Customs Amendment (Fuel Tax Reform and Other Measures) Act 2006 (76 of 2006)

Schedule 1   Amendments

Customs Act 1901

14   After Part VA

Insert:

Part VAA - Special provisions relating to excise-equivalent goods

105B Extinguishment of duty on excise-equivalent goods

(1) The liability to pay import duty on excise-equivalent goods is extinguished if:

(a) the goods are entered for warehousing; and

(b) excisable goods are manufactured and the excise-equivalent goods are used in that manufacture; and

(c) the excise-equivalent goods are subject to the control of the Customs at the time they are used in that manufacture; and

(d) that manufacture occurs at a place that is both:

(i) a warehouse described in a warehouse licence granted under Part V of this Act; and

(ii) premises specified in a manufacturer licence granted under the Excise Act 1901.

(2) The liability is extinguished at the time the excisable goods are manufactured.

Ad valorem component

(3) Subsection (1) does not apply to an amount of duty that is calculated as a percentage of the value of the excise-equivalent goods because of section 9 of the Customs Tariff Act 1995.

Note: Subsection 105C(2) deals with the payment of the amount.

105C Returns

(1) This section applies if:

(a) excisable goods are manufactured within a manufacture period; and

(b) excise-equivalent goods are used in that manufacture (whether or not in that period); and

(c) the excise-equivalent goods are subject to the control of the Customs at the time they are used in that manufacture; and

(d) that manufacture occurs at a place that is both:

(i) a warehouse described in a warehouse licence granted under Part V of this Act; and

(ii) premises specified in a manufacturer licence granted under the Excise Act 1901.

(2) The legal owner of the excise-equivalent goods at the time they are used in that manufacture must:

(a) give Customs a return within 8 days after the end of the manufacture period, providing particulars in accordance with section 71K or 71L in relation to the excise-equivalent goods; and

(b) at the time when each return is given to Customs, pay any amount of duty referred to in subsection 105B(3) that is owing at the rate applicable at the time the excisable goods are manufactured.

Penalty: 50 penalty units.

(3) Subsection (2) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(4) In this section:

manufacture period means:

(a) a 7-day period beginning on a Monday; or

(b) if the regulations prescribe a different period for the purposes of this definition - that period.

(5) If the regulations do prescribe such a different period, the regulations may also prescribe matters of a transitional nature relating to the change to the different period.

105D GST matters

(1) This section applies if:

(a) excise-equivalent goods are entered for warehousing; and

(b) excisable goods are manufactured and the excise-equivalent goods are used in that manufacture; and

(c) the excise-equivalent goods are subject to the control of the Customs at the time they are used in that manufacture.

Taxable importation

(2) For the purposes of the GST Act, the importer of the excise-equivalent goods is taken to have entered them for home consumption at the time the excisable goods are manufactured.

Note: Section 13-5 of the GST Act deals with taxable importations of goods entered for home consumption.

Deferred payment of GST

(3) If the importer of the excise-equivalent goods is an approved entity at the time the excisable goods are manufactured, then for the purposes of the GST Act and the GST regulations the importer is taken to have entered the excise-equivalent goods for home consumption by computer at that time.

Note: Regulations made for the purposes of paragraph 33-15(1)(b) of the GST Act deal with deferred payment of GST on taxable importations and require goods to have been entered for home consumption by computer.

Definitions

(4) In this section:

approved entity means an entity approved under regulations made for the purposes of paragraph 33-15(1)(b) of the GST Act.

GST regulations means the A New Tax System (Goods and Services Tax) Regulations 1999.

105E Use of excise-equivalent goods in the manufacture of excisable goods to occur at a dual-licensed place

A person must not use excise-equivalent goods subject to the control of the Customs in the manufacture of excisable goods unless that manufacture occurs at a place that is both:

(a) a warehouse described in a warehouse licence granted under Part V of this Act; and

(b) premises specified in a manufacturer licence granted under the Excise Act 1901.