The Alcohol Industry - Excise Technical Guidelines (current to 30 June 2006)

Chapter 12 - Concessional Release of Excisable Goods for Specified Official Bodies

This document has been archived. It is current only to 30 June 2006.

Section 1 Introduction

1.1 Acronyms used in this chapter

ACS Australian Customs Service

AIG Alcohol Industry Group

AMF Australian Military Forces

ETI Excise Tariff Item

PSP Periodic Settlement Permission

RAN Royal Australian Navy

RTD Ready-to-drink beverage

SOFA Status of Forces Agreement.

1.2 Foreword

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Section 2: EXCISE TARIFF ITEM 18. SUPPLY OF CERTAIN EXCISABLE GOODS TO PERSONNEL OF SEA-GOING VESSELS OF THE ROYAL AUSTRALIAN NAVY (RAN) OR THE AUSTRALIAN MILITARY FORCES (AMF)

2.1 Overview

Item 18 of The Schedule to the Excise Tariff Act 1921 provides for certain excisable goods to be delivered at a free rate of duty for consumption by personnel of sea-going vessels of the RAN or AMF when such vessels are in full commission and when consumed on such vessels. A vessel is in full commission when it has a full complement of crew who live and are victualled (that is supplied with food and provisions) on board the vessel.

It is important to note that only certain excisable goods (that is, certain goods produced in Australia) can be obtained under Excise Tariff Item 18 (ETI 18). Imported (that is customable) goods cannot be obtained under ETI 18. For this reason, all ETI 18 requests are checked to ensure that they do not include customable alcoholic beverages. This will usually be quite obvious (for example when a request is made for Scotch whisky - product of Scotland). This cannot be approved.

(Customable goods may be obtained free of duty under section 129 of the Customs Act 1901 as ship's stores but only for vessels undergoing an international voyage. Such requests are processed by the Australian Customs Service).

In accordance with the terms of ETI 18, the personnel of sea-going vessels of the RAN or AMF may receive only excisable ale, porter and other beer, brandy, whisky, rum, gin, liqueurs, tobacco, cigars and cigarettes. They are not entitled under ETI 18 to receive RTDs (for example pre-mixed rum and cola or other mixers in bottles/cans).

The RAN provides the Tax Office with regularly updated details of RAN vessels in full commission so that the Tax Office can verify the eligibility of any RAN vessel seeking to obtain excisable goods under ETI 18.

2.2 Application form

While there is no prescribed Tax Office form to be used when requesting approval for ETI 18 goods, RAN administrative instructions ( Defence Instructions (Navy) Amendment ADMIN 19-2 ) state that applications for the supply of excise free stores are to be made on Request f or Ship's Stores Eligible Under Item 18 of the Excise Tariff Act 1921 . This form provides for:

• the name of the Commanding Officer of the requesting vessel and the name of the vessel
• certification by the Commanding Officer that the requested goods are for consumption on board the vessel by the vessel's personnel and that the quantities requested are not in excess of reasonable requirements for consumption on that vessel during a nominated period
• certification that the vessel is a sea-going vessel in full commission
• the total number of officers and crew on board that vessel
• a description and quantity of goods requested
• the application of the vessel's stamp, and
• the signature of the Commanding Officer of the vessel.

2.3 Processing

The procedure for processing ETI 18 request forms is as follows.

• the RAN completes and forwards a request form to a nominated supplier (for example ship's provedore or brewery).
• the supplier faxes the request to the Alcohol Industry Group (AIG) at the Tax Office, (fax number 1300 130f916 for registration.
• the AIG checks the request form against a register of all fully commissioned RAN vessels and, if the vessel is eligible, the form is given a registration number and faxed back to the supplier. Providing a registration number does not authorise the delivery of ETI 18 goods to the vessel but confirms that the vessel is eligible to receive such goods.
• after receiving the registered request form, and provided that the supplier is the licensee of an excise storage place from which they are supplying the ETI 18 goods, the supplier must complete an excise return with details of the approved ETI 18 goods (using Instrument Code E018 at Box C and a rate of $0.00 at Box G on the excise return) and lodge the return with the Tax Office. Periodic settlement permission (PSP) holders lodge returns on the first working day after the end of their settlement period). When the return has been cleared by the Tax Office, the supplier receives a delivery authority (except for PSP holders who have approval to deliver goods without entry). The delivery authority authorises the supplier to acquit the ETI 18 goods from their stock records and to deliver the goods to the vessel. The supplier retains the delivery authority for audit purposes as evidence of approval for the delivery.
• wholesalers who are not excise licensees also act as intermediaries for the supply of ETI 18 goods. In this case, the wholesaler obtains the goods from the licensed supplier nominated on the approved request form. It is the responsibility of the licensed supplier to lodge an excise return to clear the goods.

