A step-by-step, HS-specific walkthrough to claim IA‑CEPA preferential duty for Indonesian fresh chilli peppers (HS 0709.60) into Australia in 2026—covering HS classification, 2026 rate, rules of origin (WO), required proof of origin, how to declare the preference in ICS, and a GST/landed-cost example.
If you’re importing Indonesian fresh chillies into Australia in 2026, you can claim a preferential rate under IA‑CEPA. We’ve helped buyers do this reliably for years, and the process is simpler than most people think once you nail three things: correct HS code, clear proof of Indonesian origin, and accurate input in ICS. Here’s how we approach it for our chilli customers, step by step.
The quick answer: HS code and 2026 duty rate
What is the HS code and 2026 duty rate for fresh chilli peppers imported into Australia?
Fresh, chilled chilli peppers are classified under HS 0709.60 (Fruits of the genus Capsicum or Pimenta, fresh or chilled). In Australia you’ll see this as 0709.60.00 in the Working Tariff. Under IA‑CEPA, the 2026 preferential duty rate for eligible Indonesian-origin chillies is Free (0%).
Two reality checks we always do:
- Verify the line in the ABF Working Tariff for 0709.60 in the current year. Rates generally remain Free under IA‑CEPA, but don’t guess. Check the 2026 table before you lodge.
- Confirm you’re actually importing “fresh or chilled.” If your product is dried or ground, you’ll be in HS 0904, not 0709.60. Different chapter, different rules.
Immediate takeaway: If your chillies are truly fresh and Indonesian-origin, you should be targeting HS 0709.60.00 with IA‑CEPA preference at 0% duty in 2026.
The three pillars to claim IA‑CEPA on Indonesian chillies
Pillar 1: Classify correctly (HS 0709.60 vs look-alikes)
We see three common misclassifications:
- Dried or crushed chillies. These go to Chapter 9 (HS 0904), not 0709.
- Frozen chillies. These often shift to 0710.80 depending on the cut and presentation.
- Mislabelled “capsicum” consignments. Bell peppers and chilli peppers can both sit in the 0709.60 heading, but your description and documents must line up with the actual goods.
Practical tip: Match the packing list and commercial invoice descriptions to “fresh red chilli peppers” or “fresh cayenne peppers” and include HS 0709.60.00 at least to 6 digits on the invoice. Consistency across documents reduces questions from ABF.
Pillar 2: Prove Indonesian origin under IA‑CEPA (origin criterion WO)
Fresh vegetables qualify as “wholly obtained” when they’re grown and harvested in Indonesia. For chillies, the origin criterion is WO. That’s the cleanest path. You don’t need to count non-originating inputs or processing. Just ensure:
- The chillies were cultivated and harvested in Indonesia.
- There was no further processing beyond chilling, sorting, and packing.
- Any transit through third countries maintained customs control without alteration.
In our experience, most disputes happen when consignments are mixed origin or repacked offshore without adequate control. Keep it simple. Keep it Indonesian.
Pillar 3: Declare the preference correctly in ICS
When your broker lodges the import declaration in ICS, make sure they:
- Enter HS 0709.60.00 and country of origin ID (Indonesia).
- Select the IA‑CEPA preferential treatment and input the requested preference indicator.
- Attach valid proof of origin (see below). Keep the original on file. Audits do happen.
If your broker isn’t sure which preference option to pick, share the origin document upfront and ask them to mirror the “WO” origin criterion in the declaration. We’ve seen entries default to general rate simply because a preference wasn’t selected.
Proof of origin: what ABF expects to see
Do I need a Certificate of Origin or can I use an exporter declaration under IA‑CEPA?
IA‑CEPA allows either:
- A Certificate of Origin (COO) issued by an authorized body in Indonesia, or
- An Origin Declaration made by an approved exporter on the commercial invoice.
Both are valid if they contain the required data elements and are issued/dated correctly. For high-frequency, repeat shipments, an origin declaration by an approved exporter is often faster.
What exact details must appear on the origin document for HS 0709.60?
Whether it’s a COO or an invoice origin declaration, our check-list includes:
- Exporter name and address. If an approved exporter, include the approval number.
- Importer name in Australia (or “unknown” if not yet assigned, depending on the agreement’s flexibility).
- Description of goods aligned to the invoice and packing list. Include “fresh chilli peppers,” variety if relevant, and grade.
- HS code to 6 digits at minimum: 0709.60.
- Origin criterion: WO.
- Country of origin: Indonesia.
- Quantity and unit of measure. Gross and net weight are helpful.
- Invoice number and date referenced on the origin document.
- Place and date of issue. Name, signature, and stamp (for COOs) or signature by the approved exporter (for declarations).
