Highlights

  • Excise Equivalent Goods (EEGs) include alcohol, tobacco, and petroleum products imported into Australia.
  • EEGs are taxed with a customs duty equivalent to excise duty, ensuring fair treatment for imported and locally manufactured goods.
  • Businesses need to work with both the ATO and the Australian Border Force for EEG-related warehouse licences and regulations.
  • Importers using EEGs in manufacturing may be eligible for customs duty refunds under specific conditions.

Excise equivalent goods (EEGs) are goods that are imported into Australia, including alcohol or alcohol products, tobacco and tobacco products, fuel, lubricants, and petroleum products.

These goods are subject to customs duty, a tax on imported goods. To ensure consistency with goods manufactured in Australia, the customs duty rate for EEGs is set to match the excise duty rate applied to similar domestic products. This ensures fair treatment for both locally produced and imported goods. It’s crucial for businesses to understand how excise duty applies to alcohol, tobacco, and fuel, as well as how it impacts their operations.

Administration of EEGs

The Australian Taxation Office (ATO) is responsible for granting and overseeing licences for warehouses that handle EEGs. Importers and manufacturers must ensure they follow the necessary procedures to store and manage EEGs in compliance with Australian law. Importers must work closely with both the ATO and the Department of Home Affairs, specifically the Australian Border Force, to ensure all regulatory requirements are met. These agencies oversee tariff classifications and customs rates of duty, providing essential information for businesses to operate within the legal framework.

Storing and Moving Underbond Goods

Underbond goods refer to EEGs that are held under customs control until they either enter the Australian domestic market for consumption or are exported. These goods are stored in customs warehouses that the ATO supervises. If your business needs to move underbond goods, such as EEGs stored in a licensed warehouse, you must obtain permission from the ATO. For businesses that hold an entity-level excise-equivalent warehouse licence, general movement permission may allow for the transfer of goods between different licensed warehouses. Ensuring that all movements of EEGs are properly documented and approved is critical for regulatory compliance.

Licence Requirements and Customs Duty

To legally handle EEGs, businesses must obtain an excise-equivalent warehouse licence from the ATO. This licence authorises the storage and movement of EEGs, but it also comes with several responsibilities. Businesses must ensure the physical security of goods, maintain proper records, and meet legal requirements such as reporting and paying customs duty. For businesses involved in manufacturing excisable goods using EEGs, an excise manufacturer's licence is also required. It’s important to note that customs duties are due on imported EEGs unless they are used for manufacturing excisable goods (with some exceptions). For example, businesses involved in biodiesel or fuel ethanol production may still be subject to excise duties.

Importers should also be aware of the application procedures for licenses, including how to apply for an excise-equivalent warehouse licence and understand its conditions. Additionally, any changes or variations to the warehouse licence must be submitted to the ATO, ensuring compliance with regulations at all times.

Conclusion

The importation and management of excise equivalent goods (EEGs) in Australia come with specific regulations and responsibilities for businesses. Companies need to understand the requirements for customs duty payments, licensing, and warehouse management to operate successfully within the legal framework. By working closely with both the Australian Taxation Office (ATO) and the Australian Border Force, businesses can ensure they are compliant and potentially benefit from refunds or exemptions where applicable.