Excise Regulations (Amendment)

Administered by Department of the Treasury

Legislation au F1996B03085 Regulations Not in force Legislative Instrument

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Excise Regulations (Amendment) 1995 No. 100

EXPLANATORY STATEMENT

STATUTORY RULES 1995 No. 100

Issued by the authority of the Minister for Small Business, Customs and Construction

Excise Act 1901

Excise Regulations (Amendment)

Section 164 of the Excise Act 1901 (the Act) provides in part that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed for giving effect to the Act.

The regulations amend the Excise Regulations (the Regulations) to amend the reporting and record keeping requirements with respect to the sale of goods in outwards, off-airport duty free shops.

Section 61D of the Act sets out the provisions governing the sale of goods in an outwards duty free shop. Subsection 61D(5) of the Act provides that a permission granted to a duty free shop proprietor to operate a duty free shop may be subject to prescribed conditions. Subsection 61D(12) states that where a proprietor of an outwards duty free shop does not produce proof that the goods sold in the duty free shop have been exported, the goods shall be deemed to have been entered and delivered for home consumption by the proprietor.

Subregulation 79(9) of the Regulations prescribes the manner and timing of the proof required under subsection 61D(12) in relation to outwards off-airport duty free shops. The proprietor must provide to the Collector an electronic record of invoice numbers of copy invoices removed from the duty free goods as they exported by a traveller, This record must also be provided within 2 working days or 4 working days, depending place of departure, within the day of departure of the traveller. Subregulation 79(10) of the Regulations also requires the proprietor to produce at the close of business on the last day of each working week a fist of invoice numbers included in the electronic records created under subregulation 79(9).

Conditions have been prescribed for the purposes of subsection 61D(5) in subregulation 79(7) of the Regulations. One condition set out in paragraph 79(7)(n) of the Regulations requires the proprietor of an outwards of-airport duty free shop to lodge setting out invoice numbers of invoices prepared for goods sold in a duty free shop that have not been removed from the goods upon their exportation. This return forms the basis of the calculation of the duty liability of the proprietor as the proprietor is deemed to be the owner of such goods under subsection 61D(I2) of the Act because of the failure to produce the proof of export of the goods required under subregulation 79(9).

The proprietor may also be liable for duty in respect of duty free goods where the invoice has been removed upon the exportation of the goods but the electronic record has not been provided in accordance with subregulation 79(9), The return required to be lodged under the present paragraph 79(7)(n), though, does not require the inclusion of, and payment of an amount equal to the duty in respect of, invoices that have been removed but have not been provided in an electronic record in accordance with subregulation 79(9).

Subregulation 2.1 therefore omits; and substitutes a new paragraph 79(7)(n) of the Regulations and introduces the requirement that a duty free shop proprietor include in a return the invoice numbers of invoices that have been removed upon the exportation of duty free goods but in respect of which an electronic record has not been provided in accordance with subregulation 79(9). The amount that is payable by the proprietor will then also include the amount equal to the duty in respect of goods to which those invoices relate.

Subregulation 2.2 effects a minor grammatical correction to subregulation 79(9) of the Regulations.

With respect to the time limits specified in subregulations 79(9) and (10), representations from the Australian Duty Free Operators Association indicate that the time limits specified in these subregulations are too short and that duty free shop proprietors are experiencing difficulties in meeting them in a consistent manner. If the electronic record under subregulation 79(9) is not provided within the prescribed time limit, the proprietor will be liable for duty in respect of the goods even though the goods have actually been exported.

The time limits in subregulations 79(9) and (10) have been extended.

Subregulation 2.3 omits and substitutes a new paragraph 79(9)(b) into the Regulations to extend the time within which the proprietor must provide the proof of export required under paragraph 79(9)(a) to 10 working days of the duty free shop after the departure of the traveller. The previous distinction as to time, that was dependent on the place of departure of the traveller, has been eliminated.

