The allure of online shopping has broken geographical barriers, enabling consumers and businesses to access products from around the globe. While this convenience is undeniable, importing from online sites comes with its own set of challenges, particularly in the realm of customs clearance and freight forwarding. At Australian Customs Brokers & Logistics, our industry experience allows us to highlight what should be your key considerations when importing from online sites.
Understanding Customs Regulations
Online shoppers often overlook or are unaware that a customs clearance is even required. Each country has its own set of rules, tariffs, and restrictions. Prior to purchasing anything from overseas, ensure that you discuss with a qualified customs broker what will be required once the goods arrive in Australia. Partnering with a customs broker, such as Australian Customs Brokers & Logistics, ensures that you are well-versed in the specific regulations that apply to your imports, preventing costly mistakes.
Hidden Costs and Fees – Be Aware of CIF and CFR terms! There are always hidden arrival costs that the supplier won’t disclose
If you purchase something from an online retailer overseas under CIF or CFR terms, especially if it moves as an LCL (less than container load) shipment, be aware that there WILL BE arrival charges, customs clearance and associated fees, delivery, and possibly other non-disclosed costs. Always remember if something seems too good to be true – it usually is! That saying is very relevant when it comes to importing. A reputable customs broker can provide a transparent breakdown of these costs, allowing you to make informed decisions about your purchases.
Limited transparency with CIF and CFR shipments
If the supplier arranges the freight, you as the importer have no say who the shipment moves with. You will have to wait for the shipping line or co-loader/forwarding agent to contact you with an Arrival Notice or Pre-alert. AUSCUS suggest you make your shipping terms FOB – Freight on Board – giving the importer the power to choose who you want to move your freight. FOB shipping terms mean that the importer pays for the ocean freight to Australia and all the destination charges (customs clearance, port charges, delivery etc).
If you purchase from an online retailer under FOB shipping terms but the shipper still arranges the ocean freight to Australia, be aware that this becomes a CFR shipment
If you purchase something from an online retailer overseas under FOB terms but the supplier offers to arrange the ocean freight to Australia and you accept, be aware that there WILL BE additional fees, especially if the shipment has moved as LCL. Arrival charges, customs clearance and associated fees, delivery, and possibly other non-disclosed costs will be applicable. Again, we strongly recommend you have your customs broker arrange the ocean freight Always remember if something seems too good to be true – it usually is! That saying is very relevant when it comes to importing. Remember to check with a customs broker before you commit to purchasing goods from overseas to ensure that you know what charges will be additional upon arrival into Australia.
We recommend using Free on Board – FOB Shipping Terms when purchasing from overseas
Using FOB shipping terms give the importer more control whist allowing the shipper/supplier to arrange the origin formalities which they are in the best position to do so given they are familiar with their countries export procedures. FOB shipping terms allow importers full transparency with costs so you know exactly how much importing your shipment will cost you.
Contact Us Today
For tailored customs brokerage and logistics solutions, contact AUSCUS at 1300 769 649 or visit our website here. Partner with Australian Customs Brokers & Logistics to unlock the full potential of your imports without the hassles and risks associated with navigating customs complexities alone.