Objective
Support the development of Australia’s manufacturing and export capability by providing relief from customs duty and GST on imports that are to be subsequently exported.
Significance for Australia
The Tradex scheme promotes economic activity leading to exports, and makes Australian industry more internationally competitive. Tradex assists Australian industry by allowing goods to be imported without up-front payment of customs duty or other taxes, provided that the goods are subsequently exported or incorporated in goods that are exported, within one year, or another approved period.
The scheme provides cash flow advantages because it provides an up-front exemption rather than the need to apply for a drawback (which relies on a return of the duty to the exporter only after the export has occurred). Tradex also uses self assessment and periodic reconciliation to reduce compliance costs for exporters.
The Drawback scheme remains in place for imports where, at the time of importation, it is not known whether the goods will be exported or used as inputs to exports within the approved period.
Departmental role and current achievements
The Department analyses and provides policy advice to further improve the Tradex scheme, which is administered by AusIndustry, the Department’s program delivery division.
More than 2047 importers have registered with AusIndustry for Tradex orders since the scheme was introduced in June 2000.
In 2006-07 Tradex removed the need for Australian industry to pay approximately $80.1 million in up-front duty and $145.3 million in GST; a total of $225.4 million in up-front savings to industry.
Reductions in some duty rates and implementation of Free Trade Agreements, such as the one with the United States, have had some impact on Tradex usage and duty forgone in recent years. However, the value of exemptions has now stabilised and should continue to run at levels similar to 2006-07 till at least 2010.
Targets and expectations for 2008-09
For further information
Phone: AusIndustry hotline, 13 28 46
Phone: +61 2 9226 6045
Email: hotline@ausindustry.gov.au
Web: www.innovation.gov.au
Web: www.ausindustry.gov.au
May 2008