SUMMARY OF ALTERATIONS
CUSTOMS TARIFF PROPOSAL (No. 3) 2021
Reasons for changes: To insert a concessional item into Schedule 4
Date of effect: 1 April 2021
Alterations to the Customs Tariff Act 1995
Under item 39 of Schedule 4 to the Customs Tariff Act 1995 (the Customs Tariff Act), certain imported vehicles and motor vehicle components could be imported at a concessional rate of customs duty. To be eligible for this concession the importer needed to be registered under the Automotive Transformation Scheme Act 2009. Due to the close of the Automotive Transformation Scheme (ATS), all registrations ended on 31 March 2021.
To support continued domestic research and development in the automotive sector, and ensure that previously registered automotive service providers can continue to access the tariff concession, proposed new item 39A is inserted in Schedule 4 of the Customs Tariff Act.
Item 39A will provide a ‘Free’ rate of customs duty for prescribed goods that are for use in the testing, quality control, manufacturing evaluation or engineering development of motor vehicles designed or engineered in Australia, or components for inclusion in such motor vehicles.
To be eligible for the concessional rate of customs duty, goods must be imported by an entity who was registered as an automotive service provider under the Automotive Transformation Scheme Act 2009 at 30 March 2021.
The ‘Free’ rate of customs duty will apply from 1 April 2021 to 30 June 2025.