Table of Contents
- Step 1: Confirm Your Product Can Enter the Country
- Step 2: Meet the Requirements to Import Goods Before You Pay a Supplier
- Step 3: Get Import Documentation and Customs Clearance Right
- Step 4: Choose Freight, Incoterms and Cargo Insurance and Freight Liability Cover
- Step 5: Work Out Your Import Costs, Customs Duty and GST
- Step 6: Know What Happens When Importing Goods Are Held at the Border
- Common Beginner Mistakes When Importing Goods
- Conclusion
- Frequently Asked Questions
Last Updated: October 4, 2026
Step 1: Confirm Your Product Can Enter the Country
Before you pay anyone, find out whether your product is allowed in.
Start by checking the Australian Border Force prohibited and restricted goods lists. Some goods are banned outright. Others need a permit before they can enter.
Common categories that need extra checks:
- Food and plant products (biosecurity rules apply)
- Animal products and leather goods
- Medicines and supplements
- Toys, cosmetics and electrical items
- Weapons, chemicals and hazardous cargo
If your product sits in a restricted category, you need an import permit or licence before the goods leave the supplier.
Buying stock before you check import requirements is the single most expensive beginner mistake. If the goods are restricted, you may lose the stock, the freight cost and the duty paid, with no refund.
Do this check first. It takes an hour and can save you thousands.
Step 2: Meet the Requirements to Import Goods Before You Pay a Supplier
Once you know the product is allowed, confirm you meet the requirements to import goods as a business.
First, an ABN if you are importing for business. Second, a client ID with the border agency so your declarations can be lodged.
Supplier due diligence matters more than most guides admit. Before you send a deposit:
- Ask for business registration details and a tax ID
- Request references from other buyers
- Start with a small trial order, not a full container
- Use payment terms that protect you (a deposit plus balance on shipping documents)
- Avoid paying the full amount by direct transfer upfront
A common mistake is treating a cheap quote as a good supplier. Price matters, but reliability matters more.
Step 3: Get Import Documentation and Customs Clearance Right
Import documentation and customs clearance are where paperwork decides whether your shipment moves or sits. Get the documents right and clearance is routine. Get them wrong and you pay storage while you fix them.
The core documents you will deal with are:
- Commercial invoice (what you bought and what you paid)
- Packing list (what is in each carton)
- Bill of lading for sea freight, or air waybill for air freight
- Import declaration lodged with the border agency
- Permits or treatment certificates if your goods need them
For lower-value consignments, an informal clearance document may apply. Above the A$1,000 threshold, a full import declaration is normally required.
Working With a Customs Broker
A customs broker lodges your declaration and manages clearance on your behalf. For a first-time importer, this is money well spent. Brokers know the tariff codes, the duty rates and the biosecurity rules that apply to your goods.
You can lodge declarations yourself, but the errors are costly and slow to fix. Most beginners use a broker for their first few shipments, then decide from there.
Step 4: Choose Freight, Incoterms and Cargo Insurance and Freight Liability Cover
Freight and risk go together, so decide them as a pair. Sea freight suits bulky, heavy or non-urgent cargo. Air freight costs more but moves fast and suits small, high-value or time-sensitive goods.
Cargo insurance and freight liability are not the same thing. Freight liability is what the carrier is responsible for, and it is usually capped low.
Incoterms: Where Your Responsibility Starts and Ends
Incoterms define who pays for and handles each stage of the shipment. They decide where the supplier’s job ends and yours begins.
| Incoterm | Supplier Handles | You Handle | Best For |
|---|---|---|---|
| EXW | Packing only | Everything from pickup | Buyers with local agents |
| FOB | Goods to the port | Freight, insurance, duty | Most first-time importers |
| CIF | Freight and insurance to port | Duty, clearance, delivery | Buyers wanting less admin |
| DDP | Everything to your door | Nothing until delivery | Beginners wanting simplicity |
For a first shipment, FOB is the most common and easiest to control. DDP is simplest but you lose visibility of the costs inside it.
Step 5: Work Out Your Import Costs, Customs Duty and GST
Your import costs are more than the supplier’s price. Customs duty and GST are calculated on the customs value of the goods, which is normally the price you paid plus freight and insurance to the border. But the number that actually decides whether your product is viable is the landed cost per unit, and most beginners never calculate it before they order.
The Cost Lines That Make Up a Landed Cost
Work through these in order. Each one stacks on the previous.
- Product cost, what you pay the supplier, converted to Australian dollars at the rate you actually get
- Freight, sea or air, quoted per cubic metre, per kilogram, or per container
- Insurance, usually a small percentage of the goods value, but it forms part of the customs value
- Customs duty, a percentage of the customs value, set by tariff classification and country of origin
- GST, 10% applied to the customs value plus duty plus international freight and insurance
- Brokerage and clearance fees, a customs broker’s lodgement fee, plus any entry charges
Some of these are fixed per shipment. Some scale with volume. The fixed ones are what kill small first orders, because they get spread across very few units.
A Worked Landed-Cost Example
Say you are importing 500 units with a supplier price of A$10 each, so A$5,000 in goods. Freight and insurance add A$800. Duty is 5%.
- Customs value: A$5,800
- Duty at 5%: A$290
- GST on (customs value + duty): A$609
- Brokerage and clearance: A$150
- Port and terminal charges: A$250
- Local delivery: A$120
That per-unit figure is the one to compare against your expected selling price. If you planned to sell at A$15, you have almost no margin. If you planned A$30, you have room.
