| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1013138282019
Date of advice: 20 December 2016
Ruling
Subject: Importation of goods
Question
Is the importation of the organic (product) a non-taxable importation under section 13-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes the importation is a non-taxable importation because the supply of the product is a GST-free supply (subsection 13-10(b) of the GST Act).
The supply of the product is a GST-free under section 38-2 of the GST Act because:
● the product is food for human consumption and satisfies the definition of food in paragraph 38-4(1)(b) of the GST Act as 'ingredients for food for human consumption' and
● the supply of the product does not fall within any exclusions in section 38-3 of the GST Act (not item 8 nor item 16 nor item nor item 19 of the table in clause 1 of Schedule 1 to the GST Act).
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are registered for goods and service tax (GST).
You carry on an enterprise.
The product has been cleaned, dried and de-husked.
You confirmed that the imported product has been processed as food for human consumption.
You do not process treat or otherwise alter the imported product.
You provided product specifications as follows:
Manufacturing process of organic products:
First, the product is cleaned and sorted to remove all extraneous material through a machine. Then, it is dehydrated. During this stage, the dehydrated product is cracked and the shells are removed leaving just the raw product. The product is selected and packaged into a specific bags and then into a master box. Lastly, the final product go through metal detectors. Once we get the analysis results, the product is ready to be exported.
Description: Chunks of product, clean, which has been dehydrated before bucking and shelling.
Ingredients: Products made with selected organic ingredients:
Uses and Applications
For industrial purposes, for human consumption.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 13-10.
A New Tax System (Goods and Services Tax) Act 1999 Section 38-2.
A New Tax System (Goods and Services Tax) Act 1999 Section 38-3.
A New Tax System (Goods and Services Tax) Act 1999 Section 38-4.