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While 2020 brought about a lot of challenges, one interesting result is the accelerated growth of Australia’s eCommerce. Online sales in 2020’s Easter week eclipsed 2019’s Black Friday week sales and Australians are starting to show their appetite for great products at competitive prices as reported by Australia Post.1 For context, Black Friday season itself was one of Australia’s biggest sales seasons. We’ve covered how Australians are adapting their eCommerce habits in 2020 extensively in an earlier post.
Some businesses in Singapore are already capitalising on selling to countries like Australia through platforms like Shopify long before this huge uptick. If you’re a Singapore-based business aiming to start selling and shipping cross-border to Australia, you’ve come to the right place to find out how shipping from Singapore to Australia can be done.
Cross-border shipping means that your inventory will be based in Singapore and products will be sent internationally to Australia. If you’re doing cross-border eCommerce, shipments only happen once an order has been placed on your website. As speed is of the essence when it comes to cross-border eCommerce, sending your products via air freight is the best way to go.
However, there are some differences to note between shipping in bulk and shipping loose parcels via air freight.
B2C air freight shipments normally face fewer hurdles compared to B2B shipments as they are shipped to individuals compared to bulk shipping to businesses.
Most B2C shipments tend to be below the customs’ de minimis rate of the destination country and do not need extensive customs documentation and also pay fewer import duties and taxes. The minimum documentation needed are usually commercial invoices and packing lists. Australia has a de minimis value of AUD1000.
Bulk orders will face more regulation. The consignees of these orders are enterprises and businesses who need to be registered with local authorities. In most countries, your importing party also needs to have import licenses as well as other permits with relevant authorities at hand to clear destination customs clearance.
While import licenses may not be necessary to import most goods into Australia, parties importing restricted or controlled items still require the importer to register for permits with relevant local authorities.
If you’re shipping to Australia from Singapore from Janio, your shipments will be flown out from Changi Airport in Singapore to Sydney Airport in Australia. Sydney is used as Janio’s primary gateway into Australia for its connectivity to various countries like Singapore and the frequency of flights for this lane.
Janio’s eCommerce B2C air freight from Singapore to Australia usually follows these steps.
The first mile stage in international shipping is when the shipment leaves the origin address, which can be the merchant’s address, be it a storefront, office, or warehouse. Depending on your arrangement with your logistics service provider, your shipment would be picked up by your shipping partner or dropped off at your partner’s designated location.
Before your goods leave your origin address, the product has to be packaged and labelled appropriately to facilitate smooth cross border shipping. Packages may sometimes go through bumpy rides like turbulence. Having extra padding for fragile items, like bubble wrap and packing peanuts, is recommended to prevent your products from bouncing around or getting deformed during shipping. To learn more about the best practices in packaging your goods, we’ve covered this topic in our packaging guide.
Additionally, shipping labels and the appropriate customs documentation must be visible to and accessible by customs officers to inspect the shipment. You can check out our guide on labeling your shipments which you can also find in our resources for B2C shipping to Southeast Asia.
After this, you can choose to drop your order off at your shipping partner’s drop-off point, or have it picked up from your address. Most shipping partners would have a cut-off time for submitting orders for drop-offs and pickups so that they can optimise their route.
If your shipment is a B2C parcel, it has to be consolidated on a pallet at a transportation hub or at a warehouse closer to the origin airport together with other packages with the same destination country before it can be sent for customs clearance. As B2B shipments are already consolidated, the shipment can be transported directly to the airport for customs clearance.
Some warehouses in Singapore also have transportation hub capabilities and are able to sort your parcels and have it ready for customs clearance within the same location such as those within Singapore’s Free Trade Zone.
Free Trade Zone warehouses also have the benefit of deferring tax charges on non-dutiable goods until they enter a country’s official borders, which helps with both cash flow and also as a storage area for regional hubs in Southeast Asia.
After your shipment has been collected and consolidated, your shipment will go through terminal handling at your shipping partners’ air cargo agent’s warehouse near Changi Airport (SIN). Here, weighing and inspection of the cargo, tallying up the items with the commercial invoice and packing list and checking all the necessary shipping documents take place.
After that, your goods need to be cleared for export by Singapore Customs at Changi Airport. In Singapore, exported goods are not subject to customs duties and Goods and Services Tax (GST) but all goods must be declared.2
If you’re shipping parcels directly to your online shoppers in Australia, your shipment usually needs to have the following documents ready in order to be cleared for export:
If the goods are dutiable or subject to control, you must obtain an export permit. Goods that are exempted from needing an export permit can be found on Singapore’s Customs website. This permit can be applied for via Singapore’s Trade.net portal.3 You must declare the FOB value of your shipment in the export permit.4
Be sure to work out with your shipping partner what kind of customs documentation is needed for your different shipments to Australia before the shipment starts to minimise problems at customs.
After checking these documents and clearing your shipment for export, your shipment is ready for uplifting onto a plane.
Your shipment is then loaded onto a plane, also known as getting uplifted, and the shipment is flown to Sydney Airport (SYD) in Australia.
After landing in Sydney Airport, your items will be inspected by officers from the Australian Border Force (ABF) before it can be cleared for import into Australia.
To be gain import clearance into Australia, your shipment will need to have the following documents prepared:
Australia’s de minimis and customs duties
In 2018, Australians need to pay 10% GST on any cross-border eCommerce purchase into Australia. According to the Australian border force, these taxes should be collected by the eCommerce merchants outside Australia at the point of sale.
Importing into Australia doesn’t require an import license, but importing certain goods like tobacco or alcohol requires import permits. These products also incur customs duties and taxes at the border as well.
If you’re sending an item below AUD1000 into Australia by courier or post, your purchasers do not need to fill in the Self-Assessed Clearance form (SAC).
On the other hand, if they are importing an order above AUD1000, the order will incur an import processing charge.5 Orders above AUD1000 will require the purchaser or importer to fill in a full Import Declaration (N10) form. They will also be notified by the Australian Border Force that they need to pay any import processing charges or customs duties and taxes.
After the order has been cleared for import into Australia, the order will be ready for distribution and last mile delivery.
If you’re shipping with Janio, you can ship anywhere in Australia. If your order’s destination address is reachable by vans or motorcycles, your order will be taken to your logistics service provider’s warehouse first to be deconsolidated from its pallet if required, then sorted to the vehicle that will take the order to your customer.
The last mile delivery leg of the journey is where your parcel will be sent from the destination warehouse to your consignee’s address. During the last mile delivery stage, your logistics service provider will ensure that your shipment is received by your consignee.
Australia is a vast country though. If your destination within Australia can’t be reached in a timely way by land transport, it may need a domestic flight or a boat to get there. After this trip, the order will head to your shipping partner’s warehouse to prepare for the last mile trip via vans, or motorcycles as highlighted above.
Now that you know how you can use air freight to deliver your eCommerce products from Singapore to Australia, you’ll need a flexible shipping partner who’s got your eCommerce logistics and international shipping needs covered from first mile to the last. Contact us below to find out more about how we can help you or if you’d like an air freight quotation to ship to and throughout Southeast Asia.
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