Section 3: SUPPLY OF EXCISABLE GOODS FOR THE OFFICIAL USE OF DIPLOMATIC MISSIONS, CONSULAR POSTS, PRIVILEGED INDIVIDUALS OR PERSONS COVERED BY A STATUS OF FORCES AGREEMENT (SOFA)

3.1 Legislation

Excise Regulations:

Reg. 50(1)(ta)(ii)(A)	goods on which excise duty is payable, for the official use of a diplomatic mission of an overseas country
Reg. 50(1)(ta)(ii)(B)	goods on which excise duty is payable, for the official use of a consular post
Reg. 50(1)(tb)(i)	goods on which excise duty has been paid, for the official use of a diplomatic mission of an overseas country
Reg. 50(1)(tb)(ii)	goods on which excise duty has been paid, for the official use of a consular post
Reg. 50(1)(tc)(i) and (ii)	goods that are purchased by a person for use by a Government of a country other than Australia and for the official use of that Government, being goods referred to in ETI 13A, and in respect of which no refund is to be claimed
Reg. 50(1)(u)	goods on which excise duty has been paid are sold to a person for use by a Government of a country other than Australia and for the official use of that Government, being goods referred to in ETI 13A
Reg. 50(1)(ua) and (ub)	goods on which excise duty has been paid are sold to, or for use by, a person covered by a Status of Forces Agreement
Reg. 50(1)(zzb)	excise duty has been paid on goods: (i) for the official use of an international organisation to which the International Organisations (Privileges and Immunities Act 1963 applies, and (ii) acquired in an acquisition of goods that are exempt from duties of excise
Reg. 50(1)(zzc)	excise duty has been paid on goods for the personal use of the holder of a high office in an international organisation to which the International Organisations (Privileges and Immunities) Act 1963 applies, if the holder is exempt from duties of excise in accordance with regulations made under that Act.

Excise Tariff Act:

THE SCHEDULE

Item 10A	goods owned by the Commonwealth and are not intended to be used for the purposes of trade
Item 10B	articles owned by, and are for the official use of, the Governor-General
Item 10C	articles owned by, and are for the official use of, the State Governor
Item 10F	goods, as prescribed by by-law that are for the official use of an international organisation established by agreement between Australia and another country
Item 13A	goods for the Government of a country other than Australia and for the official use of that Government, as prescribed by by-law
Item 13B	goods for use by or sale to persons covered by a Status of Forces Agreement, as prescribed by by-law

Excise by-laws:

No. 92	applies to ETI 10F
No. 111	applies to ETI 13A
No. 112	applies to ET1 3B

3.2 Processing

The processing of applications is as follows:

• the embassy or consular staff complete an application for release of goods from Customs control to diplomatic missions, consular posts and privileged individuals and lodge the form with the Australian Customs Service (ACS).
• the ACS approves and stamps the application.
• the approved application is presented to the nominated supplier.
• if the supplier is the holder of a PSP, they can deliver the goods within their settlement period.
• the PSP holder reports the goods to the Tax Office on an excise return, using instrument Code DIPM (for goods for a diplomatic mission) or CONP (for goods for a consular post) at Box C and a rate of $0.00 at Box G.
• if the supplier does not have a PSP they cannot deliver the goods until they have been entered for home consumption, duty paid and approved for delivery. The goods are entered for home consumption using a pre-payment excise return, using Instrument Codes DIPM or CONP at Box C and a rate of $0.00 at Box G.
• the supplier may deliver the goods only after they have received a delivery authority from the Tax Office.

These processing procedures also apply to excisable goods as follows:

• owned by the Commonwealth and not intended to be used for the purposes of trade (ETI 10A)
• for the official use of the Governor-General (ETI 10B)
• for the official use of a State Governor (ETI 10C)
• for the official use of an agreed international organisation (ETI 10F)
• for the official use of a Government of a country other than Australia (ETI 13A)
• for use by persons covered by a Status of Forces Agreement (ETI 13B).

ATO references:
NO NAT 14790-04.2006