Fulfilling Australian low value imports from outside of Australia

When shipping a low-value imported good (also known as “LVIG”) from overseas to a customer in Australia, you must include the following on your customs documentation*:

• The Australian Business Number (“ABN") of the company that is responsible for calculating, collecting and remitting the Goods & Services Tax (“GST”). In this case, for Amazon Commercial Services Pty Ltd, the ABN that you have to include in the documents is 30 616 935 623.
• Details on the products being sent. Provide the description, quantity, price and GST per item. You can find this information on the Order Confirmation page, Order Reports and Orders API of Marketplace Web Services.
• An item level GST. Include the Paid exemption code to identify that GST has been paid.

This information is required by your carrier to be able to import your shipments into Australia. Items shipped from outside of Australia that do not include the required customs documentation and that have not had GST collected may be held up at customs and may be seized, incur delays, or be subject to fines or other consequences. In addition, if the customer does not receive their order, you may not be paid for the sale.

*Note: Customs documentation is different to invoices that you issue to your customers. Any invoice that you are required to issue should not state that Amazon Commercial Services Pty Ltd is the seller of your products.

How do I determine if my product is Low Value?

Items that have a customs value of AUD $1,000 or less are considered LVIG. The customs value is calculated considering the product price without GST, or any delivery or packaging charges.

Nevertheless, the GST will be calculated on the product price including delivery and packaging charges.

You must set up product prices, delivery and packaging charges inclusive of GST.

Example. A product has a seller set price of AUD $1,100.00 (GST inclusive) and a delivery charge of AUD $5.50 (GST inclusive).

Firstly, in order to determine whether the product is LVIG, we must calculate the customs value by removing the GST from the product price and ignoring the delivery charge.

($1,100/1.1)=$1,000

If the customs value of the product without GST is AUD $1,000 or less, the product is LVIG subject to LVIG GST. For more information, go to Frequently Asked Questions on Low Value Imports GST. If the customs value is greater than AUD $1,000, the product is not LVIG. Whilst LVIG GST will not apply, other duties and import charges apply to products over AUD $1,000, and other documentation and information will be required

Secondly, in order to calculate the GST payable on the product, we need to divide the total amount payable by the customer (that is, product price plus delivery charges by 11):

($1,105.50/11)=$100.50