Excise Regulations (Amendment) (Cth)

Statutory Rules 1985 No. 3071

Excise Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and pursuant to section 4 of the Acts Interpretation Act 1901,hereby make the following Regulation under the Excise Act 1901.

Dated 15 November 1985.

N. M. STEPHEN

Governor-General

By His Excellency’s Command,

John N. Button

Minister of State for Industry,

Technology and Commerce

After Part IV of the Excise Regulations the following Part is inserted:

“PART IVa—DUTY FREE SHOPS

Duty free shops

“79. (1) In this regulation, unless the contrary intention appears—

‘airport departure area’ means a part of an airport set aside for the reception of relevant travellers—

(a) after the completion by such travellers of such formalities as, under the laws of the Commonwealth, those travellers are required to comply with before departing to places outside Australia; and

(b) before the embarkation of such travellers in respect of relevant flights;

‘off-airport duty free shop’ means a duty free shop that is not an on-airport duty free shop;

‘on-airport duty free shop’ means a duty free shop that is located in an airport departure area;

‘relevant flight’, in relation to a person who is a relevant traveller, means the international flight in relation to which the person is a relevant traveller.

 

(S.R. 249/85)—Cat. No.  10/8.11.1985

 

“(2) Words and phrases that are used in this regulation and in section 61d of the Act have, in this regulation, unless the contrary intention appears, the same respective meanings as in that section.

“(3) A Collector shall not give permission under sub-section 61d (2) of the Act otherwise than upon the making, in accordance with this regulation, of an application for such permission.

“(4) An application for permission under sub-section 61d (2) of the Act—

(a) shall be made in writing;

(b) shall relate to a single duty free shop;

(c) shall specify—

(i) the name of the proprietor of the duty free shop;

(ii) the name of the duty free shop; and

(iii) the address at which the duty free shop is situated; and

(d) shall be lodged with a Collector for the place at which the duty free shop is situated.

“(5) The following matter is prescribed to be taken into account by a Collector when deciding whether to give permission under sub-section 61d (2) of the Act, namely, whether the proprietor of the duty free shop in respect of which the permission is sought is likely to be able, in the event of permission being given, to comply with the conditions set out in paragraphs (7) (g), (h) and (j).

“(6) Permission under sub-section 61d (2) of the Act shall have effect for such period, commencing on the day on which the permission is given, as the permission specifies.

“(7) Permission under sub-section 61d (2) of the Act in relation to an off-airport duty free shop is subject to the following conditions:

(a) that goods shall not be sold in the shop to a person unless that person is a relevant traveller and produces to the proprietor a ticket, or other document approved by a Collector for the purposes of paragraph 61d (7) (b) of the Act, that is evidence that the person is entitled to make the international flight in relation to which that person is a relevant traveller;

(b) that the proprietor shall make and retain a copy of the ticket or other document;

(c) that goods shall not be delivered from the duty free shop to a relevant traveller earlier than the commencement of the second to last day on which the duty free shop is open for business before the day on which, according to the ticket or other document, the relevant flight is to depart;

(d) that goods shall not be delivered from the duty free shop to a relevant traveller unless they are enclosed in a package—

(i) that is sealed in such a manner that the goods cannot be removed from it without the seal being broken;

 

(ii) the outside of which is clearly marked to show—

(a) that it contains goods that were sold in a duty free shop;

(b) the name of that shop; and

(c) the name of the relevant traveller; and

(iii) where the package is of such a size that it may, in accordance with the conditions applicable to the carriage of the relevant traveller on the relevant flight, be carried in the cabin—that is transparent;

(e) that, at the time of each sale of goods at the duty free shop, the proprietor shall prepare, in triplicate, an invoice, being one of a series of sequentially numbered invoices, specifying—

(i) the name and usual residential address of the relevant traveller;

(ii) the following particulars of the intended exportation of the goods by the relevant traveller:

