Customs, Regulations, and Agreements

Overview of Import Tariffs

Australia has a strong international trade relationship. Its location has also enabled Australia to
become a leading supplier in Asia-Pacific regions. The Australian government has several policies aimed
at developing and assisting Australian enterprises involved in international trade. The regulations are
also designed to protect domestic industries, consumers and the environment from foreign imported
goods that are harmful and dangerous.

Australian companies may import goods from other countries in the course of their activities.
However, companies planning to import should be aware of government regulations, duties, taxes,
permits, quarantine and the treatment of imported goods. Importations which do not meet these
requirements may be seized by the Australian Department of Immigration and Border Protection.

Consequently, commodities entering Australia can be subject to duties, Goods and Services
Taxes (GST) and/or surcharges. Tariff rates vary and are dependent on factors such as commodity type
and country of origin. For instance, due to the free trade agreement between Australia and the United
States (AUSFTA), 99% of goods originating in the United States enter Australia duty-free. Furthermore,
applicable GST payments remain the responsibility of the importer.

Goods imported into Australia must be classified according to the Customs Tariff Act 1995. In
addition, importers must determine the tariff classification of the imported goods themselves. Further
penalties may apply for inaccurate and deceptive information. Nevertheless, the Department has an
array of information and resources to assist importers in the classification of commodities. The tariff
advice service is also available to provide free advice on goods intended for importation. Finally,
individuals who import goods on a case-by-case basis may, as well, obtain assistance from the
Department.

Until December 2021, Australia uses the Combined Australian Customs Tariff Nomenclature and
Statistical Classification, or ‘Working Tariff’, as the basis for tariff classifications and rates of duty. It is
based on the 2017 Harmonized Commodity Description and Coding System, which began on January 1,
2017. The fifth review of the International Convention on the Harmonized Commodity Description and
Coding System by the World Customs Organization was reflected in the tariff adjustments contained
therein. The 17 Schedules of the Customs Tariff Act of 1995 and Schedule 1 of the Customs Tariff
Regulations of 2004 make up the Working Tariff.

Nevertheless, the regulation underwent a sixth review, and certain laws were changed.
Modifications to tariff advices, tariff public advice goods, and tariff concession orders are a few of them.
As a result, the country is currently using the 2022 Harmonized System Changes, the most recent
iteration of the Working Tariff, as a foundation for identifying tariffs and duty rates that took effect on
January 1, 2022.

Current Tariff Classification

The Working Tariff of 2022, also known as the Combined Australian Customs Tariff
Nomenclature and Statistical Categorization, is the current rule used for tariff classification. It includes
the tariff adjustments from the World Customs Organization's sixth review of the International
Convention on the Harmonized System, also known as the Harmonized System, as well as legislative and
statistical code changes that took effect after the first of January 2022 and changes to Schedule 3's
statistical codes. The Customs Tariff Act's nineteen schedules are listed in the table below. 1

Table 1. The Customs Tariff Act Schedules

Schedule 1 is a list of countries and regions whose commodities may be
subject to a preferential rate of duty.
Schedule 2 consists the Interpretative Regulations for goods
classification in Schedule 3.
Schedule 3 is a list of tariff classifications and corresponding duty rates.
There are 21 sections and 97 chapters that make up
Schedule 3. Additionally, legal notes, such as Australian
Additional Notes, which provide legal guidance about the
classification of specific commodities, are also included in
the sections and chapters of Schedule 3 and must be used
when appropriate.
Schedule 4 specifies the categories of goods that are subject to a
concessional rate of duty. Consequently, some of the
concessional commodities in Schedule 4 are additionally
subject to restrictions outlined in departmental bylaws.
Schedule 4a is a list of tariff classifications, along with the applicable duty
rates, for which Singaporean-made commodities are not
eligible for a free rate of duty.
Schedule 5 is a list of tariff classifications, together with the
corresponding duty rates, for which US-
originating commodities are not eligible for a free rate of
duty.
Schedule 6 is a list of tariff classifications, along with the applicable duty
rates, in which commodities originating from Thailand are
not eligible for a free rate of duty.
Schedule 6A is a list of tariff classifications, together with the applicable
duty rates, for which commodities with Peruvian origin are
not eligible for a free rate of duty.
Schedule 7 is a list of tariff classifications, along with the applicable duty
rates, in which commodities originating from Chile are not
eligible for a free rate of duty.
Schedule 8 is a list of tariff classifications, together with the applicable
duty rates, for which commodities originating from ASEAN-
Australia-New Zealand (AANZ) are not eligible for a free rate
of duty.
Schedule 8A is a list of tariff classifications, together with the applicable
duty rates, for which commodities originate from Pacific
Island are not eligible for a free rate of duty.
Schedule 8B is a list of the tariff classifications whereby products

