Importing from Australia to the US: AUSFTA Rates, Tariff Stacking & 2026 Guide

Australia shipped $29.4 billion in goods to the US in 2025 — a 74.7% jump from the year before, largely driven by an extraordinary gold rush. Between January and April 2025 alone, Australia exported $11.1 billion in non-monetary gold to the US, more than the previous four years combined. Take out the gold surge, and you still have a robust $18+ billion trading relationship anchored by beef, wine, medical devices, machinery, and an increasingly important category: critical minerals.

The US-Australia Free Trade Agreement (AUSFTA), in force since 2005, eliminates duties on nearly all qualifying Australian goods. That's the good news. The bad news: the 10% Section 122 surcharge applies on top of everything, and Section 232 hits Australian steel and aluminum at 50%. AUSFTA doesn't protect against either.

Here's how the numbers actually work for Australian imports in 2026.

Quick check: Calculate duties on your Australian products →

By VatCheck Research Team. Sources: US Census Bureau trade statistics, Australian Bureau of Statistics (ABS), DFAT AUSFTA text, CBP AUSFTA Implementation Instructions, USITC HTS 2026, CIT ruling in Oregon v. Trump (May 7, 2026).

Current Tariff Rates on Australian Goods (May 2026)

Australia gets preferential treatment under the AUSFTA — most goods that meet the rules of origin enter at 0% duty. But the Section 122 surcharge applies universally, meaning even duty-free AUSFTA goods pay 10%.

What You're Paying Today

| Tariff Layer | Rate | Status | |---|---|---| | AUSFTA preferential rate | 0% on most goods | Permanent (FTA in force since 2005) | | MFN rate (non-qualifying goods) | Varies by product (0-48%) | Applies if goods fail AUSFTA origin rules | | Section 122 surcharge | 10% of customs value | Struck down May 7, stayed May 12 — still collected. Expires July 24. | | Section 232 | 50% on steel/aluminum, 25% on copper | Indefinite | | Section 301 | None | Australia not targeted | | Anti-dumping/CVD | None currently | No active orders on Australian products |

The key insight: if your Australian product qualifies under AUSFTA, you're paying just 10% (the Section 122 surcharge). If it doesn't qualify, you're paying MFN + 10%, which can stack to 20-50%+ depending on the product.

Product-Specific Duty Rates

Here's the actual math for Australia's top export categories to the US:

| Product | HTS Chapter | AUSFTA Rate | MFN Rate | + Section 122 | Total (AUSFTA) | Total (MFN) | |---|---|---|---|---|---|---| | Frozen boneless beef | Ch. 02 | 0% | 26.4% | 10% | 10% | 36.4% | | Sheep/goat meat (lamb) | Ch. 02 | 0% | 2.8¢/kg | 10% | 10% | ~12-15% | | Wine (bottled, > 2L) | Ch. 22 | 0% | 6.3¢/L | 10% | 10% | ~12% | | Wine (bottled, ≤ 2L) | Ch. 22 | 0% | 5.3¢/L | 10% | 10% | ~11% | | Gold (non-monetary) | Ch. 71 | 0% | 0% | 10% | 10% | 10% | | Medical instruments | Ch. 90 | 0% | 0-6.6% | 10% | 10% | 10-16.6% | | Passenger vehicles | Ch. 87 | 0% | 2.5% | 10% | 10% | 12.5% | | Lithium carbonate | Ch. 28 | 0% | 3.7% | 10% | 10% | 13.7% | | Steel products | Ch. 72 | N/A | Varies | 10% | 60% | 60% | | Aluminum (unwrought) | Ch. 76 | N/A | Varies | 10% | 60% | 60% |

Two things stand out. First, AUSFTA qualification is worth 5-26 percentage points of duty savings — the beef difference alone (10% vs 36.4%) can make or break your margin. Second, Section 232 overrides AUSFTA for metals. Australian steel and aluminum pay 50% Section 232 + 10% Section 122 regardless of origin.

For your exact product, look up the HTS code and calculate the total duty.

AUSFTA Rules of Origin: How to Qualify

The duty savings are significant — but only if your product qualifies. AUSFTA rules of origin determine whether goods can claim the preferential 0% rate.

The Qualification Criteria

A product qualifies under AUSFTA if it meets ONE of these tests:

1. Wholly obtained or produced. Goods entirely grown, mined, harvested, or manufactured in Australia using only Australian inputs. This covers most agricultural products — beef raised on Australian farms, wine from Australian grapes, lithium mined from Australian deposits.

2. Substantial transformation with regional value content (RVC). Manufactured goods must contain at least 35% regional value content (Australian and/or US content) AND undergo a tariff shift (change in HTS classification at the specified heading or subheading level). The RVC is calculated using either:

• Build-up method: (Australian/US value ÷ adjusted value) × 100 ≥ 35%
• Build-down method: ((adjusted value – non-originating materials) ÷ adjusted value) × 100 ≥ 35%

3. Product-specific rules. Some products have specific origin rules listed in AUSFTA Annex 4-A (General Note 28(n) in the HTS). These can require a particular tariff shift, a minimum RVC, or both.

