipment made in Australia.

ii. GST- Goods and Service Tax is levied on 10% of import duty, the value of goods, insurance, and transport cost.

iii. VAT- Duty charged on goods that are manufactured in the country. Sometimes importers are required to pay VAT and tariff at the same time.

iv. Exercise tax- This duty is not charged on all items but some such as wine and jewelry.

Concession on Import Duty when Importing from China to Australia.

In 2015 Australia and China signed a Free Trade Agreement.

The trade ensured smooth investment by eliminating barriers in the business.

Through this agreement, some goods can enter Australia for free or at a reduced tariff.

The agreement is of great benefit to the traders; it has ensured delayed duty.

However, all the benefits occur if you import goods that are not being manufactured in Australia.

Importers can enjoy a 0% duty rate on most of the goods they import.

In a bid to support local manufacturers, Australia has come up with the following schemes:

• Delayed duty in the custom warehouse
• Tariff concession system
• Certain input to manufacturer program ( CIM)
• Tariff concession system
• Tradex schemes

Cost of Importing from China to Australia

Many factors affect the price of products from Australia to China.

From location to size, shipping mode, sea FCL, sea LCL, air or express

As an Australian importer, buying goods from China is an incredible opportunity.

You will end up spending a fraction of what you would have had you manufactured the same products in Australia.

Nevertheless, you need to understand additional costs that may be added to the cost price of your goods. Below are some of the taxes and duties.

i. Shipping Costs

Shipping from China to Australia freight charges depend on whether the goods are full container(FCL) or less than container (LCL).

The fee depends on the weight of your goods in cubic meters.

Ensure you get the exact weight of your products in cubic meters from your manufacturer once they have been packaged.

The cost of renting FCL depends on the month you are intending on importing your goods.

For LCL your pay range is $150 to $250 per cm3 depending on the size and weight of your goods.

ii. Custom Value

The customs value of goods is based on the free on board(FOB) price of goods.

FOB simply means the manufacturer has cleared exports and goods have been loaded on the ship, hence all the risks and responsibilities involved are up to the buyer.

FOB prices of goods include

• Export clearance
• Transport to port
• Unit price

Note the custom value is not inclusive of the cost of shipping to Australia or the cost of shipping insurance.

iii. Custom Duty

Your custom duty depends on the kind of products you are importing,

Most goods imported from China are put through a 5% duty.

The amount will still depend on the customs value of your shipment

For example, if your custom value is $10000 and your shipment is subjected to a 5% duty rate,

$10000 × 5/100 =$500

you will pay $500

iv. Goods and Services Tax (GST)

For goods imported in Australia under $1000, you do not pay for 10% GTS.

However, for those above $1000, you will be required to pay 10% GTS whether you are GST registered or not.

If your business is GST registered, you have an advantage, you can postpone the GST payment if you take part in a deferred GST scheme.

Such businesses can defer payment until they submit their first activity statement once they have received goods.

GST is calculated as 10% of the total shipping cost.

Example

Custom value= $10000

Custom duty= 5% of custom value

=$500

Shipping fee=$1500

Insurance=$70

$10000+$500+$1500+$70

= $12070

GTS=10% ×12070

=$1207

It worth noting, these are just hypothetical numbers.

They do not reflect the actual shipping costs incurred when importing from China to Australia.

Equally, it’s not inclusive of the cost price of the product.

These are not the only duties and taxes you may be required to pay.

Duties and taxes may vary depending on the products.

Best Time to Import from China to Australia

Interestingly, there are seasons in international trade.

Prices differ depending on the month you are importing your products from China to Australia.

Freight rates especially FCL sea and air freight are affected by seasonal factors.

There are peak and off-peak seasons.

The table above shows peak seasons for shipping from China to Australia.

October seems to be the best month to import from China to Australia.

Besides, General Rates Increase(GRI) are introduced at the beginning of a month.

Towards the middle of the month, while they are busy loading supplies on vessels, they reduce the prices.

This means if you book in the middle of the month, you can save money.

How to Import from Alibaba to Australia

Alibaba stock is one of the market place importers from Australia shop.

It is China’s largest online commerce business.

It is a website like eBay but mostly deals with wholesalers and manufacturers.

Before importing you need to understand how Alibaba work.

