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

Chapter 4 - Movement Permissions

This document has been archived.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

Section 1 Introduction

1.1 Acronyms used in this chapter

ABN Australian business number

AIG Alcohol Industry Group

CMP Continuing movement permission

EDN Export declaration number

SMP Single movement permission.

1.2 Foreword

If you want to know more about Excise go to our website at www.ato.gov.au .

Section 2 Permissions

2.1 Overview

Section 61A of the Excise Act provides for the Tax Office to give permission for the movement of excisable goods on which excise has not been paid. Excise control over these goods while they are being moved is a key component of ensuring that the correct amount of duty is paid. Subsection 61A(1) provides for the movement of excisable goods under continuing movement permission from a specified place to another specified place. Subsection 61A(2) provides for the movement of excisable goods under single movement permission from a specified place to another specified place. Subsections 61A(2A) and (2B) provide for the delivery of excisable goods under permission for exportation.

2.2 Single movement permission (SMP) for movement of excisable goods between specified places

A single movement permission issued under subsection 61A(2) of the Excise Act authorises the removal of specified goods that are subject to Tax Office control (referred to as under bond goods) from one specified place to another specified place. A SMP allows for the release of the goods to the permission holder from the licensed premises where the goods are held. The permission holder may not necessarily be the licensee of the premises where the goods are held. Under bond movements will normally only be authorised between licensed premises. If an applicant proposes to move under bond goods to a non-licensed place they will need to provide adequate reasons why the duty should not be paid prior to the movement.

Application forms for a SMP (form number 8513) are available from the AIG or online at www.ato.gov.au . An applicant is required to forward the application to the Tax Office Alcohol Industry Group (AIG) for approval. Details of where to send the application are on the form.

The application must contain the following details:

• the name, address and ABN (if applicable) of the applicant
• details of the authorised contact person in case the AIG requires further information about the application
• reason for movement of the goods
• name, address and establishment code of the premises where the goods will be moved from
• name, address and establishment code of the premises where the goods will be moved to
• proposed form of transport and the name of the carrier (if applicable)
• date on which it is intended to move the goods
• signature of the applicant and date signed, and
• description of the excisable goods to be moved (bond marks or marks and numbers, number of packages, description of goods, quantity in litres of alcohol (Lals), excise tariff item number).

If an applicant does not have control of the receiving premises they should attach a letter from the operator of the receiving premises stating that they will accept responsibility for the under bond goods when they receive them. The letter should be signed and dated by the operator of the receiving premises and contain the following statement:

'We advise that:

• we are prepared to accept excisable goods on which excise duty has not been paid, as listed on (insert name of individual or business) documentation, and as approved by the Tax Office
• we will accept responsibility for the goods on receipt into our licensed premises, which includes any excisable product that cannot be accounted for after the correct receipt of goods
• our records are suitable for recording under bond goods
• our establishment code is (insert establishment code), and
• our address is (insert address).'

The AIG will fax the approved SMP back to the applicant who must keep a copy of the approved SMP for audit purposes and send the original, or a document showing all the relevant information, with the goods to the receiving premises. If the permission holder and the licensee of the premises where the goods are stored are different entities, the permission holder and the licensee are both required to keep a copy of the movement permission for audit purposes. The permission may be subject to conditions that the permission holder must comply with. These will be clearly stated on the permission. In the case of a reverse movement permission where the permission holder is the licensee of the receiving premises, the permission holder must send the original of the approved SMP, or a document showing all the relevant information, to the licensee of the premises from which the goods are to be dispatched.

If a SMP is refused the AIG will notify the applicant in writing of that decision and will clearly state the reasons for that refusal. There is no right of appeal under the Excise Act if an application is refused. Under the provisions of the Taxpayers' Charter (online at www.ato.gov.au ) an applicant may request a review of our decision. An applicant also has a right of appeal to the Federal Court or the Federal Magistrates Court under the Administrative Decisions (Judicial Review) Act 1977 .

A permission holder is liable for any duty payable on the goods included in the permission if they fail to keep the goods safely, or when requested, cannot account for the goods to the satisfaction of the Tax Office. Satisfactory accounting is where you can show the goods have not entered home consumption (that is consumption within Australia) without paying duty ¹ .

In the case where the permission holder is not a licensee, the licensee of the dispatching premises is liable for the goods while they are located in the dispatching premises. The permission holder is liable to account for the goods from the time they are cleared from the dispatching premises until they are received into the licensed receiving premises.

