Customs Classification — The Cost of Getting It Wrong

The Cost of Getting It Wrong

Classifying imported goods correctly is critical for customs compliance — and for protecting your bottom line. Yet many importers are still relying on outdated codes, assumptions, or third-party advice that hasn’t been reviewed in years.

This can result in:

  • Overpaid duties on goods that may be eligible for lower rates or concessions
  • Penalties and interest from incorrect filings
  • Delays at the border due to scrutiny from customs officials

 

Common Triggers for Incorrect Classifications

  1. Business or Product Changes
    A product might have originally fit one tariff code — but packaging, ingredients, or manufacturing processes may have since changed.
  1. Regulatory Updates
    Tariff classifications and duty concessions are updated regularly. What was valid five years ago might now be incorrect or ineligible.
  1. Reliance on Freight Forwarders or Brokers
    Many businesses assume their third-party logistics provider will “get it right,” but classification is ultimately the importer’s responsibility under Australian law.

 

Why Validate Your Classifications?

  • Recover overpaid customs duties
  • Minimise ATO and ABF audit risk
  • Prevent future shipment delays
  • Take advantage of free trade agreements or tariff concessions you may have missed

Even a targeted review of your top import lines can reveal significant cost savings or compliance gaps.

 

 

BTG can help.   

BTG helps importers across Australia review and optimise their customs classifications — identifying overpayments, reducing risk, and improving trade efficiency. Whether you’re looking to reclaim duty or prepare for audit, we’re here to help.

📞 Call 1300 650 258
📧 Email contact@btgi.com.au
🌐 Or leave your details and we’ll be in touch.

 

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