• Then declare the goods and provide proof of purchase to Customs for calculation of any duty and tax to be paid.
• Customs will not collect combined duty and taxes of less than $A50 provided that excess goods are declared.
• As soon as the $A50 limit is reached, the passenger must pay the full amount of duty and/or taxes, not just the amount in excess of $A50.

It is important to note there are different rates of duty and tax. You should find out the duty and tax rates of goods before you buy that extra bottle or other items in excess of your duty/tax free concession. If in doubt, contact Worldwide Customs & forwarding by email sales@wwcf.com.au


Business Travellers

• Business travellers carrying commercial goods or samples may need to obtain permits for their goods depending on the nature of the goods, regardless of value. Quarantine and wildlife regulations and other restrictions may also apply to certain goods.
• A customs entry for Customs clearance may be required if the goods carried are valued over $A250.Laptop computers and other similar electronic equipment for personal use may also be brought in duty/tax free provided Customs is satisfied you are taking these goods with you on departure.
• Temporary importation of commercial goods
• Carnets may be obtained for temporary duty/tax free entry of goods such as commercial samples, jewellery, goods for international exhibitions, equipment for sporting events, professional television and film equipment etc.

Unaccompanied Goods

Unaccompanied baggage does not receive the same duty/tax concessions as goods you bring with you. These goods may be subject to duty/tax unless you have both owned and used them for 12 months or more. This also applies to articles posted to Australia.

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Export Grants

Grants at a Glance

The Export Market Development Grants (EMDG) scheme, administered by Austrade, encourages small and medium sized Australian businesses to develop overseas markets. The scheme has been extended until 2005/06 and enhanced to improve access for small & medium sized businesses. EMDG reimburses up to 50 per cent of expenditure incurred on export promotion, less the first $15,000. The following is an overview of the scheme.

Who can apply?
An Australian individual, partnership, company association, co-operative, statutory corporation or trust that has carried on export business in Australia during the year that promoted:

• the export of goods
• the delivery of services outside Australia
• certain services in Australia to non-residents
• inbound tourism
• the export of intellectual property and know-how outside Australia
• conferences and events held in Australia
• has an income of less than $50 million for the year
• earnt less than $25 million in export earnings for the year
• spent at least $15,000 on eligible export promotional activities. For the first grant, two years' expenses may be combined to reach this threshold.
• Industry associations, joint ventures, and trading houses are able to seek 'special approval status' from Austrade to enable them to apply for a grant.

What can't be claimed:

Expenses that: relate to trade with New Zealand; are of a capital nature, relate to sales or product development; are fraudulent, unsubstantiated or related to an illegal activity; promote any form of pornographic material. The GST component of incurred expenses cannot be claimed under EMDG.

What can be claimed?

Overseas Representation & Consultants expenses

• the cost of maintaining overseas representation
• cost of employing a consultant for export market research or export marketing activities
• a maximum of $250,000 per application is claimable for the combined representation and consultants expenses

Marketing Visits expenses

• $200 per day allowance for accommodation, entertainment, etc
• cost of travel, including air fares, taxis, departure taxes, etc

Communications expenses

• cost of communicating. eg. internet, telephone and facsimile

Free Sample expenses

• actual cost of providing free samples to overseas residentsTrade Fairs, seminars and in-store promotions
• cost of participation in an international trade fair or seminar or similar activity
• cost of in-store promotions

Promotional Literature and Advertising expenses

• cost of promotional literature and advertising
• cost of externally provided web site set-up
• bought-in expenses of setting up a web site for export promotion

Overseas Buyers

• cost of bringing buyers to Australia who are non-residents for an approved promotional purpose
• a maximum of $7,500 per buyer per visit, totalling $45,000 per claim

What do you get?

Up to 50 per cent reimbursement of eligible expenses, less the first $15,000.

Each applicant may receive a grant of up to $200,000 per application, to a maximum of eight grants, plus three grants for each 'new market' developed. A minimum grant of $2,500 applies for the first two years.

Grants up to $60,000 will be paid in a single payment. Larger grants are paid by two payments: an initial payment of $60,000 with the balance paid at the end of the financial year, subject to available funds.

• grants are assessable for income taxation purposes
• the Australian Taxation Office has confirmed that the GST does not apply to grants under the EMDG scheme

Major changes to the scheme to take effect in the 2001/02 grant year include:

• reducing from $20,000 to $15,000 the minimum expenditure required to access the EMDG scheme
• including Professional Conference Organisers and similar events organisers
• including the costs of inward travel by overseas buyers
• removing the restriction that consultants must be "short term only", merging the overseas representation and consultants categories, and capping them at $250,000
• broadening the trade fairs category by including seminar costs, in-store promotions etc

Key facts about EMDG

Analysis of the scheme's effectiveness in encouraging export promotion suggests that $12 in additional exports is generated by every grant dollar.