2.3 Continuing movement permissions (CMP) for movement of excisable goods between specified places

In cases where a person wishes to move under bond goods on a regular basis they can be granted a continuing movement permission (CMP) (form number 8452) under subsection 61A(1) of the Excise Act. Applications for a CMP are available from the AIG or online at www.ato.gov.au . The application should be sent to the AIG at the address stated on the form. The approved permission will be faxed to the applicant stating the details of which goods can be moved and the premises between which the goods can be moved. The permission may also include conditions that the applicant must comply with. When a CMP has been approved the permission holder does not have to apply for approval each time that they wish to move specified goods between the places specified in the permission.

CMPs may be approved in either of two arrangements:

• establishment to establishment, that is from one sending premises to one or more receiving premises listed in the CMP Schedule, or
• client to client, that is from all premises licensed under the sending entity's ABN to all premises licensed under the receiving entity's ABN. A separate schedule showing one sending premises (listed according to ABN) but with multiple receiving premises can be attached to one CMP.

A CMP application must include the following details:

• the name and ABN of the applicant
• the applicant's address
• the applicant's postal address
• whether the applicant currently holds a continuing permission
• details of the authorised contact person in case the AIG should require further information
• name, address and establishment code of the premises where the goods will be moved from
• name, address and establishment code of the premises where the goods will be moved to
• description of the excisable goods to be moved and the quantity per annum, and
• signature of the applicant and date signed.

If an applicant does not have control of the receiving premises, the applicant must attach a letter from the operator of the receiving premises similar to that shown at section 2.2.

If an application is refused the AIG will notify the applicant in writing of that decision and will clearly state the reasons for that refusal. Review options are the same as listed at section 2.2.

All permission holder delivery documentation is required to clearly show the CMP approval number and to indicate that the goods are under bond. The delivery documentation must contain sufficient information (including the excise tariff items for the goods) to allow the goods to be entered for home consumption or for export at the receiving premises and if necessary, to allow calculation of the amount of duty payable.

In the case of a reverse movement permission where the permission holder is the licensee of the receiving premises, the permission holder must provide a company document containing all the relevant information to the licensee of the premises from which the goods are to be removed.

If a permission holder wishes to add new receiving premises to their permission they must advise the AIG of the details of the new receiving premises by completing the schedule attached to the CMP form (form number 8452). They are required to supply evidence of commercial arrangements with any new additions to the receiving premises.

If a permission holder wishes to delete a receiving or dispatching premises from the permission they must contact the AIG in writing with details of the premises they wish removed from the permission.

Under the provisions of section 60 of the Excise Act, the permission holder is liable for any duty payable on the goods included in the permission if they fail to keep the goods safely or when requested cannot account for the goods to the satisfaction of the Tax Office. Satisfactory accounting is when you can show the goods have not entered home consumption (that is consumption within Australia) without paying duty.

In the case where the permission holder is not a licensee, the licensee of the dispatching premises is liable for the goods while they are located in the dispatching premises. The permission holder is liable to account for the goods from the time they are cleared from the dispatching premises until they are received into the licensed receiving premises.

Where under bond goods moved on permission are short delivered at the receiving premises only the actual quantity received is to be taken up into company records. The licensee of the receiving premise is to advise the AIG as soon as practicable of details of the goods short delivered.

2.4 Single Movement Permissions to deliver excisable goods for exportation

A SMP may be issued under subsection 61A(2B) of the Excise Act to give permission to deliver for exportation goods subject to Tax Office control (that is under bond goods). It is the authority for the licensed premises where the goods are held to release the goods to the permission holder. The permission holder may not necessarily be the licensee of the premises where the goods are held. Under bond movements will normally only be authorised from a licensed premises to a place for export. Places for export are prescribed in Regulation 23 of the Customs Regulations 1926. Places for export include wharfs and airports appointed under section 15 of the Customs Act 1901 and freight depots licensed under section 77G of the Customs Act.

SMP application forms (form number 12042) are available from the AIG or online at www.ato.gov.au . An applicant is required to forward their application to the AIG for approval. Details of where to send the application are on the form.

The AIG will fax the approved SMP back to the applicant who must keep a copy of the approved SMP for audit purposes and send the original with the goods to the receiving premises. If the permission holder and the licensee of the premises where the goods are stored are different entities, the permission holder and the licensee are both required to keep a copy of the movement permission for audit purposes. The permission may be subject to conditions that the permission holder must comply with. These will be clearly stated on the permission.

If an application is refused, the AIG will notify the applicant in writing of that decision and will clearly state the reason(s) for that refusal. Review options are the same as those listed at section 2.2.

