Most Australian businesses importing goods have never heard of a Tariff Concession Order. That’s not surprising — the scheme is administered quietly, it takes some work to identify whether you qualify, and the savings aren’t automatically applied. But for businesses regularly importing certain goods, a TCO can reduce or eliminate the duty component of every shipment.
What is a Tariff Concession Order?
A Tariff Concession Order (TCO) is a legal instrument that reduces the customs duty rate on a specific imported good to zero. It’s issued by the Australian Border Force under the Customs Act, and it applies to goods that are not commercially manufactured in Australia — meaning no local producer would be disadvantaged by the concession.
The idea is straightforward: if Australian manufacturers aren’t making a particular product, there’s no protective reason to collect import duty on it. TCOs exist to remove a cost that serves no policy purpose in those circumstances.
“For businesses regularly importing certain goods, a TCO can reduce or eliminate the duty component of every shipment indefinitely — not just once.”
How much can a TCO save?
It depends on the duty rate that currently applies to your goods. Most goods attract duty rates between 5% and 10% of customs value. On a $500,000 annual import spend, a 5% duty rate means $25,000 in duty payments per year. A TCO brings that to zero.
The concession applies indefinitely, as long as the TCO remains in force and no Australian manufacturer objects. Some TCOs have been in place for decades.
How do you apply?
Applications are lodged with the ABF and go through a formal process:
The process typically takes three to four months from application to issue. It requires a correctly described goods specification — this is where most applications run into difficulty, and where an experienced customs broker adds real value.
Who should look into this?
Any business that regularly imports the same category of goods — particularly machinery, equipment, industrial components or specialised materials — is worth reviewing. The question to ask is: does this product get manufactured commercially in Australia? If the honest answer is no, a TCO may be available.
Wallace International has been handling TCO applications for clients across multiple industries for over 40 years. If you’re unsure whether your goods qualify, we can review your classifications and advise whether an application is worth pursuing.
Frequently asked questions
What is a Tariff Concession Order?
A Tariff Concession Order (TCO) is a legal instrument issued by the Australian Border Force that reduces the customs duty rate on a specific imported good to zero. It applies where no Australian manufacturer produces a comparable product — so collecting import duty serves no protective purpose.
How long does a TCO application take?
Typically three to four months from lodgement to issue. The ABF advertises the application for 50 days to give Australian manufacturers the opportunity to object. If no objection is received, the TCO is issued and the concession applies to all future imports of those goods.
Does a TCO apply automatically?
No. You need to either apply for one or check whether an existing TCO already covers your goods. The ABF maintains a public register — if a TCO exists for your tariff classification, you can use it immediately without lodging a new application.
Who can apply for a Tariff Concession Order?
Any Australian importer can apply. The goods must have a specific tariff classification and must not be commercially manufactured in Australia. A licensed customs broker can assess your classifications and advise whether an application is likely to succeed.
Can a TCO be revoked?
Yes. If an Australian manufacturer begins producing a comparable product and lodges an objection, the ABF can revoke the TCO. Your customs broker monitors any changes that could affect your concession orders.