The landed cost of imported textiles is the factory price plus freight, insurance, customs duty (usually 0% or 5%, or free under a trade agreement), 10% GST, and broker and port charges.
What makes up landed cost
Landed cost is everything you pay to get goods from the factory to your warehouse. For textiles it usually includes:
- Factory price, often quoted FOB (loaded on the ship at the origin port).
- International freight and insurance to the Australian port.
- Customs duty, calculated on the customs value, which in Australia is the FOB value.
- GST of 10% on the value of the taxable importation, which is the customs value plus duty plus international freight and insurance.
- Customs broker, port, terminal and delivery charges in Australia.
How much duty do textiles attract?
Most textile tariff lines in Australia are either duty-free or 5%, depending on the exact tariff classification. Australia removed around 500 so-called nuisance tariffs from 1 July 2024, including tariffs on a range of clothing. Your customs broker confirms the classification for each product.
Duty can often be reduced to zero with a free trade agreement. Goods from China (ChAFTA) and India (AI-ECTA) that meet the rules of origin are tariff-free, and goods from Bangladesh currently enter duty-free. See our guide to trade agreements.
How GST works on imports
GST is 10% of the value of the taxable importation: the customs value, plus any duty, plus international freight and insurance. GST-registered businesses can usually claim it back as an input tax credit, and regular importers can apply to defer GST to their business activity statement.
A worked example
This is an illustration only, using round numbers. Say you import 2,000 bath towels at AUD 7.00 each FOB.
| FOB value (customs value) | AUD 14,000 |
|---|---|
| Customs duty at 5% | AUD 700 |
| Sea freight and insurance | AUD 1,800 |
| Value of taxable importation | AUD 16,500 |
| GST at 10% | AUD 1,650 |
| Broker, port and delivery (estimate) | AUD 1,200 |
| Landed cost before GST credit | AUD 19,350 |
| Per towel, after claiming GST back | about AUD 8.85 |
If the towels qualified for a duty-free rate, the AUD 700 duty and the GST on it would fall away.
Paperwork you will need
- Commercial invoice and packing list from the supplier.
- Bill of lading (sea) or air waybill.
- A certificate or declaration of origin if you want to claim a trade agreement rate.
- An import declaration lodged with the Australian Border Force for consignments valued over AUD 1,000, usually by your customs broker.
How Terry House helps
We quote in Australian dollars on FOB, CIF or DDP terms, so you can compare landed costs across countries before you commit. On DDP orders we handle freight, clearance and delivery to your door. Ask for a landed-cost quote.
Sources
General information only, current at 25 September 2026. It is not legal, tax or customs advice. Tariff rates depend on the exact classification and rules of origin, so confirm your obligations with a licensed customs broker or the Australian Border Force before you import.