In the 2000/01 financial year:

• $135 million in grants were distributed to 2,900 exporters
• 690 exporters entered the scheme for the first time
• businesses that received grants generated $4.4 billion in exports
• the estimated number of jobs attributable to exports generated by EMDG recipients was 53,000
• 66 per cent of recipients had turnovers less than $5m
• the average grant was $46,000

How to apply:
Advice for first time applicants

• Austrade recommends that you register for EMDG before you lodge your first EMDG application. You should register by 30 June
• First-time applicants have the option to claim for expenses incurred in the previous two financial years.

Register online at www.austrade.gov.au or call Austrade's Export Advisors on 13 28 78 for a registration form.

Austrade will confirm your registration and send you an information pack on EMDG to assist you with your application.

To obtain a grant, first time applicants will need to satisfy Grants Entry requirements by also lodging with their application, an acceptable Export Market Plan, Cash Flow Projections and Financial Statements.

All applications must be lodged by 30 November

All applicants (including first time applicants) will need to:

• complete an EMDG application form, and
• complete supporting documents to the application (called 'Schedules') and lodge with Austrade between 1 July and 30 November.

It pays to lodge early. Applications lodged by 30 October are usually paid within 8 weeks. Applications lodged in November may take up to seven months to be processed.

Contact Austrade for advice before you lodge your EMDG application so we can help you to maximise your claim and save you time.

For further information, call Austrade's Export Advisors on 13 28 78, or vi Export Market Development Grants

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Tariff Concession System for Importers

Customs manages a range of programs to support local industry. One of those, the Tariff Concession System, may affect you if you are an Australian importer or local manufacturer.

How does the Tariff Concession System work?

Under this System, a Tariff Concession Order (TCO) will be granted on imported goods if substitutable goods were not produced in Australia at the time the TCO application was lodged. Substitutable goods are Australian made goods which have a use corresponding to a use of the imported goods.

A TCO can be granted to allow:

• the duty-free entry of goods that are identified as consumption goods under criteria used for balance of payments
• statistics; or
• a three per cent duty on other eligible goods.

It is important to note that in determining whether substitutable goods are available, the assessment does not consider whether the Australian goods compete with the imported goods in any market. Certain classes of goods such as foodstuffs, clothing and passenger motor vehicles are on the Excluded Goods Schedule and are not eligible for a TCO.

How do I apply for a TCO?

If you are applying for a TCO for imported goods, you must lodge an application on the approved form, and complete all information required on the form. This is important as failure to meet all the requirements outlined in the form may result in delays or even rejection of the application. The form is available from Customs offices.

How quickly will my application for a TCO be processed?

Customs must screen the application to ensure that it is valid and, if acceptable, arrange within 28 days of receipt for details to be publicly notified in the Commonwealth of Australia Tariff Concessions Gazette.

Customs is then required to make decisions on each application within 150 days from the date of gazettal. Because of this strict time frame, it is important that you provide all information on time as late replies cannot be considered in the final decision.

When will my TCO come into effect?

When a TCO is granted, it comes into effect on the date the application was first received by Customs. This means that all goods covered by the TCO and entered for home consumption on or after that date will be eligible for the concession.

All goods covered by the TCO description, not only the applicant's goods, are eligible.

Who can object to an application?

All applications for TCOs are published in the Tariff Concessions Gazette. If you are a local manufacturer, you may object to the granting of a TCO within 50 days of the date of the Gazette that published details of the TCO. Objections must be lodged on an approved form which is available from Customs offices. The form has detailed instructions to help you complete it.

Importing a motor vehicle

Any person may import a motor vehicle or a motorcycle into Australia.

If you plan to drive the vehicle on Australia's roads it is essential that you contact the vehicle standard Branch before importing the vehicle to ensure that the vehicle can meet the safety requirements and to obtain a permission to import the vehicle. To apply for a" Motor Vehicle Import Approval just click the following Link http://www.dotrs.gov.au/transreg/vsb/vsb_10.htm

Customs Duty, GST and Luxury Car Tax (LCT)

The Customs Duty is payable on the Customs Value (value at the place of export, as defined in the Customs Act) of the vehicle at a rate of 10% for cars and 5% for 4WDs (as defined in the relevant Act).&GST at the rate of 10% is paid on the Value of Taxable Importation (as defined in the Act). This value is the customs value + freight and insurance + customs duty.

