Australia is the primary destination for Canadian direct investment in the Asia-Pacific, and an attractive market for Canadian businesses. Australia offers Canadian businesses a wealthy economy that is diverse and open for trade.

Australia presents great opportunities for Canadian exporters and can serve as launching point to the growing ASEAN and CPTPP region. A key growth area in Australia is in the energy sector with Australia now being the largest exporter of liquefied natural gas. Australia also presents opportunity in renewables and clean tech and other infrastructure projects to keep up with Australia's economic growth.

Australia serves as a hub for expansion to other markets in the Asia-Pacific. Australia and Canada share a common language, laws and solid economic credentials. Trade between Australia and Canada will grow further with the implementation of the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP).

In this blog, we review:

  • Canada carrier options for shipping Australia from Canada and shipping terms
  • Australian customs clearance for imports shipped from Canada
  • CPTPP duty-free shipping between Australia and Canada
  • Pre-labeled orders shipped direct to Australia and New Zealand from the US and Canada
  • See below:  Information required for a shipping quote between Australia and Canada

Jet Worldwide provides low-cost delivery for shipping parcels from Toronto, Montreal, Vancouver, Calgary and all Canada to Sydney, Melbourne, Brisbane, Perth and all of Australia.

Disclaimer: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.


Shipping terms to consider when shipping to Australia

The default option for shipping internationally from Canada is Delivery Duty Unpaid (DDU). Common carriers use the term Ex Works (EXW) which essentially assigns all import-related costs (duty, taxes and other fees) to the receiver/importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer.

The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax that the importing business may otherwise be able to claim back.

See our blog on IncoTerms and shipping terms for packages and online orders.

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Shipping to Australia via Canada Post

Canada Post offers the lowest-cost options for shipping small parcels (under 2 kg) from Vancouver, Toronto, Montreal and all of Canada to Sydney, Melbourne and for delivery to all of Australia. Shipments sent via Canada Post are imported and delivered by The Australian Post.

Canada Post Service options for delivery to Australia

Parcel packet shipments to Australia shipping from Canada

  • Canada Post Small Packet delivery to Australia: Surface, Air and "Tracked Packet"

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Parcel post shipping Australia from Canada

  • Canada Post International Parcel to Australia: Surface/ uncertain delivery time
  • Canada Post Xpresspost to Australia: Delivery within 2 weeks
  • See section below: Information required for shipping quote between Australia and Canada

Shipping to Australia via FedEx and UPS Canada

FedEx and UPS are North America's largest carriers and, along with DHL, offer reliable delivery to Australia. 

FedEx Canada and UPS Canada Shipping options to Australia Include:

  • International Priority Delivery to Australia
  • International Economy Delivery 
See section below: Information required for shipping quote between Australia and Canada

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jet-logo-vectorDelivery between Australia and Canada via Jet Worldwide

  • Jet Worldwide:  A trusted brand offering international shipping for over 35 years!
  • Jet Worldwide offers options for shipping between Australia and Canada for parcels, pallets, and online orders 
  • Jet Worldwide offers transparency and logistics support.  We are not shy to recommend alternative options that are better suited for your needs.  

SEE SECTION BELOW:  INFORMATION REQUIRED FOR A SHIPPING QUOTE


Shipping to Australia via Purolator Canada

Purolator is a leading domestic delivery carrier in Canada owned by Canada Post. Purolator provides delivery to Australia via partners - such as UPS Canada.  Purolator is a division of Canada Post.


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Australian parcel clearance for shipments from Canada

Australian customs bases duty and taxes on the applicable HS Code and the CIF Value. The CIF value is the value of the item plus the cost of insurance and freight). The Goods and Service Tax (GST) of 10% is applied to all imported goods sent from Canada for import to Australia.

It is important to include all relevant details on the commercial invoice / invoice for customs.

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Duty-free importing of Canadian parcels to Australia

Most single parcels with a declared value of less than AUD 1,000 can be imported duty-free (but GST is still applicable). To obtain duty-free status under the Canada Australia Trade Agreement (CANATA), a certificate or origin and other supporting documents will be required.

When sending goods from Canada that may qualify for duty-free entry under the Canada Australia Trade Agreement (CANATA), it is best to confirm the required documentation with the importer prior to sending your parcel to Australia. However, CPTPP is the new free-trade pact being applied more often.

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Australian GST applies to all shipments imported to Australia

Australian GST at 10% will apply to sales of low value goods (LVG) imported by consumers into Australia. Threshold for Low -Value Goods (LVG) entering Australia has been reduced to AUD 0 for all goods (excluding alcohol and tobacco products).

Information required by Australian Customs (and to be included on the commercial invoice) include:

  • Shipper address and contact details
  • Importer details
  • Details of the shipment: item(s), value and reason for import
  • Invoice terms (FOB, CIF, etc.)
  • If a multi-piece shipment, it must be noted what is each box

Formal entries for items sent from Canada to Australia

For formal entries, Australian customs applies a processing fee to goods that require formal entry of around AUD 75.

Importers should have an Australian Business Number (ABN). The owners ABN number (which is linked to the importers owner code) may be approved for deferral from payment of GST. Having an ABN number allows for easier clearance and to ensure payment of GST is applied to the correct entity.

As in Canada, Australian GST is levied on most transactions in the production process, but is refunded to all parties in the chain of production other than the final consumer.

Clearances can be processed without an ABN number but it could result in the incorrect application of GST. Whenever possible, it is best to ask your Australian partner for their ABN number. The ABN should be included on the commercial invoice when sending international shipments to Australia.

The ABN allows a correct match to the owner code. The ABN reduces the risk of an incorrect match to the owner code. (An incorrect code match may result in incorrect payment of GST should the company be deferred). Carriers can still process consignments without an ABN. It is preferred that the number is provided.

