A Guide to Importing from Germany For Australian Businesses

Here’s what you need to do if you want to import from Germany

Obtain information on the types of goods you are allowed to import and carry out market research.
Explore online marketplaces of manufacturers and suppliers to source the goods you want.
Carry out due diligence on your supplier and sign a contract with them.
Arrange for shipping and logistics from Germany to Australia.
Understand the various regulations, tariffs, and licenses you need to export.
On arrival of your goods in Australia you pay the necessary duty, tariffs, and any other fees.
Market your goods for sale in Australia.

Dealing with importing, international shipping, tariffs, licenses and more can be tricky. We strongly recommend bringing someone into your business who has experience and knowledge in the field.

Here are some hints and tips:

Avoid food and perishables — It’s very expensive to import goods that can be spoiled, as you’ll need specialised containers. Additionally, Australia has strict regulations on importing produce.
Avoid importing products that are widely available already — It’s likely those types of items are purchased in bulk by big importers, and you’ll never be able to match them on price.
Source items based on your prospective market, not the other way around — Discover what your prospective customers want or need and look for items based on your findings. Avoid looking for an item first then finding a market segment.
Understand your margins and pricing — Work out your pricing strategy by calculating your fixed and variable costs.

Sourcing goods from Germany

There are a selection of German suppliers to choose from. You can find them below:

Once you know the types of products you’re after, make a shortlist of suppliers. Next, you’ll want to:

Read reviews on the suppliers including their customer service, the quality of the goods they provide, and any issues others have had with them.
Contact the suppliers and request a sample of the goods you’re interested in. When you receive the sample have it independently appraised to make sure you’re getting what you pay for.
Ask the supplier about their terms for payment, how long it will take them to send the product to you, what protections and guarantees you have, and what their policies are on returns.
Complete any other due diligence, and if you’re satisfied, sign a contract with them.

If you’re only purchasing a small quantity or your items aren’t too heavy or bulky, consider air freighting them back to Australia. However, if you’re buying larger quantities, you should use a shipping container.

The Sea Freight Calculator lists the cost of renting a full container from South Korea to Australia as approximately:

20 ft container — $1,550 USD
40 ft container — $2,000 USD

And according to Australia Trade, renting part of a container will cost you between $150 and $250 AUD per cubic meter or 1,000 kilos, whichever is greater.

However, these are purely the costs to ship goods from South Korea to Australia. Once you get them here you’ll need to pay for getting your goods to a warehouse, storage, insurance, duties, and other fees.

Understanding government regulations on imported goods from Germany

There are a number of Australian trade regulations to be aware of when importing goods. For a in-depth guide, please read our comprehensive guide.

Some of these regulations include:

Some types of goods will require you to get a special permit to import them. This include some chemicals, pharmaceuticals, produce, and more.
Importing plant and animal goods could mean they need to be quarantined.
You may need to pay tariffs, duties, and taxes — More on that below.
Some importers may be due for concessions from the government.
Some free trade agreements could work to your advantage.
There are several other costs you’ll need to be aware of.
Your goods must be labeled correctly.

Understand costs to import from Germany

It importing is new to you, it’s crucial to understand import costs. These include:

The cost of buying the product.
Shipping, logistics, and distribution costs.
Tariffs and duties due to Germany on export and Australia on import.
Taxes and tariffs on your imported goods. Spend some time learning about:

Generally, you will have to pay import duty and GST on goods valued over $1,000 AUD.

Import entry costs and processing charges – Customs will charge you a fee (typically under $200 AUD) for processing your goods.
Customs import duty is calculated as a percentage of the price you paid for the goods. The duty rate can range from 0% to 10%, but the rate for most goods is 5%.
Goods and services sales tax (GST) will also be charged based on the following:
The valuation of the goods plus;
The customs import duty amount plus;
The cost of insuring the goods and transporting them to Australia.
GST is charged at 10% of the final amount.

This is just intended as a general guide – These charges can be influenced by what you’re bringing in, excise taxes, free trade agreements, and many other factors. Please do check with customs for your individual circumstances.

Some types of goods are eligible for concessions (reducing the amount of duty you need to pay). You can find a factsheet through this page, just look for “List of current tariff concession orders.” You’ll also find additional details on concession schemes here.

Doing import business from Germany is usually done in US dollars or Euros.

If you are bringing goods in from Germany, consider using OFX. They specialise in international payments and receipts for Australian businesses. Each client has a personal manager and access to a range of useful products like Forward Exchange Contracts, Options, Limit Orders and Currency Options.

OFX is a trusted partner of The Currency Shop. Click on this link , sign up and never pay a transfer fee for your international money transfers. Ever.

OFX charges no transaction fees. Minimum transfer A$250. Third party intermediary fees may still apply.