Things to consider when working out your costs

There are things you need to consider when working out your costs. Belows are costs that may apply to import or export.

Tax and duties

All imported goods come under the control of Customs when they arrive in Australia.

Tax and duties will not be included in your import costs and therefore you need to consider them because a large proportion of your import costs are from tax and duties.

Depending on the commodity that you are imported, duty is normally calculated as a percentage of the FOB value.

Currently, tax is 10% of the CIF (Cost, insurance and freight) value. 


BAF (Bunker Adjustment Factor) is the oil portion of an ocean freight rate. This rate will fluctuate and can change without notice. CAF (Currency Adjustment Factor) is the adjustment due to currency flutuation. These costs will also change without notice and can be upwards of 3-5% of overseas charges.

Quarantine & Inspection charges

These costs are not normally included in the freight quote. Depending on the commodity you are importing, these unforeseeable costs can arise if quarantine or inspection is required by the Australian Customs.