Indexation of Customs Duty Rates on Excise-Equivalent goods on 1 August 2022
Dear Valued Customers,
The Australian Border Force (ABF) has issued Australian Customs Notice No 2022/35
The Notice sets out the new Customs duty rates for certain excise-equivalent goods, including spirits, beers and fuel products, operative from 01 August 2022.
Section 19 of the Customs Tariff Act 1995 provides for Customs Duty rates for excise-equivalent goods to be indexed biannually, in February and August, to the Consumer Price Index (CPI)
The new rates are determined by the application of an indexation factor. This indexation factor is calculated by dividing the most recent June or December Quarter CPI number by the previous highest June or December Quarter CPI number occurring after the June 1983 quarter.
The December 2021 Quarter CPI figure (121.3), will be used to determine the indexation factor for the duty rate increase applied on 01 August 2022, as it is higher than the June 2021 Quarter CPI figure. On the 27th July 2022, the Australian Bureau of Statistics released the 2022 Quarter CPI figure (126.1) the figures used to calculate the indexation factor for August 2022 are as set out below-
Most recent CPI number (June Quarter 2022) - 126.1
Highest previous June or December Quarter (December Quarter 2021) - 121.3
Indexation Factor - 1.040
As the indexation factor for August 2022 (1.040) is greater than one, customs duty rates for certain excise-equivalent goods in Schedule 3 of the Customs Tariff, will increase by the application of this factor
The ABF will arrange for the publication of a Notice of Substituted Rates of Customs Duty for Excise-Equivalent Goods (No.3) 2022 in the Gazette.
The Australian Taxation Office (ATO) will make equivalent changes to the rates of duty on goods subject to excise.
Should you have any further questions or require more information, please do not hesitate to contact a member of our brokerage team for guidance
Further information can be found at- https://lnkd.in/gUjvMzPn
Keeping you updated
Bri Customs Team
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