What Does it Cost to Import from China?
In the last video I shared with you about What specs do I give potential Chinese suppliers?
And today I will discuss with you the topic: What does it cost to import from China?
In this video, you’ll learn about some of the possible costs associated with importing from China.
There are many variables involved, so use the following as a guide:
- Cost of goods – $ variable. The average cost of goods we bring in is $30,000 (20 foot container), but we’ve bought in containers with over $100,000 worth of goods too. After you have at least six quotes from suppliers, you’ll have an idea of a fair market price to pay.
- Import assistance company – $ variable depending on level of service.
- Freight – $ variable, depending on volume, port it’s coming from/going to, time of year, peak season or not, time of shipping, transit or not, freight company used etc. Allow $2,000 – $5,000.
- Import entry costs and processing charges – Customs will charge you a fee (typically under $200 AUD) for processing your goods.
- Customs import duty – The duty rate can range from 0% to 10%, but the rate for most goods is 5% in Australia. The duty is calculated as a percentage of the price you paid for the goods.
- Goods & Services Tax – 10% of (The Customs value of cost of goods + freight + insurance + Customs duty). GST is charged at 10% of the final amount.
- Other e.g. Customs clearance, document fees, wharf charges etc – Allow another 3% on top of everything else.
If your goods are valued at less than $1,000 AUD, you don’t have to pay import duty and GST on them.
But If your goods are valued at over $1,000 AUD, you will have to pay import duty and GST on them.
This is just intended as a general guide – These charges can be influenced by what you’re bringing in, excise taxes, free trade agreements, and many other factors. Please do check with customs for your individual circumstances.
Some types of goods are eligible for concessions (reducing the amount of duty you need to pay). You can find a factsheet through Australian government website, just look for “List of current tariff concession orders.” You’ll also find additional details on concession schemes there.
To fund your importing, check your usual financing sources, including the banks.
Financial products go under different names including Trade Finance, Inventory Finance and Import Finance.
For small to mid size companies, the Bank of Queensland has good products and helpful service.
For established importers, a new and innovative finance company worth checking out is Octet Finance, who specialise in financing importing from China.