Bunker fuel and commercial shipping

Duty payable on bunkers during international voyages

Bunkers on board an overseas ship engaged in an uninterrupted international voyage are not subject to customs duty or GST on fuel consumed during the voyage and local bunkers may be acquired without payment of excise duty or GST.

Example 1:

Xiang Shipping Lines operates a foreign-owned ship. After arriving in Brisbane from Singapore, it discharges some international cargo and loads local cargo for Melbourne. In Melbourne it discharges that domestic and some international cargo, acquires local bunkers and departs for Auckland where it discharges the balance of the international cargo.

Although domestic cargo was carried between Brisbane and Melbourne, the international voyage was not interrupted as transportation of that domestic cargo was not the sole purpose of the Brisbane-Melbourne leg. Xiang Shipping Lines do not have to pay customs duty and GST on fuel consumed during domestic travel. The bunkers acquired in Melbourne are free of excise duty.

Download Type of voyage being undertaken (PDF, 68KB) to help you work out the type of voyage being undertaken.

Sections within Voyage types and duty requirements

• Overseas ship
• Overseas ships on international voyages
• Overseas ships and domestic cargo
• Duty payable on bunkers during international voyages
• Domestic legs of an international voyage
• Short-term voyage disconnection
• Long-term voyage disconnection
• Fully imported ship