Freight Forwarding
What is a Customs Broker?
What does a Customs Broker do?
Why do Importers/Exporters use Customs Brokers?
Import Documentation (Seafreight)
TRADEX: Re-exporting Imported Goods
Importing a Motor Vehicle

Freight Forwarding

Freight Forwarding as the terms suggests concerns the movement by seafreight or airfreight of overseas or Australian manufactured goods to or from Australia.

An owner/importer who negotiates an Ex Factory or FOB contract with an overseas vendor to purchase goods is entitled to arrange his/her own Freight Forwarding to Australia by appointing a professional Freight Forwarder who, with the assistance and co-operation of their own office or partner located overseas, can attend to the freight forwarding formalities on your behalf and in accordance with your specific instructions.

 A Freight Forwarder will:

• Negotiate favourable freight rates with ship’s owner/agents and airlines.
• Arrange to collect the goods from the vendor immediately they have been packed for export and arrange door to door transportation.
• Prepare Government required export declarations.
• Make cargo space bookings.
• Advise on types of packaging materials.
• Prepare and process Bills of Lading and Air Waybills.
• Arrange Insurance if required.
• Advise on all aspects of transporting dangerous goods.
• Keep you, the owner, fully informed of the status of your consignment, i.e. ETD/ETA/etc.
• Arrange for the goods to be cleared through Customs/AQIS upon arrival.
• Arrange delivery to your office/factory.

FOR MORE DETAILED ADVICE AND EXPERT ASSISTANCE CONSULT YOUR PROFESSIONAL FREIGHT FORWARDER.

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What is a Customs Broker?

A Customs Broker is a professional consultant trained in all facets of import and export and must be licensed to practice by the Australian Customs Service. Before obtaining a licence to practice, a Customs Broker must first complete and pass the Customs Brokers Council of Australia course then subsequently in order to maintain his/her status as a Certified Practising Customs Broker (CPCB) must attend recognised in-house or external training courses and/or seminars to gain sufficient points to maintain their CPCB accreditation.

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 What does a Customs Broker do?

Customs Brokers are primarily concerned with achieving the clearance of imported goods and the preparation of export documentation on behalf of importers and exporters. Customs Brokers are responsible for determining the correct tariff classification of goods and the accurate assessment of duty and sales tax, in addition to ensuring that all Customs import regulations and Australian Quarantine & Inspection Service (AQIS) regulations are complied with.

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Why do Importers/Exporters use Customs Brokers?

Most businesses/companies use the services of a Customs Broker. By virtue of their training, Customs Brokers ensure that costs are minimised and importers and exporters are assisted in complying with ever present complex regulations and procedures.

The business of importing and exporting is now so specialised that one can be exposed to unnecessary profit leaks if professional services are not used.

 Your Customs Broker can:

• Before importation, confirm tariff classifications and duty/sales tax rates.

• Before importation, advise you of how duty can be further reduced if substitutable goods are not produced in Australia in the ordinary course of business.

• Before importation, advise you of any relevant Australian Quarantine & Inspection Service (AQIS) procedures or permits.

• Before importation, advise you of the benefits of the early arrival of import documentation to achieve release of the goods prior to the arrival of the vessel or aircraft.

• Before importation, advise you on the best freighting methods, i.e. Seafreight, Airfreight, Air Parcel Post, etc.

• Before importation, advise you on local transportation services and options once your goods arrive at the designated Australian seaport/airport.

Once the goods arrive either by seafreight, airfreight or parcel post, your Customs Broker will take care of all Customs and Quarantine formalities, prepare and lodge the Customs entry for home consumption, and arrange delivery of the goods to your premises.

ASK YOUR CERTIFIED PRACTISING CUSTOMS BROKER FOR ADVICE ON YOUR PARTICULAR CONCERNS. ONLY LICENSED CUSTOMS BROKERS ARE LEGALLY AUTHORISED TO ACT ON YOUR BEHALF ON CUSTOMS MATTERS.

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Import Documentation - Seafreight

The majority of importations to Australia involve a vendor and purchaser who are unrelated and in these circumstances payment for the goods ordered is frequently arranged by Letter of Credit which stipulates payment arrangements (i.e. Sight / 30 Days / etc.) and the import documentation you will require to effect Customs and AQIS clearance of your goods when they arrive in Australia.

