Eligibility for refunds of duty
If you engage in an international voyage, the bunker fuel onboard your ship isn't liable for customs or excise duty.
Any duty paid on residual bunker fuel is eligible for a refund, as long as none of the parties involved are entitled to fuel tax credits.
Refunds of duty are generally only payable to either:
- foreign-registered shipping operators that aren't registered or required to be registered for GST
- fuel suppliers who have supplied duty free fuel for international voyages.
Example: eligible to apply for a refund
Jill Eco Tours, a small New Zealand company, uses its own small cruise yacht, the MV Isabelle, to transport passengers to Hervey Bay to watch the migration of humpback whales. The yacht docks at the local marina and purchases duty paid diesel prior to clearing customs and departing back to Auckland.
Jill Eco Tours is not registered for GST or fuel tax credits as their turnover is under the GST threshold.
Having cleared customs, Jill Eco Tours may apply for a refund of duty on the duty paid diesel purchased as there's no entitlement to fuel tax credits for that fuel.
End of exampleAgencies can also claim fuel tax credits on the fuel that their non-resident clients acquire through them.
For more information, phone us on 13 28 66.