Example of acceptable invoice declaration text we’ve seen work: “The exporter of the products covered by this document declares that, except where otherwise clearly indicated, the products are of Indonesian preferential origin under IA‑CEPA. Origin criterion: WO. HS: 0709.60. Invoice: [number/date]. Approved exporter No: [xxxx].”
We recommend using the precise wording from IA‑CEPA’s origin annex if available to you. Small deviations usually aren’t an issue when all core data is present, but it’s better to be exact.
GST and landed cost in 2026
If duty is 0% under IA‑CEPA, do I still pay GST on chilli imports?
GST is separate from customs duty. Australia applies 10% GST to taxable importations. Fresh vegetables are generally GST‑free in Australia when supplied domestically, and importations of those goods are often non‑taxable. In practice, that means many fresh chilli imports clear with 0% duty and 0% GST. Your broker will apply the correct GST treatment based on the ATO food rules and ICS settings.
If your chillies don’t meet the GST‑free food criteria, GST would be 10% of the taxable importation value. That value is customs value plus duty (if any) plus international freight and insurance to the border.
Worked example: landed cost for Indonesian fresh chillies (2026)
Scenario: 4,000 kg fresh Indonesian red chillies, CIF value components as follows.
- Customs value (CVAL): AUD 16,000
- International freight + insurance to Australia: AUD 3,200
- Duty under IA‑CEPA: 0%
Two outcomes to consider:
- If GST‑free food applies. Duty = 0. GST = 0. Landed cost before domestic charges = AUD 19,200.
- If GST applies. Duty = 0. GST = 10% of (16,000 + 0 + 3,200) = AUD 1,920. Landed cost before domestic charges = AUD 21,120.
Takeaway: IA‑CEPA eliminates duty. GST depends on whether your product qualifies as GST‑free food. Clarify this with your broker before arrival so you model the right cash flow.
How to lodge the IA‑CEPA claim in ICS
How do I select the IA‑CEPA preference when lodging my Australian import declaration?
We coach brokers to do the following for 0709.60 Indonesian chillies:
- Classify as 0709.60.00 and set the country of origin to ID.
- Choose the IA‑CEPA preference scheme option presented in ICS for Indonesian-origin goods.
- Input the origin criterion as WO where ICS requests it and confirm preferential rate shows Free.
- Attach the COO or the approved exporter’s invoice origin declaration. Ensure document dates line up with the commercial invoice and shipment.
- If claiming GST‑free status for food, apply the correct GST setting in ICS, consistent with ATO guidance on GST‑free food.
Need help with your exact ICS screens or wording? Share a redacted draft and we’ll sanity‑check your setup. If you want quick feedback, Contact us on whatsapp.
Edge cases and common mistakes we see
What if my chillies are mixed origin—can I still claim IA‑CEPA?
No. A consignment that combines Indonesian and non‑Indonesian chillies isn’t wholly obtained. You can’t claim IA‑CEPA on the whole lot. Either split the shipment by origin or pay the general rate on the non‑originating portion. We’ve seen mixed origins derail otherwise clean entries.
Transshipment and direct consignment
Transshipment via another country is fine if the goods remain under customs control and aren’t processed or repacked. Keep proof of non‑manipulation from the transit port if asked. If the goods were opened and reconfigured offshore, expect questions and be ready to show chain‑of‑custody.
Description mismatches and HS 0904 vs 0709
If any document mentions “dried,” “powder,” or “ground,” officers may reclassify to 0904 and your IA‑CEPA claim will not apply to that tariff line. Keep your wording tight and reflect the true state of the goods: fresh, chilled, whole chilli peppers.
Origin paperwork timing and data alignment
Three avoidable pitfalls:
- COO issued after shipment without referencing the correct invoice number and date.
- Missing “WO” origin criterion.
- Approved exporter number omitted from the invoice declaration.
A 5‑minute pre‑lodgement check saves days of post‑entry queries in our experience.
Where we help buyers win
We export Indonesian fresh chillies at scale and build the paperwork to match the claim you’re making. Our Red Cayenne Pepper (Fresh Red Cayenne Chili) program includes IA‑CEPA‑ready documentation, consistent HS descriptions, and packing lists that mirror your import declaration. If you’re also stocking broader produce lines, you can review our catalogue and specifications here: View our products.
Final thought. IA‑CEPA is supposed to be easy for products like fresh chillies. Classify as HS 0709.60. Prove WO origin. Declare the preference in ICS. When those three align, your 2026 entries should flow with zero duty and, for many importers, zero GST as well. And if you want a second set of eyes on your first claim this season, just Contact us on whatsapp.