Luxury Car Tax, which is payable in addition to Customs Duty and GST. Where the Value of Taxable Importation exceeds the "Luxury" threshold, Luxury Car Tax at the rate of 25% is paid on the amount by which the value exceeds the threshold. The threshold value of Value of Taxable Importation is $57009.00.

We suggest that you view the Australian Customs Service Page on http://www.customs.gov.au as it is the official source of information. The "Guide to the Importation of Privately Owned Motor Vehicles or Motor Cycles", which is downloadable from that Web Page, is particularly useful, as they give an example of the valuation calculations.

All privately imported vehicles are subject to the same rates of Customs duty and Goods and Services Tax (GST) and, where applicable, Luxury Car Tax (LCT) as commercially imported vehicles. The Customs duty is based on the Customs value of the vehicle.

The rate of Customs duty payable is that which applies to the particular type of vehicle on the date it is entered for Customs purposes in Australia. GST and, where applicable, LCT applies at the date you import the vehicle into Australia. Without a permission to import, which can be obtained from the Vehicle standards safety Branch a special duty of $12,000 may apply. http://www.dotrs.gov.au/transreg/vsb/vsb_10.htm

As Customs duty varies according to vehicle design and value, and is subject to change, you should contact a Customs office before importing any vehicle into Australia.

Prior to making a decision to import your vehicle you should take into account the costs involved in the process such as: freight, Customs duties and entry processing charges, steam cleaning for quarantine purposes, other wharf and transport charges and any costs involved in having the vehicle meet state or territory registration requirements (whether your vehicle will indeed meet these requirements should be checked prior to importation).

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Valuing your vehicle for Customs purposes

The Customs value of imported private motor vehicles and motor cycles (whether new or used) is assessed in the following way:

The Transaction Value Method

The Customs value of new or second hand privately imported motor vehicles or motor cycles will ordinarily be calculated using the "transaction value" method. Under this method the Customs value is based on the "price actually paid or payable" for the vehicle or cycle in a bona fide sale where the price is not influenced by any other factor.

This method will be used where the importer can show that the vehicle or cycle was purchased to be exported to Australia. The transaction value method will not be used where there is insufficient or unreliable information regarding the purchase.

In determining the Customs Value, certain adjustments may be made to the price paid by the importer to have the vehicle or cycle brought to Australia (eg. the deduction of overseas freight and insurance).

Alternate Methods of Valuation

When the "transaction value" method cannot be used to determine Customs Value, the alternate methods of valuation, as set out in Section 159 of the Customs Act will be applied in sequential order.
Where the Fall-Back alternate method is used, Customs will usually accept as the basis for determining the Customs Value, the landed cost of the vehicle or cycle in Australia as assessed by a person qualified in valuing such vehicles and cycles. Customs may then make certain deductions to determine the Customs Value of the vehicle or cycle.

The valuation procedures outlined above are applied by Customs to privately imported motor vehicles and motor cycles purchased by the importer on or after 2 March 1998. The previous set of valuation guidelines used for motor vehicles and motor cycles purchased by the importer prior to 2 March 1998 are contained in the 'Guide to the Importation of Privately Owned Motor Vehicles and Motor Cycles' included below.

Conversion to Australian currency

The Customs value of your vehicle is calculated in Australian dollars. Where it is necessary to convert any prices, costs, etc. from a foreign currency to Australian dollars, the conversion will be based on that rate of exchange in effect in Australia on the date of exportation of your vehicle to Australia.

Concessions for tourists and temporary residents

As a tourist or temporary resident, you may bring a motor vehicle or a motorcycle and attached trailer or a caravan to Australia for a period of up to 12 months (or longer under certain circumstances) without paying duty on them, provided they are subsequently exported from Australia.

For this concession to apply, you will need one of the following:

• a Carnet De Passages en Douanes issued by an overseas organisation which has a reciprocal arrangement with the Australian Automobile Association, or
• a cash or bank security, equal to the amount of duty and GST and, where applicable, LCT otherwise payable.

If your vehicle is stolen, damaged or destroyed whilst you are in Australia you should notify Customs as soon as possible at your original port of arrival.

All fittings and accessories imported with your motor vehicle, motorcycle, trailer or caravan must also be exported with that same vehicle.

Quarantine

To prevent the entry of diseases, noxious weeds and insect pests into Australia, inspect all vehicles on arrival and may require them to be properly cleaned. This is usually effected by steam cleaning. You should remove all soil and any other matter from your vehicle (including the underside) prior to exportation to Australia.

Vehicles manufactured in Australia

You may import an Australian manufactured motor vehicle or a motorcycle without paying Customs duty on it, providing you have owned and used the vehicle overseas and there are no outstanding Australian duties, taxes or charges owing on it.

