ATO Interpretative Decision
ATO ID 2006/324
Excise
Shipping of excisable goods to the Joint Petroleum Development AreaFOI status: may be released
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Can excisable goods be delivered for exportation to a 'place outside Australia' for the purposes of section 61 of the Excise Act 1901, if they are intended to be shipped to an installation in the Joint Petroleum Development Area (JPDA)?
Decision
No. An installation outside Australia, located within the JPDA, is not a 'place outside Australia' for the purposes of section 61 of the Excise Act. Therefore excisable goods cannot be delivered for exportation to a place outside Australia for the purposes of section 61 if they are intended to be shipped to an installation in the JPDA.
Facts
A licensed manufacturer intends to have excisable goods transported to an installation located in the JPDA.
The JPDA is a specified area in the Timor Sea. Australia and East Timor signed a treaty, in relation to the JPDA, to jointly control, manage and facilitate the exploration, development and exploitation of the petroleum resources of the specified area.
The JPDA is located outside Australia.
Reasons for Decision
Subsection 61(1) of the Excise Act provides that all excisable goods are subject to the CEO's control until delivered for home consumption or for exportation to a place outside Australia, whichever occurs first.
Subsection 4(1) of the Excise Act defines 'place outside Australia' to not include:
- (a)
- a ship or an area of waters, outside Australia; or
- (b)
- an installation outside Australia; or
- (c)
- a reef or an uninhabited island outside Australia.
As the above definition excludes an installation outside Australia from being a place outside Australia, an installation in the JPDA, while it is not in Australia, is not a 'place outside Australia' for the purposes of the Excise Act.
As an installation in the JPDA is not a place outside Australia, excisable goods cannot be delivered for exportation to a place outside Australia when they are intended to be transported to an installation in the JPDA.
Date of decision: 21 November 2006
Legislative References:
Excise Act 1901
subsection 4(1)
section 61
subsection 61(1)
ATO ID 2004/100
Keywords
Excisable goods
ISSN: 1445-2782