Customs Compliance and Due Diligence: Protecting Your Business

Behind every shipment, there are layers of regulations. And behind every question your customs broker asks, there’s a legal obligation to get things right.

In the world of import and export, mistakes aren’t just paperwork errors that can be easily overlooked. The reality is that they can potentially lead to serious penalties or hefty fines, so it's important to get things right the first time.

At Australian Customs Clearance, we are experts in customs compliance - and we know that it all starts with asking the right questions.

What Is “Due Diligence” and Why Does It Matter?

Due diligence involves undertaking all reasonable steps to identify, understand, and comply with the relevant legal obligations associated with importing and exporting. It extends beyond simply knowing what your goods are - it requires a clear understanding of their origin, method of manufacture, and the regulatory requirements that apply throughout the supply chain.

Some key areas where due diligence matters:

Valuation – Is the declared invoice value accurate and complete? Have all relevant costs inclusive of assists, royalties, or licensing fees been accounted for as required?
Origin – Has the country of origin been correctly identified? If preferential duty rates under a Free Trade Agreement (FTA) are being claimed, is there sufficient documentation to verify eligibility?
Classification - Have the goods been correctly classified under the Harmonised Tariff Schedule? Misclassification can result in incorrect duty payments or compliance breaches.
Import Restrictions – Do the goods fall under any regulatory controls? This includes the need for import permits, quarantine or biosecurity treatments, and any other special conditions or declarations required by Australian law.

The Consequences of Non-Compliance

Under Australian law, a lack of knowledge is not a defence. Providing incomplete or inaccurate information to customs can result in serious consequences such as:

Financial penalties – The Australian Border Force (ABF) may issue infringement notices for false declarations or customs regulations breaches
Delays in customs clearance – Unclear documentation may result in goods being examined, held or delayed at the border
Seizure, re-export, or destruction of goods – Non-compliant shipments may be seized, ordered for re-export, or destroyed with all associated costs imposed on the importer
Criminal prosecution – In severe cases, responsible individuals or companies may be subject to legal proceedings, with penalties including substantial fines or imprisonment

Due diligence is not optional; it is a legal obligation and the foundation of compliant and responsible ongoing operations.

We’re Here to Help You Get It Right

At Australian Customs Clearance, we know that customs compliance can be complex to navigate, but that doesn't mean it has to be overwhelming. Whether you’re a first-time importer or managing a high-volume operation, our experienced customs brokers will walk you through the process, ask the right questions, and ensure you stay on the right side of the law.

Need help with understanding your obligations or other aspects of customs compliance? Call us today on 1300 287 257.