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Special edition for Fashion Exposed Year 2007 Melbourne

Import Customs clearance for clothing

When the marvellous fashion catches the eyes of the world, we are more concerned about how smoothly those goods can be cleared from the barriers of Customs and Quarantine. As Customs broker specialized in clothing and textile industry, we hope we can help you with the following information:

Customs Duty

17.50% duty is applicable to most of the clothing with a DC rate of 12.5%. (DC refer to developing countries www.Customs.gov.au ) some attracts 11% (some of baby's garments), some attracts 5% (eg protective garments) or some are duty free (clothing accessories). Duty rate will be reduced from 17.5% to 10%, from 12.5% to 5% in year 2010

Australia-China Free Trade Negotiations

The negotiation is still under process. We are aware clothing industry is part of the negotiation. We will expect duty free or reduced duty rate on clothing if the Free Trade Agreement is reached. We don't know when but it will happen.

Calculation of Duty and GST

Duty is levied on FOB price. For example A$1000 term FOB

Duty = 1000*17.5% =A$175

GST 10%

GST is levied on CIF price plus Duty. For example A$1000 FOB, overseas freight A$100, Insurance A$1

Duty = 1000*17.5% =A175

GST = (1000+100+1+175)*10% =$127.6

Description

Description of clothing for customs classification purpose should include:

• What material: Cotton, polyester or plastic etc?

• Knitted or woven?

• Is it for baby or adult, for man or woman?

• What kind of clothing, top, shirts, jacket, or trousers etc?

To describe the clothing correctly on the import documentation is very important.

A Lot of delay of clearance is due to not sufficient information of the descriptions.

Packing declaration

To present a packing declaration for clearance can save you a lot of money and energy. Quarantine will release the cargo if you provide a correct packing declaration with no timber packing. If you don't have a packing declaration, Quarantine will order an inspection, either you or customs agent will need to be present during the inspection which incurs cost.

Fumigation certificate

Don't use timber as packing material if possible. If timber has been used, you need to provide fumigation certificate. The only acceptable fumigation provider from China is Chinese Quarantine.

Commerce Marking and Labelling

All clothing, footwear needs commerce marking. Please refer to Commerce (Trade Descriptions) Act 1905

If the goods have no commerce marking, it is an offence of Commerce (Trade Descriptions) Act 1905. The commerce marking will have to be put on at a nominated premise under the supervision of Customs before the goods can be released.

If you have any questions, please don't hesitate to give us a call, our consultant will exhaust all the resources to assist you.