Excise Regulations (Amendment)

Overview

The Excise Regulations (Amendment) Statutory Rules 1989 No. 327, enacted by the authority of the Minister of State for Science, Customs and Small Business, amend the Excise Regulations to introduce a refund circumstance where excisable goods, on which Excise duty has been paid, are sold to a person for use by a Government of a country other than Australia for the official use of that Government, as prescribed by Departmental By-Laws. This amendment is designed to address the need for a complementary duty-free facility for suppliers, particularly for cases where duty-paid fuel is supplied duty-free to installations for the official use by overseas governments. The refund circumstance is intended to provide a streamlined process for such transactions, allowing refunds of duties to companies like Mobil Australia for their supply of duty-paid fuel to the U.S. authorities at the Pine Gap installation in the Northern Territory. The amendments have retrospective effect to 1 July 1988, aligning with the commencement date of the duty-free fuel supply to the Pine Gap facility.

Scope and Application

The Excise Regulations (Amendment) Statutory Rules 1989 No. 327, issued under the authority of the Minister of State for Science, Customs and Small Business, amend the Excise Regulations to introduce a refund circumstance for excise duty. This amendment applies to situations where excisable goods, on which excise duty has already been paid, are sold to a person for the use by a government of a country other than Australia, specifically for the official use of that government. This refund circumstance is effective from 1 July 1988 and is designed to complement the existing provision for the direct duty-free entry of excisable goods under Item 13A of the Excise Tariff Act 1921. The amendment is particularly relevant for suppliers, such as Mobil Australia, who deliver duty-paid fuel at a duty-free rate to installations for the official use by overseas governments, such as the U.S. authorities at the Pine-Gap installation in the Northern Territory. The refund will be subject to the conditions prescribed by the Departmental By-Laws and will apply retrospectively from the date the duty-free supply of fuel commenced at Pine Gap on 1 July 1988.

Key Provisions

The Excise Regulations (Amendment) Statutory Rules 1989 No. 327, issued under the authority of the Minister of State for Science, Customs and Small Business, amend the Excise Regulations to introduce a new refund circumstance for excise duty. This refund will apply when excisable goods, on which excise duty has already been paid, are sold to a government of a country other than Australia for that government's official use, as prescribed by Departmental By-Laws. The amendment is set to take effect from 1 July 1988, which is the date when duty-free supplies of fuel to the U.S. Government at the Pine Gap installation in the Northern Territory commenced. The new regulation, inserted as paragraph 50(1)(u) in regulation 50 of the Excise Regulations, specifies that a refund of excise duty is payable under certain conditions. Firstly, excise duty must have been paid on the goods. Secondly, the goods must be sold to a person for use by a government of a country other than Australia and for that government's official use, as prescribed by the Departmental By-Laws. This condition also requires that the goods must be those referred to in sub-item 13(A) of the Schedule to the Excise Tariff Act 1921. Lastly, the refund is payable if the price at which the goods were sold did not include an amount in respect of excise duty, or if the price did include such an amount but it was refunded to the buyer. Under the amended regulations, parties and entities governed by these provisions must ensure that any sales of excisable goods to foreign governments for official use comply with the new refund conditions. This includes maintaining records and documentation that can substantiate the sale of goods and the refund of excise duty where applicable. The refund process must be transparent and in adherence with the Departmental By-Laws, ensuring that all transactions are properly accounted for and reported. There are no explicit offences, penalties, or civil/criminal consequences outlined for breach of these provisions in the explanatory statement. However, failure to comply with the new refund conditions could potentially lead to disputes over the correct application of excise duty and refunds, which might require resolution through administrative processes or legal action. Accurate record-keeping and adherence to the prescribed conditions are essential to avoid any such complications.