Certificate of Origin

Unlike USMCA (which has a specific certification form), AUSFTA doesn't require a prescribed certificate format. CBP accepts:

• The CBP-encouraged certification template
• Free-form certifications containing all data elements from 19 CFR 10.724
• Electronic submissions

The certification can cover a single import or multiple shipments of identical goods over up to 12 months (blanket certification). The importer is responsible for having the certification and providing it to CBP on request — you don't need to submit it with every entry, but you need to have it on file.

Common AUSFTA Qualification Mistakes

I've seen importers trip up on these repeatedly:

• Mixing Australian and non-Australian inputs without tracking RVC. If your Australian manufacturer uses Chinese-origin components, you need to calculate whether the finished product still hits the 35% threshold.
• Assuming "Made in Australia" means AUSFTA-qualifying. A product assembled in Australia from imported components might not meet the tariff shift or RVC requirements.
• Not keeping documentation. CBP can audit AUSFTA claims. You need cost breakdowns, supplier declarations, and RVC calculations on file for five years.
• Overlooking product-specific rules. Textiles and automotive parts have unique origin rules that override the general 35% RVC test.

Australia's Strategic Value: The Critical Minerals Angle

This is where Australia's trade story gets interesting beyond the traditional categories. Australia is the world's largest producer of lithium, rutile, and zircon, and a top-five producer of rare earth elements, cobalt, and nickel. As the US pushes to reduce dependence on Chinese-controlled mineral supply chains, Australia is the obvious alternative.

Why This Matters for Importers

• Lithium — Australia produces about 47% of the world's lithium. The Inflation Reduction Act (IRA) and broader clean energy policy incentivize US sourcing from FTA partners. AUSFTA-qualifying Australian lithium enters at 0% + 10% Section 122 = 10%. Chinese lithium faces 0% MFN + 10% Section 122 + various Section 301 rates.
• Rare earth elements — critical for defense, electronics, and EV motors. Australia's Mount Weld (Lynas) is the only significant non-Chinese rare earth operation.
• Cobalt and nickel — essential for EV batteries. Australian mines are expanding to meet demand from US battery manufacturers.

AUKUS (the US-Australia-UK security pact) adds a strategic dimension. Defense procurement and critical mineral supply chains between the US and Australia are tightening, which could further benefit importers of Australian raw materials and components.

Top Import Categories with Worked Examples

Beef and Lamb (Chapters 02, 16)

Australia is the third-largest beef supplier to the US. Frozen boneless beef (Chapter 2) is the single largest export commodity at $1.74 billion in 2024.

Example: 20,000 lbs frozen boneless beef at $4.50/lb FOB Sydney

| Cost Component | Calculation | Amount | |---|---|---| | Product cost (FOB) | 20,000 × $4.50 | $90,000 | | Ocean freight (Sydney → LA) | Reefer container | $6,500 | | Insurance (0.5% CIF) | $96,500 × 0.005 | $483 | | CIF value | | $96,983 | | AUSFTA duty (0%) | $0 | $0 | | Section 122 (10%) | $96,983 × 0.10 | $9,698 | | MPF (0.3464%) | $96,983 × 0.003464 | $336 | | HMF (0.125%) | $96,983 × 0.00125 | $121 | | USDA inspection | Per shipment | $450 | | Customs broker | Flat fee | $250 | | Drayage | Port to cold storage | $800 | | Total landed cost | | $109,138 | | Per lb landed | $109,138 ÷ 20,000 | $5.46 |

Without AUSFTA, the MFN rate (26.4%) adds $25,603 in duties, pushing per-pound cost to $6.74 — a 23% premium. That's the value of AUSFTA origin compliance.

Wine (Chapter 22)

Australian wine exports to the US exceed $500 million annually. After China imposed punishing tariffs on Australian wine in 2020 (since lifted), American became a critical market for Aussie vintners.

Under AUSFTA, Australian wine enters duty-free. Without it, duties range from 5.3¢ to 6.3¢ per liter — small per bottle, but meaningful at scale. Section 122 adds 10% either way.

Medical Instruments and Devices (Chapter 90)

Australia is a significant exporter of cochlear implants (Cochlear Ltd.), medical imaging equipment, and diagnostic devices. Most medical instruments carry 0% MFN rate, so AUSFTA doesn't add much duty savings here — but AUSFTA origin status can simplify customs clearance and reduce inspection delays.

Shipping and Logistics

Transit Times and Routes

| Route | Mode | Transit Time | |---|---|---| | Sydney/Melbourne → Los Angeles | Ocean (FCL) | 15-18 days | | Sydney → Long Beach | Ocean (FCL) | 14-17 days | | Brisbane → Los Angeles | Ocean (FCL) | 16-20 days | | Fremantle (Perth) → Los Angeles | Ocean (FCL) | 18-22 days | | Sydney → Los Angeles | Air freight | 15-18 hours | | Melbourne → Chicago | Air freight | 20-24 hours |

Key logistics considerations:

• Opposite hemispheres mean Australian agricultural products hit the US market in counter-season — Australian beef, lamb, and produce fill seasonal gaps in US supply.
• Major Australian ports (Sydney, Melbourne, Brisbane, Fremantle) have direct container service to Los Angeles and Long Beach.
• Reefer container availability can be tight during peak agricultural export season (Australian winter/spring = US summer/fall).

