Overseas suppliers, imports, duty and GST

Overseas suppliers can offer a huge range of products at low prices, which is why so many dropshipping stores use them. But when goods cross the border, extra rules apply. Customs may assess duty and GST, some goods are banned or need permits, biosecurity officers inspect risky items, and counterfeits can be seized.

As the seller, you need to understand these rules because they affect your costs, your delivery times and your customers. This guide covers the basics using information from the Australian Border Force (ABF), the ATO and the Department of Agriculture, Fisheries and Forestry. It is general information. For complex shipments, a licensed customs broker can help.

How imports reach your customer

When an overseas supplier dropships to an Australian customer, the parcel usually travels by international post or express courier, is screened at the border, and is then handed to a local carrier for delivery. Each step adds time and the possibility of delays, especially in peak periods.

The parcel is usually addressed to your customer, so they are technically the importer of record for low value goods. That means delays, inspections or charges can land on your customer, which is why clear, honest information about where products ship from is so important.

The A$1,000 threshold

The ABF uses A$1,000 as a key threshold:

• Goods valued at A$1,000 or less generally don't attract duty and GST at the border, except tobacco and alcohol products, which are treated differently. A formal import declaration generally isn't needed.
• Goods valued above A$1,000 need an import declaration, and duty, GST and other charges may need to be paid before the ABF releases them.

Most dropshipped consumer goods fall well below A$1,000. Higher-value items, such as some furniture, electronics or equipment, may exceed it, so check before you list them.

GST on low value goods

Since 2018, GST has applied to low value imported goods sold to Australian consumers. The ATO explains that overseas businesses, electronic distribution platforms (marketplaces) and redeliverers that meet the registration threshold must register for GST and collect it at the point of sale.

For dropshippers, this matters in two ways:

1. Your purchase price from an overseas supplier may include Australian GST unless you are GST-registered and provide your ABN.
2. Your own sales to Australian customers are subject to GST if you are registered, wherever your supplier is based.

Our GST guide explains registration and pricing.

Customs duty

Customs duty rates depend on the type of goods (their tariff classification) and where they were made. Free trade agreements may reduce or remove duty on goods that meet the rules of origin. Because classification is technical, many businesses importing higher-value goods use a licensed customs broker.

If you start buying stock in bulk to hold in Australia, such as moving a best seller to local fulfilment, duty and GST become a regular cost to plan for.

Prohibited and restricted goods

The ABF maintains lists of goods that are prohibited or restricted. Some can only be imported with a permit, and some not at all. Categories include, among others:

• certain weapons and weapon-like items;
• some laser pointers above a set power;
• certain drugs, medicines and therapeutic goods;
• some chemicals and pesticides;
• goods containing asbestos;
• objectionable material.

If a product might fall into one of these categories, don't list it until you have checked the ABF guidance and any permit requirements. Seized goods mean refunds, unhappy customers and possible penalties.

Biosecurity

Australia has strict biosecurity rules to protect its environment and agriculture. The Department of Agriculture, Fisheries and Forestry's BICON database sets import conditions for goods such as:

• plants, seeds, bulbs and plant material;
• foods and some food ingredients;
• animal products, including some pet foods and natural fibres;
• wooden items, bamboo and cane products;
• soil, and items that may carry soil, such as used outdoor gear.

Some of these need permits, treatment or inspection. Others are prohibited. Check BICON before selling anything natural or food-related from overseas.

Product safety still applies

Imported goods sold in Australia must meet the same mandatory safety standards and bans as locally made goods. A product that's legal to sell elsewhere may not be legal here. Read our product safety guide and check Product Safety Australia for the rules that apply to your category.

Electrical products, children's products, cosmetics and items containing button batteries are areas where the rules are strict and enforcement is active.

Counterfeits and intellectual property

The ABF can seize goods suspected of infringing registered trade marks or copyright, under its Notice of Objection scheme, where rights holders have lodged a notice. Counterfeit goods also mislead consumers and can be unsafe.

Protect your business by:

• avoiding big-brand products from unauthorised sources;
• being suspicious of very low prices on branded goods;
• asking suppliers to confirm they are authorised to sell branded items;
• writing your own descriptions and using photos you have the right to use.

Delivery times from overseas

International shipping is usually slower and less predictable than domestic delivery, especially in peak seasons. Border screening, carrier handovers and remote destinations all add time.

Be honest on your product pages and at checkout. Show realistic delivery estimates based on your own tracking data, and say clearly when items ship from overseas. Our guide to delivery times and shipping promises explains why accuracy matters under consumer law.

Working with a customs broker

A licensed customs broker can classify goods, calculate duty and GST, lodge declarations and advise on permits and free trade agreements. You don't usually need one for low value dropshipped parcels, but consider one if you:

• import goods over A$1,000;
• bring in bulk stock for local fulfilment;
• deal with restricted or biosecurity-sensitive products.

The ABF licenses customs brokers, so you can check a broker's credentials.

Key points

Goods valued at A$1,000 or less generally don't attract duty and GST at the border, but GST may be collected at the point of sale by registered overseas sellers. Goods over A$1,000 need an import declaration and may attract duty and GST. Check the ABF lists of prohibited and restricted goods, BICON for biosecurity conditions and Product Safety Australia for safety rules before listing overseas products. Avoid counterfeits, and be honest about where items ship from and how long delivery takes.

Related guides

Read GST for online sellers, product safety and banned products and delivery times and shipping promises.