Large machinery cannot always be shipped to Australia as one complete unit.
A production machine may include:
- Main machinery
- Conveyors
- Motors
- Robotic equipment
- Control systems
- Structural components
- Other original machine components
Because of size, weight or transport restrictions, these components may need to arrive in separate containers, on different vessels or even through different transport methods.
This may involve what Australian Customs refers to as a:
Split Consignment.
What Is a Split Consignment?
In a machinery import context, a split consignment involves original components of a completed machine or equipment arriving in Australia across multiple shipments rather than as one physical shipment.
The important point is that the components collectively form one completed machine.
Where the requirements of Schedule 4 Item 45 are met, the applicable customs duty treatment can be based on the completed machine or equipment rather than treating every component solely as an unrelated standalone import.
This can be particularly important for complex and oversized machinery.
Why Does Correct Split Consignment Treatment Matter?
A complete production system may contain:
- Conveyors
- Motors
- Robots
- Control equipment
- Frames
- Other machinery components
If the goods do not qualify for split consignment treatment, individual components may need to be considered separately for:
- Tariff classification
- Duty
- Import requirements
- Customs documentation
- Biosecurity requirements
Planning the structure before shipment can therefore make a significant difference to how the machinery is imported into Australia.
Which Machinery May Qualify?
Schedule 4 Item 45 applies to eligible completed machines or equipment that would fall within a single tariff classification in:
Chapter 84
Machinery and mechanical equipment
Chapter 85
Electrical equipment
Chapter 86
Railway equipment
Chapter 87
Vehicles and related equipment
Chapter 89
Ships and floating structures
Chapter 90
Optical, measuring, medical and certain precision equipment
Being classified within one of these chapters does not automatically make a shipment eligible.
Additional conditions must also be satisfied.
What Are the Main Split Consignment Requirements?
The goods must generally be original components of a completed machine or equipment to which one tariff classification applies.
All components must also:
- Be ordered from a single overseas supplier
- Be shipped to Australia by the same supplier
- Have been available for shipment to Australia at the same time
- Arrive in Australia on two or more vessels or aircraft
Separate shipment must also arise from circumstances such as:
Accidental separation of a consignment
The size, shape or weight requiring separate transportation
The nature of the goods requiring different modes of transport for some components
A split consignment is therefore not simply a purchase order that has been divided into several convenient shipments.
What Is Not Normally Included?
Item 45 does not simply cover every part associated with a machine.
Excluded goods include:
- Replacement parts used to modernise or refurbish existing machinery
- Replacement components
- Spare parts
- Initial spare parts
- Maintenance tools and similar items supplied with the original shipment
The key question is whether the goods are original components forming the completed machine itself.
Why Should It Be Planned Before Shipping?
Split consignments are much easier to manage when the customs and logistics structure is confirmed before the first shipment departs.
Problems may arise if:
Different suppliers are involved
The completed machine does not have one tariff classification
Some goods are actually spare parts
Invoices do not clearly link the shipments
Documentation does not demonstrate the relationship between the components
For complex machinery, it is therefore useful to confirm the complete machine, classification, component list and shipping structure before booking freight.
What Documents May Be Required?
Exact documentation depends on the shipment, but a clear document trail is important.
Information may include:
- Main Commercial Invoice
- Invoices or Pro Forma Invoices for individual shipments
- Packing Lists
- Complete machine description
- Component list
- Technical documentation
- Relationship between each shipment
- Manufacturer or supplier supporting documentation
- Bills of lading and transport documents
The documentation should clearly demonstrate:
- What complete machine is being imported
- Its total value
- Which components are included in each shipment
- Why separate transportation is required
What Is the Main Customs Benefit?
One important benefit is tariff treatment.
Where Item 45 applies, the duty rate for the components is based on the rate that would apply to the completed machine or equipment.
For example, the completed machine may attract a Free rate while individual components, considered independently, could potentially have different tariff outcomes.
However, split consignment treatment does not automatically mean duty-free importation.
If duty applies to the completed machine, that rate remains relevant.
GST and other applicable import costs must also still be considered.
Is a Split Consignment Always Cheaper to Ship?
No.
While there may be customs advantages, splitting machinery can create additional logistics costs.
These may include:
- Additional handling
- Special packaging
- Disassembly
- Lifting
- Multiple container movements
- Flat Rack charges
- Breakbulk handling
- Additional documentation
- Reassembly in Australia
If the machine can be transported safely and economically as one unit, splitting it purely for freight purposes may not make sense.
Split consignments are generally most useful where separate transport is genuinely necessary.
Why Is Large Machinery Often Split?
Common reasons include:
- The completed machine exceeds container dimensions
- The machine is too heavy to move as one unit
- Some components require Flat Rack transport
- Some equipment requires Breakbulk shipping
- Different components require different transport modes
- The complete machine cannot practically move on one vessel
For example, part of a production system may fit inside a 40HQ container while oversized structural components require a Flat Rack.
The customs and freight plan should consider these shipments as part of the same overall machinery project where applicable.
Do Australian Biosecurity Requirements Still Apply?
Yes.
Split consignment treatment relates to customs and tariff treatment.
It does not remove Australian biosecurity obligations.
Machinery may still require additional consideration where it:
Uses timber packaging
Is used machinery
Contains soil or organic contamination
Is affected by seasonal BMSB measures
Moves as Breakbulk, Open Top or Flat Rack cargo
Large machinery imports therefore often require customs, biosecurity and international freight planning to be considered together.
How Should a China-to-Australia Machinery Shipment Be Planned?
Before shipping a large machine from China to Australia, useful information includes:
- Complete machine description
- Finished machine HS classification
- Total value
- Full component list
- Dimensions and weight of each component
- Components suitable for standard containers
- Components requiring Flat Rack
- Components requiring Breakbulk
- Expected shipping schedule
- Australian destination port
- Final delivery location
Once this information is available, the importer and logistics provider can assess whether separate shipments are required and how each component should be transported.
Chinz Logistics China-to-Australia Machinery Shipping
Chinz Logistics provides international freight solutions for machinery and oversized cargo moving from China to Australia, including:
- China to Australia sea freight
- FCL shipping
- LCL shipping
- Flat Rack transport
- Open Top container shipping
- Breakbulk shipping
- Oversized machinery and project cargo
- China warehousing and collection
- Export customs support
- Australian import clearance and local delivery
For machinery that needs to move across multiple shipments, freight planning can be structured according to the completed machine, component dimensions and weights, transport methods and Australian import requirements.
If you are preparing a large machinery shipment from China to Australia, provide:
Complete machine description + HS Code + component list + dimensions and weight of each component + total cargo value + Australian destination
to help determine a suitable freight and customs solution.