1
The following data are intended to serve as a broad guide. The Customs Tariff Act of 1995 should be read in
addition to the material. The information should only be used in connection with the Customs Tariff Act before
being relied upon for any specific action or decision.
 are manufactured in countries that are members of the
Trans-Pacific Partnership are not eligible for a duty-free rate
of duty and its applicable duty rates.
Schedule 9 is a list of tariff classifications, along with the applicable duty
rates, in which commodities originating from Malaysia are
not eligible for a free rate of duty.
Schedule 9A is a list of tariff classifications, along with the applicable duty
rates, in which commodities originating from Indonesia are
not eligible for a free rate of duty.
Schedule 10 is a list of tariff classifications, together with the
corresponding duty rates, in which Korean-made
commodities are not eligible for a free rate of duty.
Schedule 11 is a list of tariff classifications, together with the
corresponding duty rates, for which commodities with
Japanese origin are not eligible for a free rate of duty.
Schedule 12 is a list of tariff classifications, together with the
corresponding duty rates, for which Chinese
manufactured products are not eligible for a free rate of
duty.
Schedule 13 is a list of tariff classifications, together with the
corresponding duty rates, for which commodities originating
from Hong Kong are not eligible for a free rate of duty.
Schedule 14 is a list of tariff classifications, together with the applicable
duty rates, under which commodities from the Regional
Comprehensive Economic Partnership (RCEP) are not eligible
for a free rate of duty.

Free Trade Agreements

The facilitation of the trade of products is made possible through Free Trade Agreements (FTA).
FTAs state that each party has the legal obligations to liberalize access to their markets for investments,
products, and services. Hence, along with the European Union, the Gulf Cooperation Council, India, and
the United Kingdom, Australia is pursuing FTAs with a number of other parties. For instance, on June 17,
2021, a general agreement was reached with the United Kingdom. Furthermore, Australia participates
actively in trade negotiations and often submits proposals to the World Trade Organization (WTO).
Consequently, in the Asia Pacific Economic Cooperation (APEC) forum, Australia is a significant
participant and actively promotes trade liberalization among the member economies. As a result,
approximately 76% of Australia's exports of goods and services goes to APEC nations. Lastly, Australia
also plays a significant role in the Cairns Group of 19 agricultural exporting countries.

As previously indicated, one of the FTAs currently active in Australia is the Australia-United
States Free Trade Agreement, or AUSFTA, which offers significant advantages to both nations through
the elimination of tariffs and the gradual opening of markets. Another notable agreement is the Closer
Economic Relations Trade Agreement, ANZCERTA or CER, which regulates economic relations between
Australia and New Zealand. It is a comprehensive agreement that restricts tariffs, quantitative
restrictions, anti-dumping measures, production subsidies, and similar policies affecting any bilateral
commerce or services between the two nations. Additionally, Australia has active free trade agreements
with ASEAN, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand (CER), Peru,
Singapore, Thailand, the United States, and the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP). Listed below are the complete FTAs that Australia is currently in.

