Tradex Scheme

Introduction Tradex is a government initiative to encourage exports, through providing upfront relief from Customs Duty and GST for goods that are destined for re export at the time of Entry for Home Consumption. Tradex is a government initiative to encourage exports, through providing upfront relief from Customs Duty and GST for goods that are destined for re export at the time of Entry for Home Consumption. The Tradex Scheme is administered by AusIndustry The Tradex Scheme is administered by AusIndustry

Tradex Applications Tradex, who is eligible? Tradex, who is eligible? What benefits does the scheme provide? What benefits does the scheme provide? What goods are eligible for the scheme? What goods are eligible for the scheme? Who decides if you are eligible? Who decides if you are eligible? How to apply How to apply Assessment Criteria Assessment Criteria How is the benefit received? How is the benefit received?

Eligibility to the Scheme Persons or organisations who intend to import goods, whether these are to undergo industrial processing or not, and which either: comply with the requirements of Australia's Duty Drawback Regulations; or are included in an exempt class of goods (goods that are exempt from compliance with the Duty Drawback Regulations); and the goods, will be: exported within one year after their importation; and subject to appropriate record-keeping and accounting systems until they are exported. Holders of a Tradex Order can import only those goods nominated in the application and subsequent Order. Goods imported for sale in Duty Free stores, and goods subject to Excise are not able to be included in the Tradex Scheme.

Scheme-specific eligibility criteria An application must be lodged with AusIndustry in the approved form. Approved applicants must conduct their own self assessment program of internal audits, and may be subject to random audits by AusIndustry. Records must be kept in Australia for a period of five years and they must contain full particulars of the nominated goods in respect of: their importation and entry for home consumption; all subsequent dealings with, and activities undertaken in respect of, the goods including incorporation in other goods, consumption or use, disposal, or other dealings; their export; any payment of Tradex duty. If goods entered under a Tradex Order are diverted into Home Consumption, or are not exported within 12 months, then Tradex Duty must be paid to AusIndustry within 28 days. Additional GST may also be payable, depending on the circumstances of the consumption of the goods. Tradex customers may be subject to compliance checks. Suspension from the Scheme and a penalty regime could be a consequence of misuse.

Assessment Criteria AusIndustry will check that: the goods nominated for import are eligible goods; the imported goods are to be exported within one year of their importation; and the customer has an appropriate record keeping system to track and account for the goods imported under the Scheme How is the benefit made? Upon presentation of an approved Tradex Order, a free rate of Customs duty and exemption from GST is set by the ACS allowing the approved Tradex importer to clear the goods without payment of duty and tax. The approval is in the form of a Ministerial Determination (MD), which is linked by treatment code to the importers Owner Code. An application can be made at any time prior to the importation of the goods.

What is Tradex Duty? Tradex duty means the tax known as Tradex duty that is payable under section 21 of the Tradex Scheme Act Iimposed by the Tradex Duty Imposition (Excise) Act 1999, the Tradex Duty Imposition (Customs) Act 1999 or the Tradex Duty Imposition (General) Act A person is guilty of an offence if they are liable to pay Tradex duty in respect of goods and fail to pay within the prescribed period. The failure to pay Tradex duty within the prescribed period carries a penalty of an amount equal to the amount of Tradex duty that was not paid within the prescribed period. (In other words a one for one ratio.) However, if an infringement notice is served on a person, the person may elect to pay the secretary within 28 days after the service of the notice (or such other period allowed by the Secretary) a penalty of 20% of the Tradex duty was not paid in addition to the amount of Tradex duty due.

Circumstances in which the holder of a Tradex Order Becomes Liable to Pay Tradex Duty in Respect of Nominated Goods. (a)The goods are consumed or used by the holder in Australia; or (b)The goods are disposed of or otherwise dealt with in any way by the holder for the purpose of being consumed or used by another person in Australia; or (c)Except in the case of goods included in an exempt class of goods, any of the requirements of the Drawback Regulations are not complied with in respect of the goods; or (d)The goods are not exported within one year (or such other period as is prescribed by the Secretary)