I'm working out my costings for shipping from China to Australia.
I'm coverting US dollars to au,
then adding17.5% freight and 8% duty, and then adding my 5-7% commission to get to my final cost per garment.
Are my figures correct? Is this how I should work it out?
You may want to check it again, as to my knowledge the import costs are generally as follows:
1. All goods imported into the country with the exception of some personal items are subject to 10% GST,
2. The amount of duty will depend on tariff classification and country of origin. For textiles from China I believe it's 17,5 %
3. Import GST and duty are calculated on the declared value of goods in AUD.
You’ll find all the information you need on Australian Customs website Customs home page
Don't forget the import broker cost (if you utilize such a service) and quarantine charges that may occur if all the packing slips and documentation wasn't done properly by the frieght forwarder in China.
If you're importing from China, I assume your order is in the realm of thousands of dollars in value. However, in case you're importing a smaller quantity than is usual, did you know that consignments under $1000AUD are generally not subject to duty? It is a Customs policy that you'll find on their website.
My first order of screenprinted T-shirts from the US was under $1000AUD in value, and no duty was payable, so I can speak with practical experience on that.
thanks Ross, it looks like my order will just fall above.
I've contacted customs who have told me 17.5% customs duty rate + 10% GST (BASED ON TOTAL LANDED VALUE OF GOODS PLUS SHIPPING INSURANCE AND FREIGHT)
my original calculations were on 17.5% freight + 8% duty... so I'm either confused about what each charge is (as 17.5% is the same number in both cases, or i need to add shipping to the above figure?
I think I'm going to have to contact some shipping friends to understand this. I dont want to quote my tee price and then fall short.
thanks Ross, it looks like my order will just fall above.
I've contacted customs who have told me 17.5% customs duty rate + 10% GST (BASED ON TOTAL LANDED VALUE OF GOODS PLUS SHIPPING INSURANCE AND FREIGHT)
my original calculations were on 17.5% freight + 8% duty... so I'm either confused about what each charge is (as 17.5% is the same number in both cases, or i need to add shipping to the above figure?
I think I'm going to have to contact some shipping friends to understand this. I dont want to quote my tee price and then fall short.
hang on, are you saying your freight is 17.5% of your total order value? That seems a strange way of calculating freight and shipping chargers.
Work out the total cost of your goods, plus freight/insurance. Then you calculate the 10% GST and 17.5% Import duty on that amount. If you've never done this before and its a big order, get a customs broker.
If your order is only just above that $1000 limit, it's a VERY small order in Chinese terms - it seems a pity that you have to worry about any of this customs stuff. Why don't you ask your source if they will declare the value to be slightly under $1000 AUD on the customs form they attach to the package? Not suggesting for a moment you break any laws...only that you ask your source a question.