Duty payable on bunkers during international voyages
Bunkers on an overseas ship engaged in an uninterrupted international voyage are not subject to customs duty or GST on fuel consumed during the voyage. Local bunkers may be acquired without payment of excise duty or GST.
Xiang Shipping Lines operates a foreign-owned ship. After arriving in Brisbane from Singapore, it discharges some international cargo and loads domestic 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.
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