Tradex Scheme Regulations 2018

Administered by Department of Industry, Science and Resources

Legislation au F2018L01372 Regulations In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Industry, Science and Technology

Tradex Scheme Act 1999

Tradex Scheme Regulations 2018

Purpose and Operation

The purpose of the Tradex Scheme Regulations 2018 is to facilitate the operation of the Tradex Scheme in conjunction with the Tradex Scheme Act 1999. The Tradex Scheme Regulations 2018 will remake and update the Tradex Scheme Regulations 2008, which are due to sunset on 1 October 2018.

Together with the Tradex Scheme Act 1999, these regulations assist the Australian Government to abide by the international principle that goods should only be taxed in the country in which they are consumed.  

Export may be carried out by the importer or a third party but must occur within twelve months of the time of import.

The Tradex Scheme provides access to up-front exemption from duties imposed by the Customs Tariff Act 1995 and other taxes, including the Goods and Services Tax.

The Tradex Scheme Regulations 2018 have no significant financial implications. The regulations are administrative in nature.

Authority

Section 49 of the Tradex Scheme Act 1999 (the Act) provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for giving effect to the Act.

Consultation

Consultation was undertaken as part of the Tradex Monitoring Review conducted in 2018 and included relevant stakeholders including government departments and industry. Stakeholders consulted considered the Tradex Scheme operated effectively and the regulations were fit for purpose.

Regulatory Impact

The Office of Best Practice Regulation advised a regulation impact statement did not need to be prepared (OBPR ID: 22776).


Details of the Tradex Scheme Regulations 2018

PART 1 – PRELIMINARY

Section 1 – Name of Instrument

This section provides that the name of the Regulations is the Tradex Scheme Regulations 2018.

Section 2 – Commencement

This section provides that the Regulations commence on the day after they are registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the Regulations are made under the Tradex Scheme Act 1999.

Section 4 Schedules

This section provides that each instrument that is specified in a Schedule to the Regulations is amended or repealed as set out in the applicable items in the Schedule concerned and any other items in a Schedule to these Regulations has effect according to its terms.

Section 5 – Definitions

This item provides for definitions of terms used in the Regulations.

Section 6 – Core criteria – imported goods not to be consumed or used

This section provides the core criteria for applying for or holding a tradex order.

Subsection 6(1): In accordance with the Act, to apply for a tradex order the goods nominated in the application must not be intended to be consumed or used in Australia. This is to be applied in conjunction with the permitted uses allowed by section 8 of these Regulations.

Subsection 6(2): In accordance with the Act, the core criterion for holding a tradex order is that the goods nominated in the tradex order must not have been consumed or used in Australia. This is to be applied in conjunction with the permitted uses allowed by section 8 of these Regulations.


PART 2 – Liability to pay tradex duty in respect of nominated goods in certain circumstances

Section 7 – Value of goods

This section outlines that if goods are to be valued for the purpose of calculating tradex duty in certain circumstances that the value of the goods is their customs value as described in Division 2 part VIII of the Customs Act 1901.

The Regulations incorporate reference to Division 2 of Part VIII of the Customs Act 1901. The Customs Act 1901 is freely available and accessible at www.legislation.gov.au.

Section 8 – Permitted consumption or use

Subsection 8(1): In accordance with the Act, this subsection describes certain circumstances in which the core criteria for applying and holding a tradex order may not be met, and which if not otherwise permitted by this section of the Regulations would incur a tradex duty liability. The permitted consumption and uses in subsection 8(1) allows nominated goods to not be exported due to accidental damage or destruction in Australia, inspection or exhibition in Australia prior to the goods being exported, or incidental use that occurs immediately prior to the goods export. This section also provides for the permitted use of writing on travellers cheques which are then subsequently exported.

Subsection 8(2): This subsection limits the application of subsection 8(1). If the nominated goods meet the criteria set out in paragraphs 8(2)(a) and 8(2)(b) then the nominated goods will incur tradex duty.

PART 3 – Miscellaneous

Section 9 – Request for refund of overpaid tradex duty

This section describes the requirements for requesting a refund of tradex duty in circumstances where it has been overpaid.

Schedule 1 – Repeals

This Schedule provides for the repeal of the Tradex Scheme Regulations 2008 as the instrument is due to sunset on 1 October 2018 and is being remade by these Regulations.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Tradex Scheme Regulations 2018

These Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Tradex Scheme Regulations 2018 remake the Tradex Scheme Regulations 2008, which are scheduled to sunset on 1 October 2018, by amending or removing provisions and updating terminology and references.

