What is the best way to ship goods to Australia ?
Due to the low labor cost and production cost compared to Australia, China appears relatively attractive for companies.
According to the Australian Trade and Investment Commission, in 2017, Australia exports A$ 110,4 billion to China which represents the first rank export market. The industry of supply chain and freight is essential for the country which represents almost 9% of Australia’s GDP.
If necessary, the Import License can be issued by the specific authority in charge of the type of goods that are aimed to be imported. Actually, 15 government agencies are able to grant an import License. We are detailing the six principal agencies that you may have to deal with to obtain this document below.
The IL is providing commercial and financial details on the import process and the goods to be imported, also it informs about:
- The importer
- The exporter
- The country of origin
- The place of arrival and goods’ clearance
- The supplier or manufacturer
- The type of taxation and tax classification
- Net and gross weight and quantity
- Precise description of the products
- The total price
- The Incoterms
- The payment method
The Import License Excerpt is resuming the important data written on the Import License or in the Simplified Import License.
The Certificate of Origin (CO)
The Certificate of Origin should come on top of the list when it comes of international trades documents. It is an official document, delivered by a government or a notary public, witnessing that the goods traded were obtained or manufactured in a country and precise area.
The Bill of Lading (BL) or Airway Bill
When you’re trading goods internationally, the Bill of Lading is an essential, like the Certificate of Origin. The CO testifies of the identity of your goods, while the BL is witnessing of the identity and information of your cargo, the payment from the importer to the carrier, and the issuance of the LC (Letter of Credit). The Airway Bill is the exact same document as the BL but is issued in case of an air cargo.
Here are all the details about the cargo contained in a Bill of Lading:
1 = Shipper
2 = Consignee
3 = Notify party
4 = Vessel No.
5 = Port of loading / discharge
6 = Place of receipt / delivery
7 = Containers No.
8 = Goods description
9 = Net weight
10 = Dimensions / volume
The Commercial Invoice
Customs will verify if the goods contained in your shipment are following your declaration with this document.
The commercial invoice must give all the information below, to be well-received by customs:
- Identity of exporter and importer
- Invoice number
- Precise description of the products
- Total and unit price in USD
- HS code
- Net and gross weight and quantity
- Total FOB value
- Total freight price
In case of various products, the packing list is necessary to provide to customs. It should detail the HS code of the goods you’re transferring.
The Proof of Import
It is granted by customs officials on the last step of the customs clearing process, after that all the import documents have been evaluated. It is officialising the nationalization of your items in Australia.
Other Documents Required for Customs Clearance
- The prescription of the Practitioner, in case of medicines imported by individuals
- All other claimed documents, to meet precise legal requirements for the acceptance of your shipment
- The MSDS document, if the goods are hazardous
Like the majority of the countries, Australia is using the Harmonized System (HS) of Tariff Nomenclature, to attribute an identification number to all goods. It’s a framework of numbers and letters, that is attributing a unique combination to each product. The combination is called a HS code.
The diagram below is explaining the meaning of a HS code :
After finding out the HS code of your goods, you can determine the duties and taxes applicable to your shipment with this calculation scheme.
In Australia, there are 5 taxes that you will be dutiable when you’re importing goods from overseas. The taxes you will pay are based on the CIF value of your items :
- The Import duties (II): CIF Value
- The Tax on Industrialised Products (IPI): ((1+II) x CIF)
- 2 Social Contributions, the PIS and the COFINS: (1 + ICMS x (II + IPI x (1 + II)))) / ((1 – PIS – COFINS) x (1 – ICMS)) x CIF)
- The Value Added Sales Tax (ICMS): CIF + Cost IPI + Cost COFINS + Cost PIS + Other Costs
Customs contact in China
Customs contact in Australia
Therefore, the total value is the sum of:
- The customs value of the goods
- Customs duty payable
- The amount paid or payable to transport the goods to their place of consignment in Australia
- The insurance cost for that transport
- Any other tax payable
Usually, the importer pay GST before the goods are released by Home Affairs. In the case that you are not registered under the deferred GST scheme then the GST has to be paid at the same time at the same place, and in the same manner as you would do for customs duty.
