Importing into Australia: what the container really costs before it sells

The invoice from an overseas supplier looks like the price of the goods. It never is. By the time a container reaches your shelves, you have paid for freight, insurance, customs duty, GST, port and cartage fees, a broker, and possibly a bank, and you have carried all of it for months.

This guide is for owners about to import, or newly importing, who want to understand the money before they commit. Rules and rates change and depend on the goods, so treat the figures as a map and confirm specifics with the Australian Border Force, the ATO or a licensed customs broker.

What does it cost to land goods in Australia?

Think in terms of landed cost: everything it takes to get the goods onto your shelf, ready to sell.

Cost	When you pay	Notes
Goods (supplier invoice)	Deposit at order, balance before or at shipping	Often the biggest single outlay
International freight and insurance	At booking or on arrival	Varies with container size and season
Customs duty	At the border	General rate is 5 per cent, but many goods are lower or free
GST on the import	At the border, unless deferred	10 per cent, claimable as a credit if you’re registered
Port, terminal and quarantine charges	On arrival	Easy to miss in a budget
Customs broker and forwarder fees	Per consignment	Usually worth it for formal imports
Delivery to your premises	On arrival	Plus storage if you can’t take it immediately

Add a margin of error, since freight prices and exchange rates move. A common mistake is pricing stock on the supplier’s figure alone, then discovering that landed cost is 25 or 30 per cent higher.

What are the basic rules for bringing goods in?

At the border, the important line is $1,000 in customs value.

• At or below $1,000. These are low-value imports. GST of 10 per cent is generally collected at the point of sale by the overseas supplier, the online marketplace or the freight forwarder, with an obligation to register once sales into Australia pass $75,000 a year. There is typically no formal import declaration.
• Above $1,000. You need an import declaration lodged with the Australian Border Force, and duty and GST are collected before the goods are released. Most importers use a licensed customs broker for this.

Other points:

• Classification and origin. Every product has a tariff classification, and the duty depends on it plus the country of origin. Goods that qualify under a free trade agreement may enter at a reduced rate or duty-free, but you must hold the evidence.
• Permits and standards. Food, plants, animal products, electrical goods, children’s products and others face biosecurity, safety or labelling rules. Check before you pay a supplier.
• ABN and GST registration. Needed for commercial imports and to claim the GST credit.
• Intellectual property. Imitation goods can be seized, so verify what you’re buying.

The Australian Border Force’s importing pages are the official starting point, and a broker will confirm the details for your product.

Why is GST an import cash flow problem?

GST on an import is not a cost in the end. If you’re registered, you claim it back as a credit on your BAS. The trouble is timing. You often pay it at the border, then wait until your next BAS to recover it.

Here’s how the figures work on an illustrative consignment. Goods cost $80k, international freight and insurance $6k, and duty at 5 per cent of the $80k customs value is $4k. GST is applied to the sum of those amounts: $90k, so $9k in GST. You pay roughly $13k to the border on top of the $86k already spent. The $9k comes back on your BAS, but the $4k of duty does not.

The deferred GST scheme addresses this. The ATO describes a scheme for eligible importers to account for import GST on their activity statement instead of paying at the border. It has eligibility conditions, so ask your broker or check the ATO site. If you qualify, it removes a real cash flow cost. Our guide on GST cash flow tips explains the wider timing pattern.

How should I pay an overseas supplier?

Paying a stranger on the other side of the world is where scams and misunderstandings concentrate.

• Deposit and balance. A common structure is 30 per cent at order and 70 per cent before shipping or against shipping documents. It shares the risk.
• Letter of credit. Your bank promises to pay on presentation of compliant documents. Costly, but protective for first orders. See the letter of credit glossary entry.
• Open account. Supplier ships first, you pay later. Cheap for you, but only offered to buyers with a track record.
• Escrow or inspection. Pay once an independent inspector has checked the goods.

Verify the supplier before any money moves: company registration, trading history, references, a sample order. If the supplier asks you to change bank details at the last minute, ring them on a number you already hold. Business email scams target importers constantly.

Over time, you can negotiate better terms by showing a record of reliable orders. Our guide on negotiating better supplier terms shows how.

How do I fund the stock?

An import cycle ties up money. Pay the deposit at order, the balance before shipping, freight and duty on arrival, and then wait for the stock to sell. For a fashion or homewares importer, four to six months from first payment to last sale is common.

The finance choices break down like this.

1. Bank trade facility. If your bank offers one, take it seriously. Banks are often the cheapest and best-placed to run trade instruments, and they know the process. The trade finance explained for importers guide covers what to ask.
2. Supplier credit. Cheapest if you can get it, but not usually available to new customers.
3. Trade or import finance from a non-bank lender. Built to fund the supplier payment, sometimes the whole landed cost. See import finance and trade finance.
4. Line of credit or working capital loan. Flexible, but a revolving facility should not be a permanent substitute for capital.
5. Invoice finance on the way out. Once you sell to trade customers on terms, invoice finance can release cash tied up in receivables.

Match the repayment to when the stock sells. A three-month loan for stock that takes six months to move is a refinancing event waiting to happen. Funding stock and inventory and inventory management and cash flow are useful companions.

A worked example

An invented example. A Perth importer of outdoor furniture orders a container: supplier invoice $80k, freight and insurance $6k, duty $4k, GST $9k, port charges and broker $3.5k, delivery $1.5k. Total cash out is $104k, of which $9k comes back on the BAS.

Timeline: 30 per cent deposit of $24k now; $56k balance in six weeks; freight, duty, GST and fees about $24k on arrival in week 10; stock sells over the following 16 weeks, with trade customers paying 30 days after delivery. The cash lowest point arrives in week 10, at about $104k out and almost no sales yet.

The importer has $35k of their own money. The gap is roughly $70k. They compare:

• A bank trade facility of $70k, if it can be arranged in time.
• A short-term working capital loan for the same amount.
• Paying a larger deposit to get a better price. That would deepen the gap.

They choose a facility repaid from sales, and they ask the broker about the deferred GST scheme, which would cut the peak by $9k. They also order two smaller containers instead of one large one, so the first batch sells before the second payment falls due.

The decision wasn’t about the interest. It was about making sure repayments arrive after the stock sells.

What mistakes cost importers the most?

• Pricing on the supplier invoice. Calculate landed cost per unit, then your margin.
• Forgetting that exchange rates move. A weaker dollar raises your cost between order and payment.
• Overbuying. A full container at a lower unit price can sink cash flow. See inventory management and cash flow.
• Skipping the broker on the first import. Classification errors can mean paying duty twice or having goods held.
• Not insuring cargo. Check who carries the risk while the goods are at sea.
• Funding long stock with short money.

Getting the funding to match the shipment

If a container is on the way or an order is waiting to be placed, the sensible time to arrange finance is before the deposit leaves your account. Our guide on exporting covers the other direction if your business goes both ways.

Enquiring with us takes about a minute, and your credit file isn’t touched. We keep your details to ourselves instead of sending them to a stack of lenders. A real person reads your situation and calls to talk about the order, timing and stock. Please fill the form in accurately, because the right facility depends on the specifics.

Plan the funding for your next shipment →