. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/W/454
18 June 2001
(01-3042)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
DUTY DRAWBACK
Communication from Australia
The following communication, dated 18 June 2001, has been received from the Permanent
Mission of Australia.
_______________
In response to the Chair's request, the following is a summary of Australia's duty drawback
system.
The duty drawback scheme enables exporting co mpanies to obtain a refund of customs duty
paid on imported goods where those goods have been exported.
The legislative framework for Australia's drawback scheme is included in three sections of the
Customs Act 1901  (Section 4 - Definition; Section 114 - En try of Goods for Export; and Section 168 -
Drawback payable on prescribed goods) and Sections 129 to 138 of the Customs Regulations 1926
which relate to the prescribed goods and conditions for payment of drawback.
Drawback involves the repayment of import duty on goods that are subsequently:
• exported in the same condition; or
• exported after being processed, treated or incorporated in other goods.
Drawback is not payable on:
• goods which have been used in Australia for purposes other than exhibition, processing, treatment
or other further manufacture;
• imported goods whose export FOB is 25 per cent or less than the value of those goods at the time
of import;
• goods to which a refund applies under other provisions, for example a tariff concession order;  or
• secondhand goods, unless satisfactory evidence substantiates that the goods were not used in
Australia.
Drawback can be claimed by any person who is able to substantiate that duty was paid, the
imported goods were not used in Australia and the imported goods were then exported.G/SCM/W/454
Page 2
Drawback is also claimable on goods that ar e lost, wasted or destroyed during manufacture
for export.
All drawback claimants are required to be registered with the Australian Customs Service.
Claims must be made within 12 months after the goods have been exported and are subject to aminimum claim of $50 per application.  The claima nt must notify the Australian Customs Service
before the goods are exported.  The pre-export notification should be provided at least 24 hours before
goods are actually exported.  There is no prescribed time limit date of importation and date of
exportation.
The scheme is based on self-assessment and documentation is not required to be submitted to
the Australian Customs Service for a claim to be made.  Documentation needs to be retained byapplicants so those claims can be substantiated in the event of a Customs audit.
The calculation method for duty drawbacks is on the basis of self-assessment, i.e. the claimant
determines the level of drawback based on one of the following methods:
• Shipment by shipment:   allows calculation of duty by referring to the import documents which
directly relate to the export consignment.
• Representative:  allows duty on imported components or commodities included in a drawback
claim to be calculated from a single "representative" shipment or by using an average calculatedover a number of shipments, rather than by a reference to each import transaction.  Representative
unit duties are self-assessed from the most recent import shipment or such other shipment(s) asagreed by the Australian Customs Service.  Once a representative unit duty is established it is
valid for 12 months after the first exportation of goods unless the Australian Customs Service
considers a shorter period is considered more appropriate.
This method of calculation is designed to benefit manufacturers who regularly import the same
type of component for incorporation into products for export.
• Imputation:  this method is used when the exporter is unable to obtain import documents in
relation to imported goods purchased from an Australian supplier.  In these circumstances the"customs value" may be imputed based on 30 per cent of the price from the supplier (i.e. the
purchase price).  The applicable duty rate is ap plied to the imputed customs value to determine
the amount of drawback payable.
The Australian Customs Service ensures that the amount of a claim for duty drawback of import
duty using the "imputation method" must not, on the exportation of the goods, exceed the amount
of imported duty.
This option can only be used where goods are fully imported and have been purchased in
Australia by the exporter.
A substitution provision for drawbacks exists ( Regulation 132 ) where similar locally sourced
and imported components are used in a single process of manufacture of other goods for export.  This
substitution drawback is paid on the principle that the component contained in the goods exported isentirely of imported origin.  This obviates the necessity for segregation of raw material stocks derived
from dual sources and separate production runs to satisfy deliveries to either domestic or export
customers.
__________