Drawback of DutyDrawback of Duty

Section Section

168(1) 168(1)

Provides the legal authority for the granting of a Provides the legal authority for the granting of a Drawback, by Regulation.Drawback, by Regulation.

168(2) 168(2) Specifies the amount to be considered for Specifies the amount to be considered for Drawback, where goods are entered under item 41E Drawback, where goods are entered under item 41E of Schedule 4 (ACIS Scheme) and therefore a credit of Schedule 4 (ACIS Scheme) and therefore a credit is claimable against the ACIS instrument.is claimable against the ACIS instrument.

Regulation 129Regulation 129129(1) 129(1)

Provides for the Drawback of Customs Duty, however excludes goods that are Provides for the Drawback of Customs Duty, however excludes goods that are further manufactured (Reg 131), and second hand goods.further manufactured (Reg 131), and second hand goods.

129(2) 129(2)

Drawback of Customs Duty is only payable once the goods have been Drawback of Customs Duty is only payable once the goods have been exported.exported.

129(3) 129(3)

For the purposes of subFor the purposes of sub regulation (1), goods are secondregulation (1), goods are second hand goods if: hand goods if:

(a) after their first importation into Australia, they have been used other than (a) after their first importation into Australia, they have been used other than for the purpose of being for the purpose of being inspectedinspected or or exhibitedexhibited; or ; or

(b) in the case of films that, by direction of an officer, are required to be (b) in the case of films that, by direction of an officer, are required to be exhibited, they are, after their first importation into Australia, exhibited other exhibited, they are, after their first importation into Australia, exhibited other than in accordance with that direction.than in accordance with that direction.

129(4) 129(4) In subIn sub regulation (3), ''film'' means cinematograph films or video tapes regulation (3), ''film'' means cinematograph films or video tapes and includes a positive or negative of a cinematograph film.and includes a positive or negative of a cinematograph film.

Regulation 131 & 132Regulation 131 & 132

Permits Import Duty on goods further manufactured, or incorporated in exported goods, provided the Duty paid goods were not used, other than in the manufacturing or incorporation process.

The goods may be exhibited or demonstrated and still remain eligible for drawback.

Further specification is made that an allowance can be made for losses or waste in the manufacturing process.

Regulation 133Regulation 133133(1)

Drawback of import duty is not payable on goods if:

(a) the F.O.B. price of the goods at the time of exportation is not more than 25% of the customs value of the goods at the time of importation of the goods; or

(b) the import duty paid on the goods has been refunded.

133(2)

Drawback of import duty is not payable under regulation 131 on the exportation of specified goods if the import duty paid for the goods has been refunded

Note that specified goods means goods that have been incorporated into or further manufactured with Australian goods.

Regulation 134Regulation 134134(1)

Drawback of Duty will not be approved unless:

Prior to export the owner gives notification of Intention to claim Drawback; and

The goods are available for examination at a reasonable time

There are records to show that Import Duty has been paid on the goods, together with evidence of receipt and disposal of the goods

A Drawback claim in the approved format is lodged with Customs after export, but no later than 12 months after the day of exportation

There is a minimum of $50.00 claim payable on any single claim, however multiple claim amounts can be combined to exceed the $50.00 claimable.

Further manufactured goods must have notice given to Customs before the manufacture commences. Customs may require supervise manufacture if this does not take place.

The CEO may exempt the prior notification requirements in writing, or may approve the claim without notification being received.

Regulation 134 cont.Regulation 134 cont.134(3)

Where a person, being the manufacturer or owner of specified goods within the meaning of regulation 131, has informed the Collector with respect to the goods in accordance with sub regulation (2), the Collector may, by notice in writing to the person, require the person:

(a) to cause the manufacture of the goods to take place under the supervision of an officer; or

(b) to cause the subjecting of the goods to a process or to treatment to take place under the supervision of an officer;

as the case may be.

134(4) [Application of paragraph (1)(a)]

Paragraph (1)(a) does not apply in relation to drawback of import duty on the exportation of goods if the CEO:

(a) in writing, exempts an owner from the application of that paragraph; or

(b) approves payment of drawback notwithstanding the fact that the notice of intention was not given to the Collector as required by that paragraph.

