ATO Interpretative Decision

ATO ID 2006/324

Excise

Shipping of excisable goods to the Joint Petroleum Development Area
FOI status: may be released

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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)

Related ATO Interpretative Decisions
ATO ID 2004/100

Keywords
Excisable goods

Siebel/TDMS Reference Number: 5235161

Business Line: Indirect Tax

Date of publication: 1 December 2006

ISSN: 1445-2782

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