The Australian Border Force (ABF) has released its latest Goods Compliance Update, highlighting where importers and exporters are getting caught—and what steps businesses should take to stay on the right side of customs and GST rules.
At Boa & Co. Chartered Accountants, we closely monitor updates like these to keep our clients protected from unnecessary penalties, audits, and compliance risks. Below are the key areas of concern, and how your business can respond with confidence.
1. Tariff Classification Errors Are Under the Microscope
The ABF continues to detect high error rates in customs declarations, especially when it comes to tariff classifications—even when there’s no underpayment of duty.
Why it matters: Incorrect classifications can still trigger penalties and delays, even if the right amount of tax was paid.
What you can do: If you’re unsure how to classify your goods, especially for high-value or large-volume imports, it’s worth seeking a formal Tariff Advice from the ABF. This also helps confirm Tariff Concession Order (TCO) eligibility, potentially reducing duties to zero.
2. ABN ‘Piggybacking’ Fraud Is on the Rise
The ABF warns of growing cases where fraudsters use a legitimate business’s Australian Business Number (ABN) to import goods—often illicit or undeclared.
This could result in customs actions, seizure of goods, and reputational damage to your business, even if you’re unaware of the activity.
How to protect yourself: Regularly request and review your Import GST Report to verify all import transactions under your ABN. Early detection can stop fraud in its tracks.
3. GST-Free Food Imports Remain a Compliance Trap
While some foods are GST-exempt, the rules are complex—and both the ABF and ATO are auditing these claims. Misclassifying imported food as GST-free can lead to double trouble:
- You may face ABF penalties for incorrect import GST treatment
- You could also trigger ATO audits if your domestic sales are misclassified
Our tip: Routinely review GST-exempt declarations and amend incorrect entries. If needed, seek advice to clarify whether your product qualifies under GST-free food rules.
How Boa & Co. Can Help
If your business is involved in importing or exporting, compliance should never be left to chance. At Boa & Co., we work with businesses across multiple industries—retail, food, manufacturing, logistics—to ensure smooth trade operations and accurate tax reporting.
Our team can help you:
- Prepare Tariff Advice applications and assess TCO eligibility
- Review GST treatment on imports and reduce customs duty where possible
- Protect against ABN fraud with internal controls and import activity audits
- Navigate audits, customs reviews, and international trade compliance challenges
Key Takeaways
- Classification mistakes remain a top ABF compliance risk—even without duty shortfalls.
- Tariff Advice is a smart safeguard for complex or high-volume imports.
- ABN misuse (piggybacking fraud) is real—review your import records regularly.
- GST-free food imports need careful review—don’t assume they’re always exempt.
Need Help with Trade Compliance or Customs Risk?
Whether you’re a frequent importer or expanding into international markets, Boa & Co. Chartered Accountants is here to help you stay compliant, reduce risk, and protect your bottom line.
Get in touch today at 1300 952 286, [email protected], or visit 🌐 www.boanco.com.au for tailored guidance on customs and GST compliance.