However, you will be required to pay GST and, where applicable, LCT on the vehicle if no GST or applicable LCT was paid when the vehicle was originally exported from Australia.

Motor Vehicle Standards Act

The Motor Vehicle Standards Act 1989, which is administered by the Vehicle Safety Standards Branch, came into effect on 1 August 1989. Under this legislation it is an offence to import any new or secondhand vehicle unless:

• it meets the safety and emissions standards applying to vehicles to be used on Australian roads, or
• arrangements are in place to modify the vehicle to meet these requirements after its arrival in Australia.

Before importing any vehicle it is essential that you ensure it will be able to be delivered in Australia by contacting the Vehicle safety standards branch http://www.dotrs.gov.au/transreg/vsb/vsb_10.htm

They are the only body who can issue permits to import motor vehicles from overseas

Please note, the Department of Transport and Regional Services advises that the only exemption from the Import Approval requirement is for vehicles returning to Australia where the owner of the vehicle at the time of its return was also the owner at the time of its exportation.

Clearance formalities

You will be required to complete all the formalities to clear your motor vehicle through Customs at the port of importation. To avoid any delays, please have available documents such as passport, driver's licence, purchase and transportation documents, bills of sale, registration and insurance papers, service records and log books.

Vehicle registration

Customs has no control or authority over motor vehicle or motorcycle specifications or registration requirements in Australia.

Before bringing your vehicle to Australia, you should check with the motor registration Branch of the State or Territory where it is intended to be registered to ensure that it will meet their registration requirements.

Vehicles can be temporarily imported and legally driven on Australian roads for the period of carnet validity (or temporary importation period) provided registration is still current in the vehicle's country of origin.

Requirements At a Glance

Motor vehicles imported into Australia must comply with the Motor Vehicle Standards Act 1989; this is the same requirement for vehicles built in Australia.

The information listed here is a brief overview for importing a Motor Car or similar vehicle. For more specific information we suggest you e-mail us.

Will Your Car Be Allowed Into Australia?

When importing a used car there a number of important points to note.

1. The vehicle will not be cleared by the Australian Customs Service without approval of the Commonwealth Department of Transport and Regional Services (DoTRS).
2. Vehicles that are at least 15 years old do not have to meet the requirements of the Motor Vehicle Standards Act, but still need DoTRS approval.
3.  To import a vehicle under 15 years old
   1. You must have owned the vehicle for at least 12 continuous months immediately prior to it's arrival in Australia, and,
   2. You must be of driving age and be an Australian citizen or a migrant with permanent residency, and,
   3. The vehicle is fitted with an Australian compliance plate,
      OR
      A letter of compliance has been issued by the Australian importer,
      OR
      The vehicle will be modified to meet Australian Design Rules after arrival.
      
      There are a limited number of companies in Australia approved to make the necessary modifications and then affix a compliance plate. A written agreement with one of these companies must be in place prior to importation.
       
4. Specialist & Enthusiast Vehicle Scheme (SEVS). There are a variety of categories under which particular vehicles can be imported. For full details of entry requirements we recommend that you visit the DoTRS Web Page onhttp://www.dotrs.gov.au/transreg/vsb/vsb_10.htm before purchasing a vehicle.

Quarantine Requirements

Used vehicles are subject to Quarantine inspection to ensure that they are free of material of animal or plant origin. Soil/dirt can contain all sorts of prohibited matter.
It is often cheaper and more convenient to have the car thoroughly cleaned before shipment than after arrival in Australia. Vacuuming of the inside, including the boot, washing the outside and steam cleaning underneath is recommended.

Customs Duty, GST and Luxury Car Tax (LCT)

Customs Duty is payable on the Customs Value (value at the place of export, as defined in the Customs Act) of the vehicle at a rate of 10% for cars and 5% for 4WDs (as defined in the relevant Act).
GST at the rate of 10% is paid on the Value of Taxable Importation (as defined in the Act). This value is the customs value + freight and insurance + customs duty.

Luxury Car Tax, which is payable in addition to Customs Duty and GST. Where the Value of Taxable Importation exceeds the "Luxury" threshold, Luxury Car Tax at the rate of 25% is paid on the amount by which the value exceeds the threshold. The threshold value of Value of Taxable Importation is $57009.00 current as at 01/01/05

Please contact us to discuss your particular requirement sales@wwcf.com.au

This information is current as of January 2005 and is only intended as a guide. If you need more information or you are not sure of the requirements that apply to you, email information@customs.gov.au. You can also contact a Customs Information Centre on 1300 363 263 from anywhere in Australia or +61 2 6275 6666 from outside Australia

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