Remark SINO : If you have one of the following item, you should check directly with our SINO Experts. Some of those items are restricted or even totally prohibited, it is important to anticipate such shipment to avoid any problem.
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Ocean freight will be the best deal for you if :
- Your suppliers are located near a major Chinese port
- Your goods are bigger than 2 CBM
- You’re not in a hurry to receive them
To find the perfect solution to transfer your goods via ocean, please contact one of our SINO Sea Experts. Fill our online form in 1 min and get an answer within 48H !
Australia, the largest country in Oceania, is a key country in the region Asia Pacific which is a member of the Asia-Pacific Economic Cooperation (APEC) and the Association Southeast Asians Nations (ASEAN).
The land is the 13th largest economy and the value of Australia’s export by sea represented around $228 billion in 2015.
In the following paragraphs, we are going to introduce the main ports in Australia.
Thanks to its geographical position and its foreign relation, in 2015, 1550 million tons of cargo went across its docks.
The largest cargo port of Brisbane in Queensland which is ideally located in Asia Pacific Region. The first three destinations for Australia are located in Est-Asia and the value is constantly increasing.
Freemantle Harbor is situated I the Perth Metropolitan Region, is the largest and the busiest port in this area. This geographical position is a huge asset and reinforced the fact that the location is a key hub of the country.
*For your information, we can handle shipment to the other ports like Melbourne, Sydney, Townsville, Port Hedland, Dampier, Gladstone… we adapt our offer in a way to meet demand of our customers.
If you are in a hurry to ship your products from China to Australia, shipping is not relevant.
Ocean freight is optimal for individuals’ customers or smalls enterprises which don’t make the time of transportation a priority. On the other hand, this means of freight is economically interesting. Indeed, the cost and high volume are the principal advantages.
In short, sea freight is recommended for regular traffic.
*As noticed above, SINO shipping proposes every kind of service for your needs.
The cost of operation will be inconstant, related to your needs. For instance, door-to port shipment and port-to-port don’t have the same fare.
*SINO Shipping is highly concerned with proposing the best solution for your budget
Here are the usual transit times, for a China-Australia cargo:
|From||To||Estimated Transit Time|
|Hong Kong||Brisbane||17-19 days|
|Hong Kong||Freemantle||16-17 days|
|Hong Kong||Melbourne||20-22 days|
*Please be aware that those transit times are just indicative timing between China and Australia
Air freight will be the most efficient solution if :
- Your goods are smaller than 2 CBM and 200 kg
- You’re in a hurry to receive/send the goods
Besides the sea freight, Australia is connected to other countries though its airports. Although the volume is less important, this manner of transport is usually use for high value products and perishable foodstuff. Altogether, there are 21 airports on the Commonwealth land.
Kingsford Smith Airport or Sydney Airport, located in the South, is the busiest airport in Australia. Most of our operations from China to Australia go through Sidney.
Melbourne Airport is an important hub for Australian companies like JetStar Airways, Tiger Airways Australia and Qantas.
Brisbane is also known for the volume of freight. The Airport is a hub for cargo as well in Australia and could be a good option for exporting goods.
*As well as for sea freight, we guarantee a whole coverage for Australia to all principal airports of the country.
On door-to-door, 1 day is needed for your shipment to transit to Australia, when departing from China by cargo plane. To receive your items at your address, around 7/8 days are required, when transfering them via a regular air freight. With a courier air freight (express), 3/5 days on average are necessary to provide the same transport performance.
Indeed, air freight transit rely on various criteria:
According to your needs, fast trip means costlier. On the other hand, if you don’t give priority to the transit time, you can flavor your conveyance with one or several stopovers. To sum up, the price will be highly related to the transit time and if you are in a hurry or not.
Other factors are made up of flight duration
Concerning air freight, we remind you that the flight duration is not the only element to think about.
In reality, you have to take notice of the only steps of the logistic chain :
- Customs clearance
*The price of your air freight will be calculated based on the chargeable weight of your items.
There are 2 different methods to calculate the chargeable base of your shipment, the first is the gross weight, and the second is the volumetric weight. The biggest weight value will be the one kept, to quote your freight.
* Your products will be differently charged for express services. The volumetric weight ratio will be 200 kgs = 1 CBM
*If your address is not close to a Australian port or airport, you can request our trucking services for door-to-door deliveries.
