Short summary: The advertised factory price is only the start. Freight, port handling, customs, biosecurity, brokerage and GST, plus delays, quality risk and warranty uncertainty frequently mean an apparently “cheap” import ends up costing as much (or more) than buying locally. This article is a complete, professional rewrite of your original article in Australian English, with an updated, realistic worked example and a practical checklist so you and your customers aren’t caught by surprise.

Why “cheap on paper” often becomes expensive in practice

When a supplier in overseas quotes a low unit price it usually covers just the product. Getting that product to your premises in Australia adds a long list of cost and operational steps:

• international freight and fuel or low-sulphur surcharges;
• port and terminal handling charges;
• customs processing and brokerage fees;
• biosecurity / quarantine inspections and treatment costs;
• demurrage, storage and detention if shipments are delayed;
• insurance, bank and disbursement fees; and
• Goods and Services Tax (GST) and any customs duty that applies.

All of those items can materially increase the landed cost. Beyond cost, there are non-financial risks: variable product quality, difficulty enforcing overseas warranties, potentially non-compliant safety standards and long, uncertain lead times. Together these factors often make a local supplier the better commercial choice, even if their unit price looks higher at first glance.

Transit times and delivery uncertainty

Typical transit times and the reality you should plan for:

• Sea freight: commonly 30–40 days door-to-door in normal conditions; in practice, with origin consolidation, port congestion and customs it’s wise to allow 6–10 weeks from order to delivery.
• Air freight: 1–2 weeks transit but still subject to processing delays and much higher costs.
• Delays: inspections, paperwork errors, port congestion or carrier scheduling changes can add significant days or weeks. When a container is held, demurrage and storage fees begin to accumulate daily.

If you run events or have seasonal demand, rely on conservative forecasts. Shipping windows are estimates — not guarantees.

A worked example (clear, step-by-step)

Below is a realistic, illustrative worked example for a commercial jumping castle quoted at AUD $1,950 from a Chinese supplier. This is an example to show how the numbers stack up and how GST is applied; actual figures vary by port, shipping method and product classification.

Inputs (example):

• Factory price (product): $1,950.00
• Sea freight (example, LCL): $275.00
• Assorted port, handling and clearance fees (summed examples): $817.50

Fees (examples making up the summation above):

• ACS entry processing fee: $130.00
• Port service charge: $100.00
• Terminal handling: $40.00
• Delivery order fee: $50.00
• Sea cargo automation: $10.00
• CMR fee: $10.00
• Terminal security fee: $20.00
• Import processing fee: $10.00
• Wharf/CFS infrastructure fee: $40.00
• Import handling fee: $10.00
• ISPS security fee: $15.00
• China import service fee: $90.00
• Low sulphur surcharge: $5.00
• Quarantine compliance fee: $15.00
• Customs clearance fee: $150.00
• Customs EDI fee: $10.00
• Quarantine accreditation scheme fee: $10.00
• Disbursement fee: $27.50
• Other tax / small levies (not GST): $75.00

Step-by-step totals (illustrative):

1. Product price: $1,950.00
2. Shipping: $275.00
3. Other import fees (sum): $817.50
4. Subtotal (1 + 2 + 3) = $3,042.50
5. GST (10% of subtotal) = $304.25
6. Total payable at clearance (subtotal + GST) = $3,346.75

Notes about this example:

• The GST calculation here assumes there is no separate customs duty applied (if a customs duty does apply, GST is charged on the value + duty + freight, which increases the GST component).
• Demurrage, storage, additional quarantine treatment or inspections are not included in the example and can add hundreds or thousands of dollars if they occur.
• This example shows how a $1,950 factory price can realistically become more than $3,300 delivered once common import costs and GST are included.

Common hidden or variable charges to watch for

• Demurrage and detention: daily fees for containers kept beyond free time at the port or terminal.
• Storage charges: applied when goods wait in warehouses or terminals.
• Inspection/exam fees: if border agencies inspect cargo, you may pay exam charges and treatment costs.
• Disbursement fees: amounts freight forwarders or carriers pay on your behalf then invoice back to you (bank fees, port fees, etc.).
• Small line-items: low-sulphur surcharges, EDI fees, carrier fuel adjustments — many add up.
• Brokerage and professional fees: licensed customs brokers charge for declarations and advice; more complex shipments cost more.
• Insurance and currency exchange costs.

When a supplier quotes a single low price without a full landed-cost breakdown, it’s a red flag.

Quality, compliance and safety risks

• Material and construction quality: cheaper materials and stitching can reduce product life and increase repair frequency. For commercial inflatables that are used often and by the public, durability matters — inferior materials can be a real liability.
• Australian regulatory compliance: as the importer you are responsible for ensuring products meet Australian safety and labelling requirements. Non-compliant items may be refused entry, recalled, or required to be modified at your cost.
• Warranty and remedies: enforcing warranty claims with overseas manufacturers is slow and costly. If you re-sell, Australian consumer law still expects you to provide remedies for faulty goods — that obligation doesn’t disappear because the supplier is overseas.
• Counterfeit / IP risk: less controlled supply chains can introduce counterfeit items or unauthorised branding, which exposes you to legal and reputational risk.