Why the Fixed Costs Matter More Than You Think
Run the same numbers on 100 units instead of 500. The product, freight, duty and GST scale down, but brokerage, port charges and delivery do not. The per-unit landed cost jumps sharply. This is why a small trial order often looks uneconomic on paper, and why it is still worth doing before you commit to a full container.
Ask your supplier to quote FOB and DDP side by side. The gap between them tells you what the freight, duty and clearance actually cost, and whether the DDP price is fair. If the DDP gap is far above your own landed-cost estimate, you are paying a hidden margin.
GST Timing and Cash Flow
GST on imports is generally payable before the goods are released, unless you are registered for GST and defer it through the GST deferral scheme. For a first shipment, assume you pay it upfront and claim it back on your next business activity statement if you are registered. Budget for it as cash out the door, not as a cost you recover later.
Duty Rates and Trade Agreements
Duty rates vary by product and by country of export. Some goods enter duty-free under trade agreements. To find your rate, check the tariff classification for your product. Classification is where beginners get caught: the same item can sit under two different codes with different duty rates, and the border agency will apply the code it believes is correct, not the one you chose.
Step 6: Know What Happens When Importing Goods Are Held at the Border
When importing goods are held, it is usually for one of four reasons: missing documents, biosecurity concerns, unpaid duty, or a permit issue. The fix depends on the cause, and the clock starts immediately, because storage charges accrue daily.
The Four Hold Types and What to Do
Missing or incorrect documents. Your broker lodges the missing paperwork or corrects the declaration.
Biosecurity hold. Goods may need inspection, treatment or cleaning. This is the most common hold for food, timber, plant products, and anything with organic residue.
Unpaid duty or GST. You pay before release. There is no negotiation here.
Permit issue. You apply for the permit, and the goods wait.
What a Hold Actually Costs You
Storage charges at a container terminal typically start within a few days of discharge and accrue per container per day. A biosecurity inspection adds a fee on top. If treatment is required, you pay the treatment provider. If the goods are destroyed, you pay for disposal. None of this is covered by freight liability, and most cargo insurance policies exclude delays and government action.
A Beginner’s Response Sequence
When you learn a shipment is held, work through this in order:
- Get the exact reason in writing from your broker or the border agency
- Identify which of the four hold types it is
- Ask what document, payment, or action releases the goods
- Get a cost estimate for storage, treatment, and any fees before you authorise anything
- Decide whether the goods are worth releasing or whether abandoning them is cheaper
- If you release, pay and clear as fast as possible to stop storage accruing
Prevention Beats Cure
The best defence is prevention: correct documents, correct permits, and a broker who flags problems before the shipment arrives. A broker who reviews your paperwork before lodgement catches most of these issues while the goods are still on the water. A broker who only lodges what you send them catches them when the goods are already sitting at the port.
If a shipment is held for a permit issue and the permit is refused, you may lose the stock, the freight cost, and the duty paid, with no refund. This is the single most expensive beginner mistake, and it is entirely avoidable by checking permit requirements before you order.
We flag document and permit issues before lodgement, not after the goods are detained.
Common Beginner Mistakes When Importing Goods
The mistakes repeat across almost every first shipment.
- Skipping the product eligibility check before paying
- Choosing a supplier on price alone
- Using the wrong Incoterm and getting surprised by costs
- Forgetting cargo insurance on high-value goods
- Under-declaring value to reduce duty (this is fraud and gets caught)
- Not budgeting for storage if the shipment is held
Each of these is avoidable with a checklist and a good forwarder.
Conclusion
Importing for the first time is manageable when you treat it as a sequence, not a scramble.
Seatram handles sea, air and land freight, customs brokerage and biosecurity clearance as one service, with door-to-door or wharf-to-wharf options and real-time tracking.
Request a quote from Seatram and get your first shipment moving with a team that manages the whole chain.
Frequently Asked Questions
How much does it cost to import something into Australia?
There is no single figure. Your total depends on the goods value, freight charges, customs duty rate, GST and any biosecurity treatment or inspection fees. Goods valued at or below A$1,000 are generally exempt from duty, GST and customs charges, though some goods still need permits. Above that threshold, you pay duty on the customs value plus GST on the duty-inclusive amount. Ask your freight forwarder for a full landed-cost breakdown before you commit to a supplier.
What documents do I need to import goods?
A typical shipment needs a commercial invoice, packing list, bill of lading or air waybill, and an import declaration or informal clearance document. Depending on the product, you may also need an import permit, treatment certificates or manufacturer declarations. Missing or inconsistent paperwork is the most common cause of delays. A customs broker can check your import documentation and customs clearance requirements before the consignment leaves the country of export.
Do I need an import licence to bring goods in?
Most consumer goods do not need one. Import permits or licences apply to restricted goods such as certain foods, medicines, weapons, chemicals and some plant or animal products. Check the prohibited and restricted goods lists before you order, because a supplier will not know the local rules. If your product is restricted, apply for the permit early, as processing can take weeks and your shipment cannot clear without it.
How can I protect my cargo when importing goods?
Arrange marine cargo insurance before the goods leave the supplier, and confirm in writing which party carries risk at each stage under your Incoterms. Freight liability cover held by a carrier is usually limited by weight, so it rarely covers the full value of a consignment. Keep photos, packing records and a clean commercial invoice, and report any damage to your forwarder immediately on delivery so a claim can be lodged in time.