Funding duty and GST at the border so your goods are released

What’s in the border bill?

By the time a container reaches an Australian port, you’ve usually paid the supplier in full and paid (or committed to) the freight. The last hurdle is the border. According to business.gov.au, the costs an importer can face include GST, customs duty, import processing charges, transport, insurance and storage, customs brokerage, biosecurity and clearance fees, and — for some goods — dumping and countervailing duties.

For most small importers, the main items at clearance are:

Item	How it’s worked out	Can you claim it back?
Customs duty	A rate set by the tariff classification of your goods, applied to customs value	No — it’s a cost of the stock
GST on imports	10% of the value of the taxable importation	Usually, as a GST credit on your BAS
Import processing charge	A charge for processing the import declaration	No
Broker and clearance fees	Your customs broker’s charges	GST on their fee usually, yes
Port and terminal charges	Set by the terminal, shipping line and forwarder	GST on local services usually, yes

How is GST on an import calculated?

This trips up plenty of first-time importers because GST isn’t 10% of the invoice. The ABF sets out the value of the taxable importation as:

• the customs value of the goods,
• plus any customs duty payable,
• plus the amount paid or payable to transport the goods to Australia and insure them for that transport,
• plus any wine equalisation tax, if it applies.

GST is 10% of that total. So on a $50,000 order with 5% duty (illustrative), $4,000 of freight and $250 of insurance, the GST base is roughly $56,750 and the GST about $5,675 — noticeably more than 10% of the goods alone. Our page on GST on imported goods walks through it in more detail.

The customs value is expressed in local currency using the exchange rate prevailing on the day the goods were exported, according to the ABF.

What about small consignments?

The ATO states that consignments with a customs value of $1,000 or less don’t have customs duty or GST payable at the time of import, except for alcoholic beverages and tobacco products. business.gov.au notes that most goods up to that value can be imported without a formal import declaration. Commercial importers bringing in containers or pallets will almost always be above the threshold.

Can I avoid paying GST at the border?

If you’re eligible, the ATO’s deferred GST scheme lets you pay import GST through your monthly BAS instead of to the Australian Border Force at the time of import. The ATO’s eligibility list includes having an ABN, being registered for GST, lodging and paying your BAS electronically on a monthly cycle, and being up to date with your tax obligations. Customs duty is still payable before the goods are released.

For a regular importer, deferral can remove a big lump of cash from every clearance. It’s worth discussing with your accountant — and if you’re not eligible yet, funding covers the gap in the meantime.

How do importers fund the border bill?

The border bill is usually smaller than the balance, but it’s urgent. Goods that sit uncleared can start collecting storage and container charges. Options include:

• A line of credit drawn when your broker confirms the amounts — see import line of credit.
• One facility for the whole order — sizing a loan to cover the balance, freight and border costs together, so there’s no separate scramble at the port.
• Property-secured funding for large or frequent clearances.

Unsecured and line-of-credit options typically run from $5,000 to $500,000 for trading businesses, and property-secured loans from $20,000 to $5,000,000. If your container is due soon and you’d like to line up the border costs, a quick enquiry is the easiest first step — no credit check to ask.

Illustrative example

Illustrative only. A pet-supplies wholesaler’s container lands with goods valued at $70,000. The broker advises duty, import GST, their fee and terminal charges totalling a little over $13,000 before release. The owner’s cash went on the supplier balance five weeks earlier. A pre-arranged line of credit covers the clearance the same week; the GST portion comes back as a credit on the next BAS and the rest is repaid as the stock sells.

How can I make the border bill more predictable?

• Get your goods classified before you order. A broker can confirm the tariff classification and duty rate — see customs duty explained.
• Check free trade agreement eligibility. Goods from FTA partner countries may attract lower duty if origin requirements are met.
• Keep paperwork clean. Mismatched invoices and packing lists slow clearance and can add charges.
• Allow for inspections. Biosecurity or other holds can add time and cost; see demurrage and port delays.

Does the Incoterm change who pays the border bill?

Yes. Under most common terms — EXW, FOB, CFR, CIF — the Australian importer arranges clearance and pays duty, GST and local charges. Under DDP (delivered duty paid), the seller takes on import clearance and the duties and taxes, and prices that into the goods. DDP can look simple, but you lose visibility of how the border costs were calculated, and the seller’s charges for handling it may be higher than doing it yourself. Whichever term you use, check who is named as importer on the paperwork, because that affects who can claim the GST credit. Our Incoterms guide compares the common terms side by side.

Don’t let the goods sit at the wharf

If you’d rather have the border costs sorted before the ship berths, send us a 60-second enquiry. There’s no credit check to ask, and your enquiry isn’t forwarded to a panel of lenders — one person reads it and calls you. Give us accurate figures for the order and your expected arrival date so we can point you to the right option first time.