Week 12: Customs & Border Protection Flashcards
ATA Carnet
International customs document permitting duty/tax-free temporary imports for up to one year
E.g. temporary import of scientific equipment / goods for trade shows / commercial samples
- Application made through authorised chamber of commerce in exporters country
Absolute Prohibition
Importing not allowed in any circumstances e.g. embryo clones, suicide devices, dogs (dangerous breeds)
Restriction
Importing requires written permission e.g. firearms, antibiotics, industrial chemicals
Classification of Goods
All goods must be given classification number for calculating rate of duty to be paid
When classifying an item, it’s necessary to have required to the description provided by headings, subheadings and notes
Valuation
- Determines duty to be paid
Calculated as % of value. More highly regulated for imports due to provisions that have been incorporated in the WTO agreement
Rate of Duty and WTO Agreement
Normal duty = applicable % rate x value of goods (to calculate this – essential to know ‘classification’ / ‘valuation’ / ‘rate of duty’
Determining ‘Country of Origin’
WTO agreement does not provide detailed rules for determining origin
WTO sets obligations that member countries should adopt when determining origin
Australian Customs Act contains provisions regarding rules of origin for imports – goods must be:
- Wholly obtained – wholly produced / manufactured from country of alleged origin
- Substantially Transformed – at least 50% of manufacturing costs must have been incurred in country of alleged origin
Customs Brokers
Professional agents for importer / exporter - prepares / submits all documents for clearing goods through customs
Customs Planning
Used by businesses to reduce customs duty to an absolute minimum while ensuring compliance with regulations
Strategies Used in Customs Planning
Reclassification of goods
- Importing disassembled kits rather than assembled products may reduce duty rate
Taking advantage of trade agreements
- EUs EBA arrangement allows duty free import of products that originate from the world’s least developed countries
Delaying payments whenever possible
- Using a deferred payment account can allow payment of import duties to be deferred until a later date – provide firm with cash flow advantage
Taking advantage of duty relief if available
- Australia’s Tradex Scheme provides customs duty / GST exemption for importing of goods to be used as inputs if the finished products are meant to be exported
Biosecurity in Australia
Regulated by Department of Agriculture and Water Resources (DAWR)
Protects Australia’s unique environment / agricultural sector while supporting reputation as a safe / reliable trading nation
Types of Quarantine
Quarantine at Border:
- All cargo, mails and passengers arriving at main entry points required to meet quarantine conditions
Animal Quarantine
- Must spend time at specially equipped facilities to ensure they are free of disease
Plant Quarantine
- Examined, monitored and treated to ensure clear from pests / disease
Human Quarantine
- Guard against infectious diseases – SARS, yellow fever, swine flu
Importers:
DAWRs Import Clearance Program ensures protection of Australia’s animal, plant and human health by:
- Processing imported cargo to address quarantine and food safety risk
- Facilitating efficient movement of cargo through quarantine barrier
Exporters
DAWR provides advice and assistance to exporters of agricultural and fisheries produce in relation to:
- Import conditions of destination countries
- Australian export legislation requirements
- Documentation, permits and certificates
- Quality assurance arrangements
- Premises registration requirements
- Inspection procedures
- Fees and charges
