How much taxes are charged to import from China?*

Once goods start to cross borders, there’s always a question of how much taxes and duties are you going to pay to get your goods into the country.  Just for those who may not understand what these charges or levies are all about, countries would normally have strong lobbies among local industries to protect them from competition abroad.  Importation is one of the best means of protecting local manufacturers and is also one of the biggest sources of government revenues.  Australians and the Chinese have made excellent trading partners largely because there are so few local industries in Australia that can be adversely affected by imports from China.  China needs Australian exports of mineral resources and Australia needs China’s merchandise and other exports.  We can say that the Chinese and Australian economies are just about as complementary as any two could possibly be.

It is therefore easy to understand why duties against imports from China are not very high.  In fact, the minimum threshold before a shipment from China will be subject to taxes, is rather high at AU$1,000.00 per shipment.  Any imports lower than AU$1,000.00 are not subject to customs duties.  Although this may not be enough to count as a full shipment of goods that can satisfy most factories’ MOQs or Minimum Order Quantities, you can nonetheless save some from the samples that you ship in from China.

Tariffs for some of China’s traditional exports would range from 0 to 10 percent.  However, besides duties, most imports from China are subject to GST, or Goods and Services Tax, which currently stands at 10 percent.  It is based on the customs value of the goods, shipping, insurance and duties assessed.

Finally, there is the Import Processing Charge.  The charge ranges from AU$40.00 to AU$194.00 per shipment.  The charge depends on the shipping mode (whether by sea or air) and the value of the shipment.  All importations over AU$1,000.00 are subject to this charge.

I hope you enjoyed reading this as much as I have enjoyed preparing it for you.  At ChinaDirect Sourcing Services, we do not leave any stone unturned.  We make sure that you don’t get surprised by the taxes and duties that are involved in importing goods from China.


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