The key provisions enable the Tradex Scheme, which provides an up-front exemption from customs duty or other taxes for eligible imported goods that are subsequently exported, or incorporated into other goods which are then exported.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Honourable Karen Andrews MP

Minister for Industry, Science and Technology

 

Overview

The Tradex Scheme Regulations 2018 were introduced to facilitate the operation of the Tradex Scheme in conjunction with the Tradex Scheme Act 1999. This legislative instrument updates and replaces the Tradex Scheme Regulations 2008, which were due to sunset on 1 October 2018. These regulations aim to assist the Australian Government in adhering to the international principle that goods should only be taxed in the country in which they are consumed. The scheme provides an exemption from duties and other taxes for imported goods that are subsequently exported or incorporated into goods that are exported, with the export required to occur within twelve months of import. The Tradex Scheme Regulations 2018 were made under section 49 of the Tradex Scheme Act 1999 and were developed following consultations with relevant stakeholders, including government departments and industry. The regulations do not have significant financial implications and are administrative in nature. The Tradex Scheme Regulations 2018 were enacted by the Australian Government, with the Minister for Industry, Science and Technology responsible for issuing the explanatory statement. The regulations aim to ensure that imported goods are not taxed in Australia if they are intended for export, thus aligning with international trade practices. The policy objective is to streamline the export process for goods that are not consumed or used within Australia, thereby supporting the efficiency of international trade while maintaining compliance with international agreements.

Scope and Application

The Tradex Scheme Regulations 2018, made under the Tradex Scheme Act 1999, govern the operation of the Tradex Scheme in Australia, facilitating the exemption from duties and taxes on imported goods that are either exported within a specified timeframe or incorporated into other goods that are subsequently exported. The scheme and its regulations apply to importers and other entities that wish to avail themselves of the trade exemption by complying with the specified conditions, such as not consuming or using the imported goods in Australia. The scheme operates on a national level, aligning with international trade principles that aim to ensure goods are only taxed in the country of consumption. The regulations have been updated to ensure continued compliance with these principles and to reflect any changes in the legal framework, such as the sunsetting of the 2008 regulations. The Tradex Scheme Regulations 2018 also incorporate provisions for the valuation of goods for duty calculation, permitted uses of imported goods that do not incur duty, and processes for refund requests in cases of overpaid duty. The regulations themselves do not impose significant financial implications but are essential for the administrative functioning of the Tradex Scheme.

Key Provisions

The Tradex Scheme Regulations 2018, which operate in conjunction with the Tradex Scheme Act 1999, establish the framework for the Tradex Scheme, allowing for the up-front exemption from duties and taxes on imported goods that are subsequently exported or incorporated into other goods that are exported. These regulations are designed to ensure that goods are only taxed in the country where they are consumed, in line with international principles. Section 6(1) and Section 6(2) set out the core criteria for applying for or holding a tradex order, stipulating that the goods must not be intended to be consumed or used in Australia, or must not have been consumed or used in Australia, respectively. These criteria must be applied in conjunction with the permitted uses detailed in Section 8 of the Regulations. The Tradex Scheme Regulations 2018 impose specific obligations on entities seeking to avail themselves of the tradex scheme benefits. Firstly, applicants for a tradex order must ensure that the goods nominated in their application are not intended to be consumed or used in Australia (Section 6(1)). Similarly, those holding a tradex order must ensure that the goods nominated in their order have not been consumed or used in Australia (Section 6(2)). Additionally, if goods are to be valued for the purpose of calculating tradex duty, their value must be based on their customs value as outlined in Division 2, Part VIII of the Customs Act 1901 (Section 7). Furthermore, any request for a refund of overpaid tradex duty must be made in accordance with the provisions outlined in Section 9 of the Regulations. Breaches of the Tradex Scheme Regulations 2018 can lead to various civil or criminal consequences. Although the specific penalties for non-compliance are not detailed in the provided text, the Tradex Scheme Act 1999 likely provides for penalties in the event of non-compliance. Typically, such breaches might include fines or other administrative penalties, with the exact nature and severity of these penalties being determined by the relevant provisions of the Tradex Scheme Act 1999 and other applicable laws. It is important to note that the regulations themselves do not detail these penalties but refer to the overarching Act for such provisions.

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Area of Law
International Trade Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.