How to import stuff into China from Australia and visa versa

So you’ve been dreaming how to import stuff from China? Are you having trouble getting your goods into Australia?

That’s not a problem. Here at Franklin, we deliver customs brokerage services that ensures your goods will safely arrive to and from China cost efficiently.

Keeping up with China’s fast paced development

China is developing very fast. Last year, it had a GDP growth of 6.7%

How to import stuff from China: Understanding its GDP growth rate

How to import stuff from China: Understanding its GDP growth rate

No wonder it is one of the most sought after destination of importers. However, its rules, tax rates and procedures changes fast, too. So if you need to enter goods into China, you should look for someone knowledgeable with these changes.

How to import stuff from China: Black and white process

The proper way to import stuff into China is through a registered shipping agent. However this requires preparing the following documents prior to the shipment:

  • Proper documentation
  • Proof origin of goods
  • Invoice
  • Packaging slips with full good specification

With these documents prepared, your goods will be easily checked and classified upon its arrival at the port – hassle free.

Understanding the tax rates of China

Aside from preparing the documents, you also need to be aware of the different types of taxes implemented in China. This includes the following:

  • Value Added Tax (VAT)
  • Consumption Tax
  • Customs Duties

How to import stuff from China: Understanding the types of taxesHow to import stuff from China: Understanding the types of taxes

Value Added Tax (VAT) in China

All of the goods imported into China are subject to the country’s VAT. This could either be 13% or 17% depending on the goods entering into the country.

Consumption Tax in China

This is imposed on companies and organisations that performs the following:

  • Process taxable products under consignment
  • Import and manufacture taxable products
  • Sell taxable products
What products are included under China’s consumption tax?

Imported products included under this are:

  • Harmful products such as alcohol or tobacco
  • High end products such as motorcycles and passenger cars
  • Luxury goods such as jewellery and cosmetics

 

How to import stuff from China: Understanding the consumption taxHow to import stuff from China: Understanding the consumption tax

How is the consumption tax calculated?

The rate of the consumption tax varies, depending on the goods you are importing into China. Send us a message so we can properly assist you with this query.

Customs Duties into China

There are a total of 8,294 items taxed based on the 2016 Customs Tariff Implementation Plan (2016 Tariff Plan). These products are computed either on a quantity or an ad valorem basis. This includes:

  • General duty rates
  • Conventional duty rates
  • Most-favoured-nation duty (MFN) rates
  • Special preferential duty rates
  • Tariff rate quota (TRQ) duty rates
  • Temporary duty rates

Importing goods from China into Australia

Your business can profit from importing goods from China into Australia, especially with the low duty rates it applies to these types of products:

  • T Shirts: 5%
  • Electric Bikes: 5% (can be zero depending on type)
  • LED Bulb Lights: 5%
  • Wristwatches: 0%
  • Tablet PC: 0%
  • Solar Panels: 0%
  • Lithium batteries 0%
  • Wooden furniture 0%
  • Metal furniture 0%

Australia will most definitely benefit from the low duty rates on this products, especially with the very low minimum threshold that applies to some of the goods imported into Australia from China.

Considerations on how to import stuff from China

These are some of the things you need to consider before importing goods from China into Australia:

  • Know the importing rules and regulations for goods coming from China
  • Identify if you need a specific permit for your imported items
  • Check if your goods have to be quarantined
  • Learn the taxes and tariffs you need to pay
  • Understand the charges for goods and service tax as well as import duties
  • See if your goods are eligible for concessions
  • Learn more about the China Australia Free Trade Agreement (ChAFTA)
  • Verify if there are other costs to be paid such as shipping and logistics costs, freight handling charges and insurance costs
  • Ensure your goods are properly and accurately labelled

Importing your goods to and from China could be very daunting at first; thus the need for a knowledgeable and reliable customs brokerage company to handle this for you.

All of our customs brokers are adept with customs duties, GSTs, taxes, concessions and FTAs. Do message us for your queries and concern on how to import stuff from China. We are happy to help.