(a) the day and time of departure;

(b) the airport of departure;

(c) the flight number or, where inapplicable, other designation,

in respect of the relevant flight;

(iii) a precise description of the goods, including—

(a) the quantity, in words and figures, of each item of the goods; and

(b) the sale value, in figures, of each item or quantity of items,

being a description prepared in such a way as to make it impracticable to add other items to the description;

(f) that, upon preparing an invoice in accordance with paragraph (e), the proprietor shall—

(i) place one copy with the goods inside the package referred to in paragraph (d) and, where the package complies with sub-paragraph (d) (iii), position the copy so that the invoice may be read without the seal of the package being broken;

(ii) place one copy in a waterproof envelope and attach that envelope securely to the outside of the package; and

(iii) retain one copy in his own records;

(g) that, not less than 2 hours before the time of departure referred to in sub-sub-regulation (e) (ii) (a), the proprietor shall, by telex or by such other means as are approved by a Collector, provide a Collector at the relevant airport of departure with the following information in relation to a sale from the duty free shop:

(i) the name of the shop;

(ii) the name of the relevant traveller;

(iii) in relation to the relevant flight—

 

(a) the day and time of departure; and

(b) the flight number or, where inapplicable, other designation in respect of the flight;

(iv) a full description of any item of the goods included in the sale having a sale value of $200 or more;

(v) the total number of items of the goods included in the sale;

(vi) the total number of packages of the kind referred to in paragraph (d) in which the goods included in the sale are packed;

(vii) the total number of those packages that are, respectively—

(a) packages to which sub-paragraph (d) (iii) applies; and

(b) packages to which that sub-paragraph does not apply;

(viii) the invoice numbers in respect of all invoices relating to the sale;

(h) that the proprietor shall, in relation to each package referred to in paragraph (d) that is surrendered by the relevant traveller for carriage otherwise than in the cabin of the aircraft, at the point of surrender—

(i) cause the package to be examined with a view to ascertaining whether it remains sealed as specified in sub-paragraph (d) (i) and has not been tampered with; and

(ii) where the package remains so sealed and has not been tampered with, cause the copy invoice referred to in sub-paragraph (f) (ii) to be removed from the package;

(j) that the proprietor shall, in relation to each package referred to in paragraph (d) that is taken by the relevant traveller into an airport departure area, within that area—

(i) cause the package to be examined with a view to ascertaining whether it remains sealed as specified in sub-paragraph (d) (i) and has not been tampered with;

(ii) where the package remains so sealed and has not been tampered with, cause the copy invoice referred to in sub-paragraph (f) (ii) to be removed from the package; and

(iii) without causing the package to be opened—

(a) cause that copy invoice to be compared with the invoice enclosed in the package; and

(b) cause the goods enclosed in the package to be checked against the specification of the goods in those invoices;

(k) that, where, upon the carrying out of the operations specified in paragraph (h) or (j), a discrepancy is detected, in that—

(i) a package is no longer sealed as specified in sub-paragraph (d) (i) or has been otherwise tampered with;

(ii) the invoice enclosed in the package does not correspond with the copy invoice (if any) that was attached to the package;

(iii) an invoice required to be enclosed in, or a copy invoice

 

required to be attached to, a package is not so enclosed or attached; or

(iv) the goods enclosed in a package are not as specified in the invoice enclosed in, or the copy invoice (if any) that was attached to, the package,

the proprietor shall cause to be given immediately to a Collector notice specifying—

(v) the name of the relevant traveller;

(vi) the flight number or other designation in respect of the relevant flight;

(vii) the day and time of that flight; and

(viii) the nature of the discrepancy;

(m) that a relevant traveller to whom goods are sold in a duty free shop—

(i) shall not remove, alter or otherwise interfere with, or suffer to be removed, altered or interfered with (except as required by this regulation), an invoice attached to the outside of a package pursuant to sub-paragraph (f) (ii);

