Aditi landed in Sydney, Australia for her new job as a software developer. She had to leave on a hurry so she left behind many of her personal items like books, clothes and even the walkman that she has been using since childhood. So her parents decided to surprise her by sending these items in a little package. The package was supposed to be a pleasant surprise but what followed was not very comforting.
Aditi got notification from Australian customs to pay duties on the packages and wait for the clearance procedures. Aditi was confused as to why she was paying for her old things and frustrated to undertake all the procedures related to the package amidst her busy schedule. Turns out Aditi wasn’t alone and many people sending used goods from India to Australia often gets caught in confusion of what is “personal effects” and why are we paying duty for them.
Why Import Duty on Used Goods
The Australian customs authorities are in place to regulate goods going in and out of the country. Import duty on goods is charged to protect the domestic industries and also as a method to generate revenue.
So, Do I need to pay custom duty on used goods from India?
Yes, sometimes, but not always.
The Australian customs authorities impose a custom duty on personal items brought into the country over the value AUD 1000. This is applicable to you when you are relocating, receiving a gift, or purchasing a used product online from India.
So why not always?
If the items are below AUD 1000 and are declared as your personal effects, then they are exempt from import duties and other charges.
What Are Personal Effects?
Before digging into import duty and other charges, you need to understand what are personal effects? Because what you may consider used goods may not be considered used goods by the authorities. According to the current regulations, personal effects are items:
- that are your personal property
- suitable to be used by you in Australia
- used by you for the specified period (varies for product types) overseas
Some examples include:
- Used clothing (Sari, Kurtas, Business suits, etc.)
- Second-hand electronics (Laptop, television, Washing machine, etc.)
- Personal accessories
These personal effects are eligible for customs duty concession under some conditions.
Customs Duty Concession for Imported Used Goods
There are customs duty exemption for import duty on used goods in Australia under the Unaccompanied Personal Effects (UPEs) guidelines. UPEs are household or personal items of an individual that they import to Australia and arrive in the country separately from the individual.
The used goods can arrive before you or after, but there should be a connection between your travel to Australia and the arrival of the used goods. You cannot apply for UPEs concession if your used goods are imported after months of your arrival in Australia.
To obtain the UPEs concession, you need to fill and lodge a UPEs statement, which is a legal declaration to the Department of Home Affairs and the Department of Agriculture, Water and the Environment (Agriculture). You can either submit this to the departmental counter in person or seek the help of your shipping partner.
Shipments eligible for UPEs will not have to pay customs duty, Goods and Services Tax (GST), and other taxes. But for this, both the receiver and the shipment need to meet certain criteria. You are eligible for the UPEs concession if you are:
- a passenger or crew member of an aircraft or ship
- have come from another country to Australia
- And depending on the type of used goods, you might also have to be a permanent resident.
In case of permanent residency requirements, you can fulfill them if you are:
- an Australian citizen
- have a permanent visa
- hold a special category visa
On the other hand, there are also product categories that are not eligible for UPEs, and they are:
- Motor Vehicles and their parts
- Commercial goods
- Items purchased online after arrival in Australia
- Items belonging to another person are not eligible for the concession
- Tobacco, tobacco products, and alcoholic beverages.
One thing that you should keep in mind is not every shipping company has the license to deal with personal effects. So choose companies that has the license such as DTDC Australia and save your time and money.
What if I Can’t Avoid the Import Duty on Used Goods?
Goods that exceed the AUD 1000 limit or do not classify as personal effects are required to pay customs duty. The customs duty is usually between 0 and 10% and varies across product type.
Is Customs Duty the Only Charge That I Have To Pay While Importing?
In Australia, you might also have to pay a 10% tax on the items, along with the import duties. In addition to these, an import processing charge is also required, and this also varies among products.
Import duty: A tariff charge imposed on imported goods based on the type of goods and country of origin.
Import tax: This comes under the Goods and Services Tax (GST) regulations of the country and is generally charged at 10% of the goods.
But if you are choosing DTDC Australia as your shipping partner, then you don’t have worry about import duty on used goods and custom clearance even if the value exceeds AUD 1000. Get in touch with our team to know more about this.