What happens if you buy from overseas what to tell your customers

If your business imports and then sells or hires out goods, be transparent with customers:

• Orders and delivery timing are uncertain. Production slots, vessel schedules and customs holds can change with little notice.
• Delivery windows are estimates. Tell customers the delivery date is provisional and build buffer time into promises.
• Warranty and repair timelines may be long. If a defect appears, organising replacements or repairs from overseas is slow — you should have a clear domestic plan for servicing or replacing items.
• Expect higher after-sales costs on lower-quality items. Repairs, patching, re-testing or upgrades erode the initial saving quickly.

Clear, conservative communication with customers reduces disappointment and limits reputational damage.

Potential “bad” outcomes you must consider

• Surprise final cost — a low quote becomes a poor deal once landed cost is calculated.
• Cashflow pressure — paying deposits, freight or unexpected clearance charges can strain cashflow.
• Stock shortages at peak times — long lead times and unpredictable shipments can leave you unable to meet demand.
• Safety failures and recalls — these can be expensive and damaging to your brand.
• Administrative burden — organising freight, insurance, customs declarations and quarantine compliance takes time and specialist knowledge.
• Difficulty enforcing contracts — disputes with international suppliers are more complex, slower and costlier to resolve.

Why local suppliers are often the smarter option

Buying from a reputable Australian manufacturer or dealer often gives you:

• Predictable lead times and local logistics;
• Simpler cost structure no customs surprises or foreign shipping minuscule line-items;
• Local warranty support and quicker repairs;
• Clear compliance and testing for Australian standards;
• Better communication and faster customer service; and
• Aids local jobs and reputation with customers who value local sourcing.

When you total landed cost, risk and time to use, local suppliers frequently deliver better overall value — particularly for bulky or event-critical items.

Practical, prescriptive checklist before you import

1. Order a paid sample and test it thoroughly under real conditions. Don’t rely on photos.
2. Request proof of testing and compliance for Australian/New Zealand safety requirements where applicable. If certificates aren’t available, plan for third-party testing.
3. Obtain a full landed-cost quote from a freight forwarder and a licensed customs broker for your exact HS code and preferred incoterm (ask for DDP if you want the supplier to include duties and GST).
4. Decide incoterms carefully: FOB, CIF, DAP and DDP transfer different responsibilities — DDP gives a predictable price but costs more.
5. Get pre-shipment inspection (third party or your agent) and require packing lists, photos and serial numbers.
6. Budget contingency: allow 5–15% extra for unexpected charges and a time buffer for delays.
7. Insure the shipment for transit and possible damage or loss.
8. Clarify warranty, returns and remedies in writing and have a domestic plan for repairs or replacements.
9. Use trusted partners — reputable freight forwarders, customs brokers and inspection agents reduce surprises.
10. Track stock exposure — avoid overcommitting to event dates if your stock is coming from overseas.

FAQs — succinct answers

Q: Will I always pay GST on imports?
A: Yes — GST (10%) applies on most taxable importations and is calculated on the value of the goods plus freight and any applicable duty.

Q: Are duties always charged?
A: No — duty rates depend on the product’s tariff classification; some goods attract 0% duty while others carry a percentage rate.

Q: Can the supplier just say “pay taxes on arrival” and that’s it?
A: No — as the importer you are responsible for ensuring accurate declarations and for all charges at import. Suppliers who omit duty and clearance from their quote can create surprising liabilities for you.

Q: How can I keep surprises to a minimum?
A: Use DDP quotes where possible, require full pre-shipment documentation, and work with an experienced forwarder and customs broker who can produce a realistic landed-cost estimate.

do the total-cost and risk comparison

A low factory price is an attractive starting point but not the whole story. When you include freight, port and handling, customs processing, quarantine, GST, potential demurrage and the non-financial costs of quality, compliance and long lead times, importing from overseas can easily become as expensive — or riskier — than buying from a reliable local supplier.

If you choose to import, be disciplined: obtain full landed-cost estimates, insist on samples and pre-shipment inspection, buy appropriate insurance, and build buffers into lead times and budgets. If you re-sell imported goods in Australia, be clear with customers about lead times, warranties and service expectations.

See also : our step by step guide for your business here

Why Australian Inflatables?

Australian Inflatables is a proudly local supplier, operating with a registered ABN and supported by a team of Australian designers and a nationwide distribution network. This enables us to provide dependable service, faster delivery, and genuine local support across Australia.

As an Australian business, we are legally responsible for the safety, quality, and pricing of every product we supply. We manufacture futuristic jumping castles with uniquely Australian themed jumping castles, created to lead innovation within the Australian inflatables industry and offer customers products they won’t find anywhere else.

All prices stated on your invoice are final. there are no additional fees or unexpected charges.

In accordance with Australian consumer law, we are obligated to provide products that meet Australian Standards, along with full compliance certification and warranty protection. This ensures your investment is safeguarded and supported by a business that stands behind its products.