(ii) shall not, before the exportation of those goods, break the seals on, or otherwise tamper with the integrity of, the package in which those goods are enclosed or (except as authorized by or under the Act) suffer those seals to be broken or the integrity of the package to be otherwise tampered with;

(iii) shall—

(a) upon surrendering a package containing those goods for carriage otherwise than in the cabin of an aircraft; or

(b) upon taking a package containing those goods into an airport departure area,

present the package, sealed as specified in sub-paragraph (d) (i) and with the invoice attached as specified in sub-paragraph (f) (ii), to the proprietor or a servant or agent of the proprietor and permit the proprietor, or the servant or agent of the proprietor, as the case may be, to examine the package and to remove that invoice from it;

(iv) if the relevant traveller does not export the goods on the relevant flight, shall, not later than noon on the next working day of the duty free shop after the day specified in the invoice relating to the goods as the time for the departure of that flight (in this sub-paragraph referred to as the ‘scheduled departure time’), notify the proprietor accordingly and—

(a) where the relevant traveller intends to export the goods on a subsequent flight, being a flight departing not more than 48 hours after the scheduled departure

 

time, notify the proprietor of that intention and, at the same time, provide the proprietor with the flight number or other designation, and particulars of the intended day and time of departure, of that flight; or

(b) where the relevant traveller does not intend to export the goods as referred to in sub-sub-paragraph (a), at the same time, notify the proprietor accordingly and, not later than the close of business of the duty free shop on the second working day of the shop after the scheduled departure time, return the goods to the shop; and

(v) where, having notified the proprietor, pursuant to sub-sub-paragraph (iv) (A), of his or her intention to export the goods on a flight subsequent to the relevant flight, the relevant traveller does not so export the goods—

(a) not later than noon on the next working day of the duty free shop after the day of departure specified in the notification of intention, notify the proprietor that the goods have not been so exported; and

(b) not later than the close of business of the duty free shop on the second working day after that specified day of departure, return the goods to the shop;

(n) that the proprietor shall, not later than the expiration of 10 working days of the duty free shop after the end of each month, lodge with a Collector a return setting out—

(i) the name of the duty free shop;

(ii) the number of such of the invoices that were prepared in respect of goods that were delivered from the duty free shop and intended to be exported during that month, as are invoices copies of which have not been retrieved by or on behalf of the proprietor in accordance with sub-paragraph (h) (ii) or (j) (ii); and

(iii) in relation to each such invoice—

(a) the particulars required to be set out in that invoice; and

(b) the amount of excise duty payable in respect of the goods to which the invoice relates,

and shall pay to a Collector an amount equal to the aggregate of the amounts of excise duty specified in the return.

“(8) Permission under sub-section 61d (2) of the Act in relation to an on-airport duty free shop is subject to the following conditions:

(a) that goods shall not be sold in the shop to a person unless that person is a relevant traveller;

(b) that, at the time of each sale of goods at the duty free shop, where the purchaser is a relevant traveller who is the pilot or a member of the crew of an aircraft, the proprietor shall prepare, in triplicate, an invoice, being one of a series of sequentially numbered invoices,

 

specifying—

(i) the name and usual residential address of the relevant traveller;

(ii) the following particulars of the intended exportation of the goods by the relevant traveller:

(a) the day and time of departure;

(b) the airport of departure;

(c) the flight number or, where inapplicable, other designation,

in respect of the relevant flight; and

(iii) a precise description of the goods, including—

(a) the quantity, in words and figures, of each item of the goods; and

(b) the sale value, in figures, of each item or quantity of items,

being a description prepared in such a way as to make it impracticable to add other items to the description;

(c) that, at the time of each sale of goods at the duty free shop, where the purchaser is a relevant traveller who is a passenger on an aircraft, the proprietor shall prepare, in duplicate, an invoice, being one of a series of sequentially numbered invoices, specifying—

