Incorrect Tariff Classification Penalties
Definition
Failure to properly classify imported footwear under HS codes (e.g., Chapter 64) results in paying general tariff rates instead of 0% under ChAFTA, plus GST on inflated values.
Key Findings
- Financial Impact: AUD 530 duty + AUD 53 extra GST per AUD 10,600 shipment (5% general tariff vs 0%)
- Frequency: Per non-compliant import shipment
- Root Cause: Manual HS code errors without ChAFTA Certificate of Origin verification
Why This Matters
The Pitch: Wholesale Footwear importers in Australia waste AUD 530+ per shipment on misclassification duties. Automation of HS code classification eliminates this risk.
Affected Stakeholders
Import Manager, Customs Broker, Finance Controller
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Overpaid Import Duties and GST
ABF Misclassification Fines
Defective Product Chargebacks
Vendor Chargeback Disputes
Premium Pricing on Drop Ship Orders
High Return Costs from Sizing Issues
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