So that your goods can be delivered to you promptly and without incurring port storage charges or bond charges, it is important that your import documents are delivered to your Customs Broker before the vessel/ship arrives at the designated discharge port.

To commence the import clearance your broker will usually need the following important documents:

• Signed, negotiable, Bill of Lading.*
• Supplier’s Commercial Invoice.
• Wood Treatment Certificates.
• Container Packing Declarations/Cleanliness Certificates.*
  (Required for full container loads [FCL] only.)

  Note: The original of documents marked * will be required by your broker.

Above notes relate to seafreight importations. However, for those consignments sent by airfreight there is also an advantage for copies of airwaybills and suppliers commercial invoices to be accessible prior to the aircrafts arrival. Suppliers/shippers should be requested to fax copies of airwaybills/invoices to you as early as possible so Customs/AQIS clearance can be commenced prior to arrival of aircraft.

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TRADEX: Re-exporting Imported Goods

The TRADEX SCHEME replaces the TEXCO SCHEME and provides Duty and GST relief to exporting companies on imported goods that are intended for re-export or are to be used as inputs for exports. The scheme removes the need to apply for drawback of Duty/GST after export.

Under the previous Texco scheme the imported goods needed to undergo “industrial processing” as a condition of eligibility. The Tradex scheme removes that condition.

The Tradex scheme will be administered by AusIndustry , a division of the Department of Industry Science and Resources. Importers wishing to utilise the Tradex scheme may apply to AusIndustry for a Tradex order, nominating the goods they wish to import. An approved Tradex order will allow concessional (Duty & GST free) admission of the nominated goods.

Adequate record keeping by participants is an essential requirement of holding a Tradex order. Records must be kept for a period of 5 years and they must contain full particulars of the nominated goods, eg

Potential participants may apply for Tradex registration by contacting AusIndustry on their hotline 13 28 46. An information kit containing an application form will then be forwarded to you.

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Importing a Motor Vehicle

New motor vehicles imported into Australia in the ordinary course of business have to comply with the Motor Vehicle Standards Act 1989, as do vehicles built in Australia.

The information below is a brief guide to personally importing a "Motor Car" or similar vehicle. For more specific information please contact us at Stokes by email, fax, phone or letter.

Will Your Car Be Allowed Into Australia?

When importing a used car there a number of important points to note.

1. The vehicle will not be allowed through Customs without approval of the Commonwealth Department of Transport and Regional Services (DoTRS).

2. Vehicles that are at least 15 years old do not have to meet the requirements of the Motor Vehicle Standards Act, but still need DoTRS approval.

3. To import a vehicle under 15 years old

4. Specialiast & Enthusiast Vehicle Scheme (SEVS). There are a variety of categories under which particular vehicles can be imported. Please contact us for individual advice.

For full details of entry requirements we recommend that you visit the DoTRS Web Page on Vehicle Importing and Certification before purchasing a vehicle.

Quarantine Requirements

Used vehicles are subject to Quarantine inspection to ensure that they are free of material of animal or plant origin. Soil/dirt can contain all sorts of prohibited matter.

It is often cheaper and more convenient to have the car thoroughly cleaned before shipment than after arrival in Australia. Vacuuming of the inside, including the boot, washing the outside and steam cleaning underneath is recommended.

Customs Duty, GST and Luxury Car Tax (LCT)

Customs Duty is payable on the Customs Value (value at the place of export, as defined in the Customs Act) of the vehicle at a rate of 15% for cars and 5% for 4WDs (as defined in the relevant Act).

GST at the rate of 10% is paid on the Value of Taxable Importation (as defined in the Act). This value is the customs value + freight and insurance + customs duty.

Luxury Car Tax, which is payable in addition to Customs Duty and GST. Where the Value of Taxable Importation exceeds the "Luxury" threshold, Luxury Car Tax at the rate of 25% is paid on the amount by which the value exceeds the threshold. The threshold value of Value of Taxable Importation is $50.122 as at 13th July 2000.

We recommend that you visit the Australian Customs Service Web Page on Importing a Motor Vehicle, as it is the official source of information. The "Guide to the Importation of Privately Owned Motor Vehicles or Motor Cycles", which is downloadable from that Web Page, is particularly useful, as they give an example of the valuation calculations. Their Luxury Car Tax threshold figure is $55,134 (at 13th July 2000) as they show the calculations differently. (GST is added in and then taken out again.)

Please contact us to discuss your particular case.

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