(i) the following particulars of the intended exportation of the goods by the relevant traveller:

(a) the day and time of departure;

(b) the flight number or, where inapplicable, other designation,

in respect of the relevant flight; and

(ii) a precise description of the goods, including—

(a) the serial number (if any) of each item of the goods;

(b) the quantity, in words and figures, of each item; and

(c) the sale value, in figures, of each such item or quantity of items,

being a description prepared in such a way as to make it impracticable to add other items to the description;

(d) that, upon preparing an invoice pursuant to paragraph (b) or (c), the proprietor shall—

(i) deliver one copy, with the goods, to the relevant traveller; and

(ii) subject to paragraph (f), retain the other copy or copies, as the case requires, in his own records;

(e) that the proprietor shall, in relation to each successive period of 7 days (each such period commencing on whichever day of the week is nominated for the purpose by the proprietor and approved by a Collector), lodge with a Collector a return setting out—

 

(i) the name of the duty free shop; and

(ii) a full inventory of all goods sold from the shop during the relevant period of 7 days;

(f) that the proprietor shall attach to a return lodged in pursuance of paragraph (e) copies of all invoices prepared pursuant to paragraph (b) or (c) in relation to goods sold in the duty free shop during the week to which that return relates.

“(9) For the purposes of paragraph 61d (10) (b) of the Act—

(a) in relation to the proprietor of an off-airport duty free shop—

(i) the prescribed way is the production by or on behalf of the proprietor to a Collector of the copy invoice removed, in accordance with sub-paragraph (7) (h) (ii) or (7) (j) (ii), from the outside of the package containing those goods; and

(ii) the prescribed time is a time not later than one hour after the departure of the relevant flight; and

(b) in relation to the proprietor of an on-airport duty free shop—

(i) the prescribed way is the completion and lodgement with a Collector of the return referred to in paragraphs (8) (e) and (f) in accordance with those paragraphs; and

(ii) the prescribed time is a time not later than the expiration of each successive period referred to in the first-mentioned of those paragraphs.

“(10) In sub-regulation (9)—

‘prescribed way’ means the way prescribed under paragraph 61d (10) (b) of the Act in which the proprietor of a duty free shop is to provide a Collector with proof of the export of goods delivered to a relevant traveller in accordance with a permission under sub-section 61d (2) of the Act;

‘prescribed time’ means the time prescribed under that paragraph within which the proprietor of a duty free shop is to provide a Collector with such proof.

“(11) Permission under sub-section 61d (2) of the Act in relation to a duty free shop, being either an off-airport duty free shop or an on-airport duty free shop, is subject to the condition that the proprietor, and servants and agents of the proprietor, shall not enter into an arrangement with a relevant traveller pursuant to which goods delivered to that relevant traveller under that permission are—

(a) to be transferred to the proprietor, or any servant or agent of the proprietor, upon the return of the relevant traveller to Australia; or

(b) to remain with the proprietor or any servant or agent of the proprietor.

“(12) The grounds on which a Collector may, under sub-section 61d (13) of the Act, revoke a permission given under sub-section 61d (2) of the Act are the following grounds:

 

(a) that a condition to which the permission is subject, being a condition required to be complied with by the proprietor of the duty free shop to which the permission relates or by his servants or agents, has not been so complied with;

(b) that revocation of the permission is, for any other reason, necessary for the protection of the revenue or otherwise to ensure compliance with the Act.

“(13) The revocation by a Collector, under sub-section 61d (13) of the Act, of a permission given under sub-section 61d (2) of the Act shall be effected by notice in writing, which shall include a statement of the reasons for the revocation, served on the person to whom the permission was given.”.

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 21 November 1985.

2. Statutory Rules 1925 No. 181 as amended to date. For previous amendments see Note 2 to Statutory Rules 1985 No. 13 and see also Statutory Rules 1985 Nos. 13, 75, 127, 137, 141, 142 and 234.

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