To have an enjoyable (or at least a stress-free experience) bringing in any goods and services into the country, knowing things like,
- What is import duty,
- What is Duty Free Import, and
- What duty is payable on imported goods is absolutely necessary.
You may also be wondering, how do I calculate import duty? Why is it even relevant?
The reason you need to know all you can about import duty calculator Australia is because without knowing the details above, it is relatively easy to break anyone of the many import rules and regulations in the country.
Even if you don’t break any rules somehow, you may find yourself having a difficult time clearing your products through Customs.
That is why tools like the import duty and GST calculator are important. It helps you prepare in advance to estimate approximate import taxes.
How Reliable are Import Duty and Goods and Services Tax Calculators?
To answer this, you must first know how these calculators work.
Before you can even use an import duty and GST tax calculator, you need to make certain that you have converted the value of your goods into Australian currency.
How do I Calculate Import Duty?
Most calculators will require you input parameters like,
- The value of your goods in Australian dollars,
- Freight cost,
- Insurance expenses.
These details are vital to calculate duty on imported goods. This is because they are the factors used to evaluate your Customs Duty & Import Goods & Services Tax expenses.
Now, with regards to how reliable the values the calculator gives you are, consider that,
- The estimate is subject to change at any given point in time with or without notice from customs if or when new legislations are brought in.
- Due to the fact that Australian Customs convert foreign currencies at standard pre-established rates, the actual value of what you end up paying as import duty and GST will also be influenced by the current currency conversion rates in the country at that particular point in time.
- Most Import Duties are at a standard rate of 5% of the FOB (Free on board) value of your imported products. Import GST attracts a 10% rate of CIF(Cost, duties and insurance value.
Considering these variables, it would be best not to rely solely on the quotation generated by the Import Duty and Goods and Services Tax Calculator when you want to calculate duty on imported goods as it only provide an estimate.
To increase the accuracy and precision of these estimates, you should consult an experienced and proficient customs broker.