How does ChAFTA reduce import duty on goods from China to Australia?

The China-Australia Free Trade Agreement (ChAFTA) provides 0% customs duty for most goods imported from China since January 2019. To claim the preferential rate, your Chinese supplier must provide a valid Certificate of Origin (Form CO or Declaration of Origin). Without it, the standard MFN rate (typically 5%) applies.

How is Australian GST calculated on imports from China?

Australian GST = 10% × (FOB value + international freight + insurance + customs duty). Note that Australian customs duty uses FOB value (not CIF) as the duty base, unlike the UK and EU which use CIF. GST-registered businesses (ABN holders) can claim back import GST as an input tax credit.

What is the AUD $1,000 import threshold in Australia?

Goods with a customs value (FOB) of AUD $1,000 or less are duty-free on formal entry. However, GST still applies to all goods at 10%. For goods valued under AUD $1,000, ABF may apply a simplified clearance procedure and collect GST via a simplified import declaration.

Do I need a customs broker to import into Australia from China?

For goods over AUD $1,000, a formal import declaration is required. While you can self-declare, most importers use an ABF-licensed customs broker. Broker fees for standard FCL/LCL shipments typically run AUD $150–$400. Brokers also handle certificate of origin verification for ChAFTA claims.

🏛️ Import Duties & Taxes

Australia Landed Cost Calculator — China to Australia Import Cost

Use our australia landed cost calculator to calculate the total landed cost of goods from China to Australia. Includes customs duty (ChAFTA rates), 10% GST, freight, and insurance in AUD.

Updated: 2026-04-14

Planning Reference

Rates Last Reviewed April 2026

Reference Basis

Based on published HTS, CBP, USTR, and other official tariff guidance in effect at the last review date.

Planning Note

Use this for planning. Final duty liability depends on HTS classification, origin, exclusions, non-stacking rules, and customs review.

Primary opportunity

australia landed cost calculator
Medium SERP difficulty

FOB Value (Supplier Price) AUD Product value at the port of export in AUD. Australian customs duty is assessed on FOB value.

International Freight AUD Sea or air freight from China to your Australian port (Sydney/Melbourne/Brisbane/Fremantle).

Cargo Insurance Rate % Marine cargo insurance, typically 0.25–0.50% of CIF value.

ChAFTA Eligible (Certificate of Origin from supplier) Most goods covered by ChAFTA have 0% duty since 2019. Your supplier must provide a valid Certificate of Origin.

MFN Duty Rate (if ChAFTA not applicable) % Standard duty rate if ChAFTA doesn't apply. Most goods: 5%. Check abs.gov.au or abf.gov.au for your tariff.

Import Processing Charge (IPC) AUD ABF import processing charge: AUD $50–$99 per formal entry. Use $99 for shipments over AUD $10,000.

What Is Australia Landed Cost from China?

Australia landed cost is the total cost to import goods from a Chinese factory to your Australian warehouse — including supplier price, international sea or air freight, marine insurance, customs duty, 10% GST, and clearance fees.

The two most important features of Australian import cost calculations are:

Customs duty is assessed on FOB value (not CIF, unlike UK/EU). This means freight and insurance don't inflate your duty base.
ChAFTA provides 0% duty for most goods since 2019, significantly reducing total landed cost.

How to Use This Calculator

Enter your FOB value — the price at the Chinese port of export in AUD
Add your freight cost from your forwarder
Select ChAFTA eligible: Yes if your supplier can provide a Certificate of Origin
If ChAFTA doesn't apply, enter the standard MFN duty rate (typically 5%)
Click Calculate for your full Australia landed cost breakdown

ChAFTA — China-Australia Free Trade Agreement

ChAFTA came into full effect on 1 January 2019, eliminating customs duty on most goods from China. The key requirement is a valid Certificate of Origin from your Chinese supplier. Without it, you pay the standard MFN rate.

Products NOT covered by ChAFTA zero rate: Some agricultural products, certain chemicals, and goods subject to anti-dumping orders may not qualify. Check the DFAT ChAFTA tariff schedule for your specific HS code.

How much does ChAFTA save? For a typical 5% duty rate on an AUD $50,000 FOB shipment, ChAFTA saves AUD $2,500 in duty — plus GST savings on the lower duty amount.

Australian Landed Cost Example

Scenario: Importing 1,000 units of furniture from Guangdong to Melbourne.

FOB value: AUD $20,000
Sea freight (Guangzhou to Melbourne): AUD $1,800
Insurance (0.35%): AUD $77
CIF value: AUD $21,877
Standard MFN duty (5% of FOB): AUD $1,000
ChAFTA duty (0%): AUD $0 ← saving AUD $1,000
GST base (FOB + freight + insurance + duty): AUD $21,877
GST (10%): AUD $2,188 (claimable by GST-registered businesses)
Import Processing Charge: AUD $99
Total landed cost (non-GST-registered): AUD $24,164
Total landed cost (GST-registered, post-credit): AUD $21,976

Australian Import Duty Rates for Common Categories

Category	Standard Rate	ChAFTA Rate
General manufactured goods	5%	0%
Clothing and textiles	5%	0%
Footwear	5%	0%
Furniture	5%	0%
Electronics	0%	0%
Steel and aluminium	Varies	Varies

Verify at abf.gov.au working tariff schedule.

Planning Notes for Australian Importers

Biosecurity requirements: All wood packaging (pallets, crates) must be ISPM-15 compliant (heat treated, marked HT or MB). Non-compliance can result in treatment costs, delays, or destruction of goods. Confirm with your Chinese supplier before shipping.

Port timing: Major Australian ports — Port Botany (Sydney), Melbourne, Fremantle (Perth), Brisbane — all offer direct services from Chinese ports. Transit times: 18–25 days from Shanghai; 20–28 days from Ningbo. Add 5–8 days for customs clearance and inland delivery.

Frequently Asked Questions

Tips for China Importers

Look up your HS code first. Your HTS/HS code determines your duty rate. Use hts.usitc.gov (US), trade.gov.uk/tariff (UK), or cbsa-asfc.gc.ca (Canada) — not your supplier's guess.
Check for Section 301 exemptions. Some products have granted exclusions at ustr.gov. These can eliminate the additional 7.5–25% tariff entirely. Verify before every order.
First Sale Valuation can lower your duty base. If buying through a trading company, CBP may allow you to declare the factory price (not the middleman price) as the dutiable value — ask your customs broker.
Get a Binding Ruling for anything uncertain. CBP can issue a written classification ruling at no charge through its binding-ruling process. It can help when your product classification is unclear.
Keep import records for 5 years. CBP can audit any entry up to 5 years post-import. Store your commercial invoices, packing lists, and entry summaries.