Heritage bank business credit card. The limits, fees and need-to-knows
If you’re on the hunt for a suitable business credit card in Australia, there are several offerings available. A mutual or ‘customer-owned’ bank, Heritage...
In 2021 alone, goods being imported from the United Kingdom into Australia increased by 4% or £173 billion in comparison to the previous year.¹ With a free-trade agreement (FTA) between the United Kingdom (UK) and Australia looming, importing goods to Australia will become easier, and even more popular.
This article will take you through the process, costs and time it takes to import goods into Australia.
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As an island continent, Australia relies heavily on air and sea systems for the shipment of goods from other countries. Which system is best for shipping items from the UK to Australia will depend on a few things. This includes:
Below we’ll outline the process and the types of companies that can be used to ship your goods from the UK to Australia for each method.
Shipping your goods via air freight or air cargo (these terms are used interchangeably) is a popular shipping method for those who require their goods to come quickly. To ship goods by air you’ll generally need to:
If there is no urgency for when you need to receive your goods, you can look into shipping by sea.
Shipping by sea is a good option for those who need to ship a lot of items at once, or have no urgency for when they need to receive their goods. Although weight and dimensions are still important, you can usually ship large items with unusual dimensions by sea easier than by air freight.
Following a similar process to shipping by air, a key difference is that you’ll need to choose whether you require a Less than Container Load (LCL) or a Full Container Load (FCL). For a LCL order, the goods will be in a container with other goods, while an FCL order will have exclusive use of one or more shipping containers.
There are different types of companies that you can organise to ship your goods from the UK to Australia. You can use courier services, international logistic companies, or freight forwarders. The differences between these entities are as follows.
Here are some popular shipping companies that many use to ship goods from the UK to Australia.
DHL is an international logistics company. DHL offers shipping services international mail, parcels and freight via air, road, ocean and rail systems. From the UK to Australia specifically, DHL offers different air and sea services that vary in price and shipping time.²
Anglo Pacific is one of the UK’s largest international shipping and removals companies that ships all consignments by sea. They offer shipping services for baggage, international shipping of goods, pet transportation and car shipping.³
Fedex is a large multinational logistics company. Fedex specialises in express air freight and transportation services, shipping to 220 countries worldwide.⁴
Seven Seas Worldwide is based in the UK and specialises in storage and shipping services by sea. They help customers move anything from personal belongings, baggage and household items by sea.⁵
To gauge the typical costs between air and sea freight shipping, we’ll compare FedEx, Anglo Pacific and DHL in the table below to ship a parcel weighing 20 kgs from the UK to Australia.
Shipment type* | FedEx⁶ | Anglo Pacific⁷ | DHL⁸ |
---|---|---|---|
20kg Parcel | Two options (Air freight only) International express, flat rate for 25kg box = 273.23 GBP FedEx Economy = 293 GBP | Two options (Sea freight only) Sea Freight to Door = 125 GBP Courier express to door = 315 GBP | Three options (Air Freight only) Drop at DHL service point = 221.86 GBP Home collection = 222.36 GBP Drop at DHL depot = 220.91 GBP |
*Prices quoted on the 26th July 2022
These prices are just a guide and may not include extra duties and fees. Each provider offers the ability to submit an online quote on their website to check approximately how much your actual shipment will cost.
With Wise there are no hidden fees and your money is exchanged at the real exchange rate, just like you see on Google. It can end up being 6x cheaper than the old–school banks or 19x cheaper than PayPal.
When exporting goods from the UK to Australia, you don’t have to pay any Value Added Tax (VAT) if you provide evidence that your shipment of goods is being exported abroad.⁹
Regardless of which method of shipping you choose to import your goods, you may have to pay added import duties or fees on the value of your goods once they arrive in Australia.. Some reasons that you may incur extra import costs include¹⁰:
All imports coming into Australia are subject to 10% Goods and Service Tax (GST) unless a GST tariff or free trade agreement is in place.¹⁰
The documentation requirements will change depending on if the goods are personal effects, unaccompanied personal effects (UPE) or commercial goods.
Despite this, every parcel being imported from the UK to Australia will need to be accompanied by a UK customs form that specifies what the contents of the parcel is. On top of this, depending on the contents, you may also need to provide¹¹:
Some companies such as DHL will provide copies of any forms that you need when setting up a shipment.
There are some items that will require you to declare or apply for an import permit or risk them being seized on arrival. These include goods that may pose a risk to biosecurity such as plant, animal or certain chemicals.¹⁰ There are also goods that are prohibited and under no circumstances be shipped to Australia. You can read more about import permits and licences here.
Generally shipping your goods by air freight is faster than by sea. Timeframes for either method from the UK to Australia can range from:
These timeframes can vary between companies and sometimes can be subject to delays.
As there is a Free-Trade Agreement between the UK and Australia going through parliamentary approval, some of the information and requirements above may change once this FTA is approved.
Whether you are purchasing goods from the UK or needing to ship your personal effects, you are still going to need a cheap and easy way to pay in the local currency. Pay the right way with the Wise multi-currency account. Opening a Wise account allows you to easily move money abroad, especially useful when travelling or moving abroad.
If you need to pay foreign invoices, Wise makes it easy with low fees on transfers and the real exchange rate on conversions. Check out the pricing calculator and see just how much you can save with Wise.
To see how a Wise Business account could benefit you, take a look for yourself - creating an account can be done in minutes.
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Sources:
Sources checked on: 26 July 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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