Reporting excise equivalent goods and paying duty
You deal with both the ATO and the Department of Immigration and Border Protection (DIBP) to meet your reporting and payment obligations for storing and delivering EEGs.
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Import and warehouse declarations
You or your broker must lodge all import and warehouse declarations with DIBP using the Integrated Cargo System (ICS) or an approved customs form.
To move imported goods (including EEGs) to a licensed customs warehouse you must lodge a Warehouse Declaration (N20) with DIBP. The N20 authorises the movement of the goods from the wharf or airport to the licensed customs warehouse and defers payment of customs duty.
To clear the imported goods from the customs warehouse you need to lodge an Import Declaration out of Warehouse (N30), to:
- deliver your imported goods into the Australian domestic market from a customs warehouse (you must lodge an N30 with DIBP and pay customs duty before the N30 is cleared)
- report imported EEGs used in the manufacture of excisable goods in a customs warehouse that is also covered by an excise manufacturer licence (quote treatment code '444' on the N30). This transfers the imported goods to the excise regime and in most cases (all EEGs other than biodiesel and fuel ethanol) extinguishes the customs duty liability.
Periodic settlement permission
You can apply to the ATO for a periodic settlement permission (PSP), which allows you to:
- deliver EEGs and certain other customable goods into the Australian domestic market or use EEGs in excise manufacture over a specified period (settlement period)
- defer paying customs duty (if applicable) and reporting those goods until the end of the period or the day specified in your PSP.
If you have a PSP, you can deliver the specified goods without first lodging and paying the duty and having an N30 cleared. At the end of the settlement period you must then lodge an N30 with DIBP, detailing the deliveries you made into the Australian domestic market and/or the EEGs used in excise manufacture during the settlement period, and pay the applicable customs duty. Customs duty will not be payable on the imported goods used in excise manufacture with the exception of biodiesel and fuel ethanol.
We generally issue PSPs as part of the customs warehouse licensing process, based on the nature of your operations. However, you don't need to hold a customs warehouse licence to be issued with a PSP that allows you to deliver your goods from premises licensed to another entity.
If you're eligible for the small business entity concessions (broadly, you have aggregated annual turnover of less than $2 million), you can apply to defer weekly settlement to a monthly reporting cycle. Monthly reporting and payment of customs duty is required by the 21st day of the month following delivery of the goods into the Australian domestic market.
If you're not eligible for the small business concession (and don't deal in transport gaseous fuels) you can apply for a specific seven-day settlement period, with reporting and payment of customs duty on the first business day after the end of the settlement period.
If you're not eligible for the small business entity concessions and you deal in transport gaseous fuels, you can apply to us to defer reporting and paying customs duty on your transport gaseous fuels. You must lodge and pay customs duty by 4.00pm on the sixth business day after the end of your nominated seven-day settlement period.
In all situations, payment of customs duty is due at the same time as lodgment.
Delivery direct into domestic consumption
To move imported goods (including EEGs) directly from the place of import into the Australian domestic market without first moving the goods to a customs warehouse, you must lodge an Import Declaration (N10) with DIBP. Prior to the goods being released any customs duty owing on the imported goods must be paid.
You deal with both us and the Department of Immigration and Border Protection to meet your reporting and payment obligations that arise from storing and delivering EEGs.