A guide to shipping to Australia from Indonesia

As Indonesia's economy continues to grow, more and more businesses are looking to expand their reach internationally. One popular market for Indonesian exporters in Australia, with a trade volume totalling US$5.29 billion in 2024, Indonesia has risen to become Australia's 12th largest trading partner¹. Additionally, in the past five years, trade between the two countries has grown at an annualized rate of 5.91%¹. This is a strong signal of the expanding opportunities available for Indonesian businesses looking to enter the Australian market.

However, when shipping from Indonesia to Australia, customs clearance is a crucial part of the process. As a business owner, it is important to understand the various facets relating to customs clearance in Australia. These include duties, taxes, and tariffs, the various categories of goods that are taxable and not taxable, policies, laws and regulations, and the documents that need to be prepared.

In this blog post, we will cover how to ship to Australia from Indonesia, guiding you through the essential steps, including import and export rules and regulations, as well as the documents needed.

Shipping from Indonesia to Australia: duties, taxes & tariffs

Duty, taxes, and tariffs are fees that must be paid to customs when importing goods into Australia. Set by the Australian government, these fees vary depending on the country of origin, the goods category, and the shipment value. When shipping goods to Australia, here is a breakdown of the key charges to be aware of:

• Goods and Services Tax (GST): 10% of the value of the taxable importation, as stipulated by the Australian Border Force.
• De Minimis Threshold: Goods valued above AU$1,000 are subject to customs duties.
• Goods Always Subject to Customs Duties: Certain categories, such as tobacco and alcohol, are subject to customs duties regardless of their value.

When shipping goods from Indonesia to Australia, it is important to understand which categories of goods are taxable and which are not. For example, an Indonesian business ships a commercial order of woven fabric valued at AU$3,500 to a retailer in Sydney. Since the shipment exceeds the AU$1,000 de minimis threshold, it is subject to customs duties. On top of that, a 10% GST is applied to the value of the taxable importation. This means the importer will need to factor in both the applicable duty rate for that goods category and the 10% GST when calculating the total landed cost of the shipment.

Shipping from Indonesia to Australia: free trade agreements

When shipping internationally, free trade agreements (FTAs) can have a significant impact on the total amount of duties and customs fees that businesses have to pay. Australia has a number of FTAs in place with countries like Indonesia, which can reduce or eliminate tariffs on certain goods. Here are the key agreements Indonesian exporters should know:

Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)

The IA-CEPA entered into force on 5 July 2020 and is the primary Indonesia-Australia trade agreement governing bilateral trade. Under this agreement, Australia eliminated tariffs on approximately 99% of Indonesian goods by value, while Indonesia committed to progressively reducing tariffs on Australian exports. For Indonesian exporters, IA-CEPA provides preferential market access, making shipping to Australia from Indonesia more cost-effective across a wide range of product categories. This includes processed food and beverages, textiles and garments, and furniture and wooden products.

ASEAN-Australia-New Zealand (AANZFTA)

The AANZFTA entered into force on 10 January 2012 and serves as a broader regional trade framework. It facilitates trade between ASEAN member states, including Indonesia, and both Australia and New Zealand by reducing tariffs, streamlining customs procedures, and harmonizing trade rules. For Indonesian exporters, AANZFTA provides an additional layer of preferential access and complements the IA-CEPA.

Shipping from Indonesia to Australia: policies, laws and regulations

In addition to duties and FTAs, there are a number of policies, laws, and regulations in place in Australia that can impact the shipping process and customs clearance. Failing to comply with these regulations can result in shipment delays, fines, or outright rejection at the border. This can result in significant financial losses, damage to your reputation, and strained relationships with buyers. Hence, understanding Australia's customs regulations before you ship is essential for any Indonesian exporter.

Key Australian agencies Indonesian exporters need to know

As customs regulations are enforced by multiple government bodies, it is important for Indonesian exporters to be familiar with the agencies they may encounter during the import process. Here are the key agencies to know:

• Australian Border Force (ABF): The primary customs enforcement agency responsible for controlling the movement of goods across Australia's border, collecting import duties and taxes, and enforcing trade compliance.
• Department of Agriculture, Fisheries and Forestry (DAFF): Oversees biosecurity and regulates the importation of agricultural products, food, plants, and animals to protect Australia's unique ecosystem.
• Therapeutic Goods Administration (TGA): Regulates the importation of therapeutic goods, including medicines, medical devices, and health supplements, ensuring they meet Australia's safety and quality standards.

How to verify regulations before you ship

Before finalizing any shipment, Indonesian exporters should consult the Biosecurity Import Conditions (BICON) database. This is an official Australian government tool that lets exporters search for import conditions for specific goods. In addition, the Australian Border Force (ABF) prohibited goods list outlines items that are banned from entering the country entirely. Examples of prohibited or heavily restricted goods include:

• Weapons and firearms (without proper authorization)
• Certain fresh fruits, vegetables, and plant materials
• Products made from protected wildlife species
• Asbestos and asbestos-containing materials
• Certain medications and controlled substances without valid permits

Please note that import and export rules and regulations are subject to change. For the most up-to-date information, always refer to the official BICON database or the Australian Border Force (ABF) website before shipping.

Shipping from Indonesia to Australia: documents to prepare

When shipping goods to Australia, there are several documents that need to be prepared, including a commercial invoice, a packing list, and a bill of lading. These documents provide customs officials with important information about the goods being imported, including their value, weight, and classification.

Working with a logistics provider like DHL Express can help ensure that all of these documents are prepared correctly and that your shipments clear customs smoothly. To successfully break into the Australian market, read our business dealings guide to gain a deeper understanding of shipping to Australia.

Partner with DHL Express for a smooth customs clearance process

Navigating international logistics and shipping from Indonesia to Australia can be complex, but it does not have to be. DHL Express is a leading logistics provider with extensive experience managing the end-to-end shipping process from Indonesia to Australia.

We have a deep understanding of the customs clearance process in Australia and can help you navigate the various requirements and regulations. Our team of customs experts can provide guidance on a range of customs matters, including duties and taxes, as well as the documents required. We can also help ensure that your shipments clear customs smoothly and that you meet all the required import and export rules and regulations.

Open a DHL Express business account now.