Australia vs. China vs. New Zealand: Sourcing Comparison

For many product categories — particularly beef, minerals, and wine — importers are choosing between Australian and Chinese or New Zealand alternatives.

| Factor | Australia | China | New Zealand | |---|---|---|---| | FTA with US | Yes (AUSFTA) | No | No | | Base duty (beef) | 0% AUSFTA | 26.4% MFN | 26.4% MFN | | Section 122 | 10% | 15% | 10% | | Section 301 | None | 7.5-100% | None | | Section 232 (metals) | 50% | 50% | 50% | | Total duty (qualifying beef) | 10% | 41.4-141.4% | 36.4% | | Critical minerals access | Lithium, rare earths | Dominant but restricted | Limited | | Compliance risk | Low | High (UFLPA, transshipment) | Low | | Transit to US West Coast | 15-18 days | 14-20 days | 14-17 days |

When Australia Wins

• Any AUSFTA-qualifying product. The 0% preferential rate + 10% Section 122 = 10% total is the lowest duty path from any major agricultural exporter. New Zealand and China pay 26-141% on the same beef.
• Critical minerals. AUSFTA qualification plus IRA incentives make Australian lithium, cobalt, and rare earths significantly cheaper to import than Chinese equivalents.
• Compliance simplicity. No UFLPA concerns, no transshipment enforcement risk, no Section 301 exposure. Australian supply chains are clean.

When Australia Loses

• Manufactured goods scale. Australia's manufacturing sector is small compared to China. If you need 100,000 units of electronics, Australia can't compete on capacity or price.
• Section 232 metals. Steel and aluminum pay 50% regardless of origin. AUSFTA provides zero protection here. If you're importing Australian steel, you're paying the same rate as Chinese steel.
• Labor costs. Australian wages are among the highest in the world. For labor-intensive manufacturing, you'll pay far more than Southeast Asian alternatives.

Documentation and Compliance

Every Shipment Needs

• Commercial invoice (AUD to USD conversion at CBP's published exchange rate)
• Packing list
• Bill of lading or airway bill
• Customs bond — required for commercial imports over $2,500
• ISF (Importer Security Filing) — filed 24 hours before vessel departure for ocean shipments
• AUSFTA certification of origin (on file, provided to CBP on request)

Product-Specific Requirements

Beef and meat products:

• USDA/FSIS import permit
• Australian government health certificate
• Establishment number for the Australian processing plant
• USDA reinspection at port of entry
• Country-of-origin labeling compliance

Wine and alcohol:

• TTB (Alcohol and Tobacco Tax and Trade Bureau) import permit (Basic Permit or Importer's Permit)
• TTB Certificate of Label Approval (COLA) for each label
• Certificate of origin and age (for aged spirits)
• State-specific alcohol import regulations

Pharmaceuticals and medical devices:

• FDA prior notice and registration
• Device listing for medical devices
• Establishment registration
• 510(k) or PMA clearance as applicable

Agricultural products (plant-based):

• USDA APHIS phytosanitary certificate from Australian Biosecurity
• FDA prior notice for processed food products
• Compliance with FSMA requirements

FAQ

What tariff rate does the US charge on Australian goods? Goods qualifying under AUSFTA enter at 0% duty + 10% Section 122 surcharge = 10% total. Non-qualifying goods pay MFN rates (varies by product) + 10% Section 122. Steel, aluminum, and copper face Section 232 rates (50%/25%) regardless of AUSFTA status.

Does Australia have a free trade agreement with the US? Yes — the US-Australia Free Trade Agreement (AUSFTA) has been in force since January 1, 2005. It eliminates duties on nearly all Australian goods that meet the rules of origin. However, Section 122 and Section 232 tariffs still apply on top.

How do I qualify for AUSFTA duty-free rates? Your product must be wholly obtained in Australia OR meet the 35% regional value content (RVC) threshold plus a tariff classification shift. You need a certification of origin on file (no prescribed format). See the AUSFTA qualification criteria section above.

How does Section 122 affect Australian imports? Section 122 adds a 10% surcharge on all imports regardless of FTA status. The CIT struck it down on May 7, 2026, but the Federal Circuit stayed the ruling — the tariff remains in effect and expires by statute on July 24, 2026.

Is Australia a good alternative to China for sourcing? For agricultural products, critical minerals, and specialized manufactured goods — absolutely. AUSFTA-qualifying Australian beef pays 10% total duty vs 41-141%+ for Chinese beef. For mass-manufactured consumer goods, Australia can't compete on scale or labor cost. It's a complementary source, not a replacement.

What's the transit time from Australia to the US? Ocean freight from Sydney/Melbourne to Los Angeles takes 15-18 days. Air freight is 15-18 hours. Brisbane and Fremantle add 1-4 days for ocean shipments.