Tariff Concession Order: can your imports come in duty-free, and how do you check?

A Tariff Concession Order (TCO) lets goods described in the order enter Australia duty-free, because there are no known Australian manufacturers of substitutable goods. The ABF publishes the orders, you can search them before you place an order with your supplier, and if nothing covers your goods you can apply for one. Applications are screened, gazetted and open to objection from local producers for 50 days, so the concession is something to check early and plan around, not something to assume.

For an importer, a TCO is one of the few legitimate ways to take duty out of landed cost. It’s also one of the easiest to get wrong, because the paperwork is slow and the wording has to match precisely. This guide sets out the order of play: check first, apply second, and price the saving honestly.

What does a Tariff Concession Order actually do?

It switches off customs duty for goods that fit the order’s description and tariff classification. That’s all. It doesn’t touch GST, the ABF’s import processing charge, or freight.

The logic is protective rather than generous. Duty exists partly to shield local manufacturers. If nobody in Australia makes a product that could do the same job, the ABF’s own page says a TCO can apply. Where a local maker does exist, the concession is refused or removed.

Two things make TCOs different from a free trade agreement preference:

• They’re origin-blind. A TCO depends on what the goods are, not where they were made. That makes it useful for goods from countries without an agreement, or goods that fail an agreement’s origin rules.
• They’re tied to the goods, not you. Once an order is in force, any importer whose goods match the description and classification can claim it. That’s why somebody else’s TCO may already cover your product.

How do you check whether a TCO already covers your goods?

Do this before you pay a supplier deposit, because it changes the duty line in your landed cost.

1. Get the tariff classification. The eight-digit code in the Customs Tariff drives everything. If you’re unsure, ask your customs broker or supplier for the code and sanity-check it against the ABF’s Working Tariff.
2. Search the TCO list on the ABF site. The ABF’s tariff concession order page links to the search. Search by tariff code and by description words. A keyword hit alone isn’t proof, so read the full wording.
3. Compare the wording line by line. Material, dimensions, power rating, intended use and any exclusions all count. Near enough isn’t enough.
4. Ask your broker to confirm before you rely on it for a shipment. The ABF’s compliance guidance warns that claiming a TCO that doesn’t precisely fit can lead to penalties.

If your goods come from China and qualify under ChAFTA, duty is already nil with valid paperwork, so a TCO adds nothing. Our guide on import duty from China to Australia covers that case.

When is it worth applying for your own TCO?

Not every product justifies the effort. It tends to stack up when:

• the general duty rate is meaningful (many manufactured goods sit at 5%);
• you import the item repeatedly, so the saving recurs on every container;
• the goods are specialised, such as particular machinery, components or inputs with no local equivalent; and
• you come from a country without an agreement, or your goods don’t meet origin rules.

It doesn’t stack up for a one-off order that will land before any decision arrives, or for goods that Australian makers could plausibly substitute.

Illustrative only. A small importer of workshop components buys one container a quarter from a supplier in a country with no trade agreement with Australia. Rounded numbers per container:

Line	Without a TCO	With a TCO
Goods value (customs value)	$60,000	$60,000
Duty at the general 5% rate	$3,000	Nil
International freight and insurance	$5,000	$5,000
GST base (value + duty + freight)	$68,000	$65,000
Import GST at 10%	$6,800	$6,500
Cash out at the border (duty + GST, before ABF charges)	$9,800	$6,500

The true saving is the $3,000 of duty, per container. The GST difference is only timing, because it comes back as a BAS credit. Across four containers a year that’s about $12,000 off landed cost. Set that against the broker’s time and the months before an application is decided, and you can see why it’s a repeat-import play.

To test your own numbers, the landed cost calculator lets you enter a duty rate and see how the border cash changes.

How does a TCO application work, and how long does it take?

The ABF handles applications under the Customs Act’s tariff concession rules. Based on ABF notices and broker guides, the sequence looks like this (confirm current detail on the ABF’s Tariff Concessions System page, because forms and timeframes get updated):

1. Research substitutable goods. You need to show you’ve looked for Australian manufacturers of goods that could be put to the same use. If you find a potential local maker, expect to contact them in writing. The “same use” test is broad, so be thorough.
2. Lodge the application on the ABF’s approved form (Form B443), with the goods described in language that’s specific enough to be safe but flexible enough to cover future shipments.
3. Screening. Broker guides describe roughly 28 days for the ABF to check the application is valid and arrange for it to be published in the Tariff Concessions Gazette.
4. Objection window. Recent gazette notices, such as TC 25/49, allow submissions within 50 days of the notice date. A local manufacturer objecting has to show its goods have a corresponding use.
5. Decision. The ABF grants, grants with changes, or refuses. An old ANAO audit found gaps of up to 150 days between gazettal and decision. Current performance may be better, but it’s a warning not to plan stock around a guess.

Broker guides also say a granted TCO takes effect from the date the application was first received, which can open the door to refunds on earlier entries. Treat that as a point to confirm with your broker for your situation, not a guarantee.

For planning, think in months. If the concession decides whether a product is viable, apply before you commit to volume.

What should you do about the cash while the decision is pending?

This is where the finance question arrives. A TCO application might be eight to ten weeks old when your supplier wants a deposit, and the saving still isn’t real.

Practical rules:

• Price on the general rate until the order is granted. If it lands, you’ve banked upside. If it’s refused, you haven’t been caught out.
• Order in smaller runs where the supplier allows it, so only part of the stock depends on the outcome. Our guide to negotiating deposit terms with overseas suppliers covers splitting production runs.
• Keep the border cash separate. Duty and GST are due before release. Funding duty and GST is a common use of a line of credit, repaid as the GST credit returns and stock sells.
• Keep your broker in the loop. Brokers charge for entries and for TCO work. See customs broker fees so those costs are in the model.

If you’re weighing a bigger order because duty relief makes it attractive, remember that the saving only matters if the stock sells. Run it through your landed cost first.

If the border cash is the pinch point on your next container, you can see if you qualify for a line of credit built for import cycles.

What are the common mistakes with TCOs?

• Claiming a near-match. If the goods don’t precisely fit the description and classification, you risk penalties and repaying duty.
• Assuming a keyword search is enough. The wording and the tariff code both have to line up.
• Ordering before the decision and pricing the saving into your sell price as though it were certain.
• Forgetting it’s duty only. GST, the import processing charge and freight remain.
• Ignoring an FTA that already gets you to nil. Check the agreement rate first and save the effort.
• Writing the description too narrowly, so the next product variant doesn’t qualify.

Ready to talk about funding the cash side of your imports?

Cutting duty is only half of a good import plan. The other half is having the cash at the border and through the months before stock turns into sales, and that’s the part we help with. If you’re planning a container where duty, GST and a long lead time are squeezing the budget, let’s get started with a quick look at what could work for your business.

Here’s how it goes. Enquiring takes about 60 seconds, and your credit file isn’t touched just for asking. We don’t pass your details around a pile of lenders, so your phone won’t light up with offers you never asked for. A real person looks at your situation and calls you to talk it through. All we ask is that you fill in the form accurately, so we can match you to the right option first time. Unsecured and cash-flow options typically run from $5,000 to $500,000, sized on turnover and bank statements, with property-secured options available for larger amounts.

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