Table 2. Free trade agreements

ACRONYM FREE TRADE AGREEMENT (FTA) TITLE OTHER PARTIES
AANZFTA Agreement establishing the ASEAN- Brunei (BN), Cambodia (KH),
Australia-New Zealand Free Trade Indonesia (ID), Laos (LA), Malaysia
Area (MY), Myanmar (MM), New Zealand
(NZ), Philippines (PH), Singapore (SG),
Thailand (TH), Vietnam (VN)
ACl-FTA Australia-Chile Free Trade Agreement Chile (CL)
ChAFTA China-Australia Free Trade Agreement China (CN)
CPTPP Comprehensive and Progressive Canada (CA), Japan (JP), Mexico (MX),
Agreement for Trans-Pacific New Zealand (NZ), Peru (PE),
Partnership Singapore (SG) and Vietnam (VN)

*Brunei (BR), Chile (CL) and Malaysia

(MY)
A-HKFTA Australia-Hong Kong Free Trade Hong Kong, China (HK)
Agreement
IA-CEPA Indonesia-Australia Comprehensive Indonesia (ID)
Economic Partnership Agreement
JAEPA Japan-Australia Economic Partnership Japan (JP)
Agreement
KAFTA Korea-Australia Free Trade Agreement Korea (KR)
MAFTA Malaysia-Australia Free Trade Malaysia (MY)
Agreement
ANZCERTA Australia-New Zealand Closer New Zealand (NZ)
Economic Relations Trade Agreement
PACER Plus Pacific Agreement on Closer Economic Cook Islands (CK), Kiribati (KI), New
Relations Plus Zealand (NZ), Niue (NU), Samoa (WS),
Solomon Islands (SB) and Tonga (TO)

*Nauru (NR), Tuvalu (TV) and

Vanuatu (VU)
PAFTA Peru-Australia Free Trade Agreement Peru (PE)
RCEP Regional Comprehensive Economic Brunei (BR), Cambodia (KH), China
Partnership Agreement (CN), Japan (JP), Korea (KR), Laos (LA),
Malaysia (MY), New Zealand
(NZ), Singapore (SG), Thailand (TH),
Vietnam (VN)
* Indonesia (ID), Myanmar (MM),
Philippines (PH)
SAFTA Amendment Singapore-Australia Free Trade Singapore (SG)
Agreement Agreement
 TAFTA Thailand-Australia Free Trade Thailand (TH)
Agreement
AUSFTA Australia-United States Free Trade United States of America (US)
Agreement

Other preferential arrangements

Australia has additional preferential agreements that grant goods produced or manufactured in the
countries and areas covered by such agreements preferential rates of customs duty, either reciprocally
or non-reciprocally. In order to determine whether products qualify for preferred rates of customs duty
under an FTA or other preferential arrangement, the Australian Broder Force will provide written advice
upon request. Shown in the table below are the active arrangements in the country.

Table 3. Preferential Arrangements

ACRONYM PREFERENTIAL ARRANGEMENT TITLE OTHER PARTIES
CANATA Canada-Australia Trade Agreement Canada (CA)
MATA Malaysia-Australia Trade Agreement Malaysia (MY)
PATCRA II Papua New Guinea-Australia Trade and Commercial Papua New Guinea (PG)
Relations Agreement
EXT Preferential Arrangements Under Various Cocos (Keeling) Islands (CC),
Commonwealth Enactments for External Territories - Christmas Island (CX), Norfolk
Norfolk, Christmas and Cocos (Keeling) Islands Island (NF)
SPARTECA South Pacific Regional Trade and Economic See  Customs Tariff
Cooperation Agreement - Forum Island Countries Regulations 2004 of January
3, 2007
LDC Australian System of Tariff Preferences for Developing See Customs Tariff
Countries - Least Developed Country (LDC) Rate Regulations 2004 of February
6, 2007
DC Australian System of Tariff Preferences for Developing See Customs Tariff
Countries – Developing Countries (DC) Rate Regulations 2004 of January
5, 2010
DCS Australian System of Tariff Preferences for Developing See Customs Tariff
Countries – Developing Countries Status (DCS) Rate Regulations 2004 of January
4, 2012
DCT Australian System of Tariff Preferences for Developing See Customs Tariff
Countries - Developing Country Category T (DCT) Rate Regulations 2004 of January
9, 2017