The permission holder is liable for any duty payable on the goods included in the permission if they fail to keep the goods safely, or when requested cannot account to the satisfaction of the Tax Office that the goods have been exported or otherwise account for the goods. Satisfactory accounting is where you can show that the goods have not entered home consumption (that is consumption within Australia) without paying duty. Evidence that goods were delivered for export does not constitute evidence that goods have been exported ² .

In the case where the permission holder is not a licensee, the licensee of the dispatching premises is liable for the goods while they are located in the dispatching premises. The permission holder is liable to account for the goods from the time they are cleared from the dispatching premises until they are exported.

2.5 Continuing movement permissions to deliver excisable goods for exportation

In cases where a person wishes to move under bond goods for exportation on a regular basis they may be granted a CMP. Applications for a CMP (form number 12043) are available from the AIG or online at www.ato.gov.au . The application should be sent to the AIG at the address stated on the form. The approved permission will be faxed to the applicant stating the details of what goods may be moved and the premises between which the specified goods may be moved. The permission may also include conditions that the applicant needs to comply with. Once the permission is issued, the permission holder does not have to apply for approval each time that they wish to move specified goods between the specified places.

CMPs may be approved for the movement of specified goods from an establishment to one or more specified places for export (as listed in the schedule to the permission.

If an application is refused the AIG will notify the applicant in writing of that decision and will clearly state the reasons for that refusal.

Review options are the same as those listed at section 2.2.

Delivery documentation is required to clearly show the CMP approval number and to indicate that the goods are under bond. Delivery documentation must contain sufficient information (including the excise tariff items for the goods) to allow the excise duty payable to be calculated if necessary (in the event the goods are not exported and the goods are not accounted for).

If a permission holder wishes to add a new receiving place of export to the permission, they must advise the AIG of the details of the new place of export by completing the schedule attached to the CMP form (form number 12043).

If a permission holder wishes to delete a receiving or dispatching premises from the permission, they must contact the AIG in writing with details of the premises they wish removed from the permission.

Under the provisions of section 60 of the Excise Act, the permission holder is liable for any duty payable on the goods included in the permission if they fail to keep the goods safely or, when requested, do not satisfy the Tax Office that the goods have been exported and do not otherwise account for the goods to the satisfaction of the Tax Office. Satisfactory accounting is where you can show the goods have not entered home consumption (that is consumption within Australia) without paying duty. Evidence that goods were delivered for export does not constitute evidence that goods have been exported ³ .

In the case where the permission holder is not a licensee, the licensee of the dispatching premises is liable for the goods while they are located in the dispatching premises. The permission holder is liable to account for the goods from the time they are cleared from the dispatching premises until they are received at the place of export.

Where under bond goods moved on permission are short delivered at the place of export, the permission holder should advise the AIG as soon as practicable.

2.6 Other approval required for exportation

An export movement permission (SMP or CMP as per sections 2.4 or 2.5) gives the permission holder the authority to move excisable goods from an excise place to a place of exportation. It is not an approval to export. An export declaration number (EDN), that is an authority to deal with the goods which are to be exported, must be obtained separately from Customs. Customs will not issue an EDN unless the exporter has an export movement permission from the Tax Office .

2.7 Obtaining or providing information about permissions

Until recently, confidentiality provisions contained in section 159 of the Excise Act have prevented the Tax Office from being able to discuss protected information about Excise authorisations.

Subsection 159(3) was inserted into the Excise Act in 2004 and allows the Tax Office to release such information in certain circumstances.

Subsection 159(3A) allows information relating to permission and licence arrangements to be disclosed to a person dealing or proposing to deal with another person in relation to excisable goods or goods under the control of the Tax Office. This information will only be provided for ensuring the dealing or proposed dealing is in accordance with the Excise Act.

You can get information about permissions that relate to a person (including a company) that you are currently or proposing to deal with. The permission information includes:

• whether a person has a permission to move goods under the Excise Act, or whether a person has a licence to store or manufacture goods under the Excise Act
• the details of a permission or licence that a person has under the Excise Act, and
• any conditions that apply to the permission or licence.

You can request the release of this information or the Tax Office may initiate the release of this information after forming the opinion that this information has to be released to ensure that a dealing or proposed dealing is in accordance with the Excise Act.

1 Section 60 of the Excise Act.

2 Section 60(1D) of the Excise Act.

3 Section 60(1D) of the Excise Act.

ATO references:
NO NAT 14790-04.2006