Customs Services

Customs Valuations

The Customs Valuation System provides several methods for valuing goods to meet with current Australian Customs legislation.

Due to the complexity of this system it is imperative that all goods entering the country are valued correctly. Our trained Customs team are well versed in Customs legislation and can offer advice on how this may affect your business.

For example, whenever an importation involves a transaction between related parties, the question of whether that relationship has affected the price will be of vital importance. Issues such as this demonstrate the complexity of the system and the necessity of obtaining professional advice to ensure compliance with the legislation which will result in the effective management of your import transactions.

This information is intended as a guide only. Should you wish to discuss any aspect of Customs Valuations, please feel free to contact our Customs division on 07 3854 1227 or 1300 139 454.

Tariff and Duty Concessions

The Australian Customs Tariff is based on the World Customs Organizations (WCO) Harmonized Commodity Descriptive and Coding System and imposes duties on a wide range of imported goods as a protection mechanism for local industry.

The principal objective of Customs duty imposed by the Tariff is to provide assistance to Australian manufacturers of goods. However, the structure of the Tariff is such that some goods not made in Australia also become subject to duty. Under certain conditions, the Government will forgo the collection of the full or partial duty on goods not made in Australia.

The Tariff Concession System is the Commonwealth Governments principal means by which Customs duty may be reduced on specified imported goods that are not produced in Australia. This system has been in place since 1988, and is based on the logic that importers should not be burdened with Customs duty where protection to local industry is not required as there is no local industry producing equivalent goods. A Tariff Concession can be granted to allow the duty free entry of goods.

This information is intended as a guide only. Should you wish to discuss any aspect of Tariff and Duty Concessions, please feel free to contact our Customs division on 07 3854 1227 or 1300 139 454.

Enhanced Project By-Law Scheme – Capital Equipment Projects

The EPBS (Enhanced Project By-Law Scheme) is the Federal Government’s framework for providing customs duty exemption on the importation of capital equipment and components (‘capital goods’) for major mining, resource-processing, manufacturing, agriculture, power-generation and water-treatment projects. To be eligible for duty exemptions under EPBS, project proponents must have a compliant Australian Industry Participation Plan (AIPP) and demonstrate that Australian suppliers have been afforded a prospective opportunity to participate in the project. Eligible projects must have total project expenditure on capital goods of $10 million or greater. This may consist of expenditure on both Australian and overseas made capital goods.

Capital goods under the scheme include:

• Functional units: A functional unit consists of one or more capital goods or components which are integrally connected to perform a process;
  
• Procurement / equipment packages: A quantity of the same type of capital good which is used across a project; or
  
• Pipes, pipelines, conveyors, flexible flow lines etc used to convey gas, liquids or minerals

This information is intended as a guide only. Should you wish to discuss any aspect of the EPBS, please feel free to contact our Customs division on 07 3854 1227 or 1300 139 454.

Customs Audit

Owners and senior managers of importing companies have legal responsibilities to Customs authorities to ensure corporate compliance and executive accountability, as well as an obligation to their company to ensure the correct amount of duty is paid. This can be a complex and time consuming task. We at OBM have staff and systems designed to reduce the time our clients spend on compliance and duty matters and to ensure the correct amount of duty is always paid.

The environment of self-assessment, the obligation for compliance and the range of Custom’s monitoring powers, place all importers at risk of selection for an official audit by the Australian Customs Service. Prudent importers undertake periodic audits of their international trade transactions and systems.

The Prudential Audit team of OBM International Trade Services has proven expertise in assisting importers in the management of their regulatory environment and ensuring that duty and taxation liabilities are neither over, nor under, paid.

This information is intended as a guide only. Should you wish to discuss any aspect of Customs Audits, please feel free to contact our Customs division on 07 3854 1227 or 1300 139 454.