You can have the products shipped by air or sea. Do consider that sea freight is way cheaper than air freight.
Sea freight cost calculations
The shipping fee for sea freight is based on the weight of the goods and cubic metres. Ask your supplier to provide you with an estimate for the weight and cubic metres of your stock once it is packaged and ready for export. You can choose between two modes of shipment– either FCL (Full Container Load) or LCL (Less than Container Load). Shipments via LCL usually take longer since the goods have to be consolidated at the source port then de-consolidated upon arrival at the destination port. Although it takes a bit longer, it’s also way cheaper. With FCL, you’re booking a full container which only makes sense if the load consists of at least 15 CBM.
Sea freight cost from China to Australia
The sea freight cost from China to Australia per 20-foot container may amount to $900. For LCL, the estimated cost is $18-$38 per cubic metre. You need to book at least 1 cubic metre. For smaller goods, the cost is around $2.5 per kilogram with a minimum order quantity of 1 kilogram. It’s best to choose sea freight if you’re shipping large items. Sea freight containers are cheaper and also offer more security and protection to your cargo. However, the transit times are definitely longer, usually 30-40 days. If you want fast shipping, air freight can be a better option.
Air freight cost calculations
Air freight shipping from China to Australia usually takes 5-10 days. It takes longer than express freight services since the goods undergo more complex processes like customs clearance and cargo handling among other factors like weather conditions, carrier capacity, and flight schedules.
Freight rates depend on the carrier, so make sure to do your research to get the latest estimates. You’d usually have to pay for air freight plus surcharges. Air freight calculations usually depend on the chargeable weight. There are five main classifications: +45KG, +100KG (goods over 100KG) +300KG, +500KG, +1000KG. If there’s no corresponding freight level, the air freight rate is calculated based on the TACT price.
Freight rates will differ between carriers, so make sure you do your research. The costs also
vary depending on the seasonality. During low season, the rates are cheaper, and during peak season, air freight rates may also shoot up. In general, air freight rates from China to Australia sit around $4-$7 per kilogram. For smaller items such as documents and other important papers, air freight is usually the better option. For larger shipments, sea freight is the more cost-effective choice.
Customs Value and Customs Duty
Another thing you need to consider when shipping goods from China to Australia is the Customs Value. It’s used to determine how much custom duties you have to pay to the Australian Border Force. There’s a fixed processing fee per import, and the total charge is based on the shipment’s Customs Value.
Customs Value is derived from the total value of all items in your shipment, and the Customs
Duty is calculated as a percentage of the Customs Value. It ranges between 0% and 10%, but
for most shipments from China to Australia, the average rate is around 5%.
So, if the Customs Value of the shipment is $10,000, the total Customs Duty you need to pay for is $500. If you want a more accurate estimate, look up your product’s HS Code or ask your manufacturer for it. Then, click here to find the applicable duty rate.
Goods and services tax (GST)
For taxable supplies and importations, you also need to pay for GST or Goods and Services Tax. This is a mandatory fee whether or not you’re GST-registered. However, shipments that are for warehousing purposes aren’t liable for GST until they’re cleared from the warehouse for ‘home consumption’. There are also certain exemptions like for medical supplies, certain food items, or low-value import thresholds. Currently, the classification for low-value import is set at $1,000.
Goods and services tax is 10% of the Taxable Importation. You can get the taxable importation value by adding up the following:
- The shipment’s Customs Value
- Any customs duty payable
- The cost of international transport and insurance
For example:
- Customs Value = $10,000
- Customs Duty = 5% x $10,000 = $500
- Shipping = $800 x Insurance = $25
Taxable Importation = 10,000 + 500+ 800 + 25 = $11,325
Goods And Service Tax (GST) = 10% * 11,325 = $1,132.5