As an importer your goal would be to provide goods to customers that may not be available locally and make money while doing it.
To ensure that your business is successful, your primary job is crunching numbers to ensure that the landed cost of your good is not higher than your sale price.
So what happens when additional costs of a random inspection or hold by authorities throws your figures off balance? We’ll explain further..
When you import goods into Australia you are governed by the Department’s that protect our borders. In this case, we’re referring to the Australian Border Force (ABF) and the Department of Agriculture and Water Resources (DAWR).
Protecting our borders is a shared responsibility – and the cost of this is borne by the importer. Random holds are often placed on goods by both the ABF and the DAWR for the following reasons (but not limited to)
- Checking the integrity of the Customs Clearance process as a whole
- Preventing the importation of prohibited goods into Australia by searching containers looking for illegal, incorrectly declared or dangerous goods
- Biosecurity risk management including timber pests, soil, plant and animal matter
- Compliance with biosecurity conditions applicable at the time of entry
As these holds are random we do suggest that you allow for an amount in your costings to cover these possible unforeseen outlays. Additional costs to protect our borders should be considered as a cost of business for doing international trade.