Alibaba is a site with two types of sellers.

• Factory sellers- These are the actual producers of goods.
• Trading company- These are middlemen in the business. They link the factory to buyers.

Before settling with either seller, consider the relationship you are willing to have with your seller and for how long. Also, your previous experience if at all you have one.

Dealing with a factory directly is cheaper than involving trading companies, they will charge you.

Note the minimum order quantity of goods is high on Alibaba.

Tips you need to implement while importing from Alibaba.

i. While choosing a manufacturer on Alibaba, go for the ones with a badge. Check their reviews and how many years they have been in the industry.

ii. Contact as many suppliers as possible and ensure you give all of them clear details of the products; dimension, quantity.

Back up your details with a sample image. If you are not sure of the quantity you need, use a live chat option on the supplier website.

If the supplier is online, it shows they are legit and they have enough workforce to serve you.

iii. Create samples- Before putting all your eggs in one basket, create a sample and order. The quality of goods may differ from the samples

iv. Get orders with tracking irrespective of the shipping means you will use to transport your products.

v. Ensure labelling and packaging is done once to avoid shipping separately or consulting a different supplier. Ask them to recommend to you to reliable packaging companies.

Besides, most sellers sell products under a contract.

Make sure you sign an agreement before you seal the deal so that in case of anything, there will be terms that will help you solve the issue.

Remember to apply for a trademark to be able to sell your goods as your brand.

Ensure you research before coming up with a brand name.

Do I still need to pay tax while importing from Alibaba?

The answer is yes or no.

Goods imported will be liable to duties and taxes if they are above $1000.

You may not be required to pay taxes or duties for goods less than $1000.

If your goods will arrive at their destination via international mail, there will be no charges.

Nevertheless, if they are air or sea freight, you or your agent will be expected to make an Assessment Clearance Declaration.

Handling Customs Clearance Process when Importing from China to Australia

This is the most complex process yet mandatory. No wonder most people opt to hire a freight forwarder.

Customs clearance is an important process because before your goods are passed in or out of your country, they must meet clearance requirements.

To avoid delays at the port, ensure goods have met the required standards and you have the necessary documentation.

There are four main types of customs clearance.

• Air freight-it clears cargo at airports
• Rail freight-clear cargo at the borders with international rail lines.
• Sea freight- clears cargo at the seaports
• Express freight-it clears all international companies.

The custom authorities provide custom tariff codes to importers and exported to help them organize their long list of goods.

So, how long does Custom Clearance take?

How long it may take depends on some factors like congestion, lack of cargo description, incomplete shipping information, maybe the client file is missing, or if the client lacks shipping documents.

Ideally, it may take 1-2 days or even more depending on the season.

During summer, it may take longer.

Custom clearance fees involved may include custom duty, exercise, VAT, etc.

The importer is responsible for paying the custom clearance fee.

Below are steps you can follow in a nutshell to complete the clearance process successfully.

i. Check whether your goods are prohibited or not.

ii. Ensure your goods have the right HS Code.

iii. Liaise with customs to ensure you have all the documents.

iv. Hand over all your documents with the fees to your clearing agent.

Benefits of China–Australia Free Trade Agreement when Importing from China to Australia.

After a long period of a strong partnership, China and Australia signed a Free Trade Agreement (ChAFTA) on June 17, 2015. The agreement was enforced on December 20, 2015.

It was meant to strengthen the economic relationship Australia has with China.

The law is a win-win for both nations. Australia can enjoy free trade while China opens up and grows its domestic market to potential customers.

China views the law as an opportunity for them to intermingle with the international economy as well as strengthening the political abilities.

China recognizes Australia as the most favoured nation (MFN).

Importers and exporters have benefited from the agreement in the following ways;

i. They have reduced tariffs of 30% on products like meat, seafood’s and wine

ii. Importers can buy products from abroad at an affordable price and resell them at a profit.

iii. Australia has removed tariffs on some goods like coal.

iv. Buyers are allowed to buy goods from China with no tax charges.

v. Importers enjoy a substantial reduction of tariffs on goods

vi. Australian companies are the greatest stakeholders in China’s joint venture.

How China-Australia Trade Tensions Affect Exporting from China to Australia

The disagreement between China and Australia started back in 2018 when Australia banned China Huawei from its 5G network publicly.

