Published on June 03, 2012 Australian Customs Crackdown good news for businesses
Australian businesses plagued by sales lost unfairly to overseas suppliers falsifying invoices can take comfort from tighter controls by Australian customs on packages coming in from overseas. These controls include heavy fines for importers participating in stock undervaluing as it comes into the country.
These tighter controls will hopefully see fewer examples of overseas suppliers significantly understating the value of goods as they are sent to Australia to encourage Australian consumers and businesses to purchase from them. By implementing them Australian consumers may start looking back to home and will stop anti-competitive behaviour by some businesses too.
What it means for business
For businesses playing by the rules it means a bit of relief that their competitors will be less able to import huge amounts of stock without being subject to GST and then being able to undercut other local competitors who had to pay those import duties and costs. It will also mean that consumers will be less willing to look overseas for higher priced items hoping that they’ll just be able to import it into Australia without having to pay the GST.
Tighter rules might mean more scrutiny and time allowance for checking for businesses importing stock, but overall Australian online businesses will be better off from this change. It does mean that if you are importing stock that you carefully check the paperwork that is being sent and do not allow or request the sender to lower the invoice value for tax purposes. Make sure you get a copy of the invoice for the goods before they are sent to you showing the correct amount that you paid, and keep your Paypal invoice too. If you are questioned about the import when it gets to customs and you have played by the rules then you’ll have the documentation on hand when the items come into the country if they are required and will make the paperwork you need to complete less and make the processing of incoming packages more efficient.
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