Australian Border Force’s Goods Compliance Update - December 2025

With its latest Goods Compliance Update, the Australian Border Force (ABF) emphasises that compliance expectations are rising, and declaration errors are facing greater scrutiny. 

This update builds on themes raised in the previous Goods Compliance Update, signalling a focus on: 

1. The correct use of anti-dumping exemption codes; and 
2. The accuracy of import and export declarations, particularly of tariff classification and customs valuation.

Together, these developments reinforce the importance of robust internal controls and proactive compliance management. 

Misuse of anti-dumping exemption codes

ABF compliance audits have identified widespread misapplication of anti-dumping exemption codes, with the ‘Goods’ exemption most frequently used incorrectly, prompting increased regulatory scrutiny.

Dumping occurs when goods are exported to Australia at a price lower than the normal value of those goods in their country of manufacture. Broadly, dumping duties are imposed to protect Australian industry from material injury.

Anti-dumping exemption codes indicate that the imported goods are exempt from anti-dumping duties and may only be applied where the goods satisfy the criteria set out in the legislation, or as listed in the dumping commodity register (DCR).

Their correct application is essential to ensure accurate duty assessment and to avoid exposure to penalties. Importers should also maintain sufficient evidence to substantiate the exemption claim if requested by the ABF.

It is worth noting that in the quarter spanning July to September 2025, the ABF collected in excess of $11 million in understated trade remedy measures. The corresponding amounts of infringement notices were not published.

Incorrect use of exemption codes can result in an infringement notice being issued and a penalty of either 45 penalty units (currently equivalent to $14,850) or 75 per cent of the duty evaded - whichever is higher for corporate entities.

Compliance Monitoring Program results - tariff classification and valuation 

The Compliance Monitoring Program assesses overall industry compliance by reviewing the accuracy and quality of import and export declarations, as well as cargo reports. In the 2025 financial year, the total error rate for Import Declaration lines assessed was 32 per cent. 

Tariff classification 

Tariff classification is the highest contributor to the error rate and remains a top compliance priority for the ABF.

Where classification uncertainty exists, we recommend that a tariff advice be sought from the ABF. A tariff advice minimises risk of delays at the time of importation, protects importers from penalties and confirms the classification and Tariff Concession Order (TCO) eligibility – which may reduce the duty rate to free.  

Customs valuation 

The Compliance Monitoring Program also identified a rise in customs valuation-related errors, including mistakes in invoice terms and price, related-party indicators, and valuation dates.

Such errors are high-risk because valuation inaccuracies can lead to customs duty overpayments and underpayments and corresponding penalties for either.

For multinational importers it is prudent to seek a Valuation Advice (VA) ruling to ensure that related party pricing and any transfer pricing adjustments are consistent with customs valuation requirements. 

The importance of voluntary compliance 

Importers should be aware that penalties may apply even where declaration errors do not result in a change to the customs duty payable. Where errors are identified in import or export declarations, making a proactive voluntary disclosure to the ABF can obtain protection from penalties and enforcement action. Where the disclosure is full, truthful, and made before any enforcement action, businesses may obtain protection from penalties and prosecution under sections 243T and 243U of the Customs Act 1901. 

How BDO can help  

This ABF Goods Compliance Update underscores the ABF’s heightened scrutiny on declaration accuracy and customs valuation, as well as the importance of voluntary compliance. BDO offers tailored support to strengthen customs compliance frameworks and manage regulatory risk.

Our customs, international trade and excise experts can provide businesses with support in:

• Implementing internal controls to improve the accuracy and consistency of import and export declaration reporting 
• Conducting retrospective trade compliance reviews to identify historical errors, omissions and areas of exposure 
• Preparing and managing voluntary disclosures with the ABF to mitigate penalties and enforcement risk 
• Preparing Tariff Advice applications, including classification analysis and assessment of applicable concessions 
• Obtaining customs valuation rulings to ensure transfer pricing alignment for multinational groups.

Contact us today to learn more about how we can support your business.