When assessing GST tax, customs considers:

  • Value of the goods
  • Applicable rate of duty
  • Transportation and Insurance Cost (CIF value mentioned above)

The total of the above items is known as the Value of Taxable Importation or VOTI.

Jet Worldwide has been providing delivery from Canada to Australia for over 35 years and has unique access to international partners and local agents to build secure Canadian - Australian package delivery solutions.

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CPTPP duty-free clearance of goods shipped to Australia from Canada

Canada and Australia were among the first six countries to sign on to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Goods approved with proper proof of origin supporting paperwork can be exported from Canada for duty-free clearance in Australia.


CPTPP duty-free import to Australia for Canada-origin goods

Goods that qualify as being Canadian origin can be imported duty-free to Australia under CPTPP provisions.

There’s no standard certificate of origin template, but the minimum data requirements are the same for all CPTPP members. You’ll find them in Annex 3-B of the agreement. You can add the declaration to any document accompanying the shipment - such as the invoice - or on a separate document. The declaration must include the statement given in part 9 of Annex 3-B.

Important note: Check updated regulations to ensure compliance prior to shipping. The information is presented only for general information purposes.

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Annex 3–B: Minimum Data Requirements

A certification of origin that is the basis for a claim for preferential tariff treatment under this Agreement shall include the following elements:

  1. Importer, exporter or producer certification of origin: Indicate whether the certifier is the exporter, producer or importer in accordance with Article 3.20 (Claims for Preferential Treatment).
  2. Certifier: Provide the certifier’s name, address (including country), telephone number and e-mail address.
  3. Exporter: Provide the exporter’s name, address (including country), e-mail address and telephone number if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter. The address of the exporter shall be the place of export of the good in a TPP country.
  4. Producer: Provide the producer’s name, address (including country), e-mail address and telephone number, if different from the certifier or exporter or, if there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”. The address of a producer shall be the place of production of the good in a TPP country.
  5. Importer: Provide, if known, the importer’s name, address, e-mail address and telephone number. The address of the importer shall be in a TPP country.
  6. Description and HS Code
    • Provide a description of the good and the HS tariff classification of the good to the 6-digit level. The description should be sufficient to relate it to the good covered by the certification; and
    • If the certification of origin covers a single shipment of a good, indicate, if known, the invoice number related to the exportation.
  7. Origin criterion: Specify the rule of origin under which the good qualifies.
  8. Blanket period: Include the period if the certification covers multiple shipments of identical goods for a specified period of up to 12 months as set out in Article 3.20.4 (Claims for Preferential Treatment).
  9. Authorized signature and date: The certification must be signed and dated by the certifier and accompanied by the following statement: I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification.

CPTPP-origin procedures for low-value shipments from Canada

The good news for parcel shipping Australia from Canada is that shipments valued under USD 1,000 are given regulatory relief.

For shipments with goods valued under USD 1,000 (around AUD 1,400) the requirement for the certification of origin is waived.

For imports from Australia to Canada, the prescribed certification of origin is waived for commercial goods valued at CAD 3,300 or less (see below).


Proof of Origin: Determining country of origin for preferential treatment

The country of origin rules have been simplified under CPTPP but can still get complex. The guidelines for country of origin qualification include:

  • Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada or a CPTPP country.
  • Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.
  • Goods are originating if they are produced in Canada or a CPTPP country from non-originating materials that undergo production in Canada or a CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.

It is important to understand that CPTPP applies to duty assessments but not taxes. All goods - even those cleared duty-free - are subject Australian sales tax (10%).

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Australia-origin goods shipped from Australia to Canada

Canadian companies can more easily take advantage of duty free clearance from Australia (a CPTPP Country).

Proof of origin requirements under Canada's free trade agreements

The value for duty amount for all of Canada's free trade agreements (including from Australia under CPTPP) for which the proof of origin / certificate of origin is waived was changed to CAD 3,300 in July 2020. This change was made to harmonize the regulations with the new NAFTA/CUSMA.

For imports not exceeding CAD 3,300 to Canada, the requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.


Sending Shopify parcels from Canada to Australia

Australia is a major shipping destination for Canadian e-commerce merchants using on-line shopping platforms including Shopify, Big Commerce and Wix. Canada Post offers discounts via such e-commerce shipping platforms and is the lowest-cost choice for small parcels (which are imported and delivered to Australia by the Australian Post).

Canada Post Small Packet Service offers a low-cost to Australia and New Zealand for shipments under 4 pounds / 2 kilograms.

Jet Worldwide offers low-cost parcel delivery from Canada to Australia for larger parcels shipped from Canadian e-commerce parcels.

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Shipping online orders to Australia from Canada and USA

Jet Worldwide can provide shippers with pre-labeled shipments to Australia and New Zealand for direct shipping and low-cost last-mile delivery.


jet-logo-vectorGetting a spot quote for shipping between Australia and Canada.

Jet Worldwide gives access to all companies seeking shipping quotes between Australia and Canada for parcels pallets, and online orders.   For a quote, please provide:

  • Your company name and contact details
  • Ship from Address
  • Ship To Address
  • Weight and dimensions of each piece
  • Item(s) being sent
  • Value

For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel.  The more details the better :).

jet world wide ecommerce parcel delivery specialists


jet-globe-vectorLearn more from Jet's Logistics Experts :

Jet Worldwide Canada and Jet Worldwide Australia are separate companies that share a  beautiful heritage (industry legend Peter McPaul). We continue work together to find Australian logistics solutions for Canadian and American companies.

Disclaimer:   The information in this blog is for general information only.   Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

 

Written by Timothy Byrnes