Australia suggested holding China responsible for the outbreak of COVID-19 that originated from Wuhan.

China is Australia’s largest trading partner, their largest export destination, and the place where they source their most imports.

Clearly, the Australian economy needs China to thrive.

The beef has built quite a friction in on the issue. These tit for tat game is making the situation uglier.

China was able to replace its suppliers faster however Australia has lost billions of dollars in the shipment of products.

China inflicted an anti-dumping duty of 73.6% and anti-subsidy duty of 6.9% on Australian barley.

On 27^th November china imposed a duty of 107-212% on the Australian win claiming that its causing damage to their wine industry.

China used to import most of its coal from Australia. However, they stopped.

They instead signed a three-year agreement with  Indonesia to import $1.5 billion worth of coal.

They did this without informing Australian authorities because their ships were seen stranded in China ports for weeks.

This push and pull between these two countries is likely to continue for long.

Maybe until their pain for losses balances maybe they can settle their differences.

Sadly, even if they reunite, their economic relationship may never be the same again.

Maybe it’s time for Australia to learn the effects of depending on one marker(china) excessively and look for other suppliers.

Using Sea Freight from China to Australia

Sea freight is the most common and the cheapest means of shipping heavy goods in bulk.

Your freight forwarder or supplier may advise you on the best ports to use based on transit time, your destination, or ease of customs clearance.

Shipping Containers to use in Sea Freight from China to Australia

Shipping containers come in different sizes and shapes.

The standard sizes are 20 and 40 ft long that open from one end.

Chooses containers according to the nature of goods you are importing.

Sea Ports in China

Main seaports in China include;

• Shangai
• Ningo-zhoushan
• Shenzhen
• Xiamen
• Shekou

Sea Ports in Australia

• Sydney
• Melbourne
• Adelaide
• Fremantle
• Brisbane

Using Air Freight from China to Australia

 Choose air freight if the goods you are importing are perishable, delicate, or in case of any urgency.

Main Airports in China

They include;

• Wuhan
• Hong Kong
• Chengudu Shuangliu
• Shanghai pudong
• Beijin Daxing

Main Airports in Australia

They include;

• Sydney
• Perth
• Gold coast
• Darwin
• Cairns

Airlines to use when Importing from China to Australia

They include

• China Airlines
• Air China
• China Southern Airlines (CZ)
• China Eastern Airlines (MU)
• Alliance Airline

Express Shipping from China to Australia

It is also referred to as international courier or express freight.

It is used for small shipments. It is the fastest and cheapest way to ship cargo under 100kg.

Moreover, every international courier has its limits, size, and regulations.

It is considered the most efficient shipping method; everything is handled by one company from picking cargo to delivering it.

How Door to Door Shipping from China to Australia Work

Door to door shipping is where the freight forwarder handles everything on behalf of the importer.

They pick goods, file the necessary paperwork, transport and deliver goods to the importer.

You receive goods at the comfort of your home.

Sounds goods, right?

Door to door shipping is quick and the safest shipping method.

It saves you time, effort, it efficient and above all saves you time hence you can focus on other things.

Door to door shipping is of three types;

• Door to door sea shipping- The freight forwarder transports goods from international oceans to the required destination
• Airfreight door to door from china- Freight forwarder helps to speed up your goods transit from china.
• Rail freight door to door shipping-Such services are offered to people importing from countries sharing borders.

Steps on how the door to door shipping works:

i. The importer sources for goods of interest, the manufacturer, communicates with him/her, seals the deal, and places an order

ii. The importer contacts a shipping agent for a door to door freight forwarder.

iii. The freight forwarder picks cargo from the manufacturer, loads on the track, and transports it to either seaport, airport, or railway line. Depends on the mean of transport you intend to use.

iv. The freight forwarder issues all the paperwork required and clears customs

v. The freights forwarder loads cargo on vessels, makes all necessary arrangements, and ensures all is in order.

vi. Once the cargo gets to your country, the agent handles custom clearance and pays tariffs. The cargo is loaded on a truck to your preferred destination according to the address you provided.

How Drop Shipping from China to Australia Works

Dropshipping is where the buyer places an order, the seller then forwards the details and cash to the manufacturer then he/she