General freight imports: EXW, FOB, CFR, DAP and DDP explained

Checked against official sources on 9 October 2026. Rules change, so we confirm the details for your shipment when you book.

What we mean by general freight

General freight (or general cargo) is anything that is not a vehicle: palletised and crated goods, machinery and parts, building and fit-out materials, furniture, retail stock and personal effects. We ship it two ways:

• LCL (less than container load): your pallets or crates share a container with other cargo, and you pay for the cubic metres you use. Best for roughly 1 to 15 m³.
• FCL (full container load): a 20 ft or 40 ft container for your goods only. Usually cheaper per cubic metre from about 15 m³, and the container is sealed at origin.

We book the freight with the shipping line, lodge the Australian import declaration, pay the duty and GST on your behalf, handle biosecurity and deliver to your door, depot or site. We also ship general freight out of Australia to New Zealand, the Pacific and beyond.

Incoterms: who pays for what

Incoterms are the standard trade terms, published by the International Chamber of Commerce (ICC), that appear on a supplier's quote or invoice, like "FOB Shanghai" or "DDP Sydney". Each one sets the point where the seller's costs and risk stop and yours begin. These are the five you will see most:

FOB and CFR are strictly for goods loaded on board a ship at the port. For containers handed to the shipping line at a terminal, the ICC recommends FCA (Free Carrier) and CPT (Carriage Paid To) instead. They work the same way for your costs and tax, so treat FCA like FOB and CPT like CFR in everything below.

How duty and GST are worked out on an import

Two taxes apply to most commercial imports into Australia worth more than A$1,000:

• Customs duty, usually 5% or free. It is charged on the customs value, which is roughly the price of the goods delivered to the overseas port of export. International freight and insurance are not part of the customs value. Goods that qualify under one of Australia's free trade agreements (with China, Japan, Korea, the USA, the UK, Singapore, Thailand and others) can come in duty free with the right origin paperwork.
• Import GST of 10%, charged on the customs value plus duty plus the international freight and insurance to Australia.

Choosing EXW or CFR does not change those rules. If you buy EXW, the costs of getting the goods to the overseas port are added to the customs value. What the terms change is who the importer is, what you can claim back, and how much of the cost you can see.

Why EXW, FOB or CFR can save you money

1. You can claim the import GST back. When you are the importer, the import declaration is in your name. A GST-registered business importing for its business can claim that GST as a credit on its BAS. Under DDP the seller is the importer, so the declaration and the GST receipt are theirs, and you cannot claim the GST built into their price unless they are registered for Australian GST and give you a tax invoice. Many overseas sellers are not.
2. You may not have to pay the GST up front. Importers on the ATO's deferred GST scheme (GST-registered, lodging monthly BAS) pay import GST through their BAS instead of at the border, and claim the credit in the same BAS, so the cash never leaves the business.
3. Duty isn't charged on the freight. On CFR or FOB terms the invoice shows the goods and the freight separately, so the freight is clearly left out of the customs value. A single all-in DDP or DAP price makes that harder to prove, and duty can end up charged on a higher value.
4. You claim the free trade agreement. As the importer you, through us, claim the duty-free rate when the goods qualify. A DDP seller has little reason to bother, and may just add the 5% to your price.
5. You can see every cost. A DDP price wraps the freight, the destination charges, the duty and GST and the seller's margin into one number. With CFR or FOB you get the supplier's price for the goods and our price for the rest, and can compare both.
6. You stay in control of compliance. If a DDP seller under-declares the value or picks the wrong tariff classification, the goods can be held at the border. The importer of record carries that risk, and your shipment is the one that waits.

A worked example

A Camden business buys machinery parts from an overseas factory. The parts cost A$20,000 at the factory, plus A$1,000 to get them to the port and loaded (so A$21,000 FOB). Freight and insurance to Sydney are A$2,500, and the duty rate is 5%.

• Customs value: A$21,000 (the FOB price).
• Duty: 5% of A$21,000 = A$1,050.
• GST: 10% of (A$21,000 + A$1,050 + A$2,500) = A$2,455.
• Bought EXW, FOB or CFR with the business as importer: it pays A$3,505 in duty and GST, then claims the A$2,455 GST back. The real tax cost is A$1,050, and on the deferred GST scheme the GST is never paid out at all.
• Bought DDP from a seller who is not registered for Australian GST: the same A$2,455 is in the seller's price, but the business cannot claim it. That is A$2,455 more on one shipment, before any margin the seller adds to the freight and duty.

This is general information, not tax advice. Your accountant can confirm whether you can claim import GST and whether the deferred GST scheme suits your business. Fees for the import declaration and the ABF's processing charge apply on all terms.

Which term should you ask for?

• FOB (or FCA for containers) is the usual choice: the supplier handles their own export paperwork, and we take over from their port.
• EXW suits suppliers who cannot do export paperwork, or when we are collecting from several suppliers into one shipment. We arrange the pickup and the export clearance overseas.
• CFR (or CPT) works when the supplier has good freight rates. Check that destination charges are not being added on top when the goods arrive.
• Be cautious with DDP for business purchases: it is simple, but you usually lose the GST credit and can't see what you are paying for.

Before your goods ship

• Ask the supplier for a commercial invoice showing the Incoterm, the goods value and any freight as separate amounts, and a packing list.
• Any timber pallets, crates or dunnage must be ISPM 15 treated and stamped, or they will be treated or destroyed at your cost.
• From 1 September to 30 April, brown marmorated stink bug measures apply to many goods from target risk countries, including machinery, steel and aluminium articles, and vehicle parts. Some must be treated before or on arrival, so tell us early.
• If the goods may qualify for a free trade agreement, ask the supplier for a certificate or declaration of origin before shipping.

Common questions