With a population of 21.5 million, Australia is a resource-rich country that imports consumer goods from around the globe.
This analysis examines tariff duty rates on 10 popular consumer products imported into Australia. Australian custom rates are then compared with customs duties in effect in Canada and the United States for those items.
In general, Australian customs tariff rates are similar to Canadian and American duties.
Australia Customs Tariff Rates for Sample Consumer Products
The harmonized tariff schedule (HTS) codes shown below are based on Australia’s Customs Tariff, which may be slightly different from harmonized codes used in Canada and the United States. While the first 6 digits are usually the same from country to country, each nation assigns different seventh and eighth digits for their own statistical reporting purposes.
Six of the following 10 imported consumer products are duty free when imported into Australia.
- Bottled water (HTS code 2201.90.00) … duty free
- Cell phones (8517.19.00) … duty free
- Computer parts and accessories (8473.30.00) … duty free
- Flu medicine (3002.20.00) … duty free
- Cheese (0406.90.10) … duty free
- iPad (8471.30.00) … duty free
- Perfume … (3303.00.00) … 5% of imports’ declared value
- Running shoes (6404.11.90) … 10%
- Shaving cream (3307.10.00) … 5%
- Sunglasses (9004.10.00) … 5%.
The highest tariff duty rate among these 10 products is 10% on athletic running shoes. Three products – perfume, shaving cream and sunglasses – are subject to a 5% customs rate.
Canada’s Customs Rates Compared with Australia’s Tariff Rates
Canada’s Most Favoured Nation (MFN) tariff treatment is similar to that in effect in Australia. For example, a customs duty rate of 5% applies to imported sunglasses in both Canada and Australia.
- Bottled water … 6.5% of imports’ declared value
- Cell phones … duty free
- Computer parts and accessories … duty free
- Flu medicine … duty free
- Hard cheese … 2.84 cents per kilogram
- iPad … duty free
- Perfume … 6.5% (30% higher than Australia’s rate)
- Running shoes … 16% (60% higher)
- Shaving cream … 6.5% (30% higher)
- Sunglasses … 5% (same as Australian rate).
However, Canada Border Services Agency charges 60% more for imported running shoes than Australian customs authorities. Canadian tariff rates are 30% higher than Australian duties for perfume and shaving cream.
US Customs Rates Compared with Australia’s Duties
Like Australia, the United States treats 6 of the following 10 consumer goods as duty free imports.
However, U.S. customs imposes no duty on imported perfume while Australia collects a 5% tariff. America charges a 12% duty on imported cheese, which is duty free at Australian customs.
- Bottled water … duty free
- Cell phones … duty free
- Computer parts and accessories … duty free
- Flu medicine … duty free
- Cheese … 12% of imports’ declared value (duty free for Australia)
- iPad … duty free
- Perfume … duty free (5% tariff duty for Australia)
- Running shoes … 10.5% (5% higher than Australia’s rate)
- Shaving cream … 4.9% (2% lower)
- Sunglasses … 2% (60% lower).
American customs duty rate for imported running shoes is 5% higher than Australia’s duty rate of 10.5% for the same product. The customs rate for shaving cream is only 2% for imports into the United States, 60% less than Australia’s tariff duty of 5%.
Italian exporters sending a commercial shipment of sunglasses worth US$100,000 to the United States would pay $2,000 in customs duties.
That same shipment imported into Australia would be charged $5,000 in tariff costs.
International Trade Leads in Australia
In general, Australian customs tariff costs are competitive with customs rates in effect in Canada and the United States.
For the 10 consumer products in this brief review, the average tariff duty rate is 5% when imported into Canada. The average customs duty is an even lower 3% if imported into the United States.
If those same consumer products are imported into Australia, the importer has to pay an average 3% in tariff duty charges.
A more pertinent concern may well be the ocean shipping costs incurred and time required to import consumer goods from faraway lands into Australia.
See also:
- Australia’s Top Exports and Imports with US So Far in 2010
- Australia Trade Statistics 2009
- Australia’s Trade Buddies.
Sources: This analysis presents independent calculations and insights based on the United States International Trade Commission’s Interactive Tariff and Trade Dataweb, Canada Border Services Agency Customs Tariff and International Customs Tariffs Bureau (for Australia).
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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