Subregulation 2.4 omits and substitutes a new subregulation 79(10) to extend the time within which the proprietor is required to produce a fist of invoice numbers included in the electronic records created under subregulation 79(9) to within 21 working days after the end of a month of the duty free shop.

The proposed regulations commenced on gazettal.

 

Overview

The Excise Regulations (Amendment) 1995 No. 100 was enacted to amend the reporting and record-keeping requirements for the sale of goods in outwards, off-airport duty-free shops under the Excise Act 1901. The problem or gap identified was the inadequacy of the current time limits for providing proof of export and the associated difficulties experienced by duty-free shop proprietors in meeting these requirements consistently. This amendment was made by the Minister for Small Business, Customs, and Construction under the authority of the Excise Act 1901, with the policy objective of alleviating the burden on duty-free shop proprietors and ensuring compliance with the duty-free shop regulations. The regulation adjustments were made in response to feedback from the Australian Duty Free Operators Association and aimed to provide more reasonable time frames for compliance, thus facilitating smoother operations and reducing potential penalties for non-compliance due to administrative challenges.

Scope and Application

The Excise Regulations (Amendment) 1995 No. 100 pertains to the Excise Act 1901 and amends the Excise Regulations to modify the reporting and record-keeping requirements for the sale of goods in outwards, off-airport duty-free shops. These regulations apply to proprietors of duty-free shops who are authorised to operate under the Act and are subject to the conditions specified in the amended regulations. The changes are intended to address the difficulties faced by duty-free shop proprietors in meeting the existing time limits for providing electronic records of invoices and proof of export. The amendments extend the time limits to alleviate these difficulties, ensuring that duty is only imposed if the required records are not provided within the extended periods. The changes are applicable nationally across Australia as the Excise Act 1901 has a Commonwealth reach. The amendments made through these regulations do not introduce any new exclusions or exemptions but refine the existing compliance requirements to be more practical for duty-free shop proprietors.

Key Provisions

The Excise Regulations (Amendment) 1995 No. 100 amends the Excise Regulations to update the reporting and record-keeping requirements for goods sold in outwards, off-airport duty-free shops. Specifically, it modifies subregulation 79(9) to allow duty-free shop proprietors more time to provide proof of export. Under subregulation 79(9), proprietors must now provide an electronic record of invoice numbers for goods exported by travellers within 10 working days from the traveller's departure date, replacing the previous requirement of 2 or 4 working days, depending on the departure location. Additionally, subregulation 79(10) has been amended to require proprietors to submit a list of invoice numbers from the electronic records within 21 working days after the end of each month, up from the previous requirement of within 2 or 4 working days, depending on the departure location. The amendments were made to address difficulties experienced by proprietors in meeting the original time limits. The Excise Act 1901 imposes certain obligations on duty-free shop proprietors to comply with the updated record-keeping and reporting requirements. These obligations include providing proof of export within the specified time limits and lodging returns with invoice numbers of goods for which duty is owed. The Act also requires proprietors to maintain accurate records of sales and exports to facilitate compliance with these obligations. Failure to comply with these obligations can result in the goods being deemed as entered for home consumption, leading to duty liability for the proprietor. Additionally, the regulations require proprietors to lodge returns detailing invoice numbers of goods for which duty is owed, including those for which proof of export has not been provided. These obligations are essential for ensuring accurate duty assessments and maintaining the integrity of the duty-free regime. The Excise Regulations (Amendment) 1995 No. 100 introduces potential civil consequences for non-compliance with the updated reporting and record-keeping requirements. If a duty-free shop proprietor fails to provide proof of export within the prescribed time limits, the goods will be deemed to have been entered for home consumption, making the proprietor liable for duty on those goods. Additionally, proprietors who fail to lodge returns with the required invoice numbers within the extended time limits may face penalties. While the regulations do not specify maximum penalties for non-compliance, breaches of the Excise Act 1901 can result in fines and other civil or criminal consequences, depending on the severity and intent of the breach. It is important for duty-free shop proprietors to adhere to these requirements to avoid potential liabilities and ensure compliance with the Act.

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