Regulation 135Regulation 135

Reg 135(1)

The amount of Drawback Claim shall not exceed the amount of Import Duty paid on the goods.

Regulation 135.Regulation 135.Regulation 135(2)

Where the amount of Import Duty claimed is not known by the claimant, the person may claim Drawback based on the formula:

/ P x 3 \

/ ----------- \ R

\ 10 /

where:

P is the price paid for the goods by the person who was the owner of the goods at the time the goods were exported; and

R is the rate of duty within the meaning of section 132 of the Act.

Regulation 136Regulation 136

Where notice to claim Drawback is given to Customs, they may require the claimant to:

• Produce the goods for examination by an officer

•Supervise the packing of the goods

•Secure the goods to their satisfaction

•Mark the packaging or label the goods with a distinctive label.

Customs do not require the above where the goods are for export in their original export packaging.

Regulation 136ARegulation 136A

Where goods are imported and exported more than once, the amount to be considered for Drawback of Import Duty is the amount last paid, prior to the export of the goods, for which Drawback is claimed.

Regulation 137Regulation 137

Any person whom wishes to claim Any person whom wishes to claim Drawback of Import Duty, is required Drawback of Import Duty, is required to facilitate the examination of the to facilitate the examination of the goods by a Customs officer.goods by a Customs officer.

Regulation 139Regulation 139

Import Duty includes:Import Duty includes:

• (a) (a) dumping duty; dumping duty; • (b) interim dumping duty; (b) interim dumping duty; • (c) third country dumping duty; (c) third country dumping duty; • (d) interim third country dumping duty; (d) interim third country dumping duty; • (e) countervailing duty; (e) countervailing duty; • (f) interim countervailing duty; (f) interim countervailing duty; • (g) third country countervailing duty; (g) third country countervailing duty; • (h) interim third country countervailing duty,(h) interim third country countervailing duty,

Calculation methods for DrawbacksCalculation methods for Drawbacks

Three methods:Three methods:

• Method A, shipment by shipment, where the calculations are Method A, shipment by shipment, where the calculations are based on the Customs Import Entry of the goods, and based on the Customs Import Entry of the goods, and quantities for each importation.quantities for each importation.

• Method B, Representative method, where the average amount Method B, Representative method, where the average amount of Customs Duty per specific item is established, with of Customs Duty per specific item is established, with reference to past importations, over a reasonable sample reference to past importations, over a reasonable sample period.period.

• Method C, Imputation method, where the import documents Method C, Imputation method, where the import documents are not available to the claimant or exporter. The provisions are not available to the claimant or exporter. The provisions and formula of Reg. 132(5) applies. No reference is made to and formula of Reg. 132(5) applies. No reference is made to the import data.the import data.

ReferencesReferencesS168 S168

Reg. 129, drawback may be paid on exportation - exceptions, Reg. 129, drawback may be paid on exportation - exceptions, definitionsdefinitions

Reg. 131, drawback on exportation of further manufactured goodsReg. 131, drawback on exportation of further manufactured goods Reg. 132, mixture with like goodsReg. 132, mixture with like goods Reg. 133, limitations (25% rule, duty refund, relanding)Reg. 133, limitations (25% rule, duty refund, relanding) Reg. 134, conditions (prior notice, available for inspection, Reg. 134, conditions (prior notice, available for inspection,

drawback claim within 12 months)drawback claim within 12 months) Reg. 135, amount of claim not to exceed amount paid on the Reg. 135, amount of claim not to exceed amount paid on the

goods, or amount deemed paid – formulagoods, or amount deemed paid – formula Reg. 136, examination of goods Reg. 136, examination of goods Reg. 136A, amount to be paid is based on latest importationReg. 136A, amount to be paid is based on latest importation Reg. 138A, review by AATReg. 138A, review by AAT Reg. 139, duty includes Dumping DutyReg. 139, duty includes Dumping Duty