Road freight could be a good solution when you have to carry commodities inside the country. Usually, for international freight, it’s conjoined with sea or air mode. Most of the time, it represents the last part of the process.
The risk side of a freight is always a hot topic. A vessel or plane wreckage, terrible weather or malice leading to a theft are possibilities that shouldn’t be ignored. SINO Shipping partnered only with the most trustful insurers in the business, to provide extra coverage of your goods. When you subscribe, if damages are affecting your goods, you will be fully refunded.
Play it safe, if a supply shortage can be lethal to your company. A further security on your cargo should be always welcomed!
Freight and warehousing are strongly related. Indeed, warehousing or storage is essential in way to stock your commodities when flights are rescheduled for example. This part of the supply chain is crucial. For several years, In Australia, the demand of warehousing is increasing. Regarding to IBIS World’s general warehousing industry report, the sector represents more than $5 billion.
LCL: 300 USD /cbm FCL: 550 USD/20’: 750 USD/40’ Express shipping door to door (10kg): 460 USD Average transit time by sea: 20 days Average transit time by airfreight: 7 days (daily direct flight) Express shipping door to door (10kg): 4 days There are only 2 options, by sea or by air, it depends on how big the volume and the weight are, and then you will decide which shipping methods is more adequate. You must calculate the ration time/cost. Duty levels vary from 0 to 10 per cent. Nevertheless, most goods are taxed at about 5% from China to Australia. Follow this link for a complete list of duty rates defined in the HS Code. You must pay AU$500 if you assume a rate of 5 per cent and a customs value of $10,000 No, they don't immediately open your package without any reason. ... They will only instantly check what's inside of your package if: Your package has been damaged when it reached the Customs office or desk. The damages can include broken seals or plastic or any cover of your package. When you make a shipping request, you’ll have to declare the value of your shipment. The value you enter on your request form is the value that will be declared at customs, so it is important that you declare accurately. If you declare too high a value, you may be assessed more taxes than you want to pay! If you declare too low a value, your declared value may be considered unreasonable and adjusted upward. -Negotiate with multiple carriers -Get suppliers to use your shipping account number -Use packaging provided by your carrier -Consider a regional carrier -Use online shipping -Invest in prepaid shipping -Buy insurance from a third party -Factor in all shipping fees before billing customers -Consider hybrid services -Ask about association discounts
What is the shipping cost from China to the Australia?
How long does it take to ship from China to the Australia?
What are the best freight options to send good from China to the Australia?
How much tax will I pay for importing goods from China to the Australia?
Do customs open every package?
How do I avoid custom charges?
How can I reduce my shipping costs?
LCL: 300 USD /cbm FCL: 550 USD/20’: 750 USD/40’ Express shipping door to door (10kg): 460 USD
Average transit time by sea: 20 days Average transit time by airfreight: 7 days (daily direct flight) Express shipping door to door (10kg): 4 days
There are only 2 options, by sea or by air, it depends on how big the volume and the weight are, and then you will decide which shipping methods is more adequate. You must calculate the ration time/cost.
Duty levels vary from 0 to 10 per cent. Nevertheless, most goods are taxed at about 5% from China to Australia. Follow this link for a complete list of duty rates defined in the HS Code. You must pay AU$500 if you assume a rate of 5 per cent and a customs value of $10,000
No, they don't immediately open your package without any reason. ... They will only instantly check what's inside of your package if: Your package has been damaged when it reached the Customs office or desk. The damages can include broken seals or plastic or any cover of your package.
When you make a shipping request, you’ll have to declare the value of your shipment. The value you enter on your request form is the value that will be declared at customs, so it is important that you declare accurately. If you declare too high a value, you may be assessed more taxes than you want to pay! If you declare too low a value, your declared value may be considered unreasonable and adjusted upward.
-Negotiate with multiple carriers -Get suppliers to use your shipping account number -Use packaging provided by your carrier -Consider a regional carrier -Use online shipping -Invest in prepaid shipping -Buy insurance from a third party -Factor in all shipping fees before billing customers -Consider hybrid services -Ask about association discounts
Our SINO experts answer within 48h !