How Do They Calculate the Value of Personal Effects?
Customs values items based on their fair market value. While used items often have lower values, they are still assessed using import duty criteria. The key difference is usually in depreciation.
Customs officials consider the item’s original price, current condition, age, and comparables. Accurate documentation and receipts can support your declared value and prevent overcharging.
You can use online duty calculators to identify the exact customs duty of a particular product. Alternatively, you can consult with a licensed shipping partner, and they will help you understand applicable taxes based on item type and value.
Factors That Affect Import Duty in Australia for Personal Items:
- Declared value of the goods
- Shipping costs
- Classification under the Harmonized System (HS) code
- Reason for import (personal use vs resale)
Is There a Custom Duty on Laptops and Electronics Brought From India?
Electronics is one product category that is duty-free in Australia, provided that the equipment is for personal use. The same also applies to second-hand electronics that are imported to Australia. The sender will have to produce the receipts and proof of origin to the customs.
But you will have to pay the import duty on used goods if the authorities determine the value of the goods to exceed AUD 1000. In such a scenario, your shipping partner can help you to legally avoid paying the customs duties. Contact our team to know more about this.
Importing Used Household Items and Receiving Gifts
Used goods sent as gifts or other household items that you buy from overseas will only be eligible for concessions if they coincide with your arrival in Australia. Otherwise, these products will be imported as normal goods, and import duty on used goods will not be applicable.
Speaking of household items and gifts points us to a specific product– food items.
Do Food Items Qualify As Personal Effects?
Bringing food items into Australia as personal effects is something that most people are eager to know. But any items that originate from an animal or plant or contain part of an animal or plant undergo strict biosecurity checks. This also means that food items are not eligible as personal effects to be brought into Australia.
In spite of this, if you still want to import food items into Australia, then you can do it as normal imports, not personal effects. The items will be kept in quarantine and subjected to biosecurity tests by the Department of Agriculture, Fisheries and Forestry. Due to these additional steps, food items face delays in customs.
Suppose, I clear all these hurdles and my personal effects have successfully reached Australia. What happens after that to my belongings? When will I receive my personal effects?
What Happens When Personal Effects Enters Australia?
Once the personal effects reaches Australia, they are taken into quarantine under secured and controlled conditions. Usually only high-risk items are inspected but they can also inspect your goods in random. Skilled workers will be present in the warehouses to unpack and repack your product without causing any damages to it.
If you are goods are reaching by sea freights then it usually takes 14 working days to complete all the clearances and for air freights this is normally around 7 days.
Now that you have become familiar with the custom duties of personal effects and other charges, let us look at some tips.
Tips for Importing Used Goods
Declaring Items Properly When Importing to Australia
Proper documentation and declaration of the used goods ensure that the shipment does not face any issues at customs and no additional charges occur. The documents required for importing used goods to Australia are:
- Bill of lading or air waybill
- Import declaration form
- Certificates of origin
- Unaccompanied Personal Effects Form (if eligible)
- Commercial invoice (if needed)
- Any necessary permits or licenses
Common Mistakes To Avoid When Importing Items to Australia
- One major confusion with importing used items is calculating the value. If the customs determines the declared value is low, then you can face fines. Thus, it is always better to partner with a reputed shipping service like DTDC Australia.
- Import duty on used goods changes based on the type of product; make sure that you have complete knowledge of how these duties are calculated and what duty applies to which product.
- Failing to clean used goods before shipping can also cause delays with customs. Communicate with your sender to properly clean and package the used item before shipping it.
- There are many items prohibited from being imported into Australia, and you can find them here. Make sure that your used items are not among the prohibited goods.
Final Thoughts
Whether you are retrieving a forgotten item, receiving gifts, or shopping online, it is important to know the import duty on used goods and processes involved. However, calculating the shipping cost is not an easy task due to varying customs duties for different product categories and additional charges.
Do you want to import personal items to Australia by legally avoiding customs duty? Need expert guidance personalised for your specific product?
Click here to get a free quote or speak to our expert team now. DTDC Australia has specialized in bringing valuable used items to Australia and reuniting them with their owners
