Home Forums Logistics Importing alcohol from a CPTPP country

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  • #1000133
    au_explorer
    Member
    • Total posts: 9

    Hi,

    I am looking into the viability of importing alcohol from a SE Asian country has a Free Trade Agreement with Australia.

    If I understand right, this is the agreement:
    Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

    Looking here, we see the excise rates for alcohol:
    https://www.ato.gov.au/Business/Excise-and-excise-equivalent-goods/Alcohol-excise/Excise-rates-for-alcohol/

    Does the existence of the FTA reduce the rates in the ATO table, above?

    Thanks…

    #1223083
    Dash Freight
    Participant
    • Total posts: 92

    Im pretty sure Excise is still applied, regardless of the FTA. For a definite answer you would need to state the country of origin, country of export, volumes, strength of alcohol by percentage, and values, etc

    Rob Dash E: rob@dashfreight.com.au M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221
    #1223084
    au_explorer
    Member
    • Total posts: 9

    Thanks… Some details:

    Liquor, 35% alcohol, from Vietnam to Australia, in large volume

    What puzzles me is that while Border Force has a general tariff of $86.90/L alcohol, the following has a tariff of zero, fot VN -> AU….

    [ATTACH=full]1677[/ATTACH]

    #1223085
    Jason Ramage
    Participant
    • Total posts: 3,161
    au_explorer, post: 269564, member: 111231 wrote:
    Thanks… Some details:

    Liquor, 35% alcohol, from Vietnam to Australia, in large volume

    What puzzles me is that while Border Force has a general tariff of $86.90/L alcohol, the following has a tariff of zero, fot VN -> AU….

    [ATTACH=full]1677[/ATTACH]

    Howdy

    It may pay for you to call border control or even an import agent (freight forwarder) as these are very fine areas and can be interpreted by the uninitiated many ways – although there is generally only one real answer.

    IMO, what you have pointed out is a raw ingredient that consists of ethyl alcohol BUT is not alcohol like spirits or other that you are hoping it is.. It may be isopropyl or other used as an ingredient for sanitary (hand sanitiser for example) and so forth.

    To be honest…. are you only looking at alcohol because you think there may be a loophole you can circumvent and get drinking alcohol with 0 excise or taxes levied? If this was the case, i am pretty sure that many a person would be trying to import alcohol and doing the same…

    Sadly, there is a different as Rod eluded to between excise and duty. IMO any import TAXES on products are still payable and is where the main costs add up…

    Not sure i am using the right terminology, so i apologise upfront.. It may pay for you to call the border guys as they are generally quite helpful with this stuff or even DFAT or similar who helps with free trade etc.. Maybe even the small business import export councils that work to encourage 2 way business opps with international bodies.

    Cheers

    Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au   P: 61 3 8324 0344    M: 61 412 244 888
    #1223086
    au_explorer
    Member
    • Total posts: 9

    Thanks for the advice… all sensible stuff.

    I am not looking for any loopholes… just trying to calculate costs for a possible business…

    #1223087
    Dash Freight
    Participant
    • Total posts: 92

    I agree with Lucas,

    With the extra information you gave me I can confirm (happy to be corrected by a licensed Customs Broker) you should expect to pay $86.90 per litre

    The FTA has saved you 5% on the value of the goods. But you still have to pay the Excise.

    If you import these goods, instead of paying excise duty you generally pay an equivalent customs duty. Imported products are called ‘excise equivalent goods’ (EEGs).

    You would also need an excise licence before you import.

    What that means is Australian Border Force (ABF) will call it Duty, and it is found in the tariff Classification schedules, but it is in effect an excise.

    So you landed cost would be Cost of Goods + Insurance + Freight + Customs Entry Fee + Excise.
    You would also pay GST based on the Cost + Insurance + Freight. But you can claim GST on your BAS.

    Importers can also make arrangements to defer the GST, if you report their BAS monthly. Check with your accountant on that.

    Rob Dash E: rob@dashfreight.com.au M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221
    #1223088
    au_explorer
    Member
